Argo

The companies expect to complete the transaction in the second half of the year, subject to regulatory approvals and customary closing conditions.

Argo’s first bids included an implied firm value of $49.71 per Argo common share and $40 per share in cash, among others.

The firm’s US unit recorded $36.6mn of net unfavorable development in Q4 2022, compared with a $121.6mn charge in Q4 2021.

S&P said the change reflected uncertainty around Argo’s risk appetite following its $1.1bn acquisition by Brookfield Reinsurance.

The member joined the board in August 2022, two and a half years after ending his activist campaign against the carrier’s management.

The ratings agency has placed under review with developing implications Argo’s A- financial strength ratings, as well as its credit ratings.

The reinsurer said in its Q4 earnings call that Argo’s takeover further diversifies its operations and adds a foundational piece to its expanding P&C activity in the US.

The consideration represents a 48.7% premium to Argo’s share price before the sale of its Lloyd’s business.

The New York-listed carrier has completed its $125mn deal.

Enstar is conducting due diligence around taking on the rest of the Argo back book.

Activist investor Capital Returns had nominated Ron Bobman and David Michelson, but withdrew the nominations on Monday.

The carrier has called this month’s vote ‘a critical moment in Argo’s history’.