White Mountains to sell Sirius for $2.2bn

Bermuda-based White Mountains Insurance Group has revealed it has agreed to sell Sirius International to CM International Holding, the Singapore-based investment arm of China Minsheng Investment Corp.

Based on Sirius's tangible common shareholder's equity of $1.7 billion at December 31, 2014, CM International will pay $2.2 billion.

The purchase price will be paid in cash in an amount equal to 127.3 percent of Sirius's closing date tangible common shareholder's equity plus $10 million.

Raymond Barrette, White Mountains chairman and chief executive officer, said: "This is a win-win-win transaction. Sirius is a high quality reinsurer with a strong franchise and a great track record.

"The acquisition by CMI recognises this value and opens doors for Sirius to new opportunities in Asia, especially China. We wish Allan Waters and his Sirius team continued success, as they become the reinsurance arm of CMI. Thank you for your great results over many years.

"Net of the OneBeacon and Symetra positions to be repurchased by White Mountains from Sirius in connection with the transaction, our undeployed capital is expected to increase by $1.4 billion to about $2 billion. The board will carefully review the additional capital management options available to the company when proceeds have been received."

Allan Waters, CEO of Sirius, added: "The Sirius management team is excited to be joining the CMI family. CMI is strongly capitalised and intends to further grow Sirius's already substantial capital base.

"China is one of Sirius's most important markets, and CMI is the perfect partner for Sirius to continue its Asian growth strategy."

The transaction is expected to close within six months.