For Immediate Release
December 24, 2020
NEW YORK, NY — Stonybrook Capital (“Stonybrook”) is pleased to announce that it has advised Xchange Group, LLC in the sale of 80% of the membership interests of each of Xchange Benefits, LLC and Xchange Affinity Underwriting Agency, LLC (collectively “Xchange”) to Ambac Financial Group, Inc. (NYSE: “AMBC”, “Ambac”). This marks yet another successful transaction for Stonybrook in the insurance industry vertical – the only vertical on which it focuses.
Formed in 2010, Xchange is a New York based, leading specialty MGU focused on the A&H industry. Xchange writes business on behalf of many highly rated carriers across a variety of products. The acquisition by Ambac will enable Xchange to realize its significant growth potential through geographic and product diversification, accelerating its strategic plans.
Ambac, headquartered in New York City, is a financial services holding company whose principal subsidiaries, Ambac Assurance Corporation and Ambac Assurance UK Limited, are financial guarantee insurance companies currently in runoff. Outstanding policies include financial guarantees of public finance and structured finance obligations in the public and private sectors globally. Ambac’s common stock trades on the New York Stock Exchange under the symbol “AMBC”.
“The Xchange team is one of the highest quality management teams in the insurance industry. We greatly enjoyed working with them to find an optimal outcome for all parties involved. This transaction further demonstrates our ability to find solutions for constituents across the (re)insurance space,” said Joseph Scheerer, Principal and CEO of Stonybrook Capital.
“Xchange is a premier platform led by a best-in-class team. We are proud to have assisted the team in transitioning to the next tier of growth and market reach,” said Ravi Arps, Partner and Board Member of Stonybrook Capital.
“I am pleased to be joining forces with the Ambac team to take Xchange to the next level. Stonybrook was instrumental in helping us navigate our strategic alternatives and execute on our strategy,” said Peter McGuire, President & CEO of Xchange.
Please find a case study of the transaction by clicking here.
About Stonybrook Capital
Stonybrook Capital is an investment banking and reinsurance broking firm, with headquarters in New York City, and offices in London, that focuses exclusively on the insurance and reinsurance industry. Stonybrook also acts as a fund placement agent for LP vehicles, and recently raised capital from Ambac for Inter-Atlantic Stonybrook Ventures Fund, LP II. Joseph Scheerer chairs the advisory committee for the fund.
Securities transactions are executed through Weild & Co., member FINRA | SIPC.
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