Bermuda-domiciled global specialty re/insurer SiriusPoint is set to repurchase all of its common shares and warrants held by CM Bermuda Limited for an aggregate purchase price of $733 million.
As per the terms of the repurchase transaction, post-closing, CM Bermuda will have no remaining ownership interest in SiriusPoint and will cease to have any representation on, or observer rights concerning the re/insurer’s Board of Directors.
SiriusPoint will make the payment in two tranches, with the first payment of $250 million made on December 30th, 2024. The transaction is expected to close on or before February 28th, 2025, when the re/insurer will make the second payment of $483 million to CM Bermuda.
SiriusPoint has financed the transaction entirely through its existing capital, and the company’s pro-forma Bermuda Solvency Capital Ratio at the end of Q3 remains strong at 218% after the payments.
The reinsurer has agreed to repurchase 45.7 million common shares at $14.25 per share and agreed to repurchase and surrender 21 million warrants at $3.56 per warrant (strike price of $11 per warrant).
BofA Securities, Inc. acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel to SiriusPoint.
As of September 30th, 2024, SiriusPoint’s diluted book value per common share was $14.73, and the 30-day volume-weighted average common share price was $15.16 as of December 27, 2024.
Scott Egan, Chief Executive Officer, SiriusPoint, commented, “Today’s announcement to repurchase all shares and warrants owned by CM Bermuda is a significant development for SiriusPoint. Our financial position, driven by our strengthening profitability and performance, has empowered us to execute this transaction.
“The transaction will be meaningfully accretive to earnings per share and return on equity, and accretive to book value per share. The closing of the transaction positions SiriusPoint well for the future. We enter 2025 with great momentum and remain focused on driving further value creation for all shareholders.”
