Two major names in the reinsurance world are set to combine their operations.

A definitive agreement has been reached between Sirius International Insurance Group, a multi-line insurer and reinsurer, and specialty reinsurer Third Point Reinsurance Ltd, to combine in a stock and cash transaction.

The combined firm will subsequently be renamed as SiriusPoint Ltd, with approximately US$3.3 billion of tangible capital. The deal will be financed by Third Point Re “through a combination of cash-on-hand; Third Point Re equity issued to Sirius Group shareholders; Third Point Re equity issued to Daniel S. Loeb, CEO and chief investment officer of Third Point LLC, and currently Third Point Re’s largest individual shareholder, pursuant to an agreement to purchase approximately US$50 million worth of SiriusPoint shares at closing; and if necessary, other debt or equity financing.”

According to a release announcing the move, the two businesses are “highly complementary” and have a “shared strategic vision.” The hope is that the new firm will be ideally positioned to pursue expansion opportunities across almost 150 countries.

Once the deal is finalized, SiriusPoint will be led by current non-executive chairman of the board at Third Point Re Siddhartha (Sid) Sankaran. He will take the role of chairman and chief executive officer of the combined firm.

Meanwhile, current CEO of Third Point Re Dan Malloy will remain as a senior underwriting executive.

 

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