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Fairfax completes $4.9bn acquisition of Allied World Assurance

IBR Staff Writer Published 07 July 2017

Canadian investment and insurance giant Fairfax Financial has completed $4.9bn acquisition of Swiss insurer Allied World Assurance.

Fairfax has also closed the exchange offer by its indirect Switzerland subsidiary Fairfax Financial (Switzerland) for 100% of the shares of Allied World.

As per the merger agreement signed in December 2016, Allied World will be merged with Fairfax (Switzerland) to form a single entity which will be renamed as Allied World Assurance Company.

Fairfax stated: “Pursuant to the Agreement and Plan of Merger dated as of December 18, 2016 between Fairfax and Allied World (as amended, the "Merger Agreement"), all conditions to the offer have been satisfied, and Allied World has declared the special cash dividend of $5.00 per Share, without interest, payable to all shareholders that tendered their Shares and to all holders of record as of the close of trading on July 5, 2017 that did not tender their Shares.”

Allied World provides property, casualty and specialty insurance and reinsurance solutions. Its merger is expected to help Fairfax in diversifying the group’s risk portfolio.

Fairfax acquired Allied World as Allied World’s offering was highly complementary to its own operations across a number of countries.

The Swiss insurer will also benefit from the expertise of Fairfax in Canada, the US and other insurance and reinsurance markets.

Allied World is also expected to get more underwriting opportunities and support with its merger with Fairfax.

Following the acquisition, Allied World will be delisted from the New York Stock Exchange.

Image: Fairfax Financial has acquired Allied World Assurance for $4.9bn. Photo: courtesy of stockimages/freedigitalphotos.net.