Brookfield Reinsurance, a financial services operator giving capital-based solutions to insurers, has finished its takeover 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 insurer 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 closing price on September 7, 2022.
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 acquired 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 is pivotal to Brookfield Reinsurance’s growing U.S. P&C operations and lifts Brookfield Reinsurance’s assets above $50 billion.
Upon closing, Jessica Snyder will become Chief Executive Officer of Argo, replacing Thomas Bradley who is retiring. Snyder is a seasoned executive with over three decades of industry 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 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 takeover gives Argo enhanced financial strength as part of Brookfield Reinsurance, allowing 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 business in the U.S., lifting its total assets above $50 billion.