Global specialty re/insurer SiriusPoint Ltd. announced the closing of its previously disclosed agreement to repurchase all common shares and warrants held by CM Bermuda Limited for a total purchase price of US$733 million.
The company also confirmed the completion of a registered secondary offering of 4,106,631 common shares by entities associated with Daniel S. Loeb.
With the completion of the CM Bermuda transaction, SiriusPoint noted that CM Bermuda no longer holds any ownership interest in SiriusPoint and no longer has representation on or observer rights related to SiriusPoint’s board of directors.
The company also said that the repurchase of CM Bermuda’s shares will immediately increase book value by 4% and is expected to contribute to higher return on equity and earnings per share.
As part of the secondary offering, SiriusPoint repurchased 500,000 common shares at the public offering price of $14 per share. After the offering and the cancellation of CM Bermuda’s shares, the Loeb Entities now hold approximately 9.54% of SiriusPoint’s outstanding common shares.
Announced earlier this year, the repurchase was notably financed in two installments, with the first payment of US$250 million made in January. The remaining US$483 million was paid by Feb. 28, at which point the transaction closed.
SiriusPoint said that the deal has been financed entirely through its existing capital, leaving its pro forma Bermuda Solvency Capital Ratio at 218% as of the end of the third quarter of 2024.
SiriusPoint CEO Scott Egan (pictured above) said the completion of both transactions with CM Bermuda and the Loeb Entities follows a year in which the company reported strong 2024 results.
In the previous year, the company reported a diluted book value per common share of US$14.73, and the 30-day volume-weighted average share price as of Dec. 27, 2024, stood at US$15.16.
However, the company did see a net loss of US$21.3 million in Q4 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 items, underlying net income was US$44 million for the quarter.
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