Mosaic to Buy Sirius Int’l Lloyd’s Managing Agency; SiriusPoint to Be Mosaic Investor

Mosaic Insurance has entered into an agreement to purchase the Lloyd’s managing agency of SiriusPoint as part of a transaction in which the global re/insurer will become a strategic investor in Mosaic.

Under the deal, which is subject to Lloyd’s and regulatory approvals, Mosaic will acquire SiriusPoint’s wholly owned subsidiary Sirius International Managing Agency (SIMA), along with employees, as part of a larger strategic partnership. Financial details were not disclosed.

SiriusPoint will retain 100% ownership of Syndicate 1945, which will be managed by SIMA, while Mosaic’s will continue, for the foreseeable future, to own Syndicate 1609, which is managed by Asta Managing Agency, the companies explained.

Additionally, SiriusPoint will become a strategic investor in Mosaic, further deepening the relationship between the two firms. At the same time, SiriusPoint Chairman and CEO Sid Sankaran also will have a seat on Mosaic’s board of directors.

SiriusPoint said it will invest in Mosaic to support growth, provide underwriting capacity to Mosaic’s syndicated capital program across multiple lines of business. SiriusPoint provides fronting for Mosaic’s commercial partners in the program, providing access to SiriusPoint’s global infrastructure and licenses.

Syndicate 1945, which reported a combined ratio of 92.8% for the 2021 calendar year, currently writes accident & health, casualty, energy and space business.

“For Mosaic, this agreement provides scale and value, and accelerates our strategic ambition—having a managing agency as part of our platform was always the vision,” said Mosaic co-CEO Mitch Blaser.

“Reinvigorating our Lloyd’s business is a key element of our strategy,” said Sankaran. “Syndicate 1945 is an important part of our global platform providing us and our strategic partners with access to the licenses and ratings that Lloyd’s offers. Partnering with Mosaic, which is a fantastic, entrepreneurial company, sets us on a path to access the right talent, scale our business and achieve profitable growth.”

“We are pleased to welcome SiriusPoint as a shareholder through this innovative transaction,” commented Dan Haspel, a Mosaic board member and managing director at Golden Gate Capital, the San Francisco-based private equity investment firm that is Mosaic’s anchor investor. “We look forward to building a long-term partnership with SiriusPoint as we create value for both sets of stakeholders.”

“Mosaic has the potential to disrupt the traditional way of doing things and drive change in the market. It is a terrific fit for SiriusPoint’s portfolio of disruptive and technology-driven insurance businesses and as a visionary parent company for our highly-regarded and capable managing agency team,” added Sankaran.

Among other highlights of the deal:

• Mosaic will take on staff who currently work on SIMA’s business, ensuring the agency’s stability and continuity and adding depth to Mosaic’s existing global employee base. The managing agency team supports a variety of regulatory, finance, and other functions for Syndicate 1945

• Over time, Mosaic plans to transform SIMA into a digitalized managing agency, aligning with Lloyd’s Blueprint Two – the Lloyd’s modernization program – and leveraging its own insurtech assets to automate operations and processes for efficiency and cost reduction.

“We look forward to welcoming employees from the managing agency to our Mosaic family,” said Chief of Staff Lisa Fontanetta. “They will all play a critical role in the agency’s growth and development, and we see expanded opportunities for these individuals as part of the wider Mosaic group in future.”

Completion of the agreement, subject to approvals, is expected to take place in the second half of 2022.

Mosaic was assisted in the transaction by law firms RPC, London; Kirkland & Ellis LLP, New York; and Paul, Weiss, Rifkind, Wharton & Garrison LLP, San Francisco. SiriusPoint was assisted in the transaction by law firms Herbert Smith Freehills and, in respect of employment matters, Norton Rose Fulbright.

Source: Mosaic and SiriusPoint