Argo sells Lloyd’s business for $125m to sharpen focus on the US
Bermuda-based Argo Group International Holdings has entered into a definitive agreement for the sale of Argo Underwriting Agency and its Lloyd’s Syndicate 1200 to Westfield.
Argo will receive total cash proceeds of approximately $125 million, representing 1.16x price to tangible book value or 0.81x price to book value as of first quarter 2022, subject to closing-related adjustments.
The deal aims to simplify the re/insurer’s corporate structure and drive greater efficiencies with increased focus on core US businesses.
The transaction is expected to close in the first half of 2023. The sale of Argo’s Lloyd’s business is subject to customary closing conditions and regulatory approvals, including Lloyd’s of London, UK Prudential Regulation Authority and UK Financial Conduct Authority.
Argo stated that as part of its ongoing review of strategic alternatives, the board continues to actively consider a wide range of options for the company.
“As part of our review of strategic alternatives, we are taking decisive actions to optimise our operations and business structure, better positioning the company for continued profitable growth and returns in the U.S. as we strive to maximize value for shareholders,” said Tom Bradley, Argo’s executive chairman and chief executive officer.
“Along with other strategic actions underway, the sale of our Lloyd’s business advances Argo’s primary objective to operate as a nimble, U.S.-centric, commercial specialty insurer,” Bradley added. “As a more focused and streamlined company, we are better positioned to drive our business strategies and evaluate further strategic alternatives to create shareholder value.
“We believe Westfield and our Lloyd’s team members are well positioned for future growth and success, and we thank the Argo employees within those business units for their dedication to improving operational results in recent periods.”
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