Ambac Financial Group has completed the sale of its legacy financial guarantee businesses, Ambac Assurance Corporation and Ambac Assurance UK Limited, to funds managed by Oaktree Capital Management for US$420 million in cash.
The transaction follows final approval from the Wisconsin Office of the Commissioner of Insurance for the sale of Ambac Assurance Corporation.
Ambac president and CEO Claude LeBlanc said the sale marks the company’s transition to a pure-play managing general agent (MGA) and specialty insurance platform.
“This transaction marks a defining moment in our company’s history, enabling us to focus exclusively on long-term growth and value creation while building on the solid foundation we’ve established since the launch of our specialty insurance business in 2020,” LeBlanc said.
Ambac’s shareholders approved the sale of its legacy financial guarantee businesses to Oaktree in October last year, with 95% of votes in favour, as part of its transformation into a specialty P&C insurance platform.
Earlier in 2024, Ambac also agreed to acquire a 60% controlling interest in Beat Capital Partners, a London-based insurance underwriting and MGA incubation platform, for US$282 million. This acquisition is expected to accelerate Ambac’s specialty insurance growth strategy and increase its annual EBITDA target.
The completed acquisition of Beat Capital Partners effectively doubled the size of Ambac’s property and casualty insurance operations, positioning the group to achieve approximately US$1.4 billion in annualised premiums for 2024. The deal also expanded the Cirrata Group portfolio, Ambac’s insurance distribution division, to include 16 MGAs.
Beat Capital Partners has launched 13 underwriting franchises and MGAs since 2017 and holds management rights for Lloyd’s Syndicates 4242 and 1416. The platform also maintains an exclusive capacity relationship with Bermuda reinsurer Cadenza Re, supporting its expansion in the specialty insurance sector.
What are your thoughts on this story? Please feel free to share your comments below.
