ACE completes acquisition of Chubb, assumes debt, provides guarantee

By Angela McDaniels

Tacoma, Wash., Jan. 15 – ACE Ltd. completed its acquisition of fellow property and casualty insurance company Chubb Corp. and now guarantees its debt securities, according to an 8-K filing with the Securities and Exchange Commission.

The guarantee affects the following Chubb securities:

• $600 million 5.75% notes due May 15, 2018;

• $100 million 6.6% debentures due Aug. 15, 2018;

• $200 million 6.8% debentures due Nov. 15, 2031;

• $800 million 6% notes due May 11, 2037;

• $600 million 6.5% notes due May 15, 2038; and

• $1 billion 6.375% directly issued subordinated capital securities due March 29, 2067.

In the merger, Zurich-based ACE Ltd. acquired Warren, N.J.-based Chubb Corp. and became Chubb Ltd.

Chubb Corp. merged with ACE INA Holdings Inc., with ACE INA surviving as a subsidiary of Chubb Ltd. ACE INA assumed Chubb Corp.’s rights, duties and obligations.

Former holders of Chubb Corp. common stock received about $29.5 billion, including roughly $15.2 billion of ACE common shares and about $14.3 billion of cash.

As previously reported, ACE INA sold $5.3 billion of notes in four tranches in October to help fund the acquisition.

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