SiriusPoint to divest Arcadian MGA in $139m deal
Bermuda-based global specialty re/insurer SiriusPoint has agreed to sell its 49% equity stake in managing general agent Arcadian Risk Capital, marking the next phase of their ongoing partnership.
Lee Equity Partners will purchase the stake for a total consideration of $139 million, inclusive of a pre-close dividend. SiriusPoint has also renewed and extended its capacity agreement with Arcadian until the end of 2031.
Upon completion of the sale, SiriusPoint will recognise a pre-tax gain of $25-30 million, in addition to the previously recognised $96 million gain in the second quarter of 2024. Arcadian produced $17.6 million of EBITDA (Based on the last 12 months adjusted earnings before interest, taxes, depreciation, and amortisation).
The deal is expected to close prior to the end of the first quarter of 2026, subject to regulatory approvals and satisfaction of customary closing conditions.
Scott Egan, chief executive officer at SiriusPoint, said: “We continue to build on our partnership with Arcadian through the extension of our capacity agreement and are excited to support the business in its next chapter under respected industry leader John Boylan.”
Jefferies LLC served as SiriusPoint’s exclusive financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP served as SiriusPoint’s legal advisor.
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