Shares in FTSE 100 insurer Hiscox (LON: HSX) surged to an all-time high on Friday after Canada’s Intact Financial Corp was reported to be exploring a potential takeover of the Lloyd’s of London specialist.
According to a report by the Insurance Post, Intact Financial — one of Canada’s largest property and casualty insurers — is weighing up a bid for the London-listed group.
Acquiring Hiscox would help Intact build out its commercial lines of business, the publication said, adding that Intact’s chief executive has been actively seeking a major acquisition target and is known to be a “fan” of Hiscox. Hiscox declined to immediately comment.
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The news sent Hiscox’s shares rocketing as much as 15.3% to an all-time high of £18.90, before closing up 12.3% at £18.41. Trading volume was nearly three times the daily average, reflecting a surge of investor interest. The move was all the more striking given that the broader FTSE 100 fell 177 points on the day amid inflation fears and geopolitical tensions.
The reported approach makes Hiscox the latest in a string of UK-listed companies to attract overseas interest this week. On Thursday, ingredients group Tate & Lyle confirmed a £2.7bn takeover offer from US rival Ingredion, sending its shares up 45%. Meanwhile, FTSE 100 testing company Intertek said it was “minded to recommend” a £10.6bn offer from Swedish private equity group EQT.
The flurry of bids has reignited debate about the chronic undervaluation of UK-listed businesses relative to global peers, with cheaper sterling valuations making British companies increasingly attractive to foreign acquirers.
Hiscox is considered a premium franchise with a strong presence, retail operations, and reinsurance business.
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