Global specialty insurer and reinsurer SiriusPoint has agreed to sell its wholly owned supplemental health insurance program manager, ArmadaCare, to Ambac Financial Group for $250 million, while continuing its capacity partnership with Armada until the end of 2030.
The transaction, which values Armada at approximately 14x EBITDA, is expected to close in the fourth quarter, subject to customary closing conditions and regulatory approvals.
Upon completion, SiriusPoint said it will recognise a pre-tax gain of $220–230 million, with pro-forma tangible book value expected to increase by about 10%.
Scott Egan, SiriusPoint’s Chief Executive Officer, commented, “The sale of our equity stake is an important step in unlocking the significant off-balance sheet value of Armada.
“We look forward to continuing our strong partnership with the team through our long-term capacity agreement.
“We are proud of our leading capabilities in the Accident & Health segment, which includes our ownership of premier travel platform International Medical Group (IMG), and we see attractive growth opportunities for our A&H business going forward.
“We reaffirm our across-the-cycle target return on equity of 12% to 15%.”
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