SiriusPoint Ltd. has announced the sale of its wholly owned supplemental health insurance program manager, ArmadaCare, to Ambac Financial Group Inc. for $250 million. This sale is expected to result in a pre-tax gain of $220-230 million for SiriusPoint. The transaction values Armada at approximately 14 times its EBITDA. Furthermore, upon completion of the sale, SiriusPoint's pro-forma tangible book value is expected to increase by approximately 10%.
Scott Egan, the Chief Executive Officer of SiriusPoint, expressed the significance of this sale in unlocking the off-balance sheet value of Armada and highlighted the continuation of their strong partnership with the team through a long-term capacity agreement until the end of 2030.
The transaction is anticipated to close in the fourth quarter, subject to customary closing conditions and receipt of regulatory approvals. Jefferies LLC served as SiriusPoint’s exclusive financial advisor, and Paul Hastings LLP served as legal advisor in the sale of Armada.
SiriusPoint reaffirms its across-the-cycle target return on equity of 12% to 15% and acknowledges the attractive growth opportunities for its accident & health business, including its ownership of premier travel platform International Medical Group (IMG).
About SiriusPoint: SiriusPoint is a global underwriter of insurance and reinsurance, providing solutions to clients and brokers worldwide. Headquartered in Bermuda with offices in New York, London, Stockholm, and other locations, SiriusPoint is listed on the New York Stock Exchange (SPNT). The company holds licenses to write property & casualty and accident & health insurance and reinsurance globally. With approximately $2.8 billion in total capital, SiriusPoint’s operating companies have a financial strength rating of a* (excellent) from AM Best, S&P, and Fitch, and a3 from Moody’s. The market has reacted to these announcements by moving the company's shares -2.4% to a price of $17.88. Check out the company's full 8-K submission here.
