It follows a comprehensive re-underwriting of SiriusPoint’s book and restructuring of the company’s underwriting platform
SiriusPoint and Compre have signed an agreement for a ground-up Loss Portfolio Transfer (LPT) on a diversified portfolio of primarily reinsurance business, subject to approvals.
The LPT covers approximately $1.3 billion of reserves, underwritten by SiriusPoint’s international reinsurance business, and its Lloyd’s Syndicate 1945.
The announcement follows a comprehensive re-underwriting of SiriusPoint’s reinsurance portfolio, and the restructuring of the company’s underwriting platform.
Scott Egan, SiriusPoint chief executive, said it was 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.”
The LPT will be underwritten by Compre’s class 3B Bermudian reinsurer, Pallas Reinsurance Company Ltd. (Pallas Re).
The portfolio comprises several classes of business from 2021 and prior underwriting years, with SiriusPoint retaining claims handling authority on ongoing business.