SiriusPoint forms special committee to review takeover bids
SiriusPoint's Scott Egan says the board 'agreed it would not move forward with any transaction unless it is first approved by the committee', adding there was no assurance any transaction will be approved or consummated
Move follows potential takeover interest from hedge fund veteran Dan Loeb as Bermuda-based carrier returns to net profit in first quarter
SiriusPoint has formed a special committee to review any acquisition proposal from US hedge fund Third Point.
It emerged last month Third Point chief executive, Dan Loeb, is exploring a transaction to acquire SiriusPoint and take it private.
At the time, Loeb, who has a 9.3% stake in the carrier, did not specify a price he is willing to pay for the business.
Speaking to analysts, SiriusPoint chief executive, Scott Egan, said the special committee is comprised of independent directors and would review any proposal made.
“The board agreed it would not move forward with any transaction unless it is first approved by the committee,” Egan said, adding there was no assurance any transaction with Loeb or any other party would be approved or consummated.
The formation of the special committee came as SiriusPoint announced former Hiscox chief executive Bronek Masojada is joining the board as an independent director.
Egan was speaking after SiriusPoint reported a return to net profit in the first quarter of the year, booking net earnings of $138.6m in the quarter, compared to a loss of $217m a year earlier.
It was the Bermuda-based group’s first positive quarterly net income since the second quarter of 2021.
Core underwriting profit soared to $107.4m in the quarter from $12.7m a year earlier, as the core combined ratio improved 17 points to 80.5%.
Over the past 18 months the carrier has been reducing its exposure to property catastrophe business to focus on specialty business and managing general agent (MGA) partnerships, as part of a strategy to reduce volatility and improve profitability.
In February Egan confirmed SiriusPoint has largely completed the rebalancing of its property portfolio.
The company announced in March a loss portfolio transfer deal with legacy firm Compre covering $1.3bn of reserves.
The deal, which is expected to close at the end of the second quarter, relates to a diversified portfolio of reinsurance business underwritten by SiriusPoint’s international reinsurance business in Sweden and its Lloyd’s syndicate 1945 from 2021 and earlier.
The transaction will release around $150m of capital on closing. Egan said the transaction was “transformational” for the business.
“We have a clear path for delivery for the rest of the year with an ambition to keep improving,” Egan said.