SiriusPoint Ltd., the Bermuda-based specialty insurer and reinsurer, announced an agreement to sell its 49% equity stake in managing general agent, Arcadian Risk Capital to private equity firm Lee Equity Partners for a total consideration of $139 million, inclusive of a pre-close dividend.
SiriusPoint has also renewed and extended its capacity agreement with Arcadian until the end of 2031.
Upon completion of the sale, SiriusPoint will recognize a pre-tax gain of $25 million-$30 million, in addition to the previously recognized $96 million gain in the second quarter of 2024. Arcadian produced $17.6 million before Interest, Taxes, Depreciation, and Amortization (EBITDA).
“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,” commented Scott Egan, chief executive officer at SiriusPoint.
The deal is expected to close prior to the end of the first quarter of 2026, subject to regulatory approvals and satisfaction of customary closing conditions.
Jefferies LLC served as SiriusPoint’s exclusive financial adviser and Skadden, Arps, Slate, Meagher & Flom LLP served as SiriusPoint’s legal adviser.
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