SiriusPoint has struck a $250mn deal to sell ArmadaCare, its supplemental health insurance program manager, to Ambac Financial Group.
The reinsurer isn’t walking away completely. A long-term agreement keeps SiriusPoint on as capacity provider for Armada through 2030.
CEO Scott Egan framed the move as value extraction. “The sale of our equity stake is an important step in unlocking the significant off-balance sheet value of Armada,” he said in a statement, while stressing that the operational partnership remains intact under the new capacity deal.
Financially, SiriusPoint expects to record a pretax gain between $220mn and $230mn once the transaction clears.
Management projects a roughly 10% boost to tangible book value on a pro-forma basis at closing.
The deal is targeted for the fourth quarter, pending regulatory approval and standard closing conditions. Jefferies handled advisory work for SiriusPoint, while Paul Hastings took on legal duties.
This sale lands just weeks after SiriusPoint rolled out a new partnership with managing general underwriter Arden Insurance Services.
The collaboration introduced a wildfire product — the Consolidated Fire Insurance Policy — that embeds parametric coverage. The offering launches first in California, with plans to expand into other wildfire-prone states.
SiriusPoint provides the capacity, Arden the distribution, stacking the policy next to its existing commercial all-risk cover.
SiriusPoint is a global underwriter of insurance and reinsurance providing solutions to clients and brokers around the world. Bermuda-headquartered with offices in New York, London, Stockholm and other locations, we are listed on the New York Stock Exchange (SPNT).
