Brookfield Reinsurance, a financial services operator providing capital solutions to the insurance sector, has completed its acquisition of Argo Group International Holdings, Ltd. 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. The per-share consideration represents a 6.7% premium over Argo’s closing price on February 7, 202,3, and a 48.7% premium over its closing price on September 7, 2022.
Brookfield Reinsurance and Argo unanimously approved the definitive merger pact in February 2023. A few months later,r in April 2023, Argo’s shareholders sanctioned the deal for the company to be acquired by Brookfield Reinsurance.
With the acquisition finalized, Argo’s common stock has ceased trading on the New York Stock Exchange. The announcement stated that Argo’s leading U.S. specialty platform contributes a foundational element to Brookfield Reinsurance’s expanding U.S. P&C operations and lifts Brookfield Reinsurance’s assets above $50 billion.
Alongside the closing, Argo declared that Jessica Snyder will take on the role of Chief Executive Officer, succeeding Thomas Bradle,y who will retire upon closing. Snyder is an experienced executive with over three decades of industry experience. She joined Argo in 2022 as President of US Insurance.
After the original announcement, Bradley noted the agreement with Brookfield Reinsurance “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.”
“By joining Brookfield Reinsurance, Argo will continue to serve our brokers with greater financial strength and opportunities to grow as a US-focused specialty insurer,” Bradley added.
Goldman Sachs & Co. LLC functioned as a financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP served as a legal advisor to Argo on the transaction.
The deal, valued at around $1.1 billion, marks a significant acquisition for Brookfield Reinsurance as it continues expanding its presence in the U.S. P&C market. Argo’s leading specialty insurance platform in the U.S. represents an important addition that propels Brookfield Reinsurance over the $50 billion asset threshold.
With longtime Argo CEO Thomas Bradley retiring, Jessica Snyder steps in asthe new CEO to steer the company forward under Brookfield Reinsurance’s ownership. The acquisition provides Argowith enhanced financial strength and growth opportunities moving ahead as part of the Brookfield Reinsurance organization.