Here's Why Sirius International Insurance Group Is Soaring on Friday

The move in Sirius Group is being fueled by news that the company has agreed to merge with reinsurance company Third Point Reinsurance (NYSE: TPRE) to create a combined insurance company called SiriusPoint Ltd., which would represent about $2.5 billion in gross written premiums over the last year. In this particular transaction, Third Point is acting as the acquirer, and is purchasing Sirius Group with a somewhat complex combination of cash and stock with a total value of $788 million. Most of Sirius Group's shares are owned by China-based Minsheng Investment Group, which will receive $100 million in cash plus $477 million in Third Point shares in exchange for its stake.