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ANALYSIS: Sirius International Insurance Group May be Worth $20 a Share

John Jannarone

By IPO Edge Editorial Staff

Sirius International Insurance Group, Ltd. recently became public via a special-purpose acquisition company, or SPAC, and is now a viable takeover target that could see its shares triple if a deal were done around typical industry multiples. That’s according to an analysis by PickYourSpots, which has recently published several pieces that caught the attention of editors at IPO Edge.   The property and casualty insurer was spun off from White Mountains Insurance Group in 2016 via a sale to Chinese conglomerate China Minsheng International Group for $2.6 billion (1.27x tangible book value). In 2018, the insurer merged with a SPAC to become a publicly listed company, which valued the insurer at $2 billion (1.05x book value), or $17.22 per share. Following the SPAC merger, China Minsheng continues to owns 82% of Sirius Insurance.

PickYourSpots argues that:

  • Beijing wants this valuable non-core assets sold to repay creditors;
  • The stock trades at 0.46x book value and 0.63x tangible BV, cheap for a quality global P&C insurer. Most P&C insurers tend to be sold at tangible book or above;
  • We expect a sale of the insurer could net $12-20 per share versus the $7 per share that it trades for today.

The full analysis is available here on SeekingAlpha.

editor@IPO-Edge.com

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