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SiriusPoint to launch 'sidecar-like' retro vehicle

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SiriusPoint, the company that will form from the merger of Sirius and Third Point Re, will provide retro cover through a “sidecar-like” structure, according to a company presentation.

The new company expects to have about $2.5bn of gross written premiums, made up of 78% reinsurance and 22% insurance. Some 35% of premiums will be in property catastrophe, with 34% in specialty and casualty, 24% in accident and health, and 6% in run off and other lines.

SiriusPoint will aim to reduce reliance on property catastrophe coverage to “drive underwriting profitability”, although the sector will remain its largest, it said.

The new business will have operations in Bermuda, the US, Asia and Europe, with about 200 underwriters, the presentation showed.

Third Point Re agreed to the merger with fellow Bermudian Sirius in August in a cash and stock deal valued at $788mn.

The new company will be led by former AIG CFO Sid Sankaran, who will become chairman and CEO. Former Third Point CEO Dan Malloy will hold a senior underwriting role.

The merger ended months of uncertainty for Sirius, following AM Best’s decision to downgrade the company in March 2020, amid concerns about the solvency of its parent, China Minsheng (CMIH).

CMIH will retain 40% ownership of SiriusPoint with a 9.9% voting cap, according to the presentation.

SiriusPoint is the latest in a series of carriers launching sidecars that are partially or fully focused on retro, as the market firmed for the fourth successive year at the 1 January renewals.

Partner Re vehicle Laplace-C, which will write cover for the short-tail specialty and retrocession markets, secured investment from $8.5bn hedge fund Olympus Partners this week.

Late last year Hamilton Re launched Ada Re, alongside Fidelis’ $250mn venture.

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