Ambac Financial Group has completed the sale of its legacy financial guarantee businesses, Ambac Assurance Corporation and Ambac Assurance UK Limited, to funds managed by Oaktree Capital Management for $420 million in cash.
The cash sale of Ambac Assurance Corporation and Ambac Assurance UK Limited to Oaktree was initially announced in early June 2024.
After several updates on the sale’s timing and a prolonged process to satisfy pre-closing conditions, the Wisconsin Office of the Commissioner of Insurance (OCI) has issued its final approval of the Form A application for the sale of Ambac Assurance Corporation.
Ambac President and Chief Executive Officer Claude LeBlanc, commented, “Today’s announcement represents the completion of our strategic transformation into a pure-play MGA and specialty insurance platform.
“This transaction marks a defining moment in our Company’s history, enabling us to focus exclusively on long-term growth and value creation while building on the solid foundation we’ve established since the launch of our specialty insurance business in 2020.”
Greg Share, Managing Director for Oaktree’s Global Opportunities strategy, said, “We are pleased to complete this corporate carve-out in support of Ambac’s transition to a pure-play MGA specialty insurance business.
“This transaction underscores our commitment to partnering with companies seeking to complete successful strategic transformations. We look forward to supporting Ambac in its next phase of growth.”
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