SiriusPoint Ltd. (NYSE: SPNT) announced today that it will sell its wholly owned supplemental health insurance program manager, ArmadaCare, to Ambac Financial Group Inc. for $250 million. The transaction includes a pre‑tax gain of $220–$230 million and values ArmadaCare at approximately 14× EBITDA. SiriusPoint will continue its capacity partnership with Armada until the end of 2030, preserving a long‑term revenue stream for the insurer.
The sale unlocks significant off‑balance‑sheet value for SiriusPoint, allowing the company to realize a substantial gain while maintaining a strategic relationship with Armada. By divesting the equity stake, SiriusPoint can reallocate capital to higher‑margin core lines, particularly its Accident & Health segment, and pursue additional growth opportunities in that space.
Financially, the deal is expected to increase SiriusPoint’s pro‑forma tangible book value by roughly 10 %. The $250 million cash inflow and the recognized gain will strengthen the balance sheet and could improve earnings per share in the coming quarters, supporting the company’s target return on equity of 12 %–15 % for the year.
The transaction underscores SiriusPoint’s disciplined underwriting focus and its ability to monetize non‑core assets while preserving essential capacity agreements. Ambac’s acquisition of ArmadaCare aligns with its specialty underwriting strategy, and the continued partnership through 2030 provides SiriusPoint with a stable, long‑term capacity source as it continues to expand its core insurance and reinsurance businesses.
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