Global specialty insurer and reinsurer SiriusPoint has agreed to sell 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.
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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