London-listed Hiscox is pulling its plans to sell DirectAsia to Ignite Thailand because customary conditions and regulatory approvals have not been met within the agreed timeframe, the company revealed via a stock exchange announcement.
“These conditions have not been met within the agreed time period and the agreement to sell has now been terminated. The group is exploring other options,” the specialist insurer shared on August 7, along with its H1 2024 interim results.
In September 2023, Hiscox announced its exit from the Asia Market, along with an announcement that it has agreed to sell the Singapore and Thailand operations of Business Asia to Ignite Thailand.
The terms of the sale were never publicised, but the deal was originally expected to be completed by the end of 2023, per the announcement.
Bermuda-headquartered Hiscox acquired DirectAsia in March 2014 for US$55m, and it has previously sold its Hong Kong operations in 2016 to local insurance company Well Link.
On Monday, shares in Hiscox saw an increase by as much as 14%. This follows reports of potential takeover bids from businesses like Japan’s Sompo Holdings and Italy’s Assicurazioni Generali, according to Insurance Insider.
However, according to Reuters, a source close to Generali revealed that the company did not have plans to expand in the insurance segment in Britain.
Amid acquisition rumours, Hiscox shares recently traded at 1,267 pence, which is the highest level since 2020. This gives the company a market valuation of approximately £4.3bn.
The specialist insurer also reached its highest-ever annual profit last year, with higher interest rates and the strong performance of its commercial business being two significant contributing factors.
