INSURANCE

PRUDENTIAL SHARES MAY RISE AFTER TAKEOVER OFFER FROM AVIVA

Shares of Prudential Plc, Britain’s second-biggest insurer, may rise after the London based company rejected an approach from larger British competitor Aviva Plc that could have led to the industry’s biggest-ever takeover.

The board, in rebuffing Aviva’s offer, said it has “confidence in Prudential’s future as an independent company.” Aviva made an all-stock bid of about 700 pence a share, said two people familiar with the matter who declined to be identified. The offer, 4.2% above Prudential’s March 17 closing price, valued the insurer at about 16.7 billion pounds ($29.3 billion).

– Bloomberg News

ZURICH’S U.S. UNIT TO PAY $171M SETTLEMENT

DALLAS – Zurich American Insurance Company has agreed to pay nearly $172 million in a deal with nine states to settle allegations of bid-rigging and price-fixing in the commercial insurance market, state officials said Sunday.

Policyholders in all 50 states would receive $151.7 million in refunds, said Mark Tobey, a lawyer with the Texas Attorney General’s office.

The American unit of Zurich Financial Services will pay an additional $20 million to the nine states, including investigative costs, attorney fees and payments in lieu of civil penalties, said Mr. Tobey, who helped negotiate the deal.

– Associated Press