| | | | | 1 | | | |
| | | | | 1 | | | |
| | | | | 1 | | | |
| | | | | 1 | | | |
| | | | | 2 | | | |
| | | | | 2 | | | |
| | | | | 4 | | | |
| | | | | 5 | | | |
| | | | | 5 | | | |
| | | | | 5 | | | |
| | | | | 6 | | | |
| | | | | 10 | | | |
| | | | | 10 | | | |
| | | | | 10 | | | |
| | | | | 10 | | | |
| | | | | 11 | | | |
| | | | | 13 | | | |
| | | | | 22 | | | |
| | | | | 23 | | | |
| | | | | 23 | | | |
| | | | | 23 | | | |
| | | | | 23 | | | |
| | | | | 24 | | | |
| | | | | 24 | | | |
| | | | | 24 | | | |
| | | | | 33 | | | |
| | | | | 37 | | | |
| | | | | 42 | | | |
| | | | | 44 | | | |
| | | | | 44 | | | |
| | | | | 45 | | | |
| | | | | 53 | | | |
| | | | | 53 | | | |
| | | | | 54 | | | |
| | | | | 55 | | | |
| | | | | 55 | | | |
| | | | | 57 | | | |
| | | | | 57 | | | |
| | | | | 57 | | | |
| | | | | 58 | | | |
| | | | | 58 | | |
| | | | | 61 | | | |
| | | | | 62 | | | |
| | | | | 65 | | | |
| | | | | 66 | | | |
| | | | | 67 | | | |
| | | | | 69 | | | |
| | | | | 70 | | | |
| | | | | 71 | | | |
| | | | | 75 | | | |
| | | | | 75 | | | |
| | | | | 76 | | | |
| | | | | 77 | | | |
| | | | | 78 | | | |
| | | | | 78 | | | |
| | | | | 78 | | | |
| | | | | 79 | | | |
| | | | | 80 | | | |
| | | | | 81 | | | |
| | | | | 81 | | | |
| | | | | 81 | | | |
| | | | | 81 | | | |
| | | | | 82 | | | |
| | | | | 82 | | | |
| | | | | 82 | | | |
| | | | | 83 | | | |
| | | | | 84 | | | |
| | | | | 84 | | | |
| | | | | 85 | | | |
| | | | | 87 | | | |
| | | | | 89 | | | |
| | | | | 90 | | | |
| | | | | 90 | | | |
| | | | | 90 | | | |
| | | | | 90 | | | |
| | | | | 90 | | | |
| | | | | 91 | | | |
| | | | | 91 | | | |
| | | | | 92 | | | |
| | | | | 92 | | | |
| | | | | 93 | | | |
| | | | | 94 | | | |
| | | | | 95 | | |
| | | | | 96 | | | |
| | | | | 97 | | | |
| | | | | 98 | | | |
| | | | | 99 | | | |
| | | | | 100 | | | |
| | | | | 101 | | | |
| | | | | A-1 | | | |
| | | | | A-1-1 | | | |
| | | | | B-1 | | | |
| | | | | C-1 | | |
| | |
Implied Premium Represented
by $30.00 Per Common Share Merger Consideration |
| |||
Reference Price Per Common Share | | | | | | | |
Current Share Price of $27.80
|
| | | | 7.9% | | |
Share Price Prior to Continuation of Strategic Alternative Review of $20.18
|
| | | | 48.7% | | |
All-time High Share Price of $78.07
|
| | | | (61.6)% | | |
52-Week High Price of $55.69
|
| | | | (46.1)% | | |
52-Week Low Price of $19.25
|
| | | | 55.8% | | |
30-Day VWAP of $26.75
|
| | | | 12.2% | | |
90-Day VWAP of $24.52
|
| | | | 22.4% | | |
|
Announced
|
| |
Acquiror
|
| |
Target
|
| |
Equity
Value ($mm) |
| |
P/BV
|
| ||||||
| January 2021 | | | TowerBrook Capital Partners; Further Global Capital Management | | | ProSight Global, Inc. | | | | $ | 586 | | | | | | 0.96x | | |
| August 2020 | | | Third Point Reinsurance Ltd. | | | Sirius International Insurance Group, Ltd. | | | | | 788 | | | | | | 0.52x | | |
| August 2018 | | | Apollo Global Management, LLC | | | Aspen Insurance Holdings Limited | | | | | 2,600 | | | | | | 1.12x | | |
| August 2018 | | |
Hartford Financial Services Group,
Inc. |
| | The Navigators Group, Inc. | | | | | 2,152 | | | | | | 1.74x | | |
| May 2017 | | | Intact Financial Corporation | | | OneBeacon Insurance Group, Ltd. | | | | | 1,702 | | | | | | 1.65x | | |
| December 2016 | | | Liberty Mutual Insurance Co. | | | Ironshore Inc. | | | | | 2,935 | | | | | | 1.38x | | |
| May 2015 | | | Fosun International Limited. | | | Ironshore Inc. | | | | | 2,300 | | | | | | 1.21x | | |
| June 2013 | | |
Fairfax Financial Holdings Limited
|
| | American Safety Insurance Holdings, Ltd. | | | | | 306 | | | | | | 0.91x | | |
| | |
2022
Estimate |
| |
2023
Plan |
| |
2024
Projection |
| |
2025
Projection |
| |
2026
Projection |
| |||||||||||||||
Gross Written Premium
|
| | | $ | 2,848.1 | | | | | $ | 2,190.2 | | | | | $ | 2,264.8 | | | | | $ | 2,349.0 | | | | | $ | 2,432.8 | | |
Net Written Premium
|
| | | | 1,743.0 | | | | | | 1,416.6 | | | | | | 1,477.0 | | | | | | 1,544.2 | | | | | | 1,611.9 | | |
Earned Premium
|
| | | | 1,742.0 | | | | | | 1,404.5 | | | | | | 1,454.3 | | | | | | 1,514.5 | | | | | | 1,574.7 | | |
Loss and LAE Incurred
|
| | | | 1,166.9 | | | | | | 849.2 | | | | | | 879.8 | | | | | | 910.8 | | | | | | 942.2 | | |
Underwriting Expenses
|
| | | | 670.5 | | | | | | 490.7 | | | | | | 496.0 | | | | | | 509.5 | | | | | | 523.4 | | |
Underwriting Gain/(Loss)
|
| | | $ | (95.4) | | | | | $ | 64.6 | | | | | $ | 78.6 | | | | | $ | 94.1 | | | | | $ | 109.0 | | |
Net Investment Income
|
| | | | 129.8 | | | | | | 131.6 | | | | | | 142.1 | | | | | | 157.2 | | | | | | 172.1 | | |
Interest Expense
|
| | | | (25.8) | | | | | | (30.3) | | | | | | (20.0) | | | | | | (20.0) | | | | | | (20.0) | | |
Net Income/(Loss) Available to Common Shareholders
|
| | | $ | (186.3) | | | | | $ | 112.2 | | | | | $ | 138.6 | | | | | $ | 163.4 | | | | | $ | 187.5 | | |
Operating Income/(Loss) Available to Common Shareholders(2)
|
| | | $ | (2.5) | | | | | $ | 117.1 | | | | | $ | 138.6 | | | | | $ | 163.4 | | | | | $ | 187.5 | | |
Underwriting Ratios
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Combined Ratio
|
| | | | 105.5% | | | | | | 95.4% | | | | | | 94.6% | | | | | | 93.8% | | | | | | 93.1% | | |
Financial Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings Per Share – Operating Income
|
| | | $ | (0.07) | | | | | $ | 3.30 | | | | | $ | 3.91 | | | | | $ | 4.70 | | | | | $ | 5.54 | | |
Common Shareholders’ Equity – Beginning of
Period |
| | | | 1,591.2 | | | | | | 1,088.3 | | | | | | 1,248.2 | | | | | | 1,411.4 | | | | | | 1,576.7 | | |
Common Shareholders’ Equity – End of Period
|
| | | | 1,088.3 | | | | | | 1,248.2 | | | | | | 1,411.4 | | | | | | 1,576.7 | | | | | | 1,703.6 | | |
Average Common Shareholders’ Equity
|
| | | | 1.339.8 | | | | | | 1,168.3 | | | | | | 1,329.8 | | | | | | 1,494.1 | | | | | | 1,640.1 | | |
Return on Average Common Equity − Operating
|
| | | | -0.2% | | | | | | 10.0% | | | | | | 10.4% | | | | | | 10.9% | | | | | | 11.4% | | |
Book Value Per Common Share
|
| | | $ | 31.04 | | | | | $ | 35.45 | | | | | $ | 40.72 | | | | | $ | 46.76 | | | | | $ | 51.65 | | |
Name
|
| |
Position
|
|
Thomas A. Bradley | | | Chief Executive Officer | |
Scott Kirk* | | | Chief Financial Officer | |
Susan B. Comparato* | | | Chief Administrative Officer | |
Allison D. Kiene* | | | General Counsel and Secretary | |
Jessica Snyder | | | President, U.S. Insurance | |
Name
|
| | | |
Bernard C. Bailey | | | | |
Dymphna A. Lehane | | | | |
Samuel G. Liss | | | | |
Carol A. McFate | | | | |
Al-Noor Ramji | | | | |
| | |
Restricted Shares
|
| |
Cash Awards
|
| |
SARs
|
| |||||||||||||||||||||
Name
Executive Officers(1) |
| |
Number(2)
(#) |
| |
Value(3)
($) |
| |
Value
($) |
| |
Number
(#) |
| |
Value(4)
($) |
| |||||||||||||||
Thomas A. Bradley
|
| | | | — | | | | | | — | | | | | | — | | | | | | 135,000 | | | | | $ | 0 | | |
Scott Kirk
|
| | | | 23,910 | | | | | $ | 717,300 | | | | | | — | | | | | | — | | | | | | — | | |
Susan B. Comparato
|
| | | | 6,767 | | | | | $ | 203,010 | | | | | $ | 12,281 | | | | | | — | | | | | | — | | |
Allison D. Kiene
|
| | | | 7,174 | | | | | $ | 215,220 | | | | | | — | | | | | | — | | | | | | — | | |
Jessica Snyder
|
| | | | 17,712 | | | | | $ | 531,360 | | | | | | — | | | | | | — | | | | | | — | | |
Name
Executive Officers(1) |
| |
Cash Severance
($) |
| |
Prorated Annual
Target Bonus ($)(2) |
| |
Health, Medical,
Dental Benefits ($) |
| |||||||||
Scott Kirk
|
| | | $ | 2,100,000 | | | | | $ | 406,575 | | | | | | — | | |
Susan B. Comparato
|
| | | $ | 1,312,500 | | | | | $ | 217,808 | | | | | $ | 36,000 | | |
Allison D. Kiene
|
| | | $ | 1,837,500 | | | | | $ | 304,932 | | | | | $ | 36,000 | | |
Jessica Snyder
|
| | | $ | 2,100,000 | | | | | $ | 406,575 | | | | | $ | 36,000 | | |
Name
|
| |
Cash
($)(4) |
| |
Equity
($)(5) |
| |
Perquisites/
Benefits ($)(6) |
| |
Total
($)(7) |
| ||||||||||||
Thomas A. Bradley(1)
|
| | | $ | 1,200,000 | | | | | | — | | | | | | — | | | | | $ | 1,200,000 | | |
Scott Kirk
|
| | | $ | 3,206,575 | | | | | $ | 717,300 | | | | | | — | | | | | $ | 3,923,875 | | |
Susan B. Comparato
|
| | | $ | 1,792,589 | | | | | $ | 203,010 | | | | | $ | 36,000 | | | | | $ | 2,031,599 | | |
Allison D. Kiene
|
| | | $ | 2,442,432 | | | | | $ | 215,220 | | | | | $ | 36,000 | | | | | $ | 2,693,652 | | |
Kevin J. Rehnberg(2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Andrew M. Borst(3)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Name
|
| |
Base Salary
Severance ($)(a) |
| |
Annual
Target Bonus Severance ($)(b) |
| |
Prorated
Annual Target Bonus ($)(c) |
| |
Cash
Awards ($)(d) |
| |
2023 LTI
Cash Awards ($)(e) |
| |
Total
($) |
| ||||||||||||||||||
Thomas A. Bradley
|
| | | | — | | | | | | — | | | | | | — | | | | | $ | 1,200,000 | | | | | | — | | | | | $ | 1,200,000 | | |
Scott Kirk
|
| | | $ | 1,050,000 | | | | | $ | 1,050,000 | | | | | $ | 406,575 | | | | | | — | | | | | $ | 700,000 | | | | | $ | 3,206,575 | | |
Susan B. Comparato
|
| | | $ | 750,000 | | | | | $ | 562,500 | | | | | $ | 217,808 | | | | | $ | 12,281 | | | | | $ | 250,000 | | | | | $ | 1,792,589 | | |
Allison D. Kiene
|
| | | $ | 1,050,000 | | | | | $ | 787,500 | | | | | $ | 304,932 | | | | | | — | | | | | $ | 300,000 | | | | | $ | 2,442,432 | | |
Name
|
| |
Restricted Share Awards
|
| |||||||||
|
Number(a)
(#) |
| |
Value
($) |
| ||||||||
Thomas A. Bradley
|
| | | | — | | | | | | — | | |
Scott Kirk
|
| | | | 23,910 | | | | | $ | 717,300 | | |
Susan B. Comparato
|
| | | | 6,767 | | | | | $ | 203,010 | | |
Allison D. Kiene
|
| | | | 7,174 | | | | | $ | 215,220 | | |
| | |
Argo Group
|
| |||||||||
| | |
High
|
| |
Low
|
| ||||||
Year ended December 31, 2023 | | | | | | | | | | | | | |
First quarter (through March 17, 2023)
|
| | | $ | 29.40 | | | | | $ | 24.35 | | |
Year ended December 31, 2022 | | | | | | | | | | | | | |
Fourth quarter
|
| | | $ | 27.75 | | | | | $ | 19.00 | | |
Third quarter
|
| | | $ | 37.63 | | | | | $ | 19.21 | | |
Second quarter
|
| | | $ | 45.26 | | | | | $ | 36.52 | | |
First quarter
|
| | | $ | 60.29 | | | | | $ | 36.37 | | |
Year ended December 31, 2021 | | | | | | | | | | | | | |
Fourth quarter
|
| | | $ | 61.30 | | | | | $ | 51.57 | | |
Third quarter
|
| | | $ | 57.86 | | | | | $ | 49.22 | | |
Second quarter
|
| | | $ | 58.61 | | | | | $ | 50.15 | | |
First quarter
|
| | | $ | 55.24 | | | | | $ | 39.74 | | |
Name and address of Beneficial Owner
|
| |
Number of
Common Shares Beneficially Owned(1)(2) |
| |
Percent
of Class(1) |
| ||||||
Voce Capital Management LLC
600 Montgomery Street, Suite 4400 San Francisco, CA 94111 |
| | | | 3,317,697(1) | | | | | | 9.45% | | |
The Vanguard Group, Inc.
100 Vanguard Blvd. Malvern, PA 19355 |
| | | | 3,273,895(2) | | | | | | 9.33% | | |
BlackRock, Inc.
55 East 52nd Street New York, NY 10055 |
| | | | 2,469,151(3) | | | | | | 7.04% | | |
Dimensional Fund Advisors LP
Building One 6300 Bee Cave Road Austin, TX 78746 |
| | | | 2,118,196(4) | | | | | | 6.04% | | |
Champlain Investment Partners, LLC
180 Battery St. Burlington, Vermont 05401 |
| | | | 1,909,990(5) | | | | | | 5.44% | | |
Pzena Investment Management, LLC
320 Park Avenue, 8th Floor New York, NY 100221 |
| | | | 1,891,939(6) | | | | | | 5.39% | | |
Name and address of Beneficial Owner
|
| |
Number of
Common Shares Beneficially Owned(1)(2) |
| |
Percent
of Class(1) |
| ||||||
Directors | | | | | | | | | | | | | |
Bernard C. Bailey
|
| | | | 9,161 | | | | | | * | | |
Thomas A. Bradley(3)
|
| | | | 68,740 | | | | | | * | | |
Dymphna A. Lehane
|
| | | | 10,563 | | | | | | * | | |
Samuel G. Liss
|
| | | | 15,358 | | | | | | * | | |
Carol A. McFate
|
| | | | 9,079 | | | | | | * | | |
Al-Noor Ramji
|
| | | | 10,187 | | | | | | * | | |
Named Executive Officers | | | | | | | | | | | | | |
Kevin J. Rehnberg(3)
|
| | | | 1,012 | | | | | | * | | |
Scott Kirk
|
| | | | 5,606 | | | | | | * | | |
Allison D. Kiene
|
| | | | 2,833 | | | | | | * | | |
Andrew M. Borst
|
| | | | 789 | | | | | | * | | |
Susan B. Comparato
|
| | | | 5,371 | | | | | | * | | |
Total(a)
|
| | | | 138,699 | | | | | | 0.40% | | |
| Annual Report on Form 10-K | | | | |
| Quarterly Reports on Form 10-Q | | |
For the quarterly period ended September 30, 2022, filed with the SEC on: November 9, 2022, for the quarterly period ended June 30, 2022, filed with the SEC on August 9, 2022, for the quarterly period ended March 31, 2022, filed with the SEC on May 6, 2022.
|
|
| Current Reports on Form 8-K | | | | |
|
Definitive Proxy Statement on Schedule 14A
|
| | |
| | |
Page
|
| |||
ARTICLE I
DEFINITIONS AND TERMS
|
| ||||||
| | | | A-4 | | | |
| | | | A-14 | | | |
ARTICLE II
THE MERGER
|
| ||||||
| | | | A-15 | | | |
| | | | A-15 | | | |
| | | | A-15 | | | |
| | | | A-15 | | | |
| | | | A-16 | | | |
| | | | A-16 | | | |
ARTICLE III
EFFECT ON THE SHARE CAPITAL OF THE CONSTITUENT ENTITIES;
PAYMENT OF CONSIDERATION |
| ||||||
| | | | A-16 | | | |
| | | | A-17 | | | |
| | | | A-19 | | | |
| | | | A-20 | | | |
| | | | A-21 | | | |
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
|
| ||||||
| | | | A-21 | | | |
| | | | A-22 | | | |
| | | | A-23 | | | |
| | | | A-24 | | | |
| | | | A-25 | | | |
| | | | A-26 | | | |
| | | | A-27 | | | |
| | | | A-27 | | | |
| | | | A-27 | | | |
| | | | A-29 | | | |
| | | | A-31 | | | |
| | | | A-32 | | | |
| | | | A-33 | | | |
| | | | A-34 | | | |
| | | | A-34 | | | |
| | | | A-35 | | | |
| | | | A-36 | | |
| | |
Page
|
| |||
| | | | A-38 | | | |
| | | | A-38 | | | |
| | | | A-38 | | | |
| | | | A-39 | | | |
| | | | A-39 | | | |
| | | | A-39 | | | |
ARTICLE V
REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB
|
| ||||||
| | | | A-40 | | | |
| | | | A-40 | | | |
| | | | A-41 | | | |
| | | | A-41 | | | |
| | | | A-41 | | | |
| | | | A-42 | | | |
| | | | A-42 | | | |
| | | | A-42 | | | |
| | | | A-42 | | | |
| | | | A-42 | | | |
ARTICLE VI
ADDITIONAL COVENANTS AND AGREEMENTS
|
| ||||||
| | | | A-42 | | | |
| | | | A-47 | | | |
| | | | A-49 | | | |
| | | | A-51 | | | |
| | | | A-53 | | | |
| | | | A-53 | | | |
| | | | A-53 | | | |
| | | | A-55 | | | |
| | | | A-55 | | | |
| | | | A-57 | | | |
| | | | A-57 | | | |
| | | | A-57 | | | |
| | | | A-58 | | | |
| | | | A-58 | | | |
| | | | A-58 | | | |
ARTICLE VII
CONDITIONS PRECEDENT
|
| ||||||
| | | | A-59 | | | |
| | | | A-59 | | | |
| | | | A-60 | | |
| | |
Page
|
| |||
ARTICLE VIII
TERMINATION
|
| ||||||
| | | | A-60 | | | |
| | | | A-61 | | | |
| | | | A-61 | | | |
ARTICLE IX
MISCELLANEOUS
|
| ||||||
| | | | A-62 | | | |
| | | | A-62 | | | |
| | | | A-62 | | | |
| | | | A-63 | | | |
| | | | A-63 | | | |
| | | | A-63 | | | |
| | | | A-63 | | | |
| | | | A-64 | | | |
| | | | A-64 | | | |
| | | | A-64 | | | |
| | | | A-65 | | | |
| | | | A-65 | | | |
| | | | A-65 | | | |
| | | | A-1-1 | | |
| [NAME] | | | [ADDRESS] | |
| [NAME] | | | [ADDRESS] | |
| [NAME] | | | [ADDRESS] | |
|
EXECUTED for and on behalf of
ARGO GROUP INTERNATIONAL HOLDINGS, LTD. |
| |
EXECUTED for and on behalf of
BROOKFIELD REINSURANCE LTD. |
|
|
By:
|
| |
By:
|
|
|
Name:
|
| |
Name:
|
|
|
Title:
|
| |
Title:
|
|
|
EXECUTED for and on behalf of
BNRE BERMUDA MERGER SUB LTD. |
| | ||
|
By:
|
| | | |
|
Name:
|
| | | |
|
Title:
|
| | | |