Skyward Specialty Insurance Group has agreed to acquire all shares of Apollo Group Holdings for $555m (£413.27m). 

Alchemy was the seller in the transaction, along with management, employees and other “strategic” investors. 

The acquisition is expected to enhance Skyward’s footprint in the US specialty insurance sector by adding more than $1.5bn in managed premiums. 

The financial structure of the deal includes $184m in stock consideration to be distributed among Apollo’s employees and investors. 

The remaining $371m will be settled in cash, backed by secured debt financing.  

The acquisition is projected to lead to a “double-digit” increase in adjusted operating earnings per share in the year following completion. 

Set up in 2010, Apollo operates a specialty underwriting platform at Lloyd’s of London.  

The company has reported a compound annual growth rate of roughly 20% in its gross written premium. 

Apollo’s Syndicate 1969 manages a diversified specialty insurance portfolio, while Syndicate 1971, also referred to as Apollo ibott, provides liability coverage for the digital and sharing economies.  

Apollo finances approximately 27% of the capital for these syndicates, receiving a proportional share of the underwriting profits, with the balance of capital sourced from external parties. 

The acquisition is said to be in line with Skyward Specialty’s strategic direction, introducing new specialty segments and fostering “innovation”.  

David Ibeson, CEO of Apollo since 2012, will continue to lead Apollo’s operations within Skyward Specialty, accompanied by Apollo’s management team. 

Completion of the deal is expected in the first quarter of 2026 (Q1 2026), contingent upon regulatory consents. 

Ibeson said: “We have been building a relationship with Skyward Specialty for nearly two years, and during that time, we have had a number of opportunities to collaborate. We very quickly understood that we had a common view of the future of the specialty market and a shared understanding of how to position our respective organisations to win.”   

Skyward Specialty chairman and CEO Andrew Robinson said: “We are delighted to reach an agreement to acquire Apollo. Their underwriting leadership and unique market positioning are exceptionally well-matched to Skyward Specialty’s strengths and vision and fit with our strategy to ‘Rule Our Niche’.  

“Apollo’s Syndicate 1969 will provide access to attractive and hard-to-reach specialty classes including Political Violence, Product Recall, Specialty Disruption and other related specialty classes.  

“Leveraging the unique capabilities of Syndicate 1971, Apollo will further enhance our portfolio with unique and innovative solutions designed for new economy industries.”