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ProSight shares drop 10% after TowerBrook deal announced

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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.

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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.

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