Bermuda-based White Mountains Insurance Group has struck a $2.23 billion deal to sell its Sirius reinsurance arm to a Chinese investment firm.

Sirius, based in Stockholm, Sweden, has offices in several countries, including Bermuda.

The deal will see Sirius bought by CM International Holding, the Singapore-based investment subsidiary of China Minsheng Investment Corporation (CMI).

White Mountains chairman and CEO Raymond Barrette said: “This is a win-win transaction. Sirius is a high quality reinsurer with a strong franchise and a great track record.

“The acquisition by CMI recognises this value and opens doors for Sirius to new opportunities in Asia, especially China.”

Mr Barrette added that, net of the OneBeacon and Symetra positions to be repurchased by White Mountains from Sirius, White Mountains’ undeployed capital would increase from by $1.4 billion to around $2 billion.

And he said: “The board will carefully review the additional capital management options available to the company when proceeds have been received.”

White Mountains expects that the transaction will boost its adjusted book value by around $65 a share, subject to Sirius interim results through to the closing of the deal.

CMI, which has $6 billion in shareholders’ equity, was founded in Shanghai last year and is focused on industrial integration and developing into a global financial holding company.

Sirius writes worldwide property and casualty reinsurance and insurance through its affiliate Sirius International Insurance Corporation, Sirius America Insurance Company, as well as a Lloyd’s syndicate and its Bermuda subsidiary.

The firm also provides exit solutions for run-off companies and their portfolios through its White Mountains Solutions arm.

Sirius CEO Allan Walters said: “The Sirius management team is excited to be joining the CMI family.

“CMI is strongly capitalised and intends to further grow Sirius’ already substantial capital base. China is one of Sirius’ most important markets and CMI is the perfect partner for Sirius to continue its Asian growth strategy.”

The all-cash deal will be equal to 127.3 per cent of Sirius’ closing date tangible common shareholders’ equity, plus $10 million.

The transaction, which is subject to regulatory approval and other conditions, is expected to be completed within six months.