Alchemy agrees sale of Apollo to NASDAQ-listed Skyward Specialty

Alchemy has agreed to sell Apollo Group Holdings to NASDAQ-listed Skyward Speciality Group.

Apollo – which Alchemy described as a “top quartile underwriting, capital light, high growth, low volatility US centric specialty insurance platform operating at Lloyd’s of London” – handles approximately £1.1bn ($1.5bn) in managed premiums.

The firm launched in 2010 and has grown at a compound annual growth rate of 20%. It partnered with Alchemy in 2021 following a period of heavy losses in the specialty insurance market.

Since the partnership, Apollo has launched four new Lloyd’s syndicates and “boasts a highly experienced management team and has a diversified multiclass insurance portfolio, including a unique and innovative platform liability product for the digital and sharing economy”.

The latest deal, valued at £411m ($555m), is set to give Alchemy investors a 260% return on investment.

Significant growth

Toby Westcott, partner at Alchemy, said: “This transaction is a fantastic result for our investors and we are confident the business will continue to thrive through its new partnership with Skyward Specialty and provide significant growth, expertise and innovation to the Skyward Specialty platform.

“We are grateful to the team for their outstanding contribution to the business under Alchemy’s ownership and wish them all the best in the next stage of their journey.”

David Ibeson, group chief executive at Apollo, added: “ [Alchemy’s] partnership approach has allowed us to deliver on our ambitious plans for Apollo, enabling Apollo to deliver excellent growth in gross written premiums, enhanced diversification and the development of our market leading innovative insurance solutions and advanced technological capabilities.

“As we move the business into its next chapter, I believe Apollo can offer valuable diversification in earnings and our expertise to help grow Skyward Specialty’s platform and I am excited about the possibilities this partnership brings.”