Tuesday, December 27, 2016

Fairfax Financial to acquire Allied World for $ 4.9 billion

Fairfax Financial Holdings Limited (Fairfax) and Allied World Assurance Company Holdings, AG said they have entered into a merger agreement where Fairfax will acquire all of the outstanding registered ordinary shares of Allied World.

Fairfax owns Union Assurance General, Sri Lanka and its fully owned subsidiary, Fairfirst Insurance Sri Lanka.

Continuing to further strengthen its footprint around the world, Fairfax had also entered into an agreement to acquire insurance operations from American International Group, Inc. (AIG) in Argentina, Chile, Colombia, Uruguay, Venezuela and Turkey, recently.

Allied World’s position as a market-leading global property, casualty and specialty insurer and reinsurer; its major worldwide presence and its disciplined approach to underwriting make it a natural candidate to join Fairfax’s expanding worldwide operations.

Additionally, Allied World will be able to leverage Fairfax’s expertise in Canada, the United States and international insurance and reinsurance markets, thus enhancing Allied World’s global product offering and providing it with expanded underwriting opportunities and support.

“We are excited to have Allied World join the Fairfax group,” said Prem Watsa, Chairman and CEO of Fairfax.

“Allied World is a high-quality company with an excellent long-term track record and an outstanding management team led by Scott Carmilani. We look forward to supporting Scott and the entire team at Allied World in growing their business over the long-term.”

“This is a tremendous opportunity for Allied World,” said Scott Carmilani, President, CEO and Chairman of Allied World. “We are excited to be joining the Fairfax organization - we share their passion for underwriting excellence and their entrepreneurial approach to growing the business with a long-term orientation.

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