Brookfield Reinsurance, a financial services business operator providing capital-based solutions to the insurance industry, has completed the acquisition of Argo Group International Holdings, Ltd. in an all-cash transaction valued at approximately $1.1 billion.
Under the terms of the transaction, Brookfield Reinsurance acquired all issued and outstanding common shares of the Bermuda-based specialty P&C insurer at a price of $30 per share.
The consideration per Argo common share represents a 6.7% premium to the firm’s closing share price on February 7th, 2023, and a 48.7% premium over its closing share price on September 7th, 2022.
Brookfield Reinsurance and Argo unanimously approved the definitive merger agreement back in February 2023. A few months later, in April 2023, Argo’s shareholders approved the agreement for the company to be acquired by Brookfield Reinsurance.
Now that the acquisition has been completed, Argo’s common shares have ceased trading on the New York Stock Exchange.
According to the announcement, Argo’s leading U.S. specialty platform adds a foundational piece to Brookfield Reinsurance’s expanding US P&C operations and increases Brookfield Reinsurance’s assets to over $50 billion.
In connection with the closing, Argo also announced that Jessica Snyder will assume the role of Chief Executive Officer of Argo, succeeding Thomas Bradley who is to retire upon closing.
Snyder is an experienced executive with over three decades of industry experience and has been with Argo since 2022, when she joined as President of US Insurance.
Following the original announcement, Bradley noted that 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,” he added.
Goldman Sachs & Co. LLC served as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor to Argo on the transaction.
