BF&M and Argus Announce Plans to Combine in Major Insurance Merger

Strategic Insights -

The proposed merger between Bermudian insurers BF&M and Argus will create a new combined group with a diverse portfolio of businesses across Property & Casualty, Life, Health, and Pensions. The transaction aims to deliver better outcomes for customers and the community in Bermuda and across international markets. The combined group will have a planned completion date in the fourth quarter of 2024, subject to required regulatory approvals and shareholder approval.

Key Takeaways:

  • The combined group will own approximately 60% by BF&M shareholders and 40% by Argus shareholders.
  • The BF&M common shares will continue to be listed on the Bermuda Stock Exchange, while the Argus shares will be delisted.
  • The combination is expected to result in strategic benefits, including enhanced portfolio diversity, increased scale in healthcare, expanded geographic reach, and greater ability to invest in digital offerings.
  • Financial benefits expected from the combination include a higher quality earnings profile, efficiency opportunities, and strong capitalization and financial strength ratings.
  • The combined group will have a strong commitment to Bermuda and support for local talent development.
  • Abigail Clifford, Group President and CEO of BF&M, expressed enthusiasm for the proposed combination, citing its acceleration of the company's strategic pillars of growth, efficiency, and service.

Statistics:

  • Approximately 60% ownership stake in the combined group by BF&M shareholders.
  • Approximately 40% ownership stake in the combined group by Argus shareholders.
  • 0.251 BF&M common shares for each Argus share held by shareholders in the planned completion date in the fourth quarter of 2024.
  • Combined turnover of approximately $1.5 billion (approximately $1 billion for BF&M and $500 million for Argus).
  • Combined balance sheet assets of approximately $1.2 billion (approximately $800 million for BF&M and $400 million for Argus).
  • Significant expected increase in scale to support growth and retention of customers.

Sources:

  • BF&M Limited
  • Argus Group Holdings Limited