Focused on the US, Argo offers a full line of specialty insurance products for the property and casualty market, while Brookfield Reinsurance owns and operates a growing global insurance and reinsurance platform.
As part of the agreement, each issued and outstanding share of Argo common stock will convert into the right to receive $30 in cash at the close of the merger, funded from existing available cash and liquidity available to Brookfield Reinsurance.
Argo has also agreed to suspend the payment of dividends on its common shares until the closing of the transaction.
“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 maximizing value for our shareholders,” said Thomas A. Bradley, Chairman executive and CEO of Argo.
“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.”
Sachin Shah, CEO of Brookfield Reinsurance, said the Argo acquisition represents another milestone in the company’s continued expansion.
“Argo’s leading US specialty platform adds a critical piece to our expanding US P&C operations. We look forward to partnering with the Argo team to support the growth of their core businesses, build their strong franchise and provide value to policyholders,” Shah said in a statement.
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