Ace Ltd agreed to purchase Chubb Corp, the New Jersey-based insurer of high-end homes and mega-yachts, for $28.3 billion in cash and stock.

Chubb shareholders will receive $62.93 per share in cash and 0.6019 shares of Ace stock, the companies said Wednesday in a statement.

Ace, based in Zurich, will own 70 per cent of the company after the transaction closes, and Ace chairman and chief executive Evan Greenberg will hold the same titles at the combined company, according to the statement.

Mr Greenberg has been expanding Ace through acquisitions around the world. The insurer has bought businesses in Brazil, Thailand and Mexico in recent years.

In December, the company purchased Allianz SE's Fireman's Fund unit serving wealthy clients to expand its coverage of luxury homes, yachts and art collections. The combined company will assume the Chubb name.

“This transaction advances our strategy in a meaningful way and represents an outstanding opportunity to create significant value over a reasonable period of time for both ACE and Chubb shareholders,” Mr Greenberg said.