SiriusPoint will ‘carefully evaluate’ Third Point bid
Bermuda-based specialty re/insurer SiriusPoint has confirmed that its board will “carefully evaluate” a potential bid from billionaire investor and its largest shareholder Daniel Loeb who has indicated he is interested in taking the company private.
The move comes less than three years after Loeb merged his reinsurance business, Third Point Re, with then rival Sirius International Insurance Group.
Third Point Management, Loeb’s hedge fund, and certain of its affiliates are looking “to explore a potential acquisition of all or substantially all of the outstanding common shares of the company,” SiriusPoint said in a statement, noting that its board of directors will carefully evaluate the proposal to acquire the company “if and when” it is received.
Loeb, who owns approximately 9.34% stake in the company, is said to be “fully supportive” of the company’s strategy and plan currently being pursued. He has “full confidence” in the approach to the de-risking of its investment portfolio to strengthen its balance sheet and capital position.
But Loeb believes the company will be better positioned to execute on its turnaround strategy as a privately held company while continuing to strengthen its financial position, enhance its credit ratings, and adhere to the highest regulatory standards, according to a US Securities and Exchange Commission (SEC) filing.
SiriusPoint highlighted that it has made “significant progress” during the last seven months against its strategic priorities of reducing volatility, business simplification, and improving profitability. The company stressed that it has a “healthy balance sheet” and its capital position has been further strengthened by the recently announced Loss Portfolio Transfer transaction, while ratings agency Fitch recently upgraded SirusPoint’s outlook to stable from negative.
Loeb, its largest individual shareholder, sits on SiriusPoint board of directors. He is the founder and CEO of the asset management firm Third Point, was the founder of Third Point Re and instrumental in the merger of the company with Sirius Group to create SiriusPoint in 2021.