Shares of the Hartford Financial Services Group surged more than 18% and were briefly halted for volatility after news that fellow insurance firm Chubb has approached the company about a possible takeover.
The Hartford confirmed reports that it had received an unsolicited, non-binding proposal from Chubb.
"The Hartford's Board of Directors is carefully considering the proposal with the assistance of its financial and legal advisors. The Board of Directors is committed to acting in the best interests of shareholders over the long term," the company said.
Chubb said in a statement that its proposal was a mixture of cash and stock that values The Hartford at $65 per share. On Wednesday, the day before the the possible deal was reported, shares of The Hartford closed at $57.41 per share.
The talks were first reported by Bloomberg News. Chubb's approach was a preliminary move, it is possible that no deal is reached, according to the report.
Chubb, whose shares were down 2.6% on Thursday, has a market cap of roughly $77 billion, nearly four times larger than Hartford.