Fairfax Financial to buy Brit

Fairfax Financial Holdings of Canada has agreed to buy the specialty insurer Brit for USD1.88 billion in cash.

Brit, which is based in London, went public less than a year ago in an offering that valued the firm around GBP960 million (about USD1.6 billion). Brit is a member of the Lloyd’s of London insurance market, in which syndicates of specialist companies join together to share the risk in underwriting policies.

The deal is expected to expand Fairfax’s presence in the Lloyd’s marketplace, complement Fairfax’s existing operations and help diversify its risk portfolio.

Under terms of the offer, investors will receive GBP3.05 (USD4.68) in cash for each share of Brit they hold, including the company’s final dividend for the year ended December 31, 2014. The offer represents an 11.2 percent premium to Brit’s closing price on Monday.