Siriuspoint Ltd. · NYSE:SPNT
Siriuspoint — Third Point Reinsurance — Merger or Acquisition (August 2020)
17 slides from Siriuspoint's merger presentation, Aug 7, 2020
Slide 1: SiriusPoint: Strong Global (Re)insurer Well-Positioned to Capitalize on Market Opportunity
SiriusPoint: Strong Global (Re)insurer Well-Positioned to Capitalize on Market Opportunity AUGUST 2020 1 For Information Purposes Only
Slide 2: Disclaimer
DISCLAIMER Forward-Looking Statements Information set forth in this communication, including financial estimates and statements as to the expected timing, completion and effects of the proposed merger between Third Point Reinsurance Ltd. and Sirius International Insurance Group Ltd., constitute forw
Slide 3: SiriusPoint: A Strong Global (Re)insurer
SIRIUSPOINT: A STRONG GLOBAL (RE)INSURER Third Point Reinsurance, Ltd.’s (“TPRe”) merger with Sirius International Insurance Group, Ltd. (“Sirius”) creates a diversified company with an attractive business profile backed by a strong balance sheet • The combined company will be rebranded as SiriusPoi
Slide 4: Proven Management Team with Shared Values
PROVEN MANAGEMENT TEAM WITH SHARED VALUES Management team will have enhanced depth, a heritage of underwriting, and a proven track record • Chairman and CEO: Siddhartha (Sid) Sankaran – former AIG CFO and Chief Risk Officer, and Oscar Health CFO • Vice Chairman: Steve Fass – former Sirius Chairman a
Slide 5: Acquisition Accelerates Third Point Re's Ongoing Transformation to a Global (Re)insurer
ACQUISITION ACCELERATES THIRD POINT RE’S ONGOING TRANSFORMATION TO A GLOBAL (RE)INSURER 2019 - 2020 Going Forward SiriusPoint • Shift focus to underwriting profitability • Global platform with access to admitted and non-admitted paper in Europe, U.S., Bermuda and Lloyd’s • Expand into more profitabl
Slide 6: Financially Attractive Transaction for Shareholders
FINANCIALLY ATTRACTIVE TRANSACTION FOR SHAREHOLDERS Financial Drivers Expected Financial Impact Offers opportunity to capitalize on Accretive to EPS hardening market Earnings Optimize business mix drivers Accretive to Return on Equity Continued outperformance on investment portfolio Limited BV
Slide 7: Overview of Sirius: Key Highlights
OVERVIEW OF SIRIUS: KEY HIGHLIGHTS Mix of Business by Reportable Segment (GWP) $2.6 $3.7 $1.9 Property cat. excess billion billion billion (re)insurance Total Investments LTM Gross 15% Other Property Total Capital1 Runoff 21% and Cash Written Premiums 4% U.S. Specialty 4% Global (re)insurance Casual
Slide 8: Diversified Investment Portfolio Managed by Third Point LLC Providing Industry-Leading Investment Returns
DIVERSIFIED INVESTMENT PORTFOLIO MANAGED BY THIRD POINT LLC PROVIDING INDUSTRY-LEADING INVESTMENT RETURNS • Third Point LLC will be a strategic partner to SiriusPoint on portfolio allocation, manage assets directly under the direction of SiriusPoint where they have a competitive advantage, and will
Slide 9: Sirius Platform Expands Underwriting Capabilities, Geographic Footprint and Product Offerings
SIRIUS PLATFORM EXPANDS UNDERWRITING CAPABILITIES, GEOGRAPHIC FOOTPRINT AND PRODUCT OFFERINGS Liège Stockholm Hamburg Toronto London Glastonbury, CT Cardiff Zurich New York, NY San Francisco, CA Berwyn, PA Baltimore, MD Indianapolis, IN Bermuda Sirius expands: Miami, FL Hong Kong Underwriting capa
Slide 10: Attractive Diversified Specialty (Re)insurance Franchise with Significant Growth Potential
ATTRACTIVE DIVERSIFIED SPECIALTY (RE)INSURANCE FRANCHISE WITH SIGNIFICANT GROWTH POTENTIAL 2Q’20 LTM GPW Expected SiriusPoint Specialty & Specialty Property1 Casualty 29% 37% Property 34% 35% Runoff Casualty 4% 24% Retroactive reinsurance contracts 16% Accident & Accident & Specialty & Casualty2 Hea
Slide 11: Enhanced Scale & Underwriting Capabilities
ENHANCED SCALE & UNDERWRITING CAPABILITIES ($mm) + = Pro forma Q2’20 LTM $591 $1,934 $2,525 GPW 6/30/20 Tangible $1,471 $1,838 $3,3091 Capital Europe, Bermuda, United Europe, Bermuda, Platforms Bermuda & United States States, and Asia United States, and Asia Underwriters 10 192 202 Employees 36 1,08
Slide 12: Strong Pro Forma Capitalization with Increased Scale
STRONG PRO FORMA CAPITALIZATION WITH INCREASED SCALE $bn GPW (LTM) Tangible capital 1 $9.8 $14.5 2 1 $8.8 $9.9 $6.8 $9.1 $5.5 $8.2 3 $5.4 $7.7 4 $5.0 $6.3 5 $3.4 SiriusPoint6 $3.3 5 $3.2 $2.9 SiriusPoint $2.5 $2.1 7 $1.9 $1.9 5 $0.8 $1.8 $0.8 $1.7 $0.6 $1.5 Larger capital base and broader product of
Slide 13: Transaction Overview
TRANSACTION OVERVIEW • TPRe will acquire 100% of Sirius for $788mm1, comprised of a mix of stock, cash, and other contingent value components. Transaction value represents ~80% of Sirius’s Q2’20 TBV1 — Number of TPRe common shares issued to Sirius shareholders based on exchange ratio of 0.743x • Tra
Slide 14: Third Point Re Second Quarter 2020 Results
THIRD POINT RE SECOND QUARTER 2020 RESULTS TPRe Q2 2020 Results • 10.1% return on equity • 10.1% increase in diluted book value per share to $14.37 • Combined ratio of 98.3%, of which 7.0 points was attributable to the impact of COVID-19 • Improved underwriting result is a significant milestone in t
Slide 15: SiriusPoint: A Strong Global (Re)insurer
SIRIUSPOINT: A STRONG GLOBAL (RE)INSURER TPRe’s merger with Sirius creates a diversified company with an attractive business profile backed by a strong balance sheet • The combined company will be rebranded as SiriusPoint • Transformational transaction to create a global, diversified (re)insurance f
Slide 16: Appendix
Appendix 16 For Information Purposes Only
Slide 17: Detail on Transaction Consideration
DETAIL ON TRANSACTION CONSIDERATION • Transaction structured to provide alignment of interests in the success of the company for all parties • Sirius shareholders will have the ability to elect one of three options • CMIH has agreed to elect option #3 and has agreed to a 9.9% voting cap and lockup a
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