Brookfield Reinsurance Completes $1.1 Billion Acquisition of Argo Group

Brookfield Reinsurance, a financial services opera. Tor, providing capital solutions to insurers, has finalized its acquisition of Argo Group International Holdings in an all-cash deal valued at around $1.1 billion. Under the agreement’s terms, Brookfield Reinsurance purchased all outstanding common shares of the Bermuda-based specialty property and casualty insurer for $30 per share.

The $30 per Argo share represents a 6.7% premium over the company’s February 7, 2023 closing price and a 48.7% premium over its September 7, 2022 closing price. Brookfield Reinsurance and Argo unanimously approved the definitive merger pact in February 2023. Then, in April 2023, Argo shareholders greenlit the deal for Brookfield Reinsurance to acquire the firm.

With the acquisition complete, Argo’s common stock has ceased trading on the New York Stock Exchange. According to the announcement, Argo’s premier U.S. specialty platform contributes a foundational component to Brookfield Reinsurance’s growing U.S. P&C operations and lifts its assets above $50 billion.

Upon closing, Argo named Jessica Snyder its new CEO, replacing Thomas Bradley, who retired. Snyder is an seasoned executive with over three decades of industry experience. She joined Argo in 2022 as President of US Insurance.

After the original announcement, 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.”

He added, “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.”

Goldman Sachs served as financial advisor and Skadden, Arps, Slate, Meagher & Flom acted as legal advisor to Argo for the transaction.

The acquisition provides Brookfield Reinsurance with Argo’s strong U.S. specialty insurance platform, adding a robust component to its growing P&C business in the U.S. The deal also boosts Brookfield’s total assets above $50 billion. With Argo’s shares ceasing NYSE trading, the agreement culminates the company’s strategic review process to maximize while positioning it for future growth within a larger organization.

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