The reinvention of Bermudian-based Argo Group International Holdings Ltd has picked up pace with the announcement that the company has entered into a definitive agreement for the sale of Argo Underwriting Agency Limited and its Lloyd’s Syndicate 1200 to US-based Westfield Specialty for total cash proceeds of approximately $125 million.

The company said that represents 1.16x price to tangible book value or 0.81x price to book value as of first quarter 2022, subject to closing-related adjustments.

Tom Bradley, Argo’s executive chairman and chief executive officer, said: “As part of our review of strategic alternatives, we are taking decisive actions to optimise our operations and business structure, better positioning the company for continued profitable growth and returns in the US as we strive to maximise value for shareholders.

“Along with other strategic actions under way, the sale of our Lloyd’s business advances Argo’s primary objective to operate as a nimble, US-centric commercial specialty insurer.

“As a more focused and streamlined company, we are better positioned to drive our business strategies and evaluate further strategic alternatives to create shareholder value.”

He added: “We believe Westfield and our Lloyd’s team members are well positioned for future growth and success, and we thank the Argo employees within those business units for their dedication to improving operational results in recent periods.”

The sale of Argo’s Lloyd’s business is subject to customary closing conditions and regulatory approvals, including Lloyd’s of London, UK Prudential Regulation Authority and UK Financial Conduct Authority.

The transaction is expected to close in the first half of 2023.

As part of Argo’s previously announced and ongoing review of strategic alternatives, the board continues to actively consider a wide range of options for the company.