Argo
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The announcement comes a week after the institutional investor said it would accelerate its pivot to an insurance-led strategy. -
Arturo Pelaez will continue in his managing director role at Brookfield Asset Management.
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Argo shelved the sale of its Bermudian insurance business in mid-2024.
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The agency cited SiriusPoint’s recent management moves including lower cat exposure as a driver of the change.
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The business – which writes professional liability, excess casualty and property - was marketed by investment bank RBC.
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He brings 23 years of insurance industry experience.
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Slipstream will be available to marine, cargo and logistics UK clients.
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Current CEO Thomas Bradley, who announced his intention to retire on the closure of the deal, will receive a one-time cash bonus of $1.2mn.
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The appointment follows that of Williams and Drakontaidis as head of contract surety and head of commercial surety respectively.
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The US operations drove the net adverse development with a $25.4mn hit, up from $6.7mn in Q2 2022, attributable to business lines the company has exited.
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Argo has also hired former RLI surety head Greg Chilson as an adviser.
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The charge was related to a reassessment of potential claims in professional lines, mostly from accident years 2019 and prior, and to losses from businesses Argo has exited.
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The companies expect to complete the transaction in the second half of the year, subject to regulatory approvals and customary closing conditions.
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Argo’s first bids included an implied firm value of $49.71 per Argo common share and $40 per share in cash, among others.
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The firm’s US unit recorded $36.6mn of net unfavorable development in Q4 2022, compared with a $121.6mn charge in Q4 2021.
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S&P said the change reflected uncertainty around Argo’s risk appetite following its $1.1bn acquisition by Brookfield Reinsurance.
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The member joined the board in August 2022, two and a half years after ending his activist campaign against the carrier’s management.
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The ratings agency has placed under review with developing implications Argo’s A- financial strength ratings, as well as its credit ratings.
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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.
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The consideration represents a 48.7% premium to Argo’s share price before the sale of its Lloyd’s business.
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The New York-listed carrier has completed its $125mn deal.
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Enstar is conducting due diligence around taking on the rest of the Argo back book.
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Activist investor Capital Returns had nominated Ron Bobman and David Michelson, but withdrew the nominations on Monday.
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The carrier has called this month’s vote ‘a critical moment in Argo’s history’.
