Argo Group to Go Private in $1.1 Billion Sale to Brookfield Reinsurance

Brookfield Reinsurance announced it will acquire Argo Group International Holdings in an all-cash transaction valued at about $1.1 billion, taking the company private.

Bermuda-based insurer Argo announced in April 2022 that it had begun searching for “strategic alternatives” after several years of losses and turmoil, marked by the Securities and Exchange Commission’s investigation of the company’s excessive corporate expenses, which upset shareholders and caused management upheavals. Argo reported a net loss attributable to common shareholders of $4.7 million for 2021.

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“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,” Thomas A. Bradley, Argo’s Executive Chairman and Chief Executive Officer. “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.”

Brookfield Reinsurance, which is also based in Bermuda, is a three-year-old publicly traded insurance holding company.

“The acquisition of Argo represents another milestone in the continued expansion of our insurance solutions business. Argo’s leading US specialty platform adds a foundational piece to our expanding U.S. P&C operations,” Sachin Shah, Chief Executive Officer, said in a statement.

The boards of directors of Brookfield and Argo, and Argo unanimously approved the merger agreement as did Argo’s largest shareholder, Voce Capital Management LLC. The deal is expected to close in the second half of 2023.