Billionaire investor Daniel Loeb believes SiriusPoint may be ’best positioned to execute on its turnaround strategy’ if it went private
Billionaire investor Daniel Loeb is looking to take global specialty insurer and reinsurer SiriusPoint private.
The chief executive of hedge fund company Third Point said in a regulatory filing this week (11 April 2023) that SiriusPoint “may be best positioned to execute on its turnaround strategy as a privately held company while continuing to strengthen its financial position”.
The filing added that Loeb was exploring a potential acquisition of all, or substantially all, of the outstanding common shares of the company.
SiriusPoint said that it had acknowledged the indication of interest.
It said in a statement: “The company always welcomes dialogue with its investors and shares the common goal of maximising value for all the company’s shareholders.
“The company has made significant progress during the last seven months against its strategic priorities of reducing volatility, business simplification and improving profitability.”
Healthy balance sheet
This came after Loeb agreed to merge Third Point’s reinsurance business with Sirius International Insurance to form SiriusPoint in February 2021.
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Loeb currently has a 9.34% stake in SiriusPoint.
The move to look at taking the company private follows economic uncertainty, with investors exercising more caution with capital raises.
In a statement, SiriusPoint said it had a “healthy balance sheet”.
“Shareholders are not required to take any action at this time,” it added.
Insurance Times has contacted Third Point for further comment.
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