SiriusPoint to Sell ArmadaCare Unit to Ambac in $250M Deal
Transaction includes a long-term capacity agreement, securing premium flow for SiriusPoint until 2030 and boosting its book value.
Global specialty insurer and reinsurer SiriusPoint Ltd. (NYSE: SPNT) has entered into a definitive agreement to sell its supplemental health insurance program manager, ArmadaCare, to Ambac Financial Group Inc. for $250 million.
The deal, which is expected to close in the fourth quarter of 2025 subject to regulatory approvals, represents a significant strategic move for SiriusPoint. The company from the transaction, anticipating a pro-forma increase in its tangible book value of approximately 10% upon completion.
A key component of the transaction is a long-term capacity agreement, which ensures SiriusPoint will continue its partnership with ArmadaCare by providing underwriting capacity until the end of 2030. This arrangement provides SiriusPoint with a stable, long-term stream of earned premium, maintaining a relationship with a business it helped cultivate.
In a statement, , "This is an important step for SiriusPoint that will unlock significant off-balance sheet value of Armada. We are delighted to have found a strong partner for the business in Ambac and look forward to continuing our strong relationship through our long-term capacity agreement."
The sale price values ArmadaCare at approximately 14 times its recent EBITDA, a valuation that underscores the strength of the specialized insurance manager. For the buyer, Ambac, the acquisition expands its portfolio of specialty insurance businesses. through a combination of cash on hand and newly issued debt.
This divestiture allows SiriusPoint to streamline its operations and realize substantial value from a mature investment, strengthening its balance sheet and providing capital for future initiatives. The continued capacity deal mitigates the loss of the business unit by converting it into a predictable, long-term revenue source. Jefferies LLC acted as the exclusive financial advisor to SiriusPoint, with Paul Hastings LLP providing legal counsel on the deal.