RiverStone reaches agreement to purchase outstanding shares of Brit Insurance

RiverStone, a runoff subsidiary of Fairfax Financial Holdings Limited, has reached an agreement with Brit Group to purchase all outstanding shares of Brit Insurance Limited (BIL).

RiverStone will purchase BIL at a discount to its book value — which was approximately $530 million at March 31, 2012 — adjusted for certain pre-closing dividends. The purchase price is expected to be about $300 million, subject to certain adjustments at closing, notes a statement from Fairfax Financial.

Through its subsidiaries, Fairfax Financial is engaged in property and casualty insurance and reinsurance and investment management.

BIL wrote United Kingdom domestic and some international, insurance and reinsurance before being placed into runoff earlier this year. The transaction is subject to customary conditions, including regulatory approval, and is expected to close in 2012 Q4.