Skyward Specialty to acquire Apollo Group
Skyward Specialty has agreed to acquire Apollo Group Holdings for $555 million from Alchemy, management, employees, and other investors. The deal includes $184 million in stock for employees and strategic investors, with the remaining $371 million paid in cash backed by committed debt financing.
Apollo Underwriting is a U.S.-focused specialty underwriting platform at Lloyd’s, operating Syndicate 1969 (multi-class specialty) and Syndicate 1971 (Apollo ibott, liability for the digital and sharing economy). Since its founding in 2010, Apollo has grown premiums at a ~20% CAGR, using a capital-light model and earning fees and commissions as a managing agent. It provides ~27% of the capital for its syndicates, with the rest coming from third parties.
The acquisition adds over $1.5 billion in managed premium to Skyward Specialty and expands its reach into new niches and digital economy products. Apollo CEO David Ibeson and the management team will join Skyward Specialty and continue to lead the Apollo business.
“We are delighted to reach an agreement to acquire Apollo. Their underwriting leadership and unique market positioning are exceptionally well-matched to Skyward Specialty’s strengths and vision and fit with our strategy to “Rule Our Niche.” Apollo’s Syndicate 1969 will provide access to attractive and hard-to-reach specialty classes including Political Violence, Product Recall, Specialty Disruption and other related specialty classes. Leveraging the unique capabilities of Syndicate 1971, Apollo will further enhance our portfolio with unique and innovative solutions designed for new economy industries. Most importantly, the strategic and cultural alignment between the two organizations is exceptional and sets the stage for future opportunities. I look forward to welcoming the Apollo team to Skyward Specialty and embarking on this next chapter together.” – Skyward Specialty Chairman and CEO Andrew Robinson.
“We have been building a relationship with Skyward Specialty for nearly two years, and during that time, we have had a number of opportunities to collaborate. We very quickly understood that we had a common view of the future of the specialty market and a shared understanding of how to position our respective organizations to win. Culturally, you could not have better alignment between our firms, and our leadership team is engaged and excited about the possibilities this partnership brings. I look forward to working with our new Skyward Specialty colleagues to realize our shared vision.” – David Ibeson.
