Merger talks between Cox Insurance and Highway Insurance have been jointly terminated, the two companies announced today.
Cox said it believed the deal would not be in the interests of its shareholders, and placed the cost of the due diligence process at approximately £2m.
The company said it remained committed to its strategy for driving growth by applying selective underwriting criteria and “exploiting organic growth opportunities as well as explore selective acquisitions, when suitable opportunities arise”.
The board of Highway Insurance Holdings said the company had a strong future as a specialist underwriter of motor insurance and as an independent public company.
It added: “In particular, Highway has the advantages of a strong management team, a highly developed focus, disciplined underwriting, robust reserves and market leading systems.”
News of a possible merger between the two insurers was first reported in March 2004.
