BF&M and Argus Group Holdings, both Bermudian companies offering insurance, pensions and investment services, have entered a definitive deal to merge their businesses.
The all-stock deal will see Argus amalgamate with BF&M subsidiary Eleos Health.
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Argus shareholders will receive 0.251 BF&M common shares for each held, resulting in BF&M shareholders owning nearly 60% and Argus shareholders owing around 40% of the combined entity.
The deal has been unanimously approved by the two companies’ boards, which expect the merger to create a more robust and diversified insurance group.
The combined company, which will be renamed, is expected to offer enhanced business portfolios across property and casualty, life, health and pensions.
Other strategic benefits of the amalgamation include greater scale in healthcare amidst increasing costs in Bermuda and expanded geographic reach.
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By GlobalDataFinancially, the merger is expected to yield a higher-quality earnings profile due to portfolio diversification.
The increased scale of the merged entity is aimed at expediting growth plans and facilitating ongoing products investment.
Awaiting regulatory and shareholder clearances, this transaction is due to close in Q4 2024.
Service to customers of both companies will remain uninterrupted post-merger, with BF&M shares continuing to trade on the Bermuda Stock Exchange, while Argus shares will be delisted.
BF&M Abigail Clifford CEO will lead the combined group as CEO, while Argus CFO and deputy CEO Peter Dunkerley will take on the role of CFO.
The board of directors will comprise six current BF&M directors and four from Argus, with Anthony Joaquin continuing as chairman.
Clifford noted: “This proposed combination would meaningfully accelerate our progress across BF&M’s three strategic pillars – growth, efficiency and service – and better position both organisations to navigate the rapidly evolving insurance landscape as one unified enterprise.
“Together, we are committed to maintaining our proud heritage as Bermudian businesses and developing innovative solutions to improve the quality of life for our island while ensuring our insureds and patients have choice and access to care.”
