REG - Compre Group Hldgs - Compre announces second deal with SiriusPoint

Arthur J Gallagher & CoAnnouncement

02/03/2023 14:45

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RNS Number : 7126R  Compre Group Holdings Limited  02 March 2023

 

 

Press release

2(nd) March 2023

 

Compre announces second deal with SiriusPoint

 

SiriusPoint Ltd. ("SiriusPoint"), NYSE-listed (SPNT) global underwriter, and
Compre Group Holdings Limited ("Compre"), the Bermuda headquartered
international legacy group, today announce that they have signed an agreement
for a ground-up Loss Portfolio Transfer ("LPT") on a diversified portfolio of
primarily reinsurance business. The transaction's inception is subject to
regulatory approvals and other conditions of closing.

 

The LPT covers approximately $1.3bn of reserves, underwritten by SiriusPoint's
international reinsurance business headquartered in Sweden, and its Lloyd's
Syndicate 1945. The portfolio comprises several classes of business from 2021
and prior underwriting years, with SiriusPoint retaining claims handling
authority on ongoing business. The announcement follows a comprehensive
re-underwriting of SiriusPoint's reinsurance portfolio, and the restructuring
of the Company's underwriting platform.

 

The LPT will be underwritten by Compre's class 3B Bermudian reinsurer, Pallas
Reinsurance Company Ltd. ("Pallas Re").

 

Scott Egan, SiriusPoint Chief Executive Officer, said: "This is a
transformational deal for SiriusPoint. It demonstrates decisive and continuing
execution against our strategic priorities of simplifying our business,
reducing future volatility, and improving the profitability of our Company. By
transferring these reserves, we are aligning our balance sheet to our
go-forward strategy. The expected substantial capital release should further
increase our balance sheet strength, and the reserve redundancy of
approximately $100m validates our reserving policy while being accretive to
returns. As stated at our recent earnings update, we feel confident about our
prospects in 2023, with this deal providing another evidence point of our
progress. I am pleased we are partnering with Compre once again, continuing a
valued relationship with a transaction that supports us in realising
SiriusPoint's full potential."

 

Compre CEO Will Bridger said: "Today's announcement represents another
important milestone in Compre's evolution, and we are delighted to further
assist SiriusPoint with the strategic repositioning of its reinsurance
business. This transaction continues a valuable relationship, providing both
significant diversification and growth to our balance sheet and enabling
SiriusPoint to meet its strategic goals. As one of the largest transactions
underwritten in the legacy market, it also demonstrates that Compre's
client-focussed approach is recognised across the insurance and reinsurance
industry for providing finality solutions on transactions of increasing
significance."

 

SiriusPoint was advised on this transaction by AJ Gallagher & Co. and
Mayer Brown LLP.

 

Compre was advised by Debevoise & Plimpton LLP and EY.

 

- Ends -

Notes to Editors:

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 within our Insurance &
Services segment. With $2.9 billion total capital, SiriusPoint's operating
companies have a financial strength rating of A- (Excellent) from AM Best,
S&P and Fitch. For more information, please visit www.siriuspt.com
(http://www.siriuspt.com)

 

Compre is a leading legacy specialist with over 30 years of experience in the
acquisition and management of discontinued and legacy non-life insurance and
reinsurance business. Compre has experience of acquiring most classes of
direct and reinsurance business, including general liability, marine and motor
liability, and US APH. Compre has operations in Bermuda, Finland, Germany,
Malta, Switzerland, the UK and at Lloyd's. www.compre-group.com
(http://www.compre-group.com)

 

Contacts

 

SiriusPoint Investor Relations

Dhruv Gahlaut,

dhruv.gahlaut@siriuspt.com (mailto:dhruv.gahlaut@siriuspt.com)

+44 7514 659 918

 

SiriusPoint Media

Sarah Hills,

Rein4ce
sarah.hills@rein4ce.co.uk (mailto:sarah.hills@rein4ce.co.uk)

+44 7718882011

 

Compre Media

David Haggie / Richard Adams / Shipra Khanna, Haggie
Partners

+44 20 7562 4444

 

 

Forward-Looking Statements

We make statements in this report 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 forward-looking statements made on
behalf of SiriusPoint. SiriusPoint is also subject to risks and uncertainties
in connection with its ordinary course business, including 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, such as the ongoing
COVID-19 outbreak; 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; the costs,
expense and difficulties of the integration of the operations of Third Point
Reinsurance Ltd. and Sirius International Insurance Group, Ltd.; 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, 2022. 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 report.

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