Global specialty re/insurer SiriusPoint announced that it has reached an agreement to repurchase all common shares and warrants held by CM Bermuda Limited for a total purchase price of US$733 million.
Under the agreement, CM Bermuda will no longer hold any ownership stake in SiriusPoint or maintain representation or observer rights on the company’s board of directors following the transaction's completion.
The repurchase will be financed in two installments, with the first payment of US$250 million made on the day of the announcement. The remaining US$483 million is scheduled to be paid by Feb. 28, at which point the transaction is expected to close.
SiriusPoint stated 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.
The company is repurchasing 45.7 million common shares at US$14.25 per share and 21 million warrants at US$3.56 per warrant. The warrants have a strike price of US$11 each.
As of Sept. 30, 2024, SiriusPoint 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.
SiriusPoint CEO Scott Egan (pictured above) said the transaction was a significant step for the company.
“Our financial position, driven by our strengthening profitability and performance, has empowered us to execute this transaction,” he said. “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.”
BofA Securities, Inc served as financial advisor to SiriusPoint, while Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel for the transaction.
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