Siriuspoint Ltd. has announced a significant development as it has entered into an agreement to repurchase all Siriuspoint common shares and warrants held by CM Bermuda Limited for a total purchase price of $733 million. The company has financed the transaction entirely through its existing capital, and its proforma Bermuda solvency capital ratio at the end of Q3 remains strong at 218% after the payments.
The company has agreed to repurchase 45.7 million common shares at $14.25 per share and surrender 21 million warrants at $3.56 per warrant. As of September 30, 2024, Siriuspoint’s diluted book value per common share was $14.73, and the 30-day volume-weighted average common share price was $15.16 as of December 27, 2024.
Siriuspoint's CEO, Scott Egan, highlighted that the transaction will be meaningfully accretive to earnings per share and return on equity, as well as accretive to book value per share. This move is expected to position Siriuspoint well for the future, with the company entering 2025 with great momentum and remaining focused on driving further value creation for all shareholders.
The closing of the transaction is expected to complete on or before February 28, 2025, at which time Siriuspoint will make a second payment of $483 million to CM Bermuda.
BofA Securities, Inc. acted as the financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel to Siriuspoint in connection with the transaction. Siriuspoint is a global underwriter of insurance and reinsurance providing solutions to clients and brokers around the world, with licenses to write property & casualty and accident & health insurance and reinsurance globally. Today the company's shares have moved 10.8% to a price of $15.73. If you want to know more, read the company's complete 8-K report here.
