SiriusPoint Announces Pricing of Secondary Offering of 4,106,631 Common Shares by Entities Associated with Daniel S. Loeb and Repurchase of 500,000 Shares by SiriusPoint

Rhea-AI Summary

SiriusPoint (NYSE: SPNT) has announced the pricing of a registered secondary offering by entities associated with Daniel S. Loeb of 4,106,631 common shares at $14.00 per share. The offering is expected to close on February 27, 2025.

As part of the transaction, SiriusPoint will repurchase 500,000 shares at the public offering price and cancel them. Following the completion of this offering and the previously announced repurchase of shares and warrants from CM Bermuda, the Loeb Entities will own approximately 9.54% of SiriusPoint's outstanding common shares.

The remaining shares owned by the Loeb Entities will be subject to a 90-day lock-up agreement with Jefferies, the sole bookrunning manager for the offering.

Positive

• Share repurchase of 500,000 shares demonstrates commitment to shareholder value
• 90-day lock-up agreement provides short-term trading stability

Negative

• Large secondary offering of 4.1M shares could pressure stock price
• Significant reduction in Loeb Entities' ownership stake from previous levels

Insights

Financial Analyst

SiriusPoint's announcement reveals a significant ownership restructuring as entities associated with activist investor Daniel Loeb are substantially reducing their stake through a secondary offering of 4.1 million shares at $14.00 per share—a 4% discount to the current market price. Simultaneously, SiriusPoint is repurchasing 500,000 shares at the offering price, representing a $7 million capital return to shareholders.

This transaction continues SiriusPoint's systematic reduction of concentrated ownership positions following their previously announced repurchase of CM Bermuda's stake. Upon completion, Loeb's entities will own approximately 9.54% of outstanding shares, significantly diminishing his influence over corporate governance and strategic direction.

The $14.00 pricing warrants attention—the discount to market suggests some urgency in Loeb's desire to reduce exposure, potentially indicating his investment thesis has changed or capital is being reallocated to more attractive opportunities. For SiriusPoint, the share repurchase demonstrates management's belief that the stock represents good value at current levels.

The 90-day lock-up on Loeb's remaining shares provides short-term stability in the shareholder base, preventing further immediate selling pressure. However, investors should monitor what happens after this period expires, as additional sales could impact share price.

This restructuring likely gives management increased autonomy in strategic decision-making, potentially allowing for a more focused approach to their insurance and reinsurance operations without the influence of a prominent activist investor. For remaining shareholders, this could represent either an opportunity if management executes effectively or a risk if Loeb's oversight was adding value to corporate governance.

HAMILTON, Bermuda, Feb. 25, 2025 (GLOBE NEWSWIRE) -- SiriusPoint Ltd. (“SiriusPoint” or the “Company”) (NYSE: SPNT) today announced the pricing of its previously announced registered secondary offering by entities associated with Daniel S. Loeb (colllectively, the “Loeb Entities”) of an aggregate of 4,106,631 common shares at a price to the public of $14.00 per share. The offering is expected to close on February 27, 2025, subject to the satisfaction of customary closing conditions.

SiriusPoint has agreed to repurchase an aggregate of 500,000 of the common shares being offered in the offering at the public offering price. SiriusPoint will cancel the 500,000 common shares it repurchases in the offering.

Immediately following the completion of the offering and our previously announced repurchase of all of the common shares and warrants currently held by CM Bermuda, it is expected that the Loeb Entities will own approximately 9.54% of SiriusPoint’s issued and outstanding common shares.

Under the terms of the transaction, the remaining shares owned by the Loeb Entities will be subject to a 90 day lock-up agreement with the sole bookrunning manager.

Jefferies is acting as the sole bookrunning manager for the offering.

The offering is being made only by means of an effective registration statement and a prospectus. The Company has previously filed with the U.S. Securities and Exchange Commission (the “SEC”) a registration statement (including a prospectus) on Form S-3 (File No. 333-283827), dated December 16, 2024, and a prospectus supplement for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement, the accompanying prospectus supplement, and other documents the Company has filed with the SEC for more complete information about the Company and this offering. When available, copies of the prospectus supplement and the accompanying prospectus relating to the offering may be obtained from: Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by telephone at (877) 821-7388, or by email at prospectus_department@jefferies.com. Electronic copies of the prospectus supplement and accompanying prospectus will also be available on the website of the SEC at http://www.sec.gov. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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 

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 $2.6 billion total capital, SiriusPoint’s operating companies have a financial strength rating of A- (Excellent) from AM Best, S&P and Fitch, and A3 from Moody’s.

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, 2024.

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.

FAQ

What is the price per share for SiriusPoint's (SPNT) secondary offering in February 2025?

The secondary offering is priced at $14.00 per share.

How many shares is SiriusPoint (SPNT) repurchasing from the Loeb Entities offering?

SiriusPoint is repurchasing 500,000 shares from the secondary offering, which will be subsequently cancelled.

What percentage will the Loeb Entities own of SiriusPoint (SPNT) after the offering completion?

The Loeb Entities will own approximately 9.54% of SiriusPoint's issued and outstanding common shares.

What is the lock-up period for the remaining shares held by Loeb Entities in SPNT?

The remaining shares are subject to a 90-day lock-up agreement with Jefferies, the sole bookrunning manager.

How many total common shares are being offered in SPNT's February 2025 secondary offering?

The Loeb Entities are offering an aggregate of 4,106,631 common shares.