S&P Puts SiriusPoint on CreditWatch Neg. After CEO, COO Exits; SiriusPoint Comments

SiriusPoint, the Bermuda-based global specialty insurer and reinsurer, has responded to the recent decision by S&P Global Ratings (S&P) to place the company and its core subsidiaries on CreditWatch, with negative implications.

SiriusPoint currently has an “A-” insurer financial strength rating and a “BBB” long-term issuer credit rating from S&P.

S&P identified recent management changes as the cause of the CreditWatch, following the departures of Chairman and CEO Siddhartha (Sid) Sankaran, and Prashanth Gangu, the chief operating officer. The ratings agency has said that it will monitor the impact that SiriusPoint’s management changes will have on the company’s ability to execute its strategy, which it views as critical to SiriusPoint improving operating performance and maintaining its competitive position.

“As part of our transformation we have made significant progress over the last five quarters, re-underwriting our business, reducing volatility across our reinsurance and investment portfolios, and growing our Insurance & Services segment,” commented Dan Malloy, interim CEO, in response to the move by S&P.

“The SiriusPoint Board, senior leadership, and I are confident that our business, balance sheet, and prospects remain very strong. SiriusPoint has an impressive Executive Leadership Team and global underwriting expertise. We believe that we are in a great position to continue to execute our strategy, transform our business and deliver profitable growth by always putting underwriting first.”

SiriusPoint said it continues to benefit from a strong capital position above the “AA” confidence level based on S&P’s risk-based capital model. The company’s regulatory capital ratios at year-end 2021 were 218% at SiriusPoint Bermuda Insurance Co. (Bermuda), 178% at SiriusPoint International Insurance Corp. (Sweden) and 517% at SiriusPoint America Insurance Co. (New York).

“The SiriusPoint Board is making good progress in its search for a permanent CEO. In the meantime, I am proud to work with this leadership team as we continue to transform the company,” continued Malloy who was appointed interim chief executive officer in May this year. He previously served as CEO of Third Point Re, one of SiriusPoint’s legacy companies, and most recently, as SiriusPoint’s president, Global Distribution.

SiriusPoint also made two senior promotions in June: Patrick Charles, global head of Property & Casualty, Insurance & Services, and Darryl Siry, chief technology officer, who both joined the Executive Leadership Team.