Consolidation continues as insurance giant bought by conglomerate
Canadian financial services powerhouse Fairfax Financial has agreed to buy global (re)insurance giant Allied World for $4.9bn (£3.9bn).
Fairfax is known for buying up insurance and reinsurance operations around the world. It acquired Lloyd’s insurer Brit last year in a £1.2bn deal.
Fairfax is paying $54 in shares and cash for each Allied World share. The conglomerate said that the price represents an 18% premium to Allied World’s share price of $45.77 when the market closed on 16 December.
The transaction has been unanimously approved by the boards of directors of both companies.
Fairfax chief executive Prem Watsa said: “Allied World is a high-quality company with an excellent long-term track record and an outstanding management team led by Scott Carmilani. Allied World will operate within the Fairfax group on a decentralized basis after closing, and we are looking forward to supporting Scott and the entire team at Allied World in growing their business over the long-term.”
Carmilani added: “This is a tremendous opportunity for Allied World. Our shareholders are being rewarded for the strong performance of Allied World over the last 10 years since going public.”
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
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