The class of 2021 comes together: Mosaic and SiriusPoint form alliance

Mosaic is to buy SiriusPoint’s Lloyd’s managing agency. The Bermuda-headquartered specialty insurer,  which celebrated its first anniversary last month, will acquire Sirius International Managing Agency at Lloyd’s as part of a transaction that will also see global re/insurer become a strategic investor in Mosaic.

Under the terms of the deal, the managing agency will continue to support SiriusPoint’s Syndicate 1945 at Lloyd’s, while SiriusPoint chairman and CEO Sid Sankaran will have a seat on Mosaic’s board of directors.

SiriusPoint will invest in Mosaic to support growth, provide underwriting capacity to Mosaic’s syndicated capital programme and provide access to global licenses and infrastructure through a fronting arrangement.

“Reinvigorating our Lloyd’s business is a key element of our strategy,” said Sid Sankaran, Chairman and Chief Executive Officer.  “Syndicate 1945 is an important part of our global platform, providing us and our strategic partners with access to the licenses and ratings that Lloyd’s offers. Partnering with Mosaic, which is a fantastic, entrepreneurial company, sets us on a path to access the right talent, scale our business and achieve profitable growth.”

The leadership of both businesses welcomed the deal.

“Mosaic’s business model is built on the foundation of valuable partnerships – and this agreement embodies that philosophy,” noted Mosaic co-CEO, Mark Wheeler.

“Modernization is key to success in the Lloyd’s marketplace,” said Prashanth Gangu, chief operating officer and president of insurance and services at SiriusPoint. “This deal creates a unique opportunity for both companies. We are laying the groundwork for future growth and profitability through this strategic partnership.”

He added: “Mosaic has the potential to disrupt the traditional way of doing things and drive change in the market. It is a terrific fit for SiriusPoint’s portfolio of disruptive and technology-driven insurance businesses and as a visionary parent company for our highly-regarded and capable managing agency team.”

Wheeler continued: “This transaction will complement the strategic ambitions of both Mosaic and SiriusPoint and benefits both our companies. Mosaic believes in the power of partnership, and this agreement builds on an already strong relationship with SiriusPoint—as a participating carrier and a fronting partner in our syndicated capital program. We’re delighted to incorporate SIMA into our platform, and we’re also pleased to welcome SiriusPoint as a strategic investor in Mosaic.”

He said: “We value SiriusPoint as a new shareholder, together with the visionary industry view of Sid Sankaran, and we look forward to working closely with him and his team.”

Mosaic, the Bermuda-headquartered specialty insurer with Lloyd’s of London Syndicate 1609, launched last February, backed by private-equity firm Golden Gate Capital. SiriusPoint also launched in February 2021 with more than $3 billion in initial capital following the merger of specialty reinsurer Third Point Reinsurance and Sirius International Insurance Group.