Brookfield Reinsurance to acquire specialty insurance underwriter Argo Group

Canadian investment management company Brookfield Reinsurance will acquire Bermuda-based insurance company Argo Group International in an all-cash deal valued at around $1.1 billion.

The transaction takes the New York Stock Exchange (NYSE) Argo Group private and just follows the acquisition of Argo Underwriting Agency Limited and its Lloyd’s Syndicate 1200 by Westfield for approximately $125 million.

Shareholders of Argo Group will be paid $30 per share at the closing of the merger by Brookfield Reinsurance.

Brookfield Reinsurance expects to increase its presence in the US property and casualty insurance space through the acquisition.

Sachin Shah — Brookfield Reinsurance CEO said: “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.”

Argo Group, with operations in London, Bermuda, the Middle East, and North Africa, provides casualty insurance for the manufacturing and services segments in the US.

Thomas A. Bradley — Argo Group Executive Chairman and CEO said: “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.”

Debevoise & Plimpton is acting as legal advisor to Brookfield Reinsurance while Skadden, Arps, Slate, Meagher & Flom is serving as legal advisor to Argo Group.

The transaction is expected to close in the second half of 2023, subject to regulatory approvals and other customary closing conditions.

In May 2022, Brookfield Reinsurance, a reinsurance arm of Brookfield Asset Management, acquired American National for $5.1 billion.