S&P Global Market Intelligence offers our top picks of insurance news stories and more published throughout the week.
NN Group, Delta Lloyd finally agree on merger
* NN Group NV reached a conditional agreement to acquire Delta Lloyd NV for a total consideration of €2.5 billion. NN Group will offer €5.40 for each issued and outstanding ordinary share in Delta Lloyd, an improvement from the former's initial unsolicited offer of €5.30 per share, which was swiftly rejected by the latter. Both insurance companies noted that they will seek to obtain all necessary approvals and antitrust clearances as soon as possible, while NN Group will submit a draft offer memorandum to the Dutch Authority for the Financial Markets no later than Dec. 28.
Fairfax acquires Switzerland's Allied World
* Fairfax Financial Holdings Ltd. will acquire all of the outstanding ordinary shares of Allied World Assurance Co. Holdings AG for about $4.9 billion in cash and stock.
* Allied World's president and CEO, Scott Carmilani, said a deal to sell to Fairfax will have a provision that will allow the company to look for a better deal. Fairfax Chairman and CEO Prem Watsa noted that Allied World's balance sheet and capital position complements Fairfax's.
* Allied World announced that should either party terminate the deal as a result of an adverse change in the recommendation of the other party's board, the institution that is canceling the agreement will have to pay a termination fee of $196 million. The agreement also stipulates a 30-day period following signing during which Allied World can actively seek alternative proposals.
More M&A talk
* The shareholders of Otkritie Holding JSC are involved in discussions with Rosgosstrakh Group's main owner, Danil Khachaturov, regarding a potential deal, which involves merging PAO Rosgosstrakh and PJSC Rosgosstrakh Bank into Otkritie Holding, according to Vedomosti. Khachaturov would reportedly obtain a minority stake in Otkritie Holding after the merger, which is expected to take the whole of 2017 to complete.
* Jardine Lloyd Thompson Group Plc's JLT Re acquired Minnesota-based StoneHill Reinsurance Partners LLC.
* Czech state-owned Export Guarantee & Insurance Corp., or EGAP, sold a 34% stake in insurer KUPEG Uverova Pojistovna AS to Belgian company Credimundi for €6.1 million, according to Lidovky.cz. EGAP made the sale in order to meet the requirements of the Solvency II Directive. The company would reportedly also consider issuing bonds worth 2 billion Czech koruny and launched a tender for the sale of a reinsurance portfolio worth over 10 billion koruny in order to fulfill the requirements of the EU directive.
* Legal & General Group Plc named Jeff Davies CFO, following regulatory approval. Davies, who will move to his new role in spring 2017, will replace Mark Gregory, who will step down from the company's board but will remain an employee until Aug. 31, 2017, to assist in the transition.
* Allied World's senior vice president and head of international property, Rob Kuchinski, resigned.
* Chubb Ltd. promoted Graham Lambourne to head of multinational claims for overseas general insurance.
In other news
* Old Mutual Plc unit OM Group (UK) Ltd. closed an underwritten public offering of 14.95 million OM Asset Management plc ordinary shares at a price of $14.25 per share, with the parent company realizing gross proceeds less the underwriting discount from the offering of $291 million. Old Mutual now owns 51.1% in OM Asset Management, which did not sell any shares in the offering and did not receive any proceeds from it. OM Asset Management also closed the direct repurchase of 6 million ordinary shares at $14.25 per share from OM Group (UK).
* Tryg A/S completed its 1 billion Danish kroner share buyback program. The Danish company repurchased 7,793,213 shares and now owns 7,946,118 shares, or 2.7% of the total of 282,541,204 shares.
Featured during the week on S&P Global Market Intelligence
Insurance industry poised for new EU-US reinsurance playing field in 2017: The U.S. is hopeful of forging an insurance and reinsurance trade rules agreement with the EU, which is expected to put an end to a cluster of expensive and burdensome rules.
Allied World rides momentum of $4.9B Fairfax deal to 52-week high: Allied World's shares surged more than 17% for the week ended Dec. 22, reaching their highest level in more than a year.