SiriusPoint and Compre complete $1.3bn loss portfolio transfer
SiriusPoint and Compre have completed a $1.3 billion loss portfolio transfer of the Bermuda-based specialty re/insurer’s reserves.
The transfer, which consists primarily of reinsurance business, is the second that the companies have partnered on.
The LPT was announced in March, at which time Scott Egan (pictured), SiriusPoint chief executive officer, said: “This is a transformational deal for SiriusPoint. It demonstrates decisive and continuing execution against our strategic priorities of simplifying our business, reducing future volatility, and improving the profitability of our company.
“By transferring these reserves, we are aligning our balance sheet to our go-forward strategy. The expected substantial capital release should further increase our balance sheet strength, and the reserve redundancy of approximately $100m validates our reserving policy while being accretive to returns.”
Compre CEO Will Bridger said then: “Today’s announcement represents another important milestone in Compre’s evolution, and we are delighted to further assist SiriusPoint with the strategic repositioning of its reinsurance business.
This transaction continues a valuable relationship, providing both significant diversification and growth to our balance sheet and enabling SiriusPoint to meet its strategic goals.
As one of the largest transactions underwritten in the legacy market, it also demonstrates that Compre’s client-focussed approach is recognised across the insurance and reinsurance industry for providing finality solutions on transactions of increasing significance.”
Bermuda-based legacy insurer Compre’s was underwritten by Compre’s class 3B Bermudian reinsurer, Pallas Reinsurance Company Ltd. The portfolio comprises several classes of business from 2021 and prior underwriting years. SiriusPoint retains claims handling authority on ongoing business.
SiriusPoint was advised by Gallagher Re and Mayer Brown LLP, and Compre was advised by Debevoise & Plimpton LLP and EY.
