SiriusPoint invests in Mosaic & offloads Lloyd’s managing agency

SiriusPoint and Mosaic Insurance, which both launched in February of last year, have entered into a strategic partnership which includes an investment from the former into the latter, and also the sale of Sirius International Managing Agency (SIMA) at Lloyd’s to Mosaic.

Specialty insurer and reinsurer SiriusPoint is to invest in Mosaic, the specialty next-gen carrier launched by Mitch Blaser, to support growth, provide underwriting capacity to its syndicated capital program, and offer the firm access to global licenses and infrastructure through a fronting arrangement.

The expanded relationship between the pair will also see Sid Sankaran, SiriusPoint’s Chairman and Chief Executive Officer (CEO), take a seat on Mosaic’s Board of Directors.

Under the deal, and subject to regulatory approval, Mosaic will acquire SIMA, SiriusPoint’s Lloyd’s Managing Agency, along with employees, with a view to reinvigorating the Lloyd’s business. SIMA will continue to support SiriusPoint’s Syndicate 1945 at Lloyd’s, which is not included in the sale.

SiriusPoint retains 100% ownership of Syndicate 1945, which currently writes accident & health, casualty, energy, and space business, and which produced a combined ratio of 92.8% for the 2021 calendar year.

The plan is for Mosaic to “modernize the Managing Agency and provide best in class support to Syndicate 1945.”

The company says that it 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 to improve efficiency and achieve cost reduction.

Mosaic explains that its Syndicate 1609 will continue to be managed by Asta Managing Agency for the foreseeable future.

Mosaic Co-CEO, Mitch Blaser, commented: “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. 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.”

“This transaction will complement the strategic ambitions of both Mosaic and SiriusPoint and benefits both our companies. Mosaic believes in the power of partnership, and this agreement builds on an already strong relationship with SiriusPoint—as a participating carrier and a fronting partner in our syndicated capital program. We’re delighted to incorporate SIMA into our platform, and we’re also pleased to welcome SiriusPoint as a strategic investor in Mosaic,” he added.

SiriusPoint’s Sankaran, said: “Reinvigorating our Lloyd’s business is a key element of our strategy. 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.”

Mosaic Co-CEO Mark Wheeler, noted: “Mosaic’s business model is built on the foundation of valuable partnerships—and this agreement embodies that philosophy. We value SiriusPoint as a new shareholder, together with the visionary industry Sid Sankaran, and we look forward to working closely with him and his team.”

Prashanth Gangu, Chief Operating Officer and President of Insurance & Services at SiriusPoint, added: “Modernization is key to success in the Lloyd’s marketplace. This deal creates a unique opportunity for both companies. We are laying the groundwork for future growth and profitability through this strategic partnership.”