SiriusPoint Plans $250M ArmadaCare Sale to Ambac with $230M Gain

SiriusPoint Ltd. has agreed to sell its wholly owned supplemental health insurance program manager, ArmadaCare, to Ambac Financial Group Inc. for $250 million, with the transaction expected to close in the fourth quarter of 2025. SiriusPoint will recognize a pre-tax gain of $220-230 million and expects its pro-forma tangible book value to increase by approximately 10% as a result. The sale is part of SiriusPoint's strategy to unlock off-balance sheet value while continuing its capacity partnership with ArmadaCare until 2030, reflecting a strong position in the Accident & Health segment. Ambac plans to finance the acquisition through a mix of cash and newly issued debt, including a $120 million commitment from Truist Bank. ArmadaCare's CEO Ed Walker and management team will remain in place following the acquisition, and the company aims to expand its distribution platform and diversify specialty products. SiriusPoint’s CEO Scott Egan emphasized the importance of the sale in unlocking value and reaffirmed their target return on equity of 12-15%.