SiriusPoint Completes Key Transactions, Strengthening Financial Position
Global specialty re/insurer SiriusPoint Ltd. has announced the completion of two major financial transactions, solidifying its strategic repositioning and signaling potential for future value creation. The company finalized its previously disclosed agreement to repurchase all common shares and warrants held by CM Bermuda Limited for a total of US$733 million. Concurrently, SiriusPoint concluded a registered secondary offering of 4,106,631 common shares through entities associated with Daniel S. Loeb.
With the CM Bermuda transaction now complete, SiriusPoint confirmed that CM Bermuda no longer holds any ownership interest in the company, nor does it have representation or observer rights on the SiriusPoint board of directors.
The repurchase of CM Bermuda’s shares is expected to yield immediate positive effects. According to the company, the move will immediately increase book value by 4% and is projected to contribute to higher returns on equity and earnings per share. As part of the secondary offering, SiriusPoint also repurchased 500,000 common shares at the public offering price of $14 per share.
Following the offering and the cancellation of CM Bermuda’s shares, the Loeb Entities now hold approximately 9.54% of SiriusPoint’s outstanding common shares. The repurchase, which was announced earlier this year, was financed in two installments. The initial payment of US$250 million was made in January, and the remaining US$483 million was paid by February 28th, concluding the transaction.
SiriusPoint stated that the deal was entirely financed through its existing capital resources, leaving its pro forma Bermuda Solvency Capital Ratio at 218% as of the end of the third quarter of 2024.
SiriusPoint CEO Scott Egan
SiriusPoint CEO Scott Egan highlighted the completion of both transactions, noting that they follow a year of strong financial results in 2024. The company reported a diluted book value per common share of US$14.73 and a 30-day volume-weighted average share price of US$15.16 as of December 27, 2024. However, the company did experience a net loss of US$21.3 million in the fourth quarter of 2024, primarily due to the CM Bermuda repurchase, a loss portfolio transfer with Enstar, and a write-down of a managing general agent investment. Excluding these specific items, the underlying net income for the quarter was US$44 million.
