SiriusPoint concludes discussions regarding potential acquisition

SiriusPoint concludes discussions regarding potential acquisition | Insurance Business Canada

Insurance News

SiriusPoint concludes discussions regarding potential acquisition

Board special committee reiterates support for current strategy

Insurance News

By
Mika Pangilinan

SiriusPoint has confirmed the conclusion of discussions with Daniel Loeb and certain affiliates regarding a potential transaction to acquire the company.

Following public disclosure of Loeb’s interest in acquiring SiriusPoint on April 12, the SiriusPoint board formed a special committee to consider any acquisition proposals. The committee, which included all non-executive directors of the board, engaged in exploratory discussions with Loeb regarding a potential transaction.

In a statement issued Friday, SiriusPoint revealed the committee’s unanimous decision that the current strategy of the company is “the best path to deliver enhanced long-term value for shareholders.”

“The company has made significant progress during the last seven months to improve underwriting performance, reduce volatility and rebalance its investment portfolio towards high-quality fixed-income assets,” the statement from SiriusPoint said. “This was evidenced by its strong first quarter results reported on May 3, 2023.”

SiriusPoint reported an 80.5% combined ratio for its core operations during the first quarter of 2023, with net income up $358 million year on year.

The statement also acknowledged Loeb’s support for SiriusPoint and its management team and strategy.

According to SiriusPoint, Jefferies LLC acted as financial advisor to the special committee. Meanwhile, Wilson, Sonsini, Goodrich, & Rosati LLP and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisors.

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