Two of the island’s leading insurance companies have entered into a strategic partnership.

Bermudian-headquartered SiriusPoint Ltd, the global re/insurer, will invest in island-based global specialty insurer Mosaic Insurance to support growth, provide underwriting capacity to Mosaic’s syndicated capital programme and provide access to global licences and infrastructure through a fronting arrangement.

Sid Sankaran, chairman and chief executive officer of SiriusPoint, will take a seat on Mosaic’s board.

Subject to Lloyd’s and regulatory approvals, Mosaic will purchase Sirius International Managing Agency, SiriusPoint’s Lloyd’s managing agency.

Over time, Mosaic said, it plans to transform SIMA into a digitalised managing agency, aligning with Lloyd’s Blueprint Two and leveraging its own insurtech assets to automate operations and processes for efficiency and cost reduction.

SIMA will continue to provide services to Syndicate 1945 via a third-party syndicate management agreement.

Syndicate 1945, which is not included in the sale, has achieved a combined ratio of 92.8 per cent for the 2021 calendar year following a multiyear underwriting transformation.

SiriusPoint said it will continue to have 100 per cent ownership of the syndicate, which currently writes accident & health, casualty, energy and space business.

Mr 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 licences 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.”

Prashanth Gangu, chief operating officer and president of insurance and services at SiriusPoint, said: “Modernisation 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.”

Mosaic co-CEO Mitch Blaser said: “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.”

Mosaic co-CEO Mark Wheeler said: “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 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.”

Mosaic said it 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.

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

“We look forward to welcoming employees from the managing agency to our Mosaic family,” said Mosaic 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.