SiriusPoint Finalizes Major Repurchase Agreement
Global specialty re/insurer SiriusPoint Ltd. has successfully concluded its previously announced agreement to buy back all common shares and warrants held by CM Bermuda Limited for a comprehensive purchase price of US$733 million.
Additionally, SiriusPoint has wrapped up a registered secondary offering of 4,106,631 common shares by entities associated with Daniel S. Loeb. This strategic move ensures that CM Bermuda now holds no ownership in SiriusPoint, eliminating its board representation and observer rights.
The share repurchase from CM Bermuda is set to immediately enhance the company’s book value by 4%. It is also poised to boost the return on equity and earnings per share for SiriusPoint.
Part of the secondary offering saw SiriusPoint buying back 500,000 common shares at a public offering price of $14 per share. Consequently, following the offering and the cancellation of CM Bermuda’s shares, the Loeb Entities now maintain approximately 9.54% of SiriusPoint’s outstanding common shares.
The repurchase, initially disclosed earlier this year, was financed in two phases. The first installment of US$250 million was disbursed in January, and the remaining US$483 million was settled by February 28, marking the transaction’s closure.
Remarkably, SiriusPoint managed to finance this deal entirely through its existing capital, achieving a pro forma Bermuda Solvency Capital Ratio of 218% as of the end of the third quarter of 2024.
SiriusPoint CEO Scott Egan expressed satisfaction with the completion of both transactions with CM Bermuda and the Loeb Entities, highlighting a year of robust 2024 performance for the company.
In the previous year, SiriusPoint recorded a diluted book value per common share of US$14.73, with a 30-day volume-weighted average share price of US$15.16 as of December 27, 2024.
However, the company faced a net loss of US$21.3 million in Q4 2024, attributed mainly to the CM Bermuda repurchase, a loss portfolio transfer with Enstar, and a write-down of a managing general agent investment. Excluding these factors, the underlying net income for the quarter was US$44 million.
