SiriusPoint Ltd Sells ArmadaCare for $250 Million

By Bobby Samwell • Tuesday, September 30 06:09 • Permanent Link

SiriusPoint Ltd. has announced the sale of its subsidiary, ArmadaCare, for $250 million to Ambac Financial Group Inc. as well as a long-term capacity agreement until 2030. The sale is expected to result in a pre-tax gain of $220-230 million for SiriusPoint, valuing Armada at approximately 14 times EBITDA. Additionally, the pro-forma tangible book value is anticipated to increase by around 10% upon the completion of the sale.

Scott Egan, the CEO of SiriusPoint, highlighted the significance of this sale in unlocking the off-balance sheet value of Armada while expressing optimism about the future growth opportunities for their accident & health business. The transaction, subject to customary closing conditions and regulatory approvals, is expected to close in the fourth quarter of the year.

Jefferies LLC served as the exclusive financial advisor, and Paul Hastings LLP served as the legal advisor in the sale of Armada. SiriusPoint, a global underwriter of insurance and reinsurance, is listed on the New York Stock Exchange (NYSE: SPNT) and has 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. Following these announcements, the company's shares moved -2.67%, and are now trading at a price of $17.83. For more information, read the company's full 8-K submission here.

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