Fairfax Buying Bermuda-Based American Safety for $306M

Fairfax Financial Holdings is acquiring Bermuda-based American Safety Insurance Holdings for $306 million in cash. The transaction is expected to close in the fourth quarter.Concurrent with the acquisition, Fairfax has agreed to sell American Safety Reinsurance to Tower Group promptly upon acquiring American Safety.Fairfax expects several of American Safety specialty lines groups to move to Crum & Forster and Hudson Insurance units. It is also expected to provide Fairfax with $480 million of additional investable assets.The $306-million or $29.25 per share purchase price represents a premi...