Argo

The deal price represents 1.16x tangible book value.

A signed deal would end a roughly three-year hiatus for significant strategic balance sheet M&A at Lloyd’s.

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A sale of the managing agency and Syndicate 1200 would represent tangible progress in Argo’s strategic process.

The transaction would mark a fifth legacy deal struck by Argo as it seeks to clean up its back book amid a strategic review.

The executive will report to CEO and executive chairman Tom Bradley, who recently took over the role on a permanent basis.

With the addition of roughly 512,000 shares, Enstar’s interest in Argo was valued at ~$62.7mn at the end of June.

The deal also includes a $75mn loss corridor that must be eroded before adverse development passes to the legacy firm.

The Goldman Sachs-run process drew limited interest and does not offer a path to takeout at a premium valuation.

It is understood that the carrier, which is currently going through a sale process, is being advised by TigerRisk.

The board retained Goldman Sachs to advise in April, and the investment bank has been running a sales process.

Current CEO Bradley will receive 78,760 shares of restricted stock over a 12-month period, as well as 135,000 stock appreciation rights with an exercise price of $43.80.