Ambac To Acquire 80 Percent Stake In Xchange – Quick Facts
Ambac Financial Group, Inc. (AMBC), a financial services holding company, said Wednesday it has agreed to acquire 80 percent of the membership interests of each of Xchange Benefits, LLC and Xchange Affinity Underwriting Agency, LLC, collectively called “Xchange”.
Xchange is a property and casualty Managing General Underwriter or MGU, specializing in accident and health insurance.
Xchange, whose management principals will retain the remaining 20 percent of the company, will continue operating under its existing brand as it seeks to expand its underwriting partnership with its key carriers in connection with its planned growth strategy.
Ambac expects the acquisition will enable Xchange to realize its significant growth potential through geographic and product diversification, helping accelerate its strategic plans.
Ambac’s Pillar II strategy is focused on fee-based MGA and MGU businesses. The company noted that the acquisition of Xchange marks the first step towards the development of Pillar II, which it expects to expand in the coming year via acquisitions and organic growth platforms.
Ambac is also continuing to progress Pillar I of its specialty insurance strategy via the Everspan Group platform, which will include participatory fronting admitted and non-admitted specialty program carriers.
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