- Brookfield Reinsurance (BNRE) and Argo Group International Holdings have signed a definitive merger agreement
- Under the agreement, Brookfield Reinsurance will acquire Argo in an all-cash transaction valued at approximately $1.1 billion
- Each issued and outstanding Argo common share will be converted into the right to receive $30.00 in cash at closing of the merger
- Argo Group International Holdings Ltd. is a U.S.-focused underwriter of specialty insurance products in the property and casualty market
- Brookfield Reinsurance Ltd. operates a leading financial services business providing capital-based solutions to the insurance industry
- Brookfield Reinsurance Ltd. opened trading at C$49.16
Brookfield Reinsurance (BNRE) and Argo Group International Holdings have signed a definitive merger agreement.
Under the agreement, Brookfield Reinsurance will acquire Argo in an all-cash transaction valued at approximately US$1.1 billion.
“The acquisition of Argo represents another milestone in the continued expansion of our insurance solutions business,” noted Sachin Shah, Chief Executive Officer of Brookfield Reinsurance.
“Argo’s leading U.S. specialty platform adds a foundational piece to our expanding U.S. P&C operations, and we look forward to partnering with the Argo team to support the growth of its core businesses, build on its strong franchise, and deliver value for policyholders,” he added.
“This transaction brings a successful conclusion to Argo’s strategic alternatives review process and represents the best path forward for Argo, our employees and policyholders while also maximizing value for our shareholders,” stated Thomas A. Bradley, Argo’s Executive Chairman and Chief Executive Officer.
As part of the agreement, each issued and outstanding Argo common share will be converted into the right to receive $30.00 in cash at closing of the merger, funded by existing cash on hand and liquidity available to Brookfield Reinsurance.
The transaction is not subject to any financing condition or contingency.
The respective boards of directors of Brookfield Reinsurance and Argo unanimously approved the merger agreement.
The merger is expected to close in the second half of 2023, subject to approval by Argo shareholders and other closing conditions customary for a transaction of this type.
Under the terms of the merger agreement, Argo has agreed to suspend the payment of dividends on its common shares through the closing of the transaction.
Argo Group International Holdings Ltd. is a U.S.-focused underwriter of specialty insurance products in the property and casualty market.
Brookfield Reinsurance Ltd. operates a leading financial services business providing capital-based solutions to the insurance industry.
Brookfield Reinsurance Ltd. opened trading at C$49.16.
