The departure of the Bermuda reinsurer’s chief executive and COO has prompted the credit watch
S&P Global Ratings has placed SiriusPoint and its subsidiaries on credit watch with negative implications following its recent leadership shuffle.
S&P identified recent management changes as the cause of the credit watch, following the departures of SiriusPoint’s chief executive officer and chief operating officer.
In May, the firm announced that Siddhartha (Sid) Sankaran, chairman and CEO, has resigned from the company to pursue other opportunities.
Dan Malloy was appointed interim chief executive officer while the firm initiated a search for a permanent successor.
At the same time, SiriusPoint announced that Daniel Loeb, its largest individual shareholder, would join the board.
Loeb is an American investor, hedge fund manager, and philanthropist. He is the founder and chief executive of Third Point.
Strong management ‘critical’, says S&P
The ratings agency has said it intends to monitor the impact SiriusPoint’s management changes will have on the company’s ability to execute its strategy, which it views as “critical” to SiriusPoint improving operating performance and maintaining its competitive position.
Responding to the rating action, Dan Malloy said: “As part of our transformation we have made significant progress over the last five quarters, re-underwriting our business, reducing volatility across our reinsurance and investment portfolios, and growing our Insurance & Services segment.
”The SiriusPoint Board, senior leadership, and I are confident that our business, balance sheet, and prospects remain very strong.
”SiriusPoint has an impressive Executive Leadership Team and global underwriting expertise. We believe that we are in a great position to continue to execute our strategy, transform our business and deliver profitable growth by always putting underwriting first.”
SiriusPoint is currently attributed an ‘A-’ insurer financial strength rating and a ‘BBB’ long-term issuer credit rating by S&P. The reinsurer noted it continues to benefit from a strong capital position above the ‘AA’ confidence level based on S&P’s risk-based capital model.
Malloy added: “The SiriusPoint Board is making good progress in its search for a permanent CEO. In the meantime, I am proud to work with this leadership team as we continue to transform the Company.”
Malloy previously served as CEO of Third Point Re, one of SiriusPoint’s legacy companies, and most recently, as SiriusPoint’s president, Global Distribution.