SiriusPoint Ltd., the Bermuda-based specialty insurer and reinsurer, announced that the parent company of a key shareholder has been taken into private receivership by its lenders in Singapore.

CMIG International Holding Pte Ltd (CMIH) is the parent company of CM Bermuda, a 33% shareholder of SiriusPoint, with 9.9 percent voting rights, SiriusPoint said in a statement.

“The news of CMIH being taken into private receivership is a matter between its shareholders and lenders, and has no impact on the ongoing progress or day-to-day running of our business,” commented Scott Egan, CEO, SiriusPoint.

“S&P Global Ratings has informed us that this development is a neutral factor to its ratings on our business and subsidiaries, and is unlikely to affect its assessment of SiriusPoint’s business position or financial strength,” he added.

The appointed receiver is the audit, accounting and tax firm, EisnerAmper which will be tasked with assessing relevant assets and determining future restructuring plans.

“Despite CM Bermuda’s significant holding of shares in SiriusPoint, CM Bermuda’s voting rights are limited, at 9.99 percent,” said S&P in a bulletin (which does not constitute a rating action).

“Therefore, the ownership by CM Bermuda had been a neutral factor to our ratings on SiriusPoint and its subsidiaries,” said S&P, noting that this new development brings uncertainty to SiriusPoint’s ownership structure.

As a result, the ratings agency said, it will closely monitor the plans that the receiver, EisnerAmper, will have for the SiriusPoint shares owned by CM Bermuda.

On Nov. 9, S&P revised SiriusPoint’s ratings outlook from “Negative” to “Stable”, which reflected its “expectation that SiriusPoint will continue to post strong and improving underwriting results in 2023-2025,” according to SiriusPoint.

Egan said the revision recognized “the hard work of our people, their dedication and our collective effort to establish a stable platform.”

“Our focus at SiriusPoint remains on simplifying our business, reducing volatility and ultimately, continuing to build profitability,” he added.

Related:

• Serious Change Underway at SiriusPoint
• Hedge Fund Manager Loeb Agrees to Hold Off Attempts to Take SiriusPoint Private

This article was originally published on Insurance Journal. Reporter L.S. Howard is the International Editor of Insurance Journal and Carrier Management.