6 July 2017Insurance

Fairfax closes $4.9bn Allied World acquisition

Canada-based Fairfax Financial Holdings said July 6 that it closed the acquisition of Switzerland-based Allied World Assurance Company Holdings.

As of July 5, when the share purchase offer expired, Fairfax had acquired a stake representing 96.1 percent of Allied World’s capital.

As part of the transaction, Allied World has declared a special cash dividend of $5.00 per share, without interest, to be paid out to all shareholders that tendered their shares as of the close of trading on July 5, 2017 and to those that did not tender their shares.

Fairfax intends, via its indirect Swiss subsidiary, to effect a squeeze-out merger whereby Allied World will be merged with Fairfax Switzerland. As a result, Fairfax Switzerland will be the surviving entity and thereafter renamed ‘Allied World Assurance Company Holdings, GmbH.’

Allied World will be delisted from the New York Stock Exchange and aims to subsequently deregister the shares.

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24 August 2017   Fairfax Financial and Mitsui Sumitomo Insurance Company have unveiled a global strategic alliance that revolves around the latter buying the majority of Singapore-based First Capital Insurance from Fairfax but which also has wider implications for the way the two companies manage their reinsurance buying.
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7 August 2017   Thomas Bradley, the chief financial officer (CFO) of Allied World Assurance Company Holdings, has left the company following its $4.9 billion acquisition by Canadian P&C re/insurer Fairfax Financial Holdings.
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28 April 2017   Canada-based property/casualty re/insurer Fairfax Financial Holdings has recorded a profit in the first quarter of 2017 after a loss in the same period a year earlier while in the process of acquiring Allied World Assurance Company.