SiriusPoint sells ArmadaCare to Ambac for $250 million

SiriusPoint has agreed to sell its supplemental health insurance program manager ArmadaCare to Octave Specialty Group for $250 million.

The deal values Armada at roughly 14x EBITDA and will deliver a pre-tax gain of $220–230 million for SiriusPoint, boosting pro-forma tangible book value by about 10%. While divesting ownership, SiriusPoint will maintain a long-term capacity partnership with Armada through 2030.

“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%.” – Scott Egan, SiriusPoint’s Chief Executive Officer.