SiriusPoint and Daniel Loeb enter into standstill agreement
SiriusPoint Ltd, the Bermudian-headquartered global specialty re/insurer, has entered into a standstill agreement with the company’s billionaire board member Daniel Loeb.
The entry by the parties into the agreement follows the conclusion of exploratory discussions related to a potential acquisition of the company by Mr Loeb.
The company said the agreement provides that Mr Loeb will not, subject to certain limited exceptions, make a takeover or purchase proposal for the company or acquire more than 9.5 per cent of the outstanding shares of the company or an amount of ownership requiring regulatory approval.
Further, SiriusPoint said, the agreement provides that Mr Loeb would not take any action in support of or make any proposal with respect to controlling, changing or influencing the company’s management, business, capitalisation or corporate structure.
SiriusPoint CEO Scott Egan said: “We welcome the standstill agreement as a strong signal of support for the progress we are making towards creating long-term value in our business and for our shareholders.
“Our recent half-year results were an important evidence point of our strategy and our progress so far, and we are focused on building on that momentum.”
In May, Mr Loeb said he was “no longer exploring” an acquisition of SiriusPoint as the parties “have been unable to reach consensus on the value of a potential transaction”.
Mr Loeb, the CEO and founder of New York-based asset management firm Third Point LLC, sits on the board of SiriusPoint. He owns a 9.34 per cent stake in the company.
The first quarter of 2023 was SiriusPoint’s first positive quarter in nearly two years, with net income available to the company’s common shareholders of $139 million.
At the half-year mark, the company reported net income available to SiriusPoint common shareholders of $205 million.