SiriusPoint Ltd., a specialty insurer and reinsurer based in Bermuda, is set to sell its 49% stake in Arcadian Risk Capital, a managing general agent, to private equity firm Lee Equity Partners for $139 million. This sale includes a pre-close dividend and marks another step in SiriusPoint’s evolving business strategy.
Alongside the sale, SiriusPoint has renewed and extended its capacity agreement with Arcadian until the end of 2031. This means they will continue to work closely with Arcadian even after the ownership change. The capacity agreement allows SiriusPoint to provide insurance support and resources to Arcadian’s operations.
The deal is expected to close before the first quarter of 2026, pending regulatory approval and standard closing requirements. When completed, SiriusPoint will report a pre-tax gain of between $25 million and $30 million on top of the $96 million gain it already recognized in the second quarter of 2024. For context, Arcadian generated $17.6 million in EBITDA, a measure of its operating profitability.
Scott Egan, SiriusPoint’s CEO, expressed enthusiasm about continuing the relationship with Arcadian and supporting the company under its new leader, John Boylan. Jefferies LLC acted as SiriusPoint’s financial advisor, while Skadden, Arps, Slate, Meagher & Flom LLP handled legal matters for the sale.
This deal highlights SiriusPoint’s focus on refining its portfolio while maintaining strong partnerships in the wholesale insurance space. The involvement of Lee Equity Partners also brings in fresh energy and expertise to Arcadian as it moves forward.