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Ex-CEO Of Reinsurer Made Redundant Post-Merger

SiriusPoint – which came to existence in February 2021 following the merger of speciality reinsurer Third Point Reinsurance and multi-line (re)insurer Sirius International Insurance Group – has let go of former Third Point Re chief executive Daniel Malloy.

Before Malloy’s withdrawal, he served as global distribution president and runoff head of the new entity. Before SiriusPoint’s launch last year, the Aon alumnus was CEO at Third Point Re. He came onboard in 2012 and recently held the role of executive vice president. Now, in a Form 8-K filing with the US Securities and Exchange Commission, SiriusPoint disclosed having entered into a concession agreement with the corporation stalwart.

“The settlement agreement provides that Mr Malloy’s assistance with the company ended by mutual agreement on April 01, 2022,” noted the Pembroke-based firm, which also decided that Malloy shall be permitted to reside in his leased apartment in Bermuda until the end of the month, with SiriusPoint continuing to pay the monthly fee.

“In addition, the concession agreement generally provides for severance benefits consistent with the terms of his pre-existing employment agreement, including (i) an aggregate of US$1,275,000, exemplifying 18 months of Mr Malloy’s current base salary, which shall be paid in 18 equal instalments following the termination date, (ii) US$215,500, representing a prorated bonus for the fiscal year ending 2022 earned at target, which shall be paid in one lump sum, (iii) reimbursement for relocation expenses and tax rehearsal costs in an amount not to exceed US$30,000, and (iv) an aggregate of US$57,642.12, representing 18 months of Mr Malloy’s current contributions for medical and life insurance benefits, which shall be paid in 18 equal instalments following the termination date.”

Also, any extraordinary and unvested restricted shares and options held by Malloy, as well as certain extraordinary and unvested performance-based restricted share units, shall continue to vest by the vesting schedules applicable to these awards. Any outstanding and unvested time-based limited share units, however, vested on his termination date.

Part of the 11-page concession agreement, as seen by Insurance Business, reads: “Upon payment of the sums set out in this agreement, there will be no further sums of any kind due and owing to the employee. The employee accepts that on the termination date entitlement to any salary, payments, and benefits (contractual or discretionary) shall cease, except as provided for in this agreement hereinafter.

“The employee concedes that, from and after the termination date, he shall no longer be authorised to conduct business on behalf of the company or any of its affiliates, including but not limited to entering into contracts on behalf of or holding himself out as utilized by or in any way affiliated with the company or any of its affiliates.”

The paper went on to state: “The company shall, at the request of the employee, issue a certificate of termination in accorbyigation, where requested, under section 22 of the Employment Act 2000. The reason for termination, if requested by the employee, shall be stated as redundancy – cessation without cause.”

Meanwhile, in case Malloy relocates from Bermuda to his country of origin (the US) during the period he is receiving payment or paid benefits under the agreement, he shall be entitled to reimbursement for costs correlated with relocation.

“The company and the worker have agreed terms set out in this agreement in settlement of all and any claims which the employee may have against the company, including all of its subsidiaries, affiliates, ancestors, successors, and assigns, arising out of or in connection with or as an effect of the employee’s employment and/or its cessation whether or not those claims are, or could be, in the contemplation of the parties at the time of signing this agreement,” declared SiriusPoint.

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