Skyward Specialty Enters Into A Definitive Agreement To Acquire Apollo Group Holdings Limited

Transaction Overview

Skyward Specialty Insurance Group Inc. (“Skyward”, NASDAQ: SKWD”), a leading U.S. specialty insurance company, has announced it has entered into a definitive agreement to acquire Apollo Group Holdings Limited (“Apollo”) from Alchemy Partners LLC, management, employees, and other strategic investors

• Apollo is to be acquired for a total consideration of $555 million, in cash and stock

Apollo is a capital light, high growth, low volatility U.S. centric speciality insurance platform operating within the Lloyd’s market

Apollo owns and operates two Lloyd’s syndicates (1969 and 1971), a Corporate Member, a Bermuda Class 3a reinsurer and a Lloyd’s Managing Agency that earns managing agency fees and profit commissions from both its own syndicates, as well as from innovative third-party syndicates, known as Platform Partners

• Syndicate 1969 underwrites a multi-class speciality insurance portfolio, and wrote ~$860m of GWP in 2024
• Ibott Syndicate 1971, delivers a unique, innovative platform liability product for the digital and sharing economy, and wrote ~$410m of GWP in 2024
• Apollo takes a dynamic approach to risk-capital deployment, providing ~27% of the capital to syndicates 1969 and 1971, with the remainder of the capital provided by third-parties
• Apollo Platform Partners offers bespoke third-party managing agency services to strategic partners seeking to enter and grow within the Lloyd’s market, including Africa Specialty Risks, Coface, Compre, Envelop Risk and NormanMax

Howden Capital Markets & Advisory Role

HCMA is acting as financial advisor to Apollo, with key roles and responsibilities including:

• Preparation of detailed financial modelling and articulation of the financial profile of Apollo
• Assisting with financial due diligence
• Advising on key transaction terms and conditions including ultimate deal structure
• Providing objective advice and acting as a sounding board to Apollo throughout the process