SiriusPoint leadership exodus triggers negative rating action, interim CEO reacts
Ratings agency S&P Global has placed Bermuda-based global re/insurer SiriusPoint on watch for a potential downgrade following its recent leadership shuffle that saw the departure of top leaders including its chairman, chief executive officer (CEO) and chief operating officer and president of insurance and services. The management has responded to the rating action insisting “significant progress” in the recent quarters in cutting volatility while maintaining a “strong” balance sheet.
S&P has placed the A- financial strength rating of SiriusPoint and its core subsidiaries on credit watch with negative implications.
In a statement, S&P noted several management changes as the cause of the credit watch. In May, CEO Siddhartha Sankaran resigned and was replaced by Dan Malloy (pictured) as interim CEO. The company’s COO Prashanth Gangu followed Sankaran to the exit shortly after and two senior leaders received promotions to the executive leadership team.
Patrick Charles was promoted to global head of property & casualty, insurance & services, and Darryl Siry to chief technology officer.
The ratings agency has said that it intends to monitor the impact these management changes will have on the company’s ability to execute its strategy, which it views as “critical” to SiriusPoint improving operating performance and maintaining its competitive position.
In a statement responding to the S&P announcement, Malloy said: “As part of our transformation we have made significant progress over the last five quarters, re-underwriting our business, reducing volatility across our reinsurance and investment portfolios, and growing our Insurance & Services segment.
“The SiriusPoint Board, senior leadership, and I are confident that our business, balance sheet, and prospects remain very strong. SiriusPoint has an impressive Executive Leadership Team and global underwriting expertise. We believe that we are in a great position to continue to execute our strategy, transform our business and deliver profitable growth by always putting underwriting first.”
He added: “The SiriusPoint Board is making good progress in its search for a permanent CEO. In the meantime, I am proud to work with this leadership team as we continue to transform the Company.”
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