SiriusPoint announces sale of ArmadaCare for $250M

SiriusPoint (SPNT) Ltd. announced its agreement to sell wholly owned supplemental health insurance program manager ArmadaCare to Ambac Financial Group for $250M. SiriusPoint will continue its capacity partnership with Armada until the end of 2030. Upon completion of the sale, SiriusPoint will recognize a pre-tax gain of $220M-$230M, with the transaction valuing Armada at approximately 14x EBITDA. Pro-forma tangible book value is expected to increase by approximately 10% upon close. 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 reaffirm our across-the-cycle target return on equity of 12% to 15%.” The transaction is expected to close in the fourth quarter, subject to customary closing conditions and receipt of regulatory approvals.