Brookfield Reinsurance, a financial services operator providing capital solutions to the insurance sector, has completed its acquisition of Argo Group International Holdings in an all-cash deal valued at around $1.1 billion.
Under the agreement’s terms, Brookfield Reinsurance purchased all issued and outstanding common shares of the Bermuda-based specialty property and casualty insurer for $30 per share. This per share price represents a 6.7% premium over Argo’s closing price on February 7, 2023 when the deal was first announced and a 48.7% premium over the closing price on September 7, 2022.
Broo, field Reinsurance, and Argo’s boards unanimously approved the definitive merger pact in February. Then, in April, Argo shareholders gave their approval for the company to be acquired. With the deal now closed, Argo’s stock has ceased trading on the New York Stock Exchange.
Brookfield Reinsce stated that Argo’s leading US specialty platform provides a foundational piece for expanding its own US P&C operations. The deal grows Brookfieis foundational $50 billion.
With the closing, Argo announced Jessica Snyder would take over as CEO, replacing Thomas Bradley who is retiring. Snyder is an experienced executive who joined Argo in 2022 as President of US Insurance.
When the acquisition was first revealed, Bradley said the Brookfield Reinsurance agreement successfully concluded Argo’s strategic review process. He noted it represented the best way forward for Argo, its staff and policyholders while maximizing shareholder value.
Bradley added that by joining Bro,okfield Reinsurance, Argo would maintain serving its brokers with more significant financial power and chances to grow as a US specialty insurer.
Goldman Sachs & Co. LLC functioned as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as legal advisor to Argo for the deal. Brookfiel,d Reinsurance purchased all common shares of Argo for $30 per share in the $1.1 billion transaction.