- Brookfield Reinsurance (NYSE: BNRE) is buying Argo Group International Holdings, Ltd. (NYSE: ARGO) for $1.1 billion. These are the details.
Brookfield Reinsurance (NYSE: BNRE) and Argo Group International Holdings, Ltd. (NYSE: ARGO) announced they have entered into a definitive merger agreement whereby Brookfield Reinsurance will acquire Argo in an all-cash transaction valued at approximately $1.1 billion.
As part of the agreement, each issued and outstanding Argo common share will be converted into the right to receive $30 in cash at the closing of the merger, funded by existing cash on hand and the liquidity available to Brookfield Reinsurance. And the merger consideration per Argo common share represents a 6.7% premium to Argo’s closing share price on February 7, 2023, and a 48.7% premium over Argo’s closing share price on September 7, 2022, the last full trading day prior to Argo announcing the sale of Argo Underwriting Agency Limited and its Lloyd’s Syndicate 1200 and the continuation of its strategic alternatives review process. The transaction is not subject to any financing condition or contingency.
Each of Brookfield Reinsurance’s and Argo’s boards of directors unanimously approved the merger agreement. And the merger is expected to close in the second half of 2023, subject to approval by Argo shareholders and other closing conditions customary for a transaction of this type, including receipt of insurance regulatory approvals.
Under the terms of the merger agreement, Argo has agreed to suspend the payment of dividends on its common shares through the closing of the transaction.
“The acquisition of Argo represents another milestone in the continued expansion of our insurance solutions business. Argo’s leading U.S. specialty platform adds a foundational piece to our expanding U.S. P&C operations. We look forward to partnering with the Argo team to support the growth of its core businesses, build on its strong franchise, and deliver value for policyholders.”
— Sachin Shah, Chief Executive Officer of Brookfield Reinsurance
“This transaction 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 U.S.-focused specialty insurer.”
— Thomas A. Bradley, Argo’s Executive Chairman and Chief Executive Officer