SiriusPoint Announces Full Repurchase of CM Bermuda Shares
SiriusPoint (NYSE: SPNT) has announced an agreement to repurchase all common shares and warrants held by CM Bermuda for $733 million. The transaction involves purchasing 45.7 million common shares at $14.25 per share and 21 million warrants at $3.56 per warrant. The payment will be made in two tranches: $250 million paid immediately and $483 million due by February 28, 2025.
The company is financing the transaction through existing capital, maintaining a strong proforma Bermuda Solvency Capital Ratio of 218% after payments. As of September 30, 2024, SiriusPoint's diluted book value per common share was $14.73, with a 30-day volume-weighted average share price of $15.16 as of December 27, 2024.
SiriusPoint (NYSE: SPNT) ha annunciato un accordo per riacquistare tutte le azioni ordinarie e le opzioni in circolazione detenute da CM Bermuda per 733 milioni di dollari. La transazione prevede l'acquisto di 45,7 milioni di azioni ordinarie a 14,25 dollari per azione e 21 milioni di opzioni a 3,56 dollari per opzione. Il pagamento sarà effettuato in due tranche: 250 milioni di dollari pagati immediatamente e 483 milioni di dollari dovuti entro il 28 febbraio 2025.
L'azienda sta finanziando la transazione attraverso il capitale esistente, mantenendo un forte rapporto di solvibilità del capitale Bermuda proforma del 218% dopo i pagamenti. Al 30 settembre 2024, il valore contabile diluito per azione ordinaria di SiriusPoint era di 14,73 dollari, con un prezzo medio ponderato per volume delle azioni di 15,16 dollari a partire dal 27 dicembre 2024.
SiriusPoint (NYSE: SPNT) ha anunciado un acuerdo para recomprar todas las acciones ordinarias y garantías en manos de CM Bermuda por 733 millones de dólares. La transacción involucra la compra de 45,7 millones de acciones ordinarias a 14,25 dólares por acción y 21 millones de garantías a 3,56 dólares por garantía. El pago se realizará en dos tramos: 250 millones de dólares pagados inmediatamente y 483 millones de dólares que serán pagados antes del 28 de febrero de 2025.
La empresa está financiando la transacción a través de capital existente, manteniendo una sólida relación de capital de solvencia proforma de Bermuda del 218% después de los pagos. Al 30 de septiembre de 2024, el valor contable diluido por acción ordinaria de SiriusPoint era de 14,73 dólares, con un precio promedio ponderado por volumen de 15,16 dólares al 27 de diciembre de 2024.
SiriusPoint (NYSE: SPNT)는 CM Bermuda가 보유한 모든 보통주 및 보증을 7억 3천3백만 달러에 재매입하기로 합의했다고 발표했습니다. 이 거래는 주당 14.25달러에 4,570만 주의 보통주와 주당 3.56달러에 2,100만 개의 보증을 구매하는 것을 포함합니다. 지급은 두 단계로 이루어질 것이며, 2억 5천만 달러가 즉시 지급되고, 4억 8천3백만 달러는 2025년 2월 28일까지 지급될 예정입니다.
회사는 기존 자본을 통해 거래를 자금을 조달하며, 지불 후 프로포르마 버뮤다 지급 능력 자본 비율을 218%로 유지하고 있습니다. 2024년 9월 30일 기준으로 SiriusPoint의 보통주당 희석 장부 가치는 14.73달러였으며, 2024년 12월 27일 현재 30일 거래량 가중 평균 주가는 15.16달러였습니다.
SiriusPoint (NYSE: SPNT) a annoncé un accord pour racheter toutes les actions ordinaires et les bons de souscription détenus par CM Bermuda pour 733 millions de dollars. La transaction consiste à acheter 45,7 millions d'actions ordinaires à 14,25 dollars par action et 21 millions de bons de souscription à 3,56 dollars par bon. Le paiement se fera en deux tranches : 250 millions de dollars payés immédiatement et 483 millions de dollars dus avant le 28 février 2025.
L'entreprise finance la transaction par le biais de fonds propres existants, maintenant un solide ratio de solvabilité du capital proforma de Bermuda de 218% après les paiements. Au 30 septembre 2024, la valeur comptable diluée par action ordinaire de SiriusPoint était de 14,73 dollars, avec un prix moyen pondéré par volume de 15,16 dollars au 27 décembre 2024.
SiriusPoint (NYSE: SPNT) hat eine Vereinbarung bekannt gegeben, alle von CM Bermuda gehaltenen Stammaktien und Warrants für 733 Millionen US-Dollar zurückzukaufen. Die Transaktion umfasst den Kauf von 45,7 Millionen Stammaktien zu einem Preis von 14,25 US-Dollar pro Aktie und 21 Millionen Warrants zu einem Preis von 3,56 US-Dollar pro Warrant. Die Zahlung erfolgt in zwei Tranchen: 250 Millionen US-Dollar werden sofort gezahlt, und 483 Millionen US-Dollar sind bis zum 28. Februar 2025 fällig.
Das Unternehmen finanziert die Transaktion über bestehendes Kapital und hält nach den Zahlungen eine solide proforma Bermuda Solvency Capital Ratio von 218%. Zum 30. September 2024 betrug der verwässerte Buchwert pro Stammaktie von SiriusPoint 14,73 US-Dollar, bei einem volumen-weighted Durchschnittskurs von 15,16 US-Dollar am 27. Dezember 2024.
- Transaction will be accretive to earnings per share and return on equity
- Strong proforma Bermuda Solvency Capital Ratio of 218% post-transaction
- Share repurchase price ($14.25) below recent trading price ($15.16)
- Complete buyout eliminates CM Bermuda's board representation and influence
- Large capital outlay of $733 million from existing funds
- Significant cash deployment may impact future investment flexibility
Insights
This share repurchase transaction represents a pivotal strategic move for SiriusPoint. The
The two-tranche payment structure (
The elimination of 21 million warrants removes potential future dilution, providing clearer visibility into SiriusPoint's equity structure. The transaction's completion will streamline corporate governance by removing CM Bermuda's board representation, potentially leading to more streamlined decision-making processes.
This strategic buyout marks a transformative moment for SiriusPoint in the specialty insurance and reinsurance market. The transaction's timing aligns perfectly with the hardening insurance market conditions, allowing SiriusPoint to consolidate its ownership structure when its operational performance is strong.
The robust Bermuda Solvency Capital Ratio of
The removal of CM Bermuda's ownership stake could potentially enhance SiriusPoint's strategic agility, allowing for quicker adaptation to market conditions and more efficient capital deployment decisions in the evolving insurance landscape.
HAMILTON, Bermuda, Dec. 30, 2024 (GLOBE NEWSWIRE) -- SiriusPoint Ltd. (“SiriusPoint”) (NYSE: SPNT), a global specialty insurer and reinsurer, announced today it has entered into an agreement to repurchase all SiriusPoint common shares and warrants held by CM Bermuda Limited (“CM Bermuda”) for an aggregate purchase price of
Following the closing of the repurchase transaction, CM Bermuda will have no remaining ownership interest in SiriusPoint and will cease to have any representation on, or observer rights with respect to, SiriusPoint’s board of directors. The payment will be made by SiriusPoint in two tranches with the first payment of
SiriusPoint has financed the transaction entirely through its existing capital. Its proforma Bermuda Solvency Capital Ratio at the end of Q3 remains strong at
The Company has agreed to repurchase 45.7 million common shares at
SiriusPoint CEO, Scott Egan, said: “Today’s announcement to repurchase all shares and warrants owned by CM Bermuda is a significant development for SiriusPoint. Our financial position, driven by our strengthening profitability and performance, has empowered us to execute this transaction.
“The transaction will be meaningfully accretive to earnings per share and return on equity, and accretive to book value per share. The closing of the transaction positions SiriusPoint well for the future. We enter 2025 with great momentum and remain focused on driving further value creation for all shareholders.”
BofA Securities, Inc. acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel to SiriusPoint in connection with the transaction.
Find out more in our CM Bermuda Investor Agreement presentation, here.
About SiriusPoint
SiriusPoint is a global underwriter of insurance and reinsurance providing solutions to clients and brokers around the world. Bermuda-headquartered with offices in New York, London, Stockholm and other locations, we are listed on the New York Stock Exchange (SPNT). We have licenses to write Property & Casualty and Accident & Health insurance and reinsurance globally. Our offering and distribution capabilities are strengthened by a portfolio of strategic partnerships with Managing General Agents and Program Administrators within our Insurance & Services segment. With over
Forward-Looking Statements
We make statements in this press release that are forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. These risks and uncertainties include, but are not limited to, the impact of general economic conditions and conditions affecting the insurance and reinsurance industry; the adequacy of our reserves; fluctuation in the results of operations; pandemic or other catastrophic event; uncertainty of success in investing in early-stage companies, such as the risk of loss of an initial investment, highly variable returns on investments, delay in receiving return on investment and difficulty in liquidating the investment; our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market and investment income fluctuations; trends in insured and paid losses; regulatory and legal uncertainties; and other risk factors described in SiriusPoint’s Annual Report on Form 10-K for the period ended December 31, 2023. Additionally, the transactions contemplated by the securities purchase agreement are subject to risks and uncertainties and factors that could cause SiriusPoint’s actual results to differ from those statements herein including, but not limited to: that SiriusPoint may be unable to complete the proposed transactions because, among other reasons, conditions to the closing of the proposed transactions are not be satisfied or waived; the occurrence of any event, change or other circumstance that could give rise to the termination of the securities purchase agreement; one or more third parties could seek to acquire the common shares and warrants owned by CM Bermuda prior to the closing of the repurchase transaction; obligations or capital requirements of our subsidiaries could delay or impair SiriusPoint’s access to available sources of liquidity and ability to fund the second payment; and the outcome of any legal proceedings to the extent initiated against SiriusPoint or others following the announcement of the proposed transaction, as well as SiriusPoint’s response to any of the aforementioned factors.
Except as required by applicable law or regulation, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, or new information, data or methods, future events, or other circumstances after the date of this press release.
Contacts
Investor Relations
Liam Blackledge, SiriusPoint
Liam.Blackledge@siriuspt.com
+44 203 772 3082
Media
Sarah Hills, Rein4ce
sarah.hills@rein4ce.co.uk
+44 7718 882011
FAQ
What is the total value of SiriusPoint's (SPNT) share repurchase from CM Bermuda?
How many shares and warrants is SiriusPoint (SPNT) repurchasing from CM Bermuda?
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