Deal Overview

Buyer Argonaut Group, Inc
Actual Acquirer Argonaut Group, Inc
Target Front Royal, Inc.
Deal Type Insurance Company
Insurance Sector Property & Casualty
Agreement Date 07/05/2001
Announcement Date 07/05/2001
Announced Deal Value ($M) 167.50
Announced Deal Value as Reported ($M) NA
LTM Revenue ($000) 464,919
Status Completed
Announced Deal Value Per Share ($) 19.17
Completion Date 08/23/2001

Deal Pricing Ratios

  Announcement Completion
Price / Earnings (x) 8.5 13.4
Price / Book (%) 198.1 182.1
Price / Statutory Net Income (x) NA NA
Price / Capital & Surplus (%) NA NA
Price / Operating Income (x) NA NA
Price / Operating Income (x) NA NA
Price / Net Premiums Written (x) NA NA

Deal Terms

Argonaut Group Inc. paid $167.5 million in cash, including $2.5 million in future contingent payments.

Percent Acquired (%) 100.00
Accounting Method Purchase
Merger of Equals No
Estimated Cost Savings (%) NA
Estimated Cost Savings ($000) NA
Est. Restructuring Charges ($000) NA

Deal Advisors

Financial Advisors
Party Advised Firm Name
Buyer Merrill Lynch & Co. Inc.
Seller J.P. Morgan Securities LLC
Legal Counsel
Party Advised Firm Name
Buyer Mayer Brown LLP
Seller Brooks Pierce McLendon

International underwriter of specialty insurance and reinsurance products in areas of the property and casualty market.

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