SiriusPoint 'well insulated' from troubled shareholder

SiriusPoint is "well insulated" from the receivership of one of its key shareholders, according to ratings agency AM Best. 

SiriusPoint announced last week that CMIG International Holding - the parent of SiriusPoint’s key shareholder, CM Bermuda Ltd. (CM Bermuda) - had been taken into private receivership by its lenders in Singapore.

CM Bermuda held 33% of SiriusPoint's shares and 9.9% of its voting rights. CMIG bought Sirius International in 2016 and subsequently floated it. since then, Siris merged with Third Point Re to form SiriusPoint. 

AM Best said: "Given the restricted influence that CM Bermuda has over the group, AM Best considers SiriusPoint’s financial strength as shielded from potential adverse parental influence, including the risk of capital extraction to a level that would be detrimental to its operations.

"In AM Best’s opinion, SiriusPoint and its subsidiaries are well insulated from the debt difficulties of CM Bermuda. However, it remains unclear whether there could be reputational repercussions given the group’s association with CM Bermuda. If SiriusPoint’s rating fundamentals are materially impacted due to the reputational risk associated with CM Bermuda, AM Best will promptly review the ratings."

AM Best has given SiriusPoint a Financial Strength Rating of A- (Excellent).