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.
“We’re excited about this opportunity to expand our presence at Lloyd’s and we’re proud of the phenomenal partnership that brings mutual benefit to both our companies,” said Mosaic Co-CEO Mitch Blaser. “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.”
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. The managing agency will continue to support SiriusPoint’s Syndicate 1945 at Lloyd’s. Additionally, SiriusPoint will become a strategic investor in Mosaic, further deepening the relationship between the two firms; SiriusPoint Chairman and CEO Sid Sankaran will have a seat on Mosaic’s Board of Directors.
“Mosaic’s business model is built on the foundation of valuable partnerships—and this agreement embodies that philosophy,” noted Mosaic Co-CEO Mark Wheeler. “We value SiriusPoint as a new shareholder, together with the visionary industry view of Sid Sankaran, and we look forward to working closely with him and his team.”
“We are pleased to welcome SiriusPoint as a shareholder through this innovative transaction,” added 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.
Strategic advantages of the partnership for Mosaic include SiriusPoint’s participation in its syndicated capital program across multiple lines of business. SiriusPoint also provides fronting for Mosaic’s commercial partners in the program, giving access to SiriusPoint’s global infrastructure and licenses.
“We are delighted to be partnering with Mosaic, which is a fantastic, entrepreneurial company led by an experienced team,” said Sankaran. “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.”
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
• SiriusPoint will retain 100-percent ownership of Syndicate 1945 at Lloyd’s
• Mosaic’s own Syndicate 1609 will continue to be managed by Asta Managing Agency for the foreseeable future
• Over time, Mosaic plans to transform SIMA into a digitalized managing agency, aligning with Lloyd’s Blueprint Two 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.