Brookfield Reinsurance, a financial services operator providing capital solutions to the insurance sector, has finalized its acquisition of Argo Group International Holdings in an all-cash deal valued at around $1.1 billion.
Under the agreement, Brookfield Reinsurance purchased all outstanding common shares of the Bermuda-based specialty property and casualty insurer for $30 per share. This price per Argo share signifies a 6.7% premium over the closing price on February 7, 2023, when the deal was first announced, and a 48.7% premium compared to the closing price on September 7, 2022.
In February, Brookfield Reinsurance and Argo unanimously approved the definitive merger pact. Then, in April, Argo’s shareholders greenlighted the deal for the company to be acquired by Brookfield Reinsurance.
With the acquisition now complete, Argo’s common stock has stopped trading on the New York Stock Exchange. According to the announcement, Argo’s leading U.S. specialty platform contributes a foundational segment to Brookfield Reinsurance’s expanding U.S. P&C activities and lifts Brookfield Reinsurance’s assets above $50 billion.
Connected to the closing, Argo named Jessica Snyder as the new Chief Executive Officer, replacing Thomas Bradley, who is retiring upon completion of the deal. Snyder is a seasoned executive with over 30 years of industry experience. She joined Argo in 2022 as President of US Insurance.
After the original proclamation, Bradley said the Brookfield Reinsurance agreement “brings a successful conclusion to Argo’s strategic alternatives review process and represents the best path forward for Argo, our employees, and policyholders while 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.
The acquisition gives Brookfield Reinsurance an immediate foothold in the U.S. specialty insurance market and expands its presence in property and casualty insurance. Argo’s platform focuses on niche and underserved markets, complementing Brookfield Reinsurance’s reinsurance capabilities and supporting its growth ambitions.
Argo shareholders approved the deal in April after the company conducted a strategic review and determined the transaction represented maximum value. The $30 per share deal price came after months of negotiations between the two sides.
Goldman Sachs advised Argo on the deal, with Skadden Arps providing legal counsel. Brookfield continues to build up its insurance investment portfolio, deploying capital to acquire attractive platforms across P&C, life, and reinsurance.
The closing of the acquisition cements Brookfield Reinsurance’s status as a significant new player in the insurance investment sector. With over $50 billion in total assets after absorbing Argo Group, the company has the scale and financial resources to pursue additional deals and expand its insurance footprint globally.