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HAMILTON, Bermuda - SiriusPoint Ltd. (NYSE:SPNT), a $2.17 billion market cap specialty insurer currently trading near its InvestingPro Fair Value, announced Monday it has agreed to sell its 49% equity stake in managing general agent Arcadian Risk Capital to Lee Equity Partners for $139 million, including a pre-close dividend.
The global specialty insurer and reinsurer will recognize a pre-tax gain of $25-30 million upon completion of the sale, in addition to the $96 million gain previously recognized in the second quarter of 2024.
As part of the transaction, SiriusPoint has renewed and extended its capacity agreement with Arcadian until the end of 2031, continuing the partnership established when Arcadian was founded in 2020.
"We continue to build on our partnership with Arcadian through the extension of our capacity agreement and are excited to support the business in its next chapter under respected industry leader John Boylan," said Scott Egan, Chief Executive Officer at SiriusPoint.
According to the company, Arcadian produced $17.6 million in adjusted earnings before interest, taxes, depreciation, and amortization over the last twelve months. For context, SiriusPoint’s own EBITDA stands at $380.8 million, with InvestingPro analysis showing the company has been profitable over the last twelve months and maintains a GOOD overall Financial Health Score.
The transaction is expected to close before the end of the first quarter of 2026, subject to regulatory approvals and customary closing conditions.
Jefferies LLC served as SiriusPoint’s exclusive financial advisor for the transaction, with Skadden, Arps, Slate, Meagher & Flom LLP providing legal counsel.
Arcadian, headquartered in Bermuda with operations in Ireland, the United Kingdom, and the United States, offers underwriting solutions for complex risks in Excess & Surplus Casualty, General Liability, Professional Liability, and Property insurance.
SiriusPoint, with approximately $2.8 billion in total capital, maintains an A- financial strength rating from AM Best, S&P and Fitch, and A3 from Moody’s.
This information is based on a press release statement from SiriusPoint.
In other recent news, SiriusPoint Ltd. reported second quarter earnings that surpassed analyst expectations, bolstered by enhanced underwriting performance and robust premium growth. Additionally, SiriusPoint has agreed to sell its wholly owned supplemental health insurance program manager, ArmadaCare, to Ambac Financial Group Inc. for $250 million. This transaction is anticipated to result in a pre-tax gain of $220-230 million for SiriusPoint, with the deal valuing ArmadaCare at approximately 14 times EBITDA.
S&P Global Ratings has revised its outlook on SiriusPoint to positive from stable, citing a significant reduction in exposure to natural catastrophe and investment risks, alongside solid underwriting results over the past two and a half years. In leadership developments, SiriusPoint has appointed Martin Hudson as a Board Director, effective September 1, 2025. Hudson brings over 40 years of international insurance and reinsurance leadership experience to the role. These recent developments reflect ongoing strategic and operational shifts within SiriusPoint.
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