ProSight shares drop 10% after TowerBrook deal announced
Shares in specialty insurer ProSight fell by almost 10% on Friday, following the news that the company is to be acquired by private equity houses TowerBrook Capital Partners and Further Global.
The company’s share price dropped to $12.78 shortly after 10:00 ET, just below the $12.85 investors are expected to receive in the acquisition.
Stocks in the broader market turned lower Friday morning, following the news of Joe Biden’s stimulus plan and concerns about future higher taxes. The S&P 500 was up by 0.95% early in the session, while the Dow Jones Industrial Average (DJIA) was down 1.03%.
The S&P 500 insurance index was trading at 429.79 at 10:43 ET; a fall of 0.73% from close of business on Thursday.
Earlier on Friday, Inside P&C revealed former Validus Insurance CEO and Aspen executive Jonathan Ritz is set to become the company’s new CEO, with ProSight’s current CEO and co-founder, Larry Hannon, remaining in an executive role.
The investment houses later confirmed the $586mn all-cash transaction and said that Hannon would stay on as the company’s president.
The deal is expected to close in the third quarter this year.