Endurance Specialty Holdings Ltd has announced that it has terminated its $3.2 billion offer to acquire fellow Bermuda re/insurer Aspen Insurance Holdings Ltd.

Hence Endurance will not be pursuing its board size increase and scheme of arrangement proposals for which it had campaigned for the support of Aspen shareholders. A majority of those shareholders rejected the proposals, Aspen said last week.

John Charman, chairman and chief executive officer of Endurance, said: “We appreciate the support of those Aspen shareholders who voted for Endurance’s proposals. The votes of support for both of our proposals exceeded our stated thresholds. However, we believe the current Bermuda corporate governance laws, Aspen’s focus on defensive self-preservation tactics rather than value creation and the unwillingness of Aspen’s shareholders to take a stand, make it impractical at this time for Aspen shareholders to realise the compelling value of our offer, which as of the close of trading last Friday was equal to $49.60 per Aspen common share.

“While the strategic and financial benefits of Endurance’s proposed transaction are plainly evident, our management and board of directors recognise the importance of being responsible custodians of our own shareholders’ capital.

“As we have for the past year, we will continue to focus on the successful execution of our business plan and the accretion of value for our shareholders.”

The exchange offer was previously scheduled to expire on August 29, 2014. Endurance has instructed the exchange agent for the exchange offer to promptly return all Aspen common shares to tendering shareholders.