Brookfield Reinsurance, a financial services operator delivering capital solutions to insurers, has completed its acquisition of Argo Group International Holdings in an all-cash agreement worth about $1.1 billion.
Per the terms, Brookfield Reinsurance bought all issued and outstanding common stock of the Bermuda-based specialty property and casualty insurer for $30 per share. This price per share was a 6.7% premium over Argo’s closing price on February 7, 2023, and a 48.7% premium over its September 7, 2022 closing price.
Brookfield Reinsurance and Argo unanimously approved the definitive merger agreement in February 2023. Subsequently, in April 2023, Argo shareholders sanctioned the deal for the company to be acquired by Brookfield Reinsurance.
With the acquisition finalized, Argo’s common shares have stopped trading on the New York Stock Exchange.
The announcement mentioned that Argo’s leading U.S. specialty platform provides a foundational segment to Brookfield Reinsurance’s growing U.S. P&C operations and increases Brookfield Reinsurance’s assets to over $50 billion.
Upon closing, Jessica Snyder will assume the role of Chief Executive Officer of Argo, replacing Thomas Bradley, who is retiring. Snyder is a seasoned executive with over three decades of industry expertise. She joined Argo in 2022 as President of US Insurance.
After the initial 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 acted as financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to Argo for the deal.
The purchase gives Argo enhanced financial strength as part of Brookfield Reinsurance, enabling it to keep serving brokers and policyholders as a U.S. specialty insurer while maximizing shareholder value. Brookfield Reinsurance obtains Argo’s leading specialty insurance platform as a cornerstone of its growing P&C operations in the U.S., lifting its total assets above $50 billion.