Shareholders' equity

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Shareholders' equity

18. Shareholders' equity

Common shares

The following table presents a summary of the common shares issued and outstanding as of and for the years ended December 31, 2021, 2020 and 2019:

	2021	2020	2019
Common shares issued and outstanding, beginning of year	95,582,733	94,225,498	93,639,610
Options exercised	220,000	—	187,678
Issuance of common shares, net of forfeitures and shares withheld	3,133,969	1,012,939	366,453
Performance restricted shares granted, net of forfeitures and shares withheld	(1,431,963)	344,296	31,757
Issuance of common shares for Sirius Group acquisition	58,331,196	—	—
Issuance of common shares to related party	6,093,842	—	—
Common shares issued and outstanding, end of year	161,929,777	95,582,733	94,225,498

The Company’s authorized share capital consists of 300,000,000 common shares with a par value of $0.10 each. During the years ended December 31, 2021, 2020 and 2019, the Company did not pay any dividends to its common shareholders.

Preference shares

The Company’s authorized share capital also consists of 30,000,000 preference shares with a par value of $0.10 each.

Series B preference shares

On February 26, 2021, the previous Sirius Group preference shareholders exchanged their existing Series B preference shares of Sirius Group in return for 8,000,000 new Series B preference shares, par value $0.10, of the Company. Dividends on the Series B preference shares will be cumulative and payable quarterly in arrears at an initial rate of 8.0% per annum. The preference shareholders will have no voting rights with respect to the Series B preference shares unless dividends have not been paid for six dividend periods, whether or not consecutive, in which case the holders of the Series B preference shares will have the right to elect two directors.

The dividend rate will reset on each five-year anniversary of issuance at a rate equal to the five-year U.S. treasury rate at such time plus 7.298%. The Series B preference shares are perpetual and have no fixed maturity date. The Series B preference shares will provide for redemption rights by the Company (i) in whole, or in part, on each five-year anniversary of issuance at 100%, (ii) in whole, but not in part, (a) upon certain rating agency events, at 102%, (b) upon certain capital disqualification events, at 100%, and (c) upon certain tax events, at 100%.

On June 28, 2021 and August 12, 2021, the Company entered into Underwriting Agreements with the Series B preference shareholders (the “Selling Shareholders”) pursuant to which the Selling Shareholders sold to the public market an aggregate of 8,000,000 Series B preference shares. The Company did not receive any proceeds from the sale of the Series B preference shares by the Selling Shareholders. The transaction did not change the underlying conditions of the Series B preference shares. The Series B preference shares are listed on the New York Stock Exchange under the symbol “SPNT PB”.

During the year ended December 31, 2021, the Company declared and paid dividends of $12.1 million to the Series B preference shareholders, respectively.