Property & casualty insurer Ace Limted ACE, said Wednesday it has agreed to acquire Chubb Corp. CB, -1.21% in a cash and stock deal valued at about $28.3 billion. Chubb shareholders will receive $62.93 per share in cash and 0.6019 Ace shares, equal to about a 30% premium over Chubb's closing price Tuesday. "Together, ACE and Chubb will create a global leader in commercial and personal property and casualty (P&C) insurance, with enhanced growth and earning power and an exceptional balance of products as a result of greater diversification and a product mix with reduced exposure to the P&C industry pricing cycle," Ace said in a statement. The deal is expected to immediately boost Ace earnings per share and book value, and to generate $650 million savings. The combined company will be headed by Ace Chief Executive Evan Greenberg with Chubb CEO John Finnergan acting as executive vice chairman for external affairs of North America. The deal is expected to close in the first quarter of 2016. Ace shares were not trading premarket, but have fallen 11.5% in the year so far, while the S&P 500 has gained 0.2%.