SiriusPoint sells health MGA to Ambac in $250m deal
Bermuda-based specialty re/insurer SiriusPoint has agreed to sell its supplemental health insurance MGA to Ambac in a $250 million deal.
SiriusPoint expects a pre-tax gain of $220-230 million from the sale of the MGA, ArmadaCare, which values the business at about 14x EBITDA, the re/insurer said.
The deal is also expected to lift its pro-forma tangible book value by around 10%, with SiriusPoint retaining its capacity partnership with Armada through 2030.
Scott Egan, SiriusPoint’s CEO, said: “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%.”
The deal is slated to close in Q4, pending regulatory approvals.
Jefferies advised SiriusPoint, with Paul Hastings acting as legal counsel.
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