SiriusPoint Ltd. has revealed the sale of its 49% equity stake in managing general agent Arcadian Risk Capital to Lee Equity Partners for a total consideration of $139 million, along with a renewed and extended capacity agreement with Arcadian until the end of 2031. The completion of the sale is expected to result in a pre-tax gain of $25-30 million for SiriusPoint, in addition to the previously recognized $96 million gain in the second quarter of 2024. Arcadian produced $17.6 million in EBITDA over the last twelve months.
The deal is anticipated to close prior to the end of the first quarter of 2026, subject to regulatory approvals and customary closing conditions. Jefferies LLC served as SiriusPoint’s exclusive financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP served as its legal advisor.
Arcadian, established in 2020 by industry executive John Boylan, has built a profitable core underwriting business covering excess & surplus casualty, general liability, professional liability, and property insurance. SiriusPoint’s CEO, Scott Egan, expressed excitement about the extension of their capacity agreement with Arcadian and their support for the business under John Boylan's leadership.
SiriusPoint, a global specialty insurer and reinsurer, is listed on the New York Stock Exchange (SPNT) and has licenses to write property & casualty and accident & health insurance and reinsurance globally. The company's total capital is approximately $2.8 billion, and its 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 -1.67% to a price of $18.28. For the full picture, make sure to review SiriusPoint Ltd's 8-K report.
