Brookfield Reinsurance to Take Insurance Firm Argo Private in $1.1B Deal

Brookfield Asset Management's reinsurance unit agreed to buy out insurer Argo Group International for $1.1 billion.

Source: Reuters | Published on February 8, 2023

Insurance M&As slow down

Brookfield Asset Management’s reinsurance unit agreed to buy out insurer Argo Group International for $1.1 billion, as the Canadian firm seeks to expand its presence in the US property and casualty insurance market.

Brookfield Reinsurance said on Wednesday that after the merger is completed in the second half of 2023, it will offer Argo shareholders a $30 cash payment, representing a premium of about 7% to the stock’s last close.

Argo provides casualty insurance in the United States to the manufacturing and service sectors. According to its website, the company also has an international presence in Bermuda, London, the Middle East, and North Africa.

Insurers and asset managers have formed a number of alliances in recent months in order to increase the amount of money they manage.

Asset managers and private equity firms have also served as a conduit for publicly traded companies to exit the stock market when few others are willing to do deals, as companies prioritize cost cuts over mergers and acquisitions.

Brookfield Reinsurance purchased another insurer, American National Group Inc, for $5.1 billion in May of last year. Meanwhile, in October, Blackstone Inc invested $500 million in Resolution Life through a partnership.