SiriusPoint will repurchase shares and warrants from CM Bermuda for $733 million, eliminating CM Bermuda's ownership.
Quiver AI Summary
SiriusPoint Ltd., a global insurance and reinsurance provider, announced a $733 million agreement to repurchase all common shares and warrants held by CM Bermuda Limited, which will result in CM Bermuda having no ownership or representation in the company. The repurchase will take place in two payments, with an initial payment of $250 million made today and a second payment of $483 million expected to be completed by February 28, 2025. This transaction includes the buyback of 45.7 million shares at $14.25 each and 21 million warrants. Following the transaction, SiriusPoint expects to enhance its earnings per share, return on equity, and book value per share. The company's financial strength is affirmed, with a robust solvency capital ratio of 218%. CEO Scott Egan emphasized that this move positions SiriusPoint for future growth and value creation for its shareholders.
Potential Positives
- Repurchase of all shares and warrants held by CM Bermuda for $733 million demonstrates SiriusPoint's strong financial position and strategic decision-making.
- The transaction is expected to be accretive to earnings per share, return on equity, and book value per share, favorably impacting shareholder value.
- The completion of the transaction will eliminate CM Bermuda's ownership interest and representation on the board, allowing for a more streamlined governance structure.
- The company maintained a strong Bermuda Solvency Capital Ratio of 218%, indicating solid financial health even after significant payments.
Potential Negatives
- The substantial repurchase amount of $733 million could indicate reliance on existing capital, raising concerns about liquidity and future financial flexibility.
- The agreement results in CM Bermuda completely divesting from SiriusPoint, which may reflect a lack of confidence in the company's future prospects from a significant shareholder.
- The potential risks and uncertainties outlined in the press release highlight vulnerabilities in operational performance and external market conditions that could impact future results.
FAQ
What is the value of SiriusPoint's share repurchase agreement?
SiriusPoint's agreement to repurchase shares and warrants is valued at $733 million.
When will the share repurchase transaction close?
The transaction is expected to close on or before February 28, 2025.
Who advised SiriusPoint on this transaction?
BofA Securities, Inc. acted as financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel.
How many common shares is SiriusPoint repurchasing?
SiriusPoint is repurchasing 45.7 million common shares at $14.25 per share.
How will this transaction impact SiriusPoint’s financials?
This repurchase is expected to be accretive to earnings per share and return on equity for SiriusPoint.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$SPNT Insider Trading Activity
$SPNT insiders have traded $SPNT stock on the open market 1 times in the past 6 months. Of those trades, 0 have been purchases and 1 have been sales.
Here’s a breakdown of recent trading of $SPNT stock by insiders over the last 6 months:
- EVAN CABAT sold 2,000 shares.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$SPNT Hedge Fund Activity
We have seen 74 institutional investors add shares of $SPNT stock to their portfolio, and 72 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- WELLINGTON MANAGEMENT GROUP LLP removed 1,372,591 shares (-12.2%) from their portfolio in Q3 2024
- MORGAN STANLEY added 1,180,216 shares (+84.6%) to their portfolio in Q3 2024
- BLACKROCK, INC. added 741,728 shares (+5.2%) to their portfolio in Q3 2024
- PRIVATE MANAGEMENT GROUP INC removed 634,672 shares (-12.2%) from their portfolio in Q3 2024
- INVESCO LTD. added 632,994 shares (+29.7%) to their portfolio in Q3 2024
- DIMENSIONAL FUND ADVISORS LP added 604,674 shares (+9.0%) to their portfolio in Q3 2024
- AMERICAN CENTURY COMPANIES INC added 336,226 shares (+16.1%) to their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
HAMILTON, Bermuda, Dec. 30, 2024 (GLOBE NEWSWIRE) -- SiriusPoint Ltd. (“SiriusPoint”) (NYSE: SPNT), a global specialty insurer and reinsurer, announced today it has entered into an agreement to repurchase all SiriusPoint common shares and warrants held by CM Bermuda Limited (“CM Bermuda”) for an aggregate purchase price of $733 million.
Following the closing of the repurchase transaction, CM Bermuda will have no remaining ownership interest in SiriusPoint and will cease to have any representation on, or observer rights with respect to, SiriusPoint’s board of directors. The payment will be made by SiriusPoint in two tranches with the first payment of $250 million made today. The closing of the transaction is expected to complete on or before February 28, 2025 at such time as SiriusPoint makes a second payment of $483 million to CM Bermuda.
SiriusPoint has financed the transaction entirely through its existing capital. Its proforma Bermuda Solvency Capital Ratio at the end of Q3 remains strong at 218% after the payments.
The Company has agreed to repurchase 45.7 million common shares at $14.25 per share. It also agreed to repurchase and surrender 21 million warrants at $3.56 per warrant (strike price of $11 per warrant). As of September 30, 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.
SiriusPoint CEO, Scott Egan, said: “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.”
BofA Securities, Inc. acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel to SiriusPoint in connection with the transaction.
Find out more in our CM Bermuda Investor Agreement presentation,
here
.
About SiriusPoint
SiriusPoint is a global underwriter of insurance and reinsurance providing solutions to clients and brokers around the world. Bermuda-headquartered with offices in New York, London, Stockholm and other locations, we are listed on the New York Stock Exchange (SPNT). We have licenses to write Property & Casualty and Accident & Health insurance and reinsurance globally. Our offering and distribution capabilities are strengthened by a portfolio of strategic partnerships with Managing General Agents and Program Administrators within our Insurance & Services segment. With over $3.0 billion total capital, SiriusPoint’s operating companies have a financial strength rating of A- (Excellent) from AM Best, S&P and Fitch, and A3 from Moody’s. For more information, please visit
www.siriuspt.com
.
Forward-Looking Statements
We make statements in this press release that are forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. These risks and uncertainties include, but are not limited to, the impact of general economic conditions and conditions affecting the insurance and reinsurance industry; the adequacy of our reserves; fluctuation in the results of operations; pandemic or other catastrophic event; uncertainty of success in investing in early-stage companies, such as the risk of loss of an initial investment, highly variable returns on investments, delay in receiving return on investment and difficulty in liquidating the investment; our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market and investment income fluctuations; trends in insured and paid losses; regulatory and legal uncertainties; and other risk factors described in SiriusPoint’s Annual Report on Form 10-K for the period ended December 31, 2023. Additionally, the transactions contemplated by the securities purchase agreement are subject to risks and uncertainties and factors that could cause SiriusPoint’s actual results to differ from those statements herein including, but not limited to: that SiriusPoint may be unable to complete the proposed transactions because, among other reasons, conditions to the closing of the proposed transactions are not be satisfied or waived; the occurrence of any event, change or other circumstance that could give rise to the termination of the securities purchase agreement; one or more third parties could seek to acquire the common shares and warrants owned by CM Bermuda prior to the closing of the repurchase transaction; obligations or capital requirements of our subsidiaries could delay or impair SiriusPoint’s access to available sources of liquidity and ability to fund the second payment; and the outcome of any legal proceedings to the extent initiated against SiriusPoint or others following the announcement of the proposed transaction, as well as SiriusPoint’s response to any of the aforementioned factors.
Except as required by applicable law or regulation, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, or new information, data or methods, future events, or other circumstances after the date of this press release.
Contacts
Investor Relations
Liam Blackledge, SiriusPoint
Liam.Blackledge@siriuspt.com
+44 203 772 3082
Media
Sarah Hills, Rein4ce
sarah.hills@rein4ce.co.uk
+44 7718 882011
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