SiriusPoint is selling its 49 per cent equity stake in managing general agent Arcadian Risk Capital to Lee Equity Partners for $139 million, inclusive of a pre-close dividend.

The global speciality insurer and reinsurer has also renewed and extended its capacity agreement with Arcadian until the end of 2031.

Upon completion of the sale, SiriusPoint will recognise a pre-tax gain of $25 to $30 million, in addition to the previously recognised $96 million gain in the second quarter of 2024.

Arcadian produced $17.6 million of earnings before interest, taxes, depreciation and amortisation.

SiriusPoint chief executive officer Scott Egan said: “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.”

The deal is expected to close prior to the end of the first quarter of next year, subject to regulatory approvals and satisfaction of customary closing conditions.

Jefferies served as SiriusPoint’s exclusive financial adviser and Skadden, Arps, Slate, Meagher & Flom served as SiriusPoint’s legal adviser.