Brookfield Reinsurance, a financial services operator delivering capital solutions to insurers, has finalized its purchase of Argo Group International Holdings in an all-cash agreement worth about $1.1 billion.
Under the deal’s terms, Brookfield Reinsurance bought all issued and outstanding common stock of the Bermuda-based specialty property and casualty firm for $30 per share. This per share price 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 sanctioned the definitive merger contract in February 2023. After that, in April 2023, Argo shareholders approved the agreement for the company to be taken over by Brookfield Reinsurance.
With the takeover now complete, Argo’s common shares have stopped trading on the New York Stock Exchange.
The statement said that Argo’s leading U.S. specialty platform provides a foundational segment to Brookfield Reinsurance’s growing U.S. P&C activities 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 sector experience. She joined Argo in 2022 as President of US Insurance.
After the original announcement, Bradley stated the deal with Brookfield Reinsurance “brings a successful end to Argo’s strategic alternatives review process and represents the best path ahead for Argo, our employees, and policyholders while also maximizing value for our shareholders.”
“By joining Brookfield Reinsurance, Argo will keep serving our brokers with greater financial strength and opportunities to expand 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 takeover gives Argo enhanced financial strength as part of Brookfield Reinsurance, enabling it to continue serving brokers and policyholders as a U.S. specialty insurer while maximizing shareholder value. Brookfield Reinsurance obtains Argo’s leading specialty insurance unit as a cornerstone of its growing P&C operations in the U.S., lifting its total assets above $50 billion.