Fairfax Financial to buy Allied World for $4.9 billion in cash and stock
Toronto-based insurance group Fairfax Financial has agreed to buy Swiss insurer Allied World for $4.9 billion cash-slash-stock deal. Most view this as the formation of a P&C reinsurance and insurance leader. One (think: Fairfax Financial CEO Prem Watsa, aka the ‘Canadian Warren Buffett’) sees a pink future because of “the very smart policies of President-elect Donald Trump, who is backing lower corporate tax rates, heavy infrastructure spending and deregulation.” Fun Fact: Allied is based in Zug, Switzerland, but generates nearly 80% of its insurance premiums from North America. Fine Print: the merger is subject to various approvals, including competition, antitrust and insurance regulatory approvals. Rest assured, Scott Carmilani will keep his job as the CEO of Allied World.