OMERS Said to Commit $1 Billion to Fairfax’s Allied Buy

Prem Watsa’s Fairfax Financial Holdings Ltd. is close to announcing a deal that would see one of Canada’s largest pension funds contribute $1 billion in financing toward its acquisition of insurer Allied World Assurance Co., according to people familiar with the matter.

Toronto-based Fairfax could announce the financing arrangement with the Ontario Municipal Employees Retirement System as early as this week. Watsa is also putting together another group of funds to contribute as much as $1.7 billion in financing to the purchase of Zug, Switzerland-based Allied that will likely be announced at a later date, said the people who asked not to be identified because the matter is private.