NEW YORK: Ambac Financial Group Inc (AMBC.N) said on Tuesday it has agreed to acquire supplemental health insurance program manager ArmadaCare from SiriusPoint Ltd (SPNT.N) for $250 million in a move to diversify its distribution business.
The acquisition will accelerate the growth of Ambac’s distribution platform and strengthen its presence in the specialty insurance market, particularly in the Accident & Health (A&H) sector, the company said.
ArmadaCare, headquartered in Hunt Valley, Maryland, designs supplemental health benefits for employers. Its products are intended to complement primary health plans and help companies attract talent.
“The addition of ArmadaCare materially accelerates the growth and scale of our distribution platform, strengthens specialty product diversification, and expands relationships with distribution and capacity partners,” said Ambac President and CEO Claude LeBlanc.
Under the terms of the agreement, Ambac will finance the transaction with cash on hand and new debt. Truist Bank has committed to a $120 million financing package for the deal.
ArmadaCare CEO Ed Walker and his current management team will continue to lead the business after the acquisition closes, Ambac said.
The transaction, which has been approved by both companies’ boards, is expected to close in the fourth quarter of 2025, pending regulatory approvals.
SiriusPoint CEO Scott Egan said his company was “delighted to continue our long-term capacity agreement with Armada,” and looked forward to the team driving strong underwriting performance.
Truist Securities, Inc., UBS, and BMS Capital Solutions acted as financial advisors to Ambac. Jefferies LLC advised SiriusPoint on the transaction.