Hiscox has rebuffed a £310m offer from US insurer Chubb to acquire the remaining 72% of the Lloyd's insurer it does not already own.

Talks, which began with an approach from Chubb last week, broke down after its offer of 210p per Hiscox share was said by the board to “significantly undervalue” the company. Chubb acquired a 28% stake in Hiscox for 225p per share in 1998.

Hiscox's share price had increased almost 50% from 145.5p to 215.5 on the news of the potential bid before dropping to 175p on Tuesday.

A statement from Hiscox said its prospects remained excellent despite recent trading difficulties.