SiriusPoint Ltd. ("SiriusPoint") has recently announced the sale of its 49% equity stake in managing general agent Arcadian Risk Capital ("Arcadian") to Lee Equity Partners for a total consideration of $139 million. This sale includes a pre-close dividend and is expected to be completed before the end of the first quarter of 2026, subject to regulatory approvals and customary closing conditions.
In addition to the sale, SiriusPoint has renewed and extended its capacity agreement with Arcadian until the end of 2031. The company anticipates recognizing a pre-tax gain of $25-30 million upon completion of the sale, in addition to the $96 million gain recognized in the second quarter of 2024.
Arcadian, established in 2020 in Bermuda by industry executive John Boylan, has produced $17.6 million of EBITDA over the last twelve months. Following the sale, SiriusPoint looks forward to continuing its partnership with Arcadian and supporting the business under the leadership of John Boylan.
Furthermore, Jefferies LLC acted as SiriusPoint’s exclusive financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP served as SiriusPoint’s legal advisor in this transaction.
About SiriusPoint, it is a global underwriter of insurance and reinsurance, headquartered in Bermuda with offices in New York, London, Stockholm, and other locations. The company is listed on the New York Stock Exchange and has licenses to write property & casualty and accident & health insurance and reinsurance globally. SiriusPoint's operating companies have a financial strength rating of a* (excellent) from AM Best, S&P, and Fitch, and a3 from Moody’s, with approximately $2.8 billion total capital. The market has reacted to these announcements by moving the company's shares 3.62% to a price of $18.59. For the full picture, make sure to review SiriusPoint Ltd's 8-K report.
