Fairfax to buy Lloyd's of London insurer Brit for $1.88bn
Fairfax Financial Holdings has entered into an agreement to acquire Lloyd's of London specialty insurer and reinsurer Brit, for around $1.88bn.
As part of the deal, Brit shareholders will receive 305p in cash per share, inclusive of any final dividend for the year ended 31 December 2014.
Fairfax's offer is said to represent a premium of 11.2% to the closing price of 274.2p per Brit Share on 16 February, which is the last full business day for the company prior to this deal.
Fairfax Financial Holdings chairman and CEO Prem Watsa said: "Brit has an outstanding track record over the last ten years and will continue to operate on a decentralized basis once owned by Fairfax.
"With the acquisition of Brit, Fairfax will have a significant top five position at Lloyds of London. We look forward to working with Mark and the entire Brit team to further develop their business over the longer-term."
Brit's acquisition will allow Fairfax to expand its risk portfolio, in addition to leverage its expertise in the US and international insurance and reinsurance markets.
According to Fairfax, the offer is subject to customary closing conditions, including customary competition and merger conditions, and the approval of the Prudential Regulation Authority in the UK, Lloyd's of London and the Financial Services Commission of Gibraltar.
Fairfax, through its subsidiaries, provides property and casualty insurance and reinsurance and investment management services.
Image: Fairfax to acquire Lloyd's of London specialty insurer Brit. Photo: courtesy of Stuart Miles/FreeDigitalPhotos.net.