Argonaut Acquires Front Royal

In a move to expand its expand its specialty insurance services, Argonaut Group Inc. signed a definitive agreement to acquire Morrisville, N.C.-based Front Royal Inc., for $165 million in cash.

According to a Reuters report, Argonaut said the purchase should add to its earnings per share from the first year. The transaction has been approved by the boards of directors of both companies and is expected to be completed during the third quarter 2001.

Front Royal wrote $147.1 million of premium as of Dec. 31, 2000. It total assets as of the date were $464.9 million.