US-focused 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 Argo common share will be converted into the right to receive US$30 in cash at the closing of the merger, funded by existing cash on hand and liquidity available to Brookfield Reinsurance.
Argo has also agreed to suspend the payment of dividends on its common shares through 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 also maximizing value for our shareholders,” said Thomas A. Bradley, executive chairman 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 acquisition of Argo represents another milestone in the firm’s continued expansion.
“Argo’s leading US specialty platform adds a foundational piece to our expanding US 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,” Shah said in a release.
