Underwriter Argo Group has announced an agreement to sell its Trident Public Risk Solutions brand and underwriting platform to Paragon Insurance Holdings.
The US MGA group expects to close the transaction in the second quarter of the year and Argo announced it expects to report a pre-tax gain of approximately $37 million related to the sale.
Under the deal Argo will retain Trident’s claims operations and will provide claims services to Paragon for the public entity business. Paragon will continue to write business on Argo paper through a managing general agency agreement.
“This sale will build on the partnership between Argo and Paragon Insurance, providing growth opportunities to both companies through roles that play to the strengths of each,” said Tim Carter, (pic) executive vice president, Argo Group US. “Paragon’s distribution reach will give Trident greater access to new markets in the public entity insurance marketplace, and Argo will be a strong partner in those endeavours.”
“With unmatched expertise in public entity insurance and risk management, Trident is an exciting addition to our portfolio, and its underwriters will be invaluable as we work together to help the brand reach its fullest potential,” said Ron Ganiats, CEO and co-founder of Paragon. “The team at Paragon is excited to broaden our partnership with Argo as well as build on new and existing relationships with retail brokers, service providers and insureds.”
The transaction will have no impact on existing Trident policies.