SiriusPoint has agreed to sell its wholly owned supplemental health insurance program manager, ArmadaCare, to Ambac Financial Group for US$250 million.
The transaction, which values ArmadaCare at approximately 14x EBITDA, is expected to close in the fourth quarter of 2025, pending customary closing conditions and regulatory approvals.
SiriusPoint will continue its capacity partnership with ArmadaCare through the end of 2030. Upon completion, SiriusPoint anticipates recognizing a pre-tax gain of US$220 million to US$230 million, and expects pro-forma tangible book value to increase by about 10%.
Scott Egan (pictured above, left), CEO of SiriusPoint, described the sale as “an important step in unlocking the significant off-balance sheet value of Armada.”
“We look forward to continuing our strong partnership with the team through our long-term capacity agreement,” he said. Egan also reaffirmed SiriusPoint’s target return on equity of 12% to 15% across the cycle and highlighted the company’s ongoing focus on the Accident & Health segment, which includes ownership of International Medical Group (IMG).
Ambac will acquire ArmadaCare as part of its strategy to expand its specialty product offerings and distribution platform. Headquartered in Hunt Valley, Maryland, ArmadaCare provides supplemental health and workplace benefit products designed for employer needs.
This is one of two major deals by Ambac announced today. As part of its restructuring, the insurance group also sold off its financial guarantee businesses to Oaktree Capital Management for US$420 million as it moves to transition to a pure-play managing general agent (MGA) and specialty insurance platform.
“The addition of ArmadaCare materially accelerates the growth and scale of our distribution platform, strengthens specialty product diversification, and expands relationships with distribution and capacity partners,” said Ambac president and CEO Claude LeBlanc (pictured above, right).
He noted that ArmadaCare’s team, led by CEO Ed Walker, has a strong track record in the sector. Walker will continue to lead ArmadaCare with his current management team after the transaction closes.
“We could not be more excited to join the Ambac family of MGAs. Ambac’s commitment to empowering their MGAs, coupled with our deep relationships with long-term underwriting partners, will fuel the continued growth and future success of our business and further establish our position as a leading health insurance solutions provider,” Walker said.
Ambac expects to finance the acquisition through a mix of cash on hand and new debt, including a US$120 million commitment from Truist Bank for a US$100 million Term Loan A and a US$20 million revolving credit facility.
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