HAMILTON, Bermuda, Sept. 15, 2020 /PRNewswire/ -- Third Point
Reinsurance Ltd. (NYSE: TPRE) ("TPRE", "Third Point Re" or the
"Company"), a Bermuda-based
reinsurance company, has noted an announcement from ratings agency
AM Best that it has placed the Company's ratings under review with
developing implications.
AM Best commented in a release dated August 7, 2020 that it had placed 'under review
with developing implications' the financial strength rating of A-
(Excellent) and the long-term issuer credit ratings (Long-Term ICR)
of "a-" of Third Point Reinsurance Company Ltd. (Bermuda) and Third Point Reinsurance
(USA) Ltd. (Bermuda). The action comes after Third Point
Re and Sirius International Insurance Group, Ltd. (NASDAQ: SG)
("SIIG", "Sirius" or "Sirius Group") announced on August 6, 2020 that the companies would merge to
form SiriusPoint.
"We welcome this move as we continue to deliver upon our
strategy to improve the Company's underwriting profitability
combined with the tremendous opportunities that we see
ahead for SiriusPoint given our expanded underwriting platform
and improving market backdrop which we are now better positioned to
execute upon," said Dan Malloy,
Chief Executive Officer of Third Point Re. "We welcome this move as
we continue to deliver upon our strategy to improve the Company's
underwriting profitability combined with the tremendous
opportunities that we see ahead for SiriusPoint given our expanded
underwriting platform and improving market backdrop which we are
now better positioned to execute upon."
"The addition of the SIIG business is expected to add
approximately $1.9 billion to TPRE's
$600 million in gross premium
written," said AM Best in the release. "The additional business not
only adds size, which is expected to enhance TPRE's market profile
and add scale, but augments business diversification as SIIG has a
larger global presence and has insurance operations in addition to
its reinsurance platform. TPRE's balance sheet strength is expected
to remain at a very strong level despite the acquisition of Sirius,
which maintains a higher level of financial and underwriting
leverage and a significant amount of safety reserves moderating the
fungibility of capital.
"Risk-adjusted capital should benefit further as TPRE's already
reduced concentration in alternative investments will be a
significantly smaller portion of total invested assets of the
combined entity; and AM Best expects that a significant majority
share of investments will be composed of investment-grade,
fixed-income securities and equities that will act as a portfolio
ballast."
Forward-Looking Statements
Information set forth in this communication, including financial
estimates and statements as to the expected timing, completion and
effects of the Merger, constitute forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These estimates and statements are
subject to risks and uncertainties, and actual results might differ
materially. Such estimates and statements include, but are not
limited to, statements about the benefits of the merger, including
future financial and operating results, the combined company's
plans, objectives, expectations and intentions, and other
statements that are not historical facts. Such statements are based
upon the current beliefs and expectations of the management of
Third Point Re and Sirius Group and are subject to significant
risks and uncertainties outside of our control. Among the risks and
uncertainties that could cause actual results to differ from those
described in the forward-looking statements are the following: (1)
the occurrence of any event, change or other circumstances that
could give rise to the termination of the merger agreement, (2) the
risk that Sirius Group shareholders may not adopt the merger
agreement or that Third Point Re shareholders may not approve the
stock issuance, (3) the risk that the necessary regulatory
approvals may not be obtained or may be obtained subject to
conditions that are not anticipated, (4) risks that any of the
closing conditions to the Merger may not be satisfied in a timely
manner, and (5) the risk that SiriusPoint may not achieve the
expected benefits of the transaction. Discussions of additional
risks and uncertainties are contained in Third Point Re's and
Sirius Group's filings with the Securities and Exchange Commission.
Neither Third Point Re nor Sirius Group is under any obligation,
and each expressly disclaims any obligation, to update, alter, or
otherwise revise any forward-looking statements, whether written or
oral, that may be made from time to time, whether as a result of
new information, future events, or otherwise. Persons reading this
announcement are cautioned not to place undue reliance on these
forward-looking statements which speak only as of the date
hereof.
Where to Find Additional Information
This communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of
any vote or approval. This communication may be deemed to be
solicitation material in respect of the Merger. In connection with
the Merger, Third Point Re and Sirius Group intend to file a joint
proxy statement/prospectus with the SEC. INVESTORS AND SECURITY
HOLDERS ARE ADVISED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS
WHEN IT BECOMES AVAILABLE, BECAUSE IT WILL CONTAIN IMPORTANT
INFORMATION. Investors and security holders may obtain a free copy
of the proxy statement/prospectus (when available) and other
documents filed by Third Point Re and Sirius Group with the SEC at
http://www.sec.gov. Free copies of the joint proxy
statement/prospectus, once available, and each company's other
filings with the SEC may also be obtained from the respective
companies. Free copies of documents filed with the SEC by Third
Point Re will be made available free of charge on Third Point Re's
investor relations website at
https://www.thirdpointre.com/investors/. Free copies of documents
filed with the SEC by Sirius Group will be made available free of
charge on Sirius Group's investor relations website at
https://ir.siriusgroup.com/.
Participants in the Solicitation
Third Point Re and its directors and executive officers, and
Sirius Group and its directors and executive officers, may be
deemed to be participants in the solicitation of proxies from their
respective shareholders in respect of the proposed merger.
Information about the directors and executive officers of Third
Point Re is set forth in its Annual Proxy Statement, which was
filed with the SEC on April 27, 2020.
Information about the directors and executive officers of Sirius
Group is set forth in its Annual Report on Form 10-K, which was
filed with the SEC on April 21, 2020.
Investors may obtain additional information regarding the interest
of such participants by reading the proxy statement/prospectus
regarding the proposed merger when it becomes available.
About the Company
The Company is a public company listed on the New York Stock
Exchange which, through its wholly-owned subsidiaries Third Point
Reinsurance Company Ltd. and Third Point Reinsurance (USA) Ltd. writes property and casualty
reinsurance business. Third Point Reinsurance Company Ltd. and
Third Point Reinsurance (USA) Ltd.
each have an "A-" (Excellent) financial strength rating from A.M.
Best Company, Inc.
Investor Contact:
Christopher S. Coleman – Chief
Financial Officer
investorreleations@thirdpointre.bm
+1 441-542-3333
Media Contact:
Mairi Mallon
Mairi.Mallon@rein4ce.co.uk
+44 7843 076533
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SOURCE Third Point Reinsurance Ltd.