The global speciality insurer and reinsurer, SiriusPoint Ltd, has agreed to sell its wholly-owned supplemental health insurance programme manager, ArmadaCare, to Ambac Financial Group Inc for $250 million.

SiriusPoint will continue its capacity partnership with Armada until the end of 2030.

When the sale is complete, SiriusPoint will recognise a pre-tax gain of $220-230 million, with the transaction valuing Armada at approximately 14x earnings before interest, taxes, depreciation and amortisation. Book value is expected to increase by approximately 10 per cent upon close.

Scott Egan, SiriusPoint’s chief executive, said: “The sale of our equity stake is an important step in unlocking the significant off-balance sheet value of Armada. We look forward to continuing our strong partnership with the team through our long-term capacity agreement.

“We are proud of our leading capabilities in the accident and health segment, which includes our ownership of premier travel platform International Medical Group, and we see attractive growth opportunities for our A&H business going forward.

“We reaffirm our across-the-cycle target return on equity of 12 to 15 per cent.”

The transaction is expected to close in the fourth quarter, subject to customary closing conditions and receipt of regulatory approvals.