Ex-CEO of reinsurer made redundant after merger

Settlement agreement outlined

Ex-CEO of reinsurer made redundant after merger

Insurance News

By Terry Gangcuangco

SiriusPoint – which came to life in February 2021 following the merger of specialty 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.

Prior to Malloy’s departure, 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 previously 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 settlement agreement with the company stalwart.

“The settlement agreement provides that Mr Malloy’s employment with the company ended by mutual agreement on April 01, 2022,” noted the Pembroke-based firm, which also agreed 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 settlement 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, representing 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 preparation 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 outstanding and unvested restricted shares and options held by Malloy, as well as certain outstanding and unvested performance-based restricted share units, shall continue to vest in accordance with the vesting schedules applicable to these awards. Any outstanding and unvested time-based restricted share units, however, vested on his termination date.

Part of the 11-page settlement 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 and all salary, payments, and benefits (contractual or discretionary) shall cease, except as provided for in this agreement hereinafter.

“The employee acknowledges 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 employed by or in any way affiliated with the company or any of its affiliates.”

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

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

“The company and the employee 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, predecessors, successors, and assigns, arising out of or in connection with or as a consequence of the employee’s employment and/or its termination 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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