Beazley offer "substantially undervalues" Hardy

Hardy Underwriting Bermuda rejected a £3-a-share bid from fellow Lloyd's insurer Beazley because it "substantially undervalues" the company, Hardy said in a statement.

Hardy argued that the Beazley bid, made on 6 October, did not reflect its strong underwriting track record, its successful growth strategy, its focus on attractive short-tail lines, its high-quality underwriting teams and management,and its prudent reserving policy.

"The board views the proposal as an attempt to acquire the company opportunistically, when valuations of listed Lloyd's companies are at a cyclical low and to exploit the impact on Hardy of a series of exceptional international property treaty losses," the Hardy statement read.

"The board, having carefully considered the proposal together with its advisers Rothschild and KBC Peel Hunt, was of the unanimous opinion that it significantly undervalues the company and consequently had no hesitation in rejecting the proposal."