By Robb M. Stewart


Brookfield Reinsurance Ltd. has agreed to buy Argo Group International Holdings Ltd. in an all-cash deal, valuing the insurance underwriter at about $1.1 billion.

The acquisition is another step in Brookfield's efforts to expand its insurance business, adding to its U.S. property and casualty insurance operations.

Under the terms of the deal, each issued and outstanding Argo share will be converted into the right to receive $30 in cash at the closing of tie-up, which Brookfield said will be funded by existing cash on hand and available liquidity.

The price represents a 6.7% premium to Argo's closing share price on Tuesday, and a 49% premium over the closing price on Sept. 7, the last trading day before Argo unveiled the sale of Argo Underwriting Agency Ltd. and the continuation of a strategic review.

The boards of both companies have unanimously approved the agreement, which is expected to close in the second half of the year, the companies said.

Argo said that with the agreement it has agreed to suspend the payment of dividends through the closing of the transaction.

Argo's shares advanced in premarket trading, rising 4.9% after ending Tuesday at $28.11.


Write to Robb M. Stewart at robb.stewart@wsj.com


(END) Dow Jones Newswires

02-08-23 0914ET