$300M Deal Sends Brit Insurance To Fairfax Runoff Biz

Law360, New York (June 18, 2012, 12:08 PM EDT) -- The runoff unit of Canada's Fairfax Financial Holdings Ltd. will swallow up Brit Group's Brit Insurance Ltd. in a $300 million deal that will allow the U.K. company to build its presence in the reinsurance market, the pair said Monday.

The sale price is a steep discount on Brit Insurance's $530 million book value. RiverStone, the Fairfax subsidiary, will finance the deal with its internal cash reserves, it said. Subject to regulatory approval, the transaction is expected to close in the fourth quarter of 2012....
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