A founder of New York-based Third Point Reinsurance, Loeb has a 9.3% stake in SiriusPoint. Credit: Unseen Studio on Unsplash.

Hedge fund manager Daniel Loeb has ditched his plan to take Bermudian re/insurer SiriusPoint private over a disagreement regarding valuation.  

The news was confirmed in a securities filing, which stated: “The reporting person and his affiliates have, as previously disclosed, explored a potential acquisition of all or substantially all of the outstanding common shares of the issuer (an “acquisition transaction”). 

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“Although the issuer and the reporting person, through their respective advisors, have had exploratory discussions, they have been unable to reach a consensus on the value of a potential transaction. Accordingly, the reporting person is no longer exploring an acquisition transaction.” 

Loeb expressed confidence in SiriusPoint’s management team, saying the company is carrying out the essential measures needed to bolster its balance sheet and credit ratings.

He also supported the management’s application of a fixed income and hedging programme, stating that it can offer investment returns higher than the industry average, without assuming surplus risk.

The billionaire investor had unveiled plans to take SiriusPoint private last month to help boost SiriusPoint’s financial position and support its turnaround plan.

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Acknowledging Loeb’s support for SiriusPoint’s management team, the company said that the committee set up to explore the go-private talks was unanimous in its view that its existing plan is the best path to offer long-term value to shareholders.

SiriusPoint said: “The company has made significant progress during the last seven months to improve underwriting performance, reduce volatility and rebalance its investment portfolio towards high-quality fixed-income assets.”

The Bermuda-based re/insurer posted a net income of almost $139m available to common shareholders in Q1 2023, against a loss of $217m in the same quarter of 2022.

Total revenues stood at $684.9m in the first three months of this year, compared with $361.4m in the prior year.