New York-headquartered Ambac Financial Group Inc, the insurance holding company with a subsidiary in Bermuda, has signed a definitive agreement to acquire a 60 per cent controlling stake in London-based Beat Capital Partners Ltd for approximately $282 million, up to $40 million of which will be paid in shares of Ambac common stock.

The transaction is expected to close in the third quarter of 2024, subject to regulatory approvals.

Beat Capital is an insurance underwriting and managing general agency incubation platform. Since its inception in 2017, Beat has launched 13 underwriting franchises and MGAs.

In addition, it has certain management rights for Syndicates 4242 and 1416 at Lloyd’s and an exclusive capacity relationship with Cadenza Re, a Bermudian-based Class 3A reinsurer.

Ambac (Bermuda) Ltd has been registered on the island since 2007.

Pursuant to the agreement, Ambac will purchase 60 per cent of Beat from existing shareholders, including Bain Capital and Beat’s management team, each of which will retain an equity stake of approximately 20 per cent in Beat.

Claude LeBlanc, president and chief executive officer, said: “This acquisition propels Ambac to the forefront of the specialty programme insurance market. We are not simply acquiring a leading specialty underwriting platform; we are aligning with a team that has proven ability to build and launch profitable de novo MGAs, which is a core pillar of our growth strategy. Adding Beat to our platform gives us immediate scale and a strong pipeline to fuel future growth.”

John Cavanagh, partner and chairman of Beat, added: “This joint enterprise now represents one of the foremost global platforms for MGAs and underwriting franchises, with a significant footprint in the US, UK and Bermudian markets and scope to grow into other geographies.”

Mr Cavanagh will continue to manage the business as part of the senior Beat leadership team.

Ambac also announced a definitive agreement to sell its legacy financial guarantee businesses, Ambac Assurance Corporation and Ambac UK to funds managed by Oaktree Capital Management LP for $420 million in cash.

The company said the sale was the final step in its transition into a specialty property and casualty insurance platform.