Shares digital

M&A newsflow in the insurance sector continues to move share prices, with Heritage Underwriting (HUA) dropping around 15% to 117.5p after Cayman Island-based insurer Ironshore halted takeover talks.

An indicative proposal for Heritage came from Ironshore in December, but it ‘significantly undervalued Heritage’s prospects as an independent entity’, Heritage says, adding it is now talking to other potential suitors.

Analysts at Numis wrote last month that approaches for London insurers could keep coming from offshore companies with healthy balance sheets but constrained growth prospects. Other companies in the fray could be Hardy Underwriting (HDU) and Hiscox (HSX), which also look tempting bid prospects.

Shares says: Betting on M&A can be dangerous in such volatile times.

by: Carlo Svaluto