Ambac Financial Group to Acquire ArmadaCare in $250 Million Transaction, Expanding Its Specialty Insurance Platform
Ambac Financial Group, Inc. (“Ambac”) (NYSE: AMBC), a leading insurance holding company, today announced that it has entered into a definitive agreement to acquire ArmadaCare, a nationally recognized supplemental health insurance program manager, from SiriusPoint Ltd. (“SiriusPoint”) (NYSE: SPNT) in a transaction valued at $250 million.
The acquisition marks a significant milestone in Ambac’s strategic evolution into a diversified specialty insurance platform. By integrating ArmadaCare’s innovative supplemental health solutions with Ambac’s growing distribution capabilities, the combined company is positioned to accelerate growth, diversify revenue streams, and deliver expanded value to employers, brokers, and policyholders alike.
ArmadaCare: A Leader in Supplemental Health Benefits
Headquartered in Hunt Valley, Maryland, ArmadaCare has built a strong reputation for designing and managing specialized supplemental health and workplace benefit products that address gaps left by traditional primary health coverage. These programs are particularly valued by employers seeking to differentiate themselves in a highly competitive labor market.
ArmadaCare’s portfolio includes products that provide enhanced coverage, unique wellness benefits, and concierge-level service designed to meet the diverse needs of employees while also supporting organizational recruitment and retention goals. By complementing core healthcare plans, ArmadaCare gives companies a competitive edge in attracting and retaining top talent, while also delivering meaningful health and financial security for employees and their families.
Strategic Fit for Ambac
Ambac President and Chief Executive Officer Claude LeBlanc emphasized the strategic importance of the transaction:
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. Led by CEO Ed Walker, the ArmadaCare team has a proven track record of building a successful business with exceptional leadership and a clear vision of how to compete and succeed in their niche market. We are pleased to welcome them to the Ambac family as a highly valuable addition to our platform.
The acquisition of ArmadaCare aligns with Ambac’s long-term strategic plan to build a pure-play specialty insurance platform. The company has spent the last several years transitioning away from its legacy financial guarantee business and focusing on opportunities in high-growth, non-correlated insurance markets. ArmadaCare’s expertise in supplemental health represents a natural complement to Ambac’s existing Accident & Health (A&H) offerings, creating significant cross-sell and distribution synergies.
ArmadaCare’s Perspective
Ed Walker, Chief Executive Officer of ArmadaCare, highlighted the benefits of the new partnership:
We could not be more excited to join the Ambac family of MGAs. Ambac’s commitment to empowering their MGAs, coupled with our deep relationships with long-term underwriting partners, will fuel the continued growth and future success of our business and further establish our position as a leading health insurance solutions provider.
Walker and his full management team will continue to lead ArmadaCare following the close of the transaction, ensuring continuity for employees, customers, and partners.
SiriusPoint’s Role Going Forward
Although SiriusPoint will divest ArmadaCare, the company will maintain its strong underwriting relationship with the business. Scott Egan, Chief Executive Officer of SiriusPoint, commented:
We are delighted to continue our long-term capacity agreement with Armada and look forward to the team continuing to drive strong underwriting performance for our Accident and Health segment. We wish the team well for an exciting new chapter under the ownership of Ambac.
As part of the transaction, SiriusPoint has entered into a new five-year capacity agreement with ArmadaCare, ensuring a seamless transition and ongoing collaboration.
Compelling Strategic and Financial Rationale
Ambac outlined several key benefits of the ArmadaCare acquisition:
- Diversification in Attractive Markets
- The deal strengthens Ambac’s presence in the Accident & Health sector, a market characterized by resilient demand and strong growth potential.
- By expanding into non-correlated business lines, Ambac enhances its ability to weather market cycles and economic volatility.
- Differentiated Business Model
- ArmadaCare’s high-touch service model, regulatory expertise, and specialized benefit design provide a durable competitive moat.
- These capabilities position ArmadaCare as a premium provider, differentiating it from lower-cost, commoditized alternatives.
- Deep Carrier Relationships
- ArmadaCare has built long-term partnerships with capacity providers, including SiriusPoint.
- Its reputation for strong underwriting results makes it a trusted partner in the health insurance ecosystem.
- Complementary Capabilities and Revenue Synergies
- Ambac gains access to ArmadaCare’s direct C-suite relationships and distribution network, opening new cross-selling opportunities across the broader A&H business.
- Strengthened Financial Profile
- The acquisition is expected to materially accelerate Ambac’s path toward achieving its 2028 EBITDA targets.
- The transaction is projected to be accretive to Ambac shareholders by 2026, providing measurable long-term value creation.
Transaction Structure and Financing
Under the terms of the agreement, Ambac will acquire ArmadaCare for $250 million, financed through a mix of cash on hand and newly issued debt.
- Financing package:
- $120 million commitment from Truist Bank
- $100 million Term Loan A
- $20 million revolving credit facility
The deal has been unanimously approved by the boards of both companies. Subject to customary closing conditions and regulatory approvals, the acquisition is expected to close in the fourth quarter of 2025. Importantly, the agreement is not subject to a financing out, underscoring Ambac’s confidence in its capital plan.
Advisors
- Ambac’s advisors:
- Financial: Truist Securities, Inc., UBS, and BMS Capital Solutions
- Legal: Norton Rose Fulbright
- Financing: Truist Bank (sole administrative agent) and Truist Securities, Inc. (sole arranger)
- SiriusPoint’s advisors:
- Financial: Jefferies LLC
- Legal: Paul Hastings LLP
