Login Register Subscribe
Current Issue

Help

BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.

To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.

To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.

Fairfax Financial to buy Allied World for $4.9 billion

Reprints

Business deal handshake

(Reuters) — Toronto-based insurance group Fairfax Financial Holdings Ltd. has agreed to buy Allied World Assurance Company Holdings A.G. for $4.9 billion in cash and stock, the companies said on Sunday.

Fairfax will pay owners of Zug, Switzerland-based Allied World $54 per share — $10 in cash and $44 in Fairfax stock. The offer amounts to an 18% premium above Allied World’s Friday closing price of $45.77, their statement said.

The merger would create a leader in property/casualty insurance, reinsurance and investments, the release said. Boards of directors of both companies approved the deal.

Allied World would operate “on a decentralized basis” within the Fairfax group, Prem Watsa, chief executive of Fairfax, said in the statement.

Fairfax said it expected to close the deal in the second quarter of 2017.