Argonaut Seeks to Purchase North Pointe Financial

Argonaut Group Inc. has announced its plans to purchase the shares of North Pointe Financial Services Inc. and Hermitage Insurance Co., two subsidiaries of Queensway Financial Holdings Ltd.

The letter of intent also contemplates a possible purchase of the shares or certain assets of Consolidated Property & Casualty Co. and Universal Fire and Casualty Insurance Company.

These subsidiaries represent essentially all of Queensway’s continuing U.S. operations. The purchase price for North Pointe and Hermitage is $36.5 million. The purchase price will increase if Consolidated or Universal are also acquired.

The closing of the transaction is subject to the completion of due diligence, as well as various closing conditions, including obtaining regulatory and other approvals. This acquisition is expected to be accretive to Argonaut’s earnings upon closing.