SiriusPoint Ltd. (“SiriusPoint” or the “Company”) (NYSE:SPNT) today
announced results for its third quarter ended September 30, 2024
- Third quarter net income of $5
million, impacted by completion of the previously announced CMIG
shareholder transaction. Underlying net income1 of $89 million, up
69% versus prior year driven by higher underwriting and investment
income
- Combined ratio of 88.5% in the
third quarter for Core business, representing a 4 point improvement
versus prior year, resulting in a year to date core combined ratio
of 91.1% and core underwriting income of $144 million
- Growth in the quarter of 10% on
gross premiums written for continuing lines business (excluding
2023 exited programs), contributing to 7% growth year to date
- Book value per diluted common share
of $14.73, an increase of 3% in the quarter and 10% since year-end
2023. Balance sheet remains strong with Q3’24 BSCR estimate at
265%
- Pre-tax estimate of Hurricane
Milton losses, net of reinsurance and reinstatement premiums, of
approximately $30 million to $40 million
Scott Egan, Chief Executive Officer, said: “It
has been another strong quarter of delivery for SiriusPoint,
marking our eighth consecutive quarter of positive underwriting
income. We have delivered a 4.0 point improvement in the combined
ratio to 88.5% whilst growing continuing lines premium by 10%
during the quarter. Our focus is resolute on building a strong
business driven by disciplined underwriting to create a balanced
portfolio that creates shareholder value.
Our strategic partnerships are a powerful tool
to help us deliver our growth and underwriting ambitions. We added
six new distribution partnerships in the quarter through our MGA
Centre of Excellence, which is earning a reputation in the market
as an attractive and leading platform for program administrators
and MGAs. Fee income from our two consolidated A&H MGAs grew
18% year to date. Net investment income was strong, at $78m for the
quarter, and our FY 24 net investment income is now trending ahead
of our previous guidance.
We completed on an important two-part strategic
transaction with CMIG in the quarter, deploying capital for the
purchase and retirement of $125m of common shares and the
settlement of Series A Preference Shares, both for cash. Our Q3
BSCR estimate of 265% demonstrates the strength of our balance
sheet, and our annualized year to date underlying ROE of 14.4%,
which excludes one-off actions, is in line with our medium-term
guidance of 12-15% and demonstrates the strength of our
earnings.
This quarter marks my second full year at
SiriusPoint, and I am incredibly proud of the scale and pace of
transformation we have achieved so far. This company is and always
will be about our people and I am incredibly grateful to them for
their relentless dedication and determination to make the company
better. Together, we will drive further value through strategic,
targeted improvement as we build a sustainable, best-in-class
business for the future.”
Third Quarter
2024 Highlights
- Net income available to SiriusPoint
common shareholders of $4.5 million, or $0.03 per diluted common
share
- Core income of $69.5 million,
including underwriting income of $62.5 million, Core combined ratio
of 88.5%
- Core net services fee income of
$6.8 million, with service margin of 14.1%
- Net investment income of $77.7
million and total investment result of $92.5 million
- Book value per diluted common share
increased $0.42 per share, or 2.9%, from June 30, 2024 to
$14.73
- Annualized return on average common
equity of 0.7%
Nine Months Ended September 30,
2024 Highlights
- Net income available to SiriusPoint
common shareholders of $205.2 million, or $1.11 per diluted common
share
- Core income of $177.9 million,
including underwriting income of $143.7 million, Core combined
ratio of 91.1%
- Core net services fee income of
$36.3 million, with service margin of 21.2%
- Net investment income of $234.7
million and total investment result of $195.6 million
- Book value per diluted common share
increased $1.38 per share, or 10.3%, from December 31, 2023 to
$14.73
- Annualized return on average common
equity of 11.4%
- Debt to capital ratio down to 19.7%
compared to 23.8% as of December 31, 2023
________________________1 See definition in
“Non-GAAP Financial Measures and Other Financial Metrics” on page
6.
Key Financial Metrics
The following table shows certain key financial
metrics for the three and nine months ended September 30, 2024 and
2023:
|
|
Three months ended |
|
Nine months ended |
|
|
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
|
|
($ in millions, except for per share data and
ratios) |
|
Combined ratio |
|
84.4 |
% |
|
|
88.0 |
% |
|
|
86.1 |
% |
|
|
81.6 |
% |
|
Core underwriting income (1) |
$ |
62.5 |
|
|
$ |
42.5 |
|
|
$ |
143.7 |
|
|
$ |
213.2 |
|
|
Core net services income (1) |
$ |
7.0 |
|
|
$ |
7.5 |
|
|
$ |
34.2 |
|
|
$ |
31.9 |
|
|
Core income (1) |
$ |
69.5 |
|
|
$ |
50.0 |
|
|
$ |
177.9 |
|
|
$ |
245.1 |
|
|
Core combined ratio (1) |
|
88.5 |
% |
|
|
92.5 |
% |
|
|
91.1 |
% |
|
|
87.6 |
% |
|
Annualized return on average common shareholders’ equity
attributable to SiriusPoint common shareholders |
|
0.7 |
% |
|
|
11.3 |
% |
|
|
11.4 |
% |
|
|
16.7 |
% |
|
Book value per common share (2) |
$ |
15.41 |
|
|
$ |
13.76 |
|
|
$ |
15.41 |
|
|
$ |
13.76 |
|
|
Book value per diluted common share (2) |
$ |
14.73 |
|
|
$ |
13.35 |
|
|
$ |
14.73 |
|
|
$ |
13.35 |
|
|
Tangible book value per diluted common share (1) (2) |
$ |
13.88 |
|
|
$ |
12.47 |
|
|
$ |
13.88 |
|
|
$ |
12.47 |
|
|
(1) |
Core underwriting income, Core net services income, Core income and
Core combined ratio are non-GAAP financial measures. See
definitions in “Non-GAAP Financial Measures” and reconciliations in
“Segment Reporting.” Tangible book value per diluted common share
is a non-GAAP financial measure. See definition and reconciliation
in “Non-GAAP Financial Measures.” |
|
(2) |
Prior year comparatives represent amounts as of December 31,
2023. |
|
|
|
Third Quarter 2024 Summary
Consolidated underwriting income for the three
months ended September 30, 2024 was $89.0 million compared to $73.8
million for the three months ended September 30, 2023. The
improvement was primarily driven by increased favorable prior year
loss reserve development and a more favorable commission ratio. For
the three months ended September 30, 2024, favorable prior year
loss reserve development was $30.6 million from favorable
development in Property, mainly driven by reserve releases relating
to favorable COVID-19 development trends, as well as favorable
development in Accident and Health (“A&H”) due to lower than
expected reported attritional losses, compared to
$24.7 million for the three months ended September 30, 2023
driven by reserving analyses performed in connection with the March
2, 2023 loss portfolio transfer transaction (“2023 LPT”).
Consolidated underwriting income for the nine
months ended September 30, 2024 was $243.7 million compared to
$339.2 million for the nine months ended September 30, 2023. The
decrease was primarily driven by lower favorable prior year loss
reserve development. Favorable prior year loss reserve development
for the nine months ended September 30, 2023 included
$122.2 million driven by reserving analyses performed in
connection with the 2023 LPT. Excluding the favorable development
linked to the 2023 LPT, underwriting income increased by
$19.8 million primarily resulting from favorable development
in Property, mainly driven by reserve releases relating to
favorable COVID-19 development trends, as well as favorable
development in A&H and our runoff business, due to lower than
expected reported attritional losses. This increase was partially
offset by higher acquisition costs from business mix changes,
including the growth of Insurance & Services.
Reportable Segments
The determination of our reportable segments is
based on the manner in which management monitors the performance of
our operations, which consist of two reportable segments -
Reinsurance and Insurance & Services.
Collectively, the sum of our two segments,
Reinsurance and Insurance & Services, constitute our “Core”
results. Core underwriting income, Core net services income, Core
income and Core combined ratio are non-GAAP financial measures. See
reconciliations in “Segment Reporting”. We believe it is useful to
review Core results as it better reflects how management views the
business and reflects our decision to exit the runoff business. The
sum of Core results and Corporate results are equal to the
consolidated results of operations.
Core Premium Volume
Three months ended September 30, 2024 and
2023
Gross premiums written decreased by
$35.0 million, or 4.8%, to $690.5 million for the three
months ended September 30, 2024 compared to $725.5 million for
the three months ended September 30, 2023. Net premiums earned
decreased by $29.0 million, or 5.0%, to $546.3 million
for the three months ended September 30, 2024 compared to
$575.3 million for the three months ended September 30, 2023.
The decreases in premiums written were primarily driven by the
movement of certain lines from Insurance & Services to
Corporate, including the non-renewal of a Workers’ Compensation
program and the planned transition of a Cyber program to another
carrier. These decreases were partially offset by increases in
Reinsurance from Property and International Specialty and increases
from Insurance & Services from strategic organic and new
program growth.
Nine months ended September 30, 2024 and
2023
Gross premiums written decreased by $177.0
million, or 6.8%, to $2,413.9 million for the nine months ended
September 30, 2024 compared to $2,590.9 million for the nine months
ended September 30, 2023. Net premiums earned decreased by $104.7
million, or 6.1%, to $1,617.5 million for the nine months ended
September 30, 2024 compared to $1,722.2 million for the nine months
ended September 30, 2023. The decreases in premium volume were
primarily due to the movement of certain lines from Insurance &
Services to Corporate, including the non-renewal of a Workers’
Compensation program and the planned transition of a Cyber program
to another carrier, with the most significant offset being
strategic organic and new program growth within Insurance &
Services.
Core Results
Three months ended September 30, 2024 and
2023
Core results for the three months ended
September 30, 2024 included income of $69.5 million compared to
$50.0 million for the three months ended September 30, 2023. Income
for the three months ended September 30, 2024 consists of
underwriting income of $62.5 million (88.5% combined ratio) and net
services income of $7.0 million, compared to underwriting income of
$42.5 million (92.5% combined ratio) and net services income of
$7.5 million for the three months ended September 30, 2023. The
improvement in net underwriting results was primarily driven by
favorable prior year loss reserve development and a more favorable
commission ratio, partially offset by higher catastrophe
losses.
Losses incurred included $29.7 million of
favorable prior year loss reserve development for the three months
ended September 30, 2024 primarily resulting from favorable
development in Property, mainly driven by reserve releases relating
to favorable COVID-19 development trends, as well as favorable
development in A&H due to lower than expected reported
attritional losses, compared to $12.6 million for the three
months ended September 30, 2023 driven by reserving analyses
performed in connection with the 2023 LPT.
Catastrophe losses, net of reinsurance and
reinstatement premiums, for the three months ended September 30,
2024, were $10.6 million, or 1.9 percentage points on the combined
ratio, including $10.0 million from Hurricane Helene, compared
to $6.7 million, or 1.2 percentage points on the combined ratio,
for the three months ended September 30, 2023, which includes
losses of $3.8 million from the Hawaii wildfires and
$3.3 million from Hurricane Idalia.
Nine months ended September 30, 2024 and
2023
Core results for the nine months ended September
30, 2024 included income of $177.9 million compared to
$245.1 million for the nine months ended September 30, 2023.
Income for the nine months ended September 30, 2024 consists of
underwriting income of $143.7 million (91.1% combined ratio)
and net services income of $34.2 million, compared to
underwriting income of $213.2 million (87.6% combined ratio)
and net services income of $31.9 million for the nine months
ended September 30, 2023. The decrease in net underwriting results
was primarily driven by lower favorable prior year loss reserve
development. Favorable prior year loss reserve development for the
nine months ended September 30, 2023 included $102.4 million driven
by reserving analyses performed in connection with the 2023
LPT.
Excluding the favorable development linked to
the 2023 LPT, net underwriting income increased by $27.7 million
primarily driven by favorable development in Property, mainly
driven by reserve releases relating to favorable COVID-19
development trends, as well as favorable development in A&H due
to lower than expected reported attritional losses, partially
offset by higher acquisition costs from business mix changes,
including the growth of Insurance & Services.
Reinsurance Segment
Three months ended September 30, 2024 and
2023
Reinsurance gross premiums written were
$314.5 million for the three months ended September 30, 2024,
an increase of $49.1 million, or 18.5%, compared to the three
months ended September 30, 2023, primarily driven by increases in
Bermuda and New York Property and International Specialty,
partially offset by lower premiums written in New York
Casualty.
Reinsurance generated underwriting income of
$41.6 million (84.6% combined ratio) for the three months
ended September 30, 2024, compared to underwriting income of
$36.9 million (85.6% combined ratio) for the three months
ended September 30, 2023. The increase in net underwriting results
was primarily driven by lower attritional losses and favorable
commission ratio, partially offset by higher catastrophe
losses.
Catastrophe losses, net of reinsurance and
reinstatement premiums, for the three months ended September 30,
2024, were $11.3 million or 4.2 percentage points on the combined
ratio, including $10.0 million from Hurricane Helene, compared
to $6.8 million or 2.6 percentage points on the combined ratio for
the three months ended September 30, 2023, which includes losses of
$3.8 million from the Hawaii wildfires and $3.3 million
from Hurricane Idalia.
Nine months ended September 30, 2024 and
2023
Reinsurance gross premiums written were $1,023.4
million for the nine months ended September 30, 2024, an increase
of $4.1 million, or 0.4%, compared to the nine months ended
September 30, 2023, primarily driven by increases in International
Specialty, partially offset by lower premiums written in New York
Casualty and Bermuda Specialty.
Reinsurance generated underwriting income of
$106.5 million (86.3% combined ratio) for the nine months ended
September 30, 2024, compared to underwriting income of $178.4
million (77.4% combined ratio) for the nine months ended September
30, 2023. The decrease in net underwriting results was primarily
due to decreased favorable prior year loss reserve development as
the nine months ended September 30, 2023 included
$90.6 million driven by reserving analyses performed in
connection with the 2023 LPT. Net favorable prior year loss reserve
development was $33.2 million for the nine months ended September
30, 2024 primarily driven by favorable development in Property,
mainly driven by reserve releases relating to favorable COVID-19
development trends.
Insurance & Services Segment
Three months ended September 30, 2024 and
2023
Insurance & Services gross premiums written
were $376.0 million for the three months ended September 30, 2024,
a decrease of $84.1 million, or 18.3%, compared to the three months
ended September 30, 2023, primarily driven by the movement of
certain lines from Insurance & Services to Corporate, including
the non-renewal of a Workers’ Compensation program and the planned
transition of a Cyber program to another carrier, representing
$98.0 million of gross premiums written for the three months
ended September 30, 2023, as well as lower A&H premiums,
partially offset by strategic organic and new program growth.
Insurance & Services generated segment
income of $27.9 million for the three months ended September
30, 2024, compared to income of $13.3 million for the three
months ended September 30, 2023. Segment income for the three
months ended September 30, 2024 consists of underwriting income of
$20.9 million (92.4% combined ratio) and net services income
of $7.0 million, compared to underwriting income of
$5.6 million (98.3% combined ratio) and net services income of
$7.7 million for the three months ended September 30, 2023.
The improvement in underwriting results was primarily driven by net
favorable prior year loss reserve development of $13.1 million
for the three months ended September 30, 2024, mainly in A&H
due to lower than expected reported attritional losses, compared to
net adverse prior year loss reserve development of
$6.6 million for the three months ended September 30, 2023,
mainly in Workers’ Compensation.
Nine months ended September 30, 2024 and
2023
Insurance & Services gross premiums written
were $1,390.5 million for the nine months ended September 30, 2024,
a decrease of $181.1 million, or 11.5%, compared to the nine months
ended September 30, 2023, primarily driven by the movement of
certain lines from Insurance & Services to Corporate, including
the non-renewal of a Workers’ Compensation program and the planned
transition of a Cyber program to another carrier, representing
$331.8 million of gross premiums written for the nine months
ended September 30, 2023, as well as lower A&H premiums,
partially offset by strategic organic and new program growth.
Insurance & Services generated segment
income of $71.4 million for the nine months ended September 30,
2024, compared to income of $69.5 million for the nine months ended
September 30, 2023. Segment income for the nine months ended
September 30, 2024 consists of underwriting income of $37.2 million
(95.6% combined ratio) and net services income of $34.2 million,
compared to underwriting income of $34.8 million (96.3% combined
ratio) and net services income of $34.7 million for the nine months
ended September 30, 2023. The improvement in underwriting income of
$2.4 million for the nine months ended September 30, 2024 compared
to the nine months ended September 30, 2023 was primarily driven by
lower attritional losses in A&H.
Investments
Three months ended September 30, 2024 and
2023
Total net investment income and realized and
unrealized investment gains for the three months ended September
30, 2024 was primarily attributable to net investment income
related to interest income from our debt and short-term investment
portfolio of $81.5 million. Increased investment income is
primarily due to increased interest rates and our rotation of the
portfolio from cash and cash equivalents and U.S. government and
government agency positions to high-grade corporate debt and other
securitized assets, in an effort to better diversify our
portfolio.
Total net investment income and realized and
unrealized investment gains (losses) for the three months ended
September 30, 2023 was primarily attributable to investment results
from our debt and short-term investment portfolio of
$71.0 million driven by dividend and interest income primarily
on U.S. treasury bill and corporate debt positions.
Nine months ended September 30, 2024 and
2023
Total net investment income and realized and
unrealized investment gains (losses) for the nine months ended
September 30, 2024 was primarily attributable to net investment
income related to interest income from our debt and short-term
investment portfolio of $228.5 million, partially offset by
unrealized losses on other long-term investments of
$45.8 million. Increased investment income is primarily due to
increased interest rates and our rotation of the portfolio from
cash and cash equivalents and U.S. government and government agency
positions to high-grade corporate debt and other securitized
assets, in an effort to better diversify our portfolio. Losses on
private other long-term investments were the result of updated fair
value analyses consistent with the current insurtech market trends
and disposals of positions as we execute our strategy to focus on
underwriting relationships with MGAs.
Total net investment income and realized and
unrealized investment gains for the nine months ended September 30,
2023 was primarily attributable to net investment income related to
interest income from our debt and short-term investment portfolio
of $208.5 million. Increased dividend and investment income is
due to the ongoing re-positioning of the portfolio to focus on
investing in high grade fixed income securities.
Webcast Details
The Company will hold a webcast to discuss its
third quarter 2024 results at 8:30 a.m. Eastern Time on November 1,
2024. The webcast of the conference call will be available over the
Internet from the Company’s website at www.siriuspt.com under the
“Investor Relations” section. Participants should follow the
instructions provided on the website to download and install any
necessary audio applications. The conference call will be available
by dialing 1-877-451-6152 (domestic) or 1-201-389-0879
(international). Participants should ask for the SiriusPoint Ltd.
third quarter 2024 earnings call.
The online replay will be available on the
Company's website immediately following the call at
www.siriuspt.com under the “Investor Relations” section.
Safe Harbor Statement Regarding
Forward-Looking Statements This press release includes
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are subject to known and unknown risks and
uncertainties, many of which may be beyond the Company’s control.
The Company cautions you that the forward-looking information
presented in this press release is not a guarantee of future
events, and that actual events may differ materially from those
made in or suggested by the forward-looking information contained
in this press release. In addition, forward-looking statements
generally can be identified by the use of forward-looking
terminology such as “believes,” “intends,” “seeks,” “anticipates,”
“aims,” “plans,” “targets,” “estimates,” “expects,” “assumes,”
“continues,” “guidance,” “should,” “could,” “will,” “may” and the
negative of these or similar terms and phrases. Specific
forward-looking statements in this press release include, but are
not limited to, statements regarding the trend of our performance
as compared to the previous guidance, the success of our strategic
transaction with CMIG International Holding Pte. Ltd., the current
insurtech market trends, our ability to generate shareholder value
and whether we will continue to have momentum in our business in
the future. Actual events, results and outcomes may differ
materially from the Company’s expectations due to a variety of
known and unknown risks, uncertainties and other factors. Among the
risks and uncertainties that could cause actual results to differ
from those described in the forward-looking statements are the
following: our ability to execute on our strategic transformation,
including re-underwriting to reduce volatility and improving
underwriting performance, de-risking our investment portfolio, and
transforming our business; the impact of unpredictable catastrophic
events such as uncertainties with respect to COVID-19 losses across
many classes of insurance business and the amount of insurance
losses that may ultimately be ceded to the reinsurance market,
supply chain issues, labor shortages and related increased costs,
changing interest rates and equity market volatility; inadequacy of
loss and loss adjustment expense reserves, the lack of available
capital, and periods characterized by excess underwriting capacity
and unfavorable premium rates; the performance of financial
markets, impact of inflation and interest rates, and foreign
currency fluctuations; our ability to compete successfully in the
insurance and reinsurance market and the effect of consolidation in
the insurance and reinsurance industry; technology breaches or
failures, including those resulting from a malicious cyber-attack
on us, our business partners or service providers; the effects of
global climate change, including increased severity and frequency
of weather-related natural disasters and catastrophes and increased
coastal flooding in many geographic areas; geopolitical
uncertainty, including the impact of the U.S. November 2024
presidential and congressional elections, and ongoing conflicts in
Europe and the Middle East; our ability to retain key senior
management and key employees; a downgrade or withdrawal of our
financial ratings; fluctuations in our results of operations; legal
restrictions on certain of SiriusPoint’s insurance and reinsurance
subsidiaries’ ability to pay dividends and other distributions to
SiriusPoint; the outcome of legal and regulatory proceedings and
regulatory constraints on our business; reduced returns or losses
in SiriusPoint’s investment portfolio; our exposure or potential
exposure to corporate income tax in Bermuda and the E.U., U.S.
federal income and withholding taxes and our significant deferred
tax assets, which could become devalued if we do not generate
future taxable income or applicable corporate tax rates are
reduced; risks associated with delegating authority to third party
managing general agents, managing general underwriters and/or
program administrators; future strategic transactions such as
acquisitions, dispositions, investments, mergers or joint ventures;
SiriusPoint’s response to any acquisition proposal that may be
received from any party, including any actions that may be
considered by the Company’s Board of Directors or any committee
thereof; and other risks and factors listed under "Risk Factors" in
the Company's most recent Annual Report on Form 10-K and other
subsequent periodic reports filed with the Securities and Exchange
Commission.
All forward-looking statements speak only as of
the date made and the Company undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result
of new information, future events or otherwise.
Non-GAAP Financial Measures and Other
Financial Metrics
In presenting SiriusPoint’s results, management
has included financial measures that are not calculated under
standards or rules that comprise accounting principles generally
accepted in the United States (“GAAP”). SiriusPoint’s management
uses this information in its internal analysis of results and
believes that this information may be informative to investors in
gauging the quality of SiriusPoint’s financial performance,
identifying trends in our results and providing meaningful
period-to-period comparisons. Core underwriting income, Core net
services income, Core income, and Core combined ratio are non-GAAP
financial measures. Management believes it is useful to review Core
results as it better reflects how management views the business and
reflects the Company’s decision to exit the runoff business.
Tangible book value per diluted common share is also a non-GAAP
financial measure and the most directly comparable U.S. GAAP
measure is book value per common share. Tangible book value per
diluted common share excludes intangible assets. Management
believes that effects of intangible assets are not indicative of
underlying underwriting results or trends and make book value
comparisons to less acquisitive peer companies less meaningful.
Tangible book value per diluted common share is useful because it
provides a more accurate measure of the realizable value of
shareholder returns, excluding intangible assets. Underlying net
income and underlying annualized return on equity on average common
shareholders’ equity ("ROE") are non-GAAP financial measures.
Underlying net income excludes gains (losses) on strategic
investments and liability-classified capital instruments, income
(expense) related to loss portfolio transfers and development on
COVID-19 reserves. Underlying ROE is calculated by dividing
annualized underlying net income available to SiriusPoint common
shareholders for the period by the average common shareholders’
equity, excluding accumulated other comprehensive income (loss)
("AOCI"). Management believes it is useful to review underlying net
income as it better reflects how it views the business and exclude
AOCI because it may fluctuate significantly between periods based
on movements in interest and currency rates. Reconciliations of
such non-GAAP financial measures to the most directly comparable
GAAP figures are included in the attached financial information in
accordance with Regulation G and Item 10(e) of Regulation S-K, as
applicable.
About the Company
SiriusPoint is a global underwriter of insurance
and reinsurance providing solutions to clients and brokers around
the world. Bermuda-headquartered with offices in New York, London,
Stockholm and other locations, we are listed on the New York Stock
Exchange (SPNT). We have licenses to write Property & Casualty
and Accident & Health insurance and reinsurance globally. Our
offering and distribution capabilities are strengthened by a
portfolio of strategic partnerships with Managing General Agents
and Program Administrators. With over $3.0 billion total capital,
SiriusPoint’s operating companies have a financial strength rating
of A- (Stable) from AM Best, S&P and Fitch, and A3 (Stable)
from Moody’s. For more information please visit
www.siriuspt.com.
Contacts
Investor Relations Liam
Blackledge - Senior Associate, Investor Relations and Strategy
Liam.Blackledge@siriuspt.com + 44 203 772 3082
Media Natalie King - Global Head
of Marketing and External Communications Natalie.King@siriuspt.com
+ 44 20 3772 3102
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SIRIUSPOINT LTD. CONSOLIDATED BALANCE SHEETS (UNAUDITED) As
of September 30, 2024 and December 31, 2023 (expressed in millions
of U.S. dollars, except per share and share amounts) |
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September 30, 2024 |
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December 31, 2023 |
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Assets |
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|
Debt securities, available for sale, at fair value, net of
allowance for credit losses of $0.0 (2023 - $0.0) (cost - $5,316.3;
2023 - $4,754.6) |
$ |
5,411.8 |
|
|
$ |
4,755.4 |
|
|
Debt securities, trading, at fair value (cost - $250.3; 2023 -
$568.1) |
|
233.1 |
|
|
|
534.9 |
|
|
Short-term investments, at fair value (cost - $52.2; 2023 -
$370.8) |
|
52.4 |
|
|
|
371.6 |
|
|
Investments in related party investment funds, at fair value |
|
114.5 |
|
|
|
105.6 |
|
|
Other long-term investments, at fair value (cost - $329.8; 2023 -
$358.1) (includes related party investments at fair value of $146.5
(2023 - $173.7)) |
|
236.1 |
|
|
|
310.1 |
|
|
Total investments |
|
6,047.9 |
|
|
|
6,077.6 |
|
|
Cash and cash equivalents |
|
640.7 |
|
|
|
969.2 |
|
|
Restricted cash and cash equivalents |
|
174.5 |
|
|
|
132.1 |
|
|
Redemption receivable from related party investment fund |
|
— |
|
|
|
3.0 |
|
|
Due from brokers |
|
13.9 |
|
|
|
5.6 |
|
|
Interest and dividends receivable |
|
49.4 |
|
|
|
42.3 |
|
|
Insurance and reinsurance balances receivable, net |
|
2,069.1 |
|
|
|
1,966.3 |
|
|
Deferred acquisition costs, net |
|
330.0 |
|
|
|
308.9 |
|
|
Unearned premiums ceded |
|
467.2 |
|
|
|
449.2 |
|
|
Loss and loss adjustment expenses recoverable, net |
|
2,198.7 |
|
|
|
2,295.1 |
|
|
Deferred tax asset |
|
249.2 |
|
|
|
293.6 |
|
|
Intangible assets |
|
143.8 |
|
|
|
152.7 |
|
|
Other assets |
|
298.1 |
|
|
|
175.9 |
|
|
Total assets |
$ |
12,682.5 |
|
|
$ |
12,871.5 |
|
|
Liabilities |
|
|
|
|
Loss and loss adjustment expense reserves |
$ |
5,702.1 |
|
|
$ |
5,608.1 |
|
|
Unearned premium reserves |
|
1,684.0 |
|
|
|
1,627.3 |
|
|
Reinsurance balances payable |
|
1,509.6 |
|
|
|
1,736.7 |
|
|
Deposit liabilities |
|
20.2 |
|
|
|
134.4 |
|
|
Deferred gain on retroactive reinsurance |
|
21.7 |
|
|
|
27.9 |
|
|
Debt |
|
660.5 |
|
|
|
786.2 |
|
|
Due to brokers |
|
23.1 |
|
|
|
6.2 |
|
|
Deferred tax liability |
|
38.9 |
|
|
|
68.7 |
|
|
Liability-classified capital instruments |
|
58.4 |
|
|
|
67.3 |
|
|
Accounts payable, accrued expenses and other liabilities |
|
267.5 |
|
|
|
278.1 |
|
|
Total liabilities |
|
9,986.0 |
|
|
|
10,340.9 |
|
|
Commitments and contingent liabilities |
|
|
|
|
Shareholders’ equity |
|
|
|
|
Series B preference shares (par value $0.10; authorized and issued:
8,000,000) |
|
200.0 |
|
|
|
200.0 |
|
|
Common shares (issued and outstanding: 161,866,867; 2023 -
168,120,022) |
|
16.2 |
|
|
|
16.8 |
|
|
Additional paid-in capital |
|
1,591.0 |
|
|
|
1,693.0 |
|
|
Retained earnings |
|
806.2 |
|
|
|
601.0 |
|
|
Accumulated other comprehensive income, net of tax |
|
81.5 |
|
|
|
3.1 |
|
|
Shareholders’ equity attributable to SiriusPoint
shareholders |
|
2,694.9 |
|
|
|
2,513.9 |
|
|
Noncontrolling interests |
|
1.6 |
|
|
|
16.7 |
|
|
Total shareholders’ equity |
|
2,696.5 |
|
|
|
2,530.6 |
|
|
Total liabilities, noncontrolling interests and
shareholders’ equity |
$ |
12,682.5 |
|
|
$ |
12,871.5 |
|
| |
|
|
|
|
|
|
|
|
SIRIUSPOINT LTD. CONSOLIDATED STATEMENTS
OF INCOME (UNAUDITED)
For the three and nine
months ended September 30, 2024
and 2023 (expressed in
millions of U.S. dollars, except per share and share
amounts) |
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
|
Revenues |
|
|
|
|
|
|
|
|
Net premiums earned |
$ |
568.9 |
|
|
$ |
613.0 |
|
|
$ |
1,753.2 |
|
|
$ |
1,848.2 |
|
|
Net investment income |
|
77.7 |
|
|
|
75.1 |
|
|
|
234.7 |
|
|
|
205.3 |
|
|
Net realized and unrealized investment gains (losses) |
|
6.9 |
|
|
|
(7.1 |
) |
|
|
(48.0 |
) |
|
|
2.4 |
|
|
Net realized and unrealized investment gains from related party
investment funds |
|
7.9 |
|
|
|
0.1 |
|
|
|
8.9 |
|
|
|
— |
|
|
Net investment income and net realized and unrealized investment
gains (losses) |
|
92.5 |
|
|
|
68.1 |
|
|
|
195.6 |
|
|
|
207.7 |
|
|
Other revenues |
|
18.1 |
|
|
|
21.8 |
|
|
|
164.8 |
|
|
|
80.0 |
|
|
Loss on settlement and change in fair value of liability-classified
capital instruments |
|
(117.3 |
) |
|
|
(0.3 |
) |
|
|
(122.6 |
) |
|
|
(44.4 |
) |
|
Total revenues |
|
562.2 |
|
|
|
702.6 |
|
|
|
1,991.0 |
|
|
|
2,091.5 |
|
|
Expenses |
|
|
|
|
|
|
|
|
Loss and loss adjustment expenses incurred, net |
|
317.5 |
|
|
|
373.1 |
|
|
|
999.4 |
|
|
|
1,015.9 |
|
|
Acquisition costs, net |
|
117.5 |
|
|
|
129.5 |
|
|
|
382.3 |
|
|
|
361.0 |
|
|
Other underwriting expenses |
|
44.9 |
|
|
|
36.6 |
|
|
|
127.8 |
|
|
|
132.1 |
|
|
Net corporate and other expenses |
|
51.4 |
|
|
|
63.4 |
|
|
|
174.0 |
|
|
|
193.7 |
|
|
Intangible asset amortization |
|
3.0 |
|
|
|
2.9 |
|
|
|
8.9 |
|
|
|
8.2 |
|
|
Interest expense |
|
13.8 |
|
|
|
19.8 |
|
|
|
50.0 |
|
|
|
44.3 |
|
|
Foreign exchange (gains) losses |
|
3.0 |
|
|
|
(1.8 |
) |
|
|
2.9 |
|
|
|
15.7 |
|
|
Total expenses |
|
551.1 |
|
|
|
623.5 |
|
|
|
1,745.3 |
|
|
|
1,770.9 |
|
|
Income before income tax expense |
|
11.1 |
|
|
|
79.1 |
|
|
|
245.7 |
|
|
|
320.6 |
|
|
Income tax expense |
|
(2.4 |
) |
|
|
(15.3 |
) |
|
|
(26.3 |
) |
|
|
(56.6 |
) |
|
Net income |
|
8.7 |
|
|
|
63.8 |
|
|
|
219.4 |
|
|
|
264.0 |
|
|
Net income attributable to noncontrolling interests |
|
(0.2 |
) |
|
|
(2.3 |
) |
|
|
(2.2 |
) |
|
|
(6.7 |
) |
|
Net income available to SiriusPoint |
|
8.5 |
|
|
|
61.5 |
|
|
|
217.2 |
|
|
|
257.3 |
|
|
Dividends on Series B preference shares |
|
(4.0 |
) |
|
|
(4.0 |
) |
|
|
(12.0 |
) |
|
|
(12.0 |
) |
|
Net income available to SiriusPoint common
shareholders |
$ |
4.5 |
|
|
$ |
57.5 |
|
|
$ |
205.2 |
|
|
$ |
245.3 |
|
|
Earnings per share available to SiriusPoint common
shareholders |
|
|
|
|
|
|
|
|
Basic earnings per share available to SiriusPoint common
shareholders |
$ |
0.03 |
|
|
$ |
0.33 |
|
|
$ |
1.15 |
|
|
$ |
1.40 |
|
|
Diluted earnings per share available to SiriusPoint common
shareholders |
$ |
0.03 |
|
|
$ |
0.32 |
|
|
$ |
1.11 |
|
|
$ |
1.36 |
|
|
Weighted average number of common shares used in the
determination of earnings per share |
|
|
|
|
|
|
|
|
Basic |
|
165,659,401 |
|
|
|
163,738,528 |
|
|
|
168,275,970 |
|
|
|
162,233,695 |
|
|
Diluted |
|
172,803,298 |
|
|
|
168,516,508 |
|
|
|
174,261,326 |
|
|
|
166,920,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SIRIUSPOINT LTD. SEGMENT
REPORTING |
|
|
|
|
|
Three months ended September 30, 2024 |
|
|
Reinsurance |
|
Insurance & Services |
|
Core |
|
Eliminations (2) |
|
Corporate |
|
Segment Measure Reclass |
|
Total |
|
Gross premiums written |
$ |
314.5 |
|
|
$ |
376.0 |
|
|
$ |
690.5 |
|
|
$ |
— |
|
|
$ |
23.5 |
|
|
$ |
— |
|
|
$ |
714.0 |
|
|
Net premiums written |
|
268.3 |
|
|
|
235.3 |
|
|
|
503.6 |
|
|
|
— |
|
|
|
0.6 |
|
|
|
— |
|
|
|
504.2 |
|
|
Net premiums earned |
|
269.4 |
|
|
|
276.9 |
|
|
|
546.3 |
|
|
|
— |
|
|
|
22.6 |
|
|
|
— |
|
|
|
568.9 |
|
|
Loss and loss adjustment expenses incurred, net |
|
137.6 |
|
|
|
170.1 |
|
|
|
307.7 |
|
|
|
(1.4 |
) |
|
|
11.2 |
|
|
|
— |
|
|
|
317.5 |
|
|
Acquisition costs, net |
|
69.8 |
|
|
|
65.9 |
|
|
|
135.7 |
|
|
|
(24.1 |
) |
|
|
5.9 |
|
|
|
— |
|
|
|
117.5 |
|
|
Other underwriting expenses |
|
20.4 |
|
|
|
20.0 |
|
|
|
40.4 |
|
|
|
— |
|
|
|
4.5 |
|
|
|
— |
|
|
|
44.9 |
|
|
Underwriting income |
|
41.6 |
|
|
|
20.9 |
|
|
|
62.5 |
|
|
|
25.5 |
|
|
|
1.0 |
|
|
|
— |
|
|
|
89.0 |
|
|
Services revenues |
|
— |
|
|
|
48.1 |
|
|
|
48.1 |
|
|
|
(29.9 |
) |
|
|
— |
|
|
|
(18.2 |
) |
|
|
— |
|
|
Services expenses |
|
— |
|
|
|
41.3 |
|
|
|
41.3 |
|
|
|
— |
|
|
|
— |
|
|
|
(41.3 |
) |
|
|
— |
|
|
Net services fee income |
|
— |
|
|
|
6.8 |
|
|
|
6.8 |
|
|
|
(29.9 |
) |
|
|
— |
|
|
|
23.1 |
|
|
|
— |
|
|
Services noncontrolling loss |
|
— |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
(0.2 |
) |
|
|
— |
|
|
Net services income |
|
— |
|
|
|
7.0 |
|
|
|
7.0 |
|
|
|
(29.9 |
) |
|
|
— |
|
|
|
22.9 |
|
|
|
— |
|
|
Segment income |
|
41.6 |
|
|
|
27.9 |
|
|
|
69.5 |
|
|
|
(4.4 |
) |
|
|
1.0 |
|
|
|
22.9 |
|
|
|
89.0 |
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
77.7 |
|
|
|
— |
|
|
|
77.7 |
|
|
Net realized and unrealized investment gains |
|
|
6.9 |
|
|
|
— |
|
|
|
6.9 |
|
|
Net realized and unrealized investment gains from related party
investment funds |
|
|
7.9 |
|
|
|
— |
|
|
|
7.9 |
|
|
Other revenues |
|
|
|
|
|
|
|
|
|
(0.1 |
) |
|
|
18.2 |
|
|
|
18.1 |
|
|
Loss on settlement and change in fair value of liability-classified
capital instruments |
|
|
(117.3 |
) |
|
|
— |
|
|
|
(117.3 |
) |
|
Net corporate and other expenses |
|
|
|
|
|
|
|
|
|
(10.1 |
) |
|
|
(41.3 |
) |
|
|
(51.4 |
) |
|
Intangible asset amortization |
|
|
|
|
|
|
|
|
|
(3.0 |
) |
|
|
— |
|
|
|
(3.0 |
) |
|
Interest expense |
|
|
|
|
|
|
|
|
|
(13.8 |
) |
|
|
— |
|
|
|
(13.8 |
) |
|
Foreign exchange losses |
|
|
|
|
|
|
|
|
|
(3.0 |
) |
|
|
— |
|
|
|
(3.0 |
) |
|
Income (loss) before income tax expense |
$ |
41.6 |
|
|
$ |
27.9 |
|
|
|
69.5 |
|
|
|
(4.4 |
) |
|
|
(53.8 |
) |
|
|
(0.2 |
) |
|
|
11.1 |
|
|
Income tax expense |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(2.4 |
) |
|
|
— |
|
|
|
(2.4 |
) |
|
Net income (loss) |
|
|
|
|
|
69.5 |
|
|
|
(4.4 |
) |
|
|
(56.2 |
) |
|
|
(0.2 |
) |
|
|
8.7 |
|
|
Net (income) loss attributable to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
(0.4 |
) |
|
|
0.2 |
|
|
|
(0.2 |
) |
|
Net income (loss) available to SiriusPoint |
|
$ |
69.5 |
|
|
$ |
(4.4 |
) |
|
$ |
(56.6 |
) |
|
$ |
— |
|
|
$ |
8.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Ratios: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss ratio |
|
51.1 |
% |
|
|
61.4 |
% |
|
|
56.3 |
% |
|
|
|
|
|
|
|
|
55.8 |
% |
|
Acquisition cost ratio |
|
25.9 |
% |
|
|
23.8 |
% |
|
|
24.8 |
% |
|
|
|
|
|
|
|
|
20.7 |
% |
|
Other underwriting expenses ratio |
|
7.6 |
% |
|
|
7.2 |
% |
|
|
7.4 |
% |
|
|
|
|
|
|
|
|
7.9 |
% |
|
Combined ratio |
|
84.6 |
% |
|
|
92.4 |
% |
|
|
88.5 |
% |
|
|
|
|
|
|
|
|
84.4 |
% |
|
(1) |
Underwriting ratios are calculated by dividing the related expense
by net premiums earned. |
|
(2) |
Insurance & Services MGAs recognize fees for service using
revenue from contracts with customers accounting standards, whereas
insurance companies recognize acquisition expenses using insurance
contract accounting standards. While ultimate revenues and expenses
recognized will match, there will be recognition timing differences
based on the different accounting standards. |
|
|
|
|
|
Three months ended September 30, 2023 |
|
|
Reinsurance |
|
Insurance & Services |
|
Core |
|
Eliminations (2) |
|
Corporate |
|
Segment Measure Reclass |
|
Total |
|
Gross premiums written |
$ |
265.4 |
|
|
$ |
460.1 |
|
|
$ |
725.5 |
|
|
$ |
— |
|
|
$ |
33.3 |
|
|
$ |
— |
|
|
$ |
758.8 |
|
|
Net premiums written |
|
243.2 |
|
|
|
290.4 |
|
|
|
533.6 |
|
|
|
— |
|
|
|
32.4 |
|
|
|
— |
|
|
|
566.0 |
|
|
Net premiums earned |
|
256.9 |
|
|
|
318.4 |
|
|
|
575.3 |
|
|
|
— |
|
|
|
37.7 |
|
|
|
— |
|
|
|
613.0 |
|
|
Loss and loss adjustment expenses incurred, net |
|
136.2 |
|
|
|
219.6 |
|
|
|
355.8 |
|
|
|
(1.2 |
) |
|
|
18.5 |
|
|
|
— |
|
|
|
373.1 |
|
|
Acquisition costs, net |
|
69.4 |
|
|
|
76.3 |
|
|
|
145.7 |
|
|
|
(37.2 |
) |
|
|
21.0 |
|
|
|
— |
|
|
|
129.5 |
|
|
Other underwriting expenses |
|
14.4 |
|
|
|
16.9 |
|
|
|
31.3 |
|
|
|
— |
|
|
|
5.3 |
|
|
|
— |
|
|
|
36.6 |
|
|
Underwriting income (loss) |
|
36.9 |
|
|
|
5.6 |
|
|
|
42.5 |
|
|
|
38.4 |
|
|
|
(7.1 |
) |
|
|
— |
|
|
|
73.8 |
|
|
Services revenues |
|
(0.2 |
) |
|
|
58.8 |
|
|
|
58.6 |
|
|
|
(38.3 |
) |
|
|
— |
|
|
|
(20.3 |
) |
|
|
— |
|
|
Services expenses |
|
— |
|
|
|
48.7 |
|
|
|
48.7 |
|
|
|
— |
|
|
|
— |
|
|
|
(48.7 |
) |
|
|
— |
|
|
Net services fee income (loss) |
|
(0.2 |
) |
|
|
10.1 |
|
|
|
9.9 |
|
|
|
(38.3 |
) |
|
|
— |
|
|
|
28.4 |
|
|
|
— |
|
|
Services noncontrolling income |
|
— |
|
|
|
(2.4 |
) |
|
|
(2.4 |
) |
|
|
— |
|
|
|
— |
|
|
|
2.4 |
|
|
|
— |
|
|
Net services income (loss) |
|
(0.2 |
) |
|
|
7.7 |
|
|
|
7.5 |
|
|
|
(38.3 |
) |
|
|
— |
|
|
|
30.8 |
|
|
|
— |
|
|
Segment income (loss) |
|
36.7 |
|
|
|
13.3 |
|
|
|
50.0 |
|
|
|
0.1 |
|
|
|
(7.1 |
) |
|
|
30.8 |
|
|
|
73.8 |
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
75.1 |
|
|
|
— |
|
|
|
75.1 |
|
|
Net realized and unrealized investment losses |
|
|
(7.1 |
) |
|
|
— |
|
|
|
(7.1 |
) |
|
Net realized and unrealized investment gains from related party
investment funds |
|
|
0.1 |
|
|
|
— |
|
|
|
0.1 |
|
|
Other revenues |
|
|
|
|
|
|
|
|
|
1.5 |
|
|
|
20.3 |
|
|
|
21.8 |
|
|
Loss on settlement and change in fair value of liability-classified
capital instruments |
|
|
(0.3 |
) |
|
|
— |
|
|
|
(0.3 |
) |
|
Net corporate and other expenses |
|
|
|
|
|
|
|
|
|
(14.7 |
) |
|
|
(48.7 |
) |
|
|
(63.4 |
) |
|
Intangible asset amortization |
|
|
|
|
|
|
|
|
|
(2.9 |
) |
|
|
— |
|
|
|
(2.9 |
) |
|
Interest expense |
|
|
|
|
|
|
|
|
|
(19.8 |
) |
|
|
— |
|
|
|
(19.8 |
) |
|
Foreign exchange gains |
|
|
|
|
|
|
|
|
|
1.8 |
|
|
|
— |
|
|
|
1.8 |
|
|
Income before income tax expense |
$ |
36.7 |
|
|
$ |
13.3 |
|
|
|
50.0 |
|
|
|
0.1 |
|
|
|
26.6 |
|
|
|
2.4 |
|
|
|
79.1 |
|
|
Income tax expense |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(15.3 |
) |
|
|
— |
|
|
|
(15.3 |
) |
|
Net income |
|
|
|
|
|
50.0 |
|
|
|
0.1 |
|
|
|
11.3 |
|
|
|
2.4 |
|
|
|
63.8 |
|
|
Net (income) loss attributable to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
(2.4 |
) |
|
|
(2.3 |
) |
|
Net income available to SiriusPoint |
|
$ |
50.0 |
|
|
$ |
0.1 |
|
|
$ |
11.4 |
|
|
$ |
— |
|
|
$ |
61.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Ratios: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss ratio |
|
53.0 |
% |
|
|
69.0 |
% |
|
|
61.8 |
% |
|
|
|
|
|
|
|
|
60.9 |
% |
|
Acquisition cost ratio |
|
27.0 |
% |
|
|
24.0 |
% |
|
|
25.3 |
% |
|
|
|
|
|
|
|
|
21.1 |
% |
|
Other underwriting expenses ratio |
|
5.6 |
% |
|
|
5.3 |
% |
|
|
5.4 |
% |
|
|
|
|
|
|
|
|
6.0 |
% |
|
Combined ratio |
|
85.6 |
% |
|
|
98.3 |
% |
|
|
92.5 |
% |
|
|
|
|
|
|
|
|
88.0 |
% |
|
(1) |
Underwriting ratios are calculated by dividing the related expense
by net premiums earned. |
|
(2) |
Insurance & Services MGAs recognize fees for service using
revenue from contracts with customers accounting standards, whereas
insurance companies recognize acquisition expenses using insurance
contract accounting standards. While ultimate revenues and expenses
recognized will match, there will be recognition timing differences
based on the different accounting standards. |
|
|
|
|
|
Nine months ended September 30, 2024 |
|
|
Reinsurance |
|
Insurance & Services |
|
Core |
|
Eliminations (2) |
|
Corporate |
|
Segment Measure Reclass |
|
Total |
|
Gross premiums written |
$ |
1,023.4 |
|
|
$ |
1,390.5 |
|
|
$ |
2,413.9 |
|
|
$ |
— |
|
|
$ |
71.2 |
|
|
$ |
— |
|
|
$ |
2,485.1 |
|
|
Net premiums written |
|
867.2 |
|
|
|
913.5 |
|
|
|
1,780.7 |
|
|
|
— |
|
|
|
6.4 |
|
|
|
— |
|
|
|
1,787.1 |
|
|
Net premiums earned |
|
779.2 |
|
|
|
838.3 |
|
|
|
1,617.5 |
|
|
|
— |
|
|
|
135.7 |
|
|
|
— |
|
|
|
1,753.2 |
|
|
Loss and loss adjustment expenses incurred, net |
|
406.0 |
|
|
|
538.8 |
|
|
|
944.8 |
|
|
|
(4.1 |
) |
|
|
58.7 |
|
|
|
— |
|
|
|
999.4 |
|
|
Acquisition costs, net |
|
206.8 |
|
|
|
206.9 |
|
|
|
413.7 |
|
|
|
(93.8 |
) |
|
|
62.4 |
|
|
|
— |
|
|
|
382.3 |
|
|
Other underwriting expenses |
|
59.9 |
|
|
|
55.4 |
|
|
|
115.3 |
|
|
|
— |
|
|
|
12.5 |
|
|
|
— |
|
|
|
127.8 |
|
|
Underwriting income |
|
106.5 |
|
|
|
37.2 |
|
|
|
143.7 |
|
|
|
97.9 |
|
|
|
2.1 |
|
|
|
— |
|
|
|
243.7 |
|
|
Services revenues |
|
— |
|
|
|
171.3 |
|
|
|
171.3 |
|
|
|
(101.4 |
) |
|
|
— |
|
|
|
(69.9 |
) |
|
|
— |
|
|
Services expenses |
|
— |
|
|
|
135.0 |
|
|
|
135.0 |
|
|
|
— |
|
|
|
— |
|
|
|
(135.0 |
) |
|
|
— |
|
|
Net services fee income |
|
— |
|
|
|
36.3 |
|
|
|
36.3 |
|
|
|
(101.4 |
) |
|
|
— |
|
|
|
65.1 |
|
|
|
— |
|
|
Services noncontrolling income |
|
— |
|
|
|
(2.1 |
) |
|
|
(2.1 |
) |
|
|
— |
|
|
|
— |
|
|
|
2.1 |
|
|
|
— |
|
|
Net services income |
|
— |
|
|
|
34.2 |
|
|
|
34.2 |
|
|
|
(101.4 |
) |
|
|
— |
|
|
|
67.2 |
|
|
|
— |
|
|
Segment income |
|
106.5 |
|
|
|
71.4 |
|
|
|
177.9 |
|
|
|
(3.5 |
) |
|
|
2.1 |
|
|
|
67.2 |
|
|
|
243.7 |
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
234.7 |
|
|
|
— |
|
|
|
234.7 |
|
|
Net realized and unrealized investment losses |
|
|
(48.0 |
) |
|
|
— |
|
|
|
(48.0 |
) |
|
Net realized and unrealized investment gains from related party
investment funds |
|
|
8.9 |
|
|
|
— |
|
|
|
8.9 |
|
|
Other revenues |
|
|
|
|
|
|
|
|
|
94.9 |
|
|
|
69.9 |
|
|
|
164.8 |
|
|
Loss on settlement and change in fair value of liability-classified
capital instruments |
|
|
(122.6 |
) |
|
|
— |
|
|
|
(122.6 |
) |
|
Net corporate and other expenses |
|
|
|
|
|
|
|
|
|
(39.0 |
) |
|
|
(135.0 |
) |
|
|
(174.0 |
) |
|
Intangible asset amortization |
|
|
|
|
|
|
|
|
|
(8.9 |
) |
|
|
— |
|
|
|
(8.9 |
) |
|
Interest expense |
|
|
|
|
|
|
|
|
|
(50.0 |
) |
|
|
— |
|
|
|
(50.0 |
) |
|
Foreign exchange losses |
|
|
|
|
|
|
|
|
|
(2.9 |
) |
|
|
— |
|
|
|
(2.9 |
) |
|
Income before income tax expense |
$ |
106.5 |
|
|
$ |
71.4 |
|
|
|
177.9 |
|
|
|
(3.5 |
) |
|
|
69.2 |
|
|
|
2.1 |
|
|
|
245.7 |
|
|
Income tax expense |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(26.3 |
) |
|
|
— |
|
|
|
(26.3 |
) |
|
Net income |
|
|
|
|
|
177.9 |
|
|
|
(3.5 |
) |
|
|
42.9 |
|
|
|
2.1 |
|
|
|
219.4 |
|
|
Net income attributable to noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
(2.1 |
) |
|
|
(2.2 |
) |
|
Net income available to SiriusPoint |
|
$ |
177.9 |
|
|
$ |
(3.5 |
) |
|
$ |
42.8 |
|
|
$ |
— |
|
|
$ |
217.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Ratios: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss ratio |
|
52.1 |
% |
|
|
64.3 |
% |
|
|
58.4 |
% |
|
|
|
|
|
|
|
|
57.0 |
% |
|
Acquisition cost ratio |
|
26.5 |
% |
|
|
24.7 |
% |
|
|
25.6 |
% |
|
|
|
|
|
|
|
|
21.8 |
% |
|
Other underwriting expenses ratio |
|
7.7 |
% |
|
|
6.6 |
% |
|
|
7.1 |
% |
|
|
|
|
|
|
|
|
7.3 |
% |
|
Combined ratio |
|
86.3 |
% |
|
|
95.6 |
% |
|
|
91.1 |
% |
|
|
|
|
|
|
|
|
86.1 |
% |
|
(1) |
Underwriting ratios are calculated by dividing the related expense
by net premiums earned. |
|
(2) |
Insurance & Services MGAs recognize fees for service using
revenue from contracts with customers accounting standards, whereas
insurance companies recognize acquisition expenses using insurance
contract accounting standards. While ultimate revenues and expenses
recognized will match, there will be recognition timing differences
based on the different accounting standards. |
|
|
|
|
|
Nine months ended September 30, 2023 |
|
|
Reinsurance |
|
Insurance & Services |
|
Core |
|
Eliminations (2) |
|
Corporate |
|
Segment Measure Reclass |
|
Total |
|
Gross premiums written |
$ |
1,019.3 |
|
|
$ |
1,571.6 |
|
|
$ |
2,590.9 |
|
|
$ |
— |
|
|
$ |
120.9 |
|
|
$ |
— |
|
|
$ |
2,711.8 |
|
|
Net premiums written |
|
866.1 |
|
|
|
1,019.4 |
|
|
|
1,885.5 |
|
|
|
— |
|
|
|
97.8 |
|
|
|
— |
|
|
|
1,983.3 |
|
|
Net premiums earned |
|
788.2 |
|
|
|
934.0 |
|
|
|
1,722.2 |
|
|
|
— |
|
|
|
126.0 |
|
|
|
— |
|
|
|
1,848.2 |
|
|
Loss and loss adjustment expenses incurred, net |
|
368.5 |
|
|
|
608.8 |
|
|
|
977.3 |
|
|
|
(4.0 |
) |
|
|
42.6 |
|
|
|
— |
|
|
|
1,015.9 |
|
|
Acquisition costs, net |
|
186.7 |
|
|
|
228.7 |
|
|
|
415.4 |
|
|
|
(105.6 |
) |
|
|
51.2 |
|
|
|
— |
|
|
|
361.0 |
|
|
Other underwriting expenses |
|
54.6 |
|
|
|
61.7 |
|
|
|
116.3 |
|
|
|
— |
|
|
|
15.8 |
|
|
|
— |
|
|
|
132.1 |
|
|
Underwriting income |
|
178.4 |
|
|
|
34.8 |
|
|
|
213.2 |
|
|
|
109.6 |
|
|
|
16.4 |
|
|
|
— |
|
|
|
339.2 |
|
|
Services revenues |
|
(2.8 |
) |
|
|
184.6 |
|
|
|
181.8 |
|
|
|
(109.6 |
) |
|
|
— |
|
|
|
(72.2 |
) |
|
|
— |
|
|
Services expenses |
|
— |
|
|
|
144.2 |
|
|
|
144.2 |
|
|
|
— |
|
|
|
— |
|
|
|
(144.2 |
) |
|
|
— |
|
|
Net services fee income (loss) |
|
(2.8 |
) |
|
|
40.4 |
|
|
|
37.6 |
|
|
|
(109.6 |
) |
|
|
— |
|
|
|
72.0 |
|
|
|
— |
|
|
Services noncontrolling income |
|
— |
|
|
|
(5.7 |
) |
|
|
(5.7 |
) |
|
|
— |
|
|
|
— |
|
|
|
5.7 |
|
|
|
— |
|
|
Net services income (loss) |
|
(2.8 |
) |
|
|
34.7 |
|
|
|
31.9 |
|
|
|
(109.6 |
) |
|
|
— |
|
|
|
77.7 |
|
|
|
— |
|
|
Segment income |
|
175.6 |
|
|
|
69.5 |
|
|
|
245.1 |
|
|
|
— |
|
|
|
16.4 |
|
|
|
77.7 |
|
|
|
339.2 |
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
205.3 |
|
|
|
— |
|
|
|
205.3 |
|
|
Net realized and unrealized investment gains |
|
|
2.4 |
|
|
|
— |
|
|
|
2.4 |
|
|
Other revenues |
|
|
|
|
|
|
|
|
|
7.8 |
|
|
|
72.2 |
|
|
|
80.0 |
|
|
Loss on settlement and change in fair value of liability-classified
capital instruments |
|
|
(44.4 |
) |
|
|
— |
|
|
|
(44.4 |
) |
|
Net corporate and other expenses |
|
|
|
|
|
|
|
|
|
(49.5 |
) |
|
|
(144.2 |
) |
|
|
(193.7 |
) |
|
Intangible asset amortization |
|
|
|
|
|
|
|
|
|
(8.2 |
) |
|
|
— |
|
|
|
(8.2 |
) |
|
Interest expense |
|
|
|
|
|
|
|
|
|
(44.3 |
) |
|
|
— |
|
|
|
(44.3 |
) |
|
Foreign exchange losses |
|
|
|
|
|
|
|
|
|
(15.7 |
) |
|
|
— |
|
|
|
(15.7 |
) |
|
Income before income tax expense |
$ |
175.6 |
|
|
$ |
69.5 |
|
|
|
245.1 |
|
|
|
— |
|
|
|
69.8 |
|
|
|
5.7 |
|
|
|
320.6 |
|
|
Income tax expense |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(56.6 |
) |
|
|
— |
|
|
|
(56.6 |
) |
|
Net income |
|
|
|
|
|
245.1 |
|
|
|
— |
|
|
|
13.2 |
|
|
|
5.7 |
|
|
|
264.0 |
|
|
Net income attributable to noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
(1.0 |
) |
|
|
(5.7 |
) |
|
|
(6.7 |
) |
|
Net income available to SiriusPoint |
|
$ |
245.1 |
|
|
$ |
— |
|
|
$ |
12.2 |
|
|
$ |
— |
|
|
$ |
257.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Ratios: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss ratio |
|
46.8 |
% |
|
|
65.2 |
% |
|
|
56.7 |
% |
|
|
|
|
|
|
|
|
55.0 |
% |
|
Acquisition cost ratio |
|
23.7 |
% |
|
|
24.5 |
% |
|
|
24.1 |
% |
|
|
|
|
|
|
|
|
19.5 |
% |
|
Other underwriting expenses ratio |
|
6.9 |
% |
|
|
6.6 |
% |
|
|
6.8 |
% |
|
|
|
|
|
|
|
|
7.1 |
% |
|
Combined ratio |
|
77.4 |
% |
|
|
96.3 |
% |
|
|
87.6 |
% |
|
|
|
|
|
|
|
|
81.6 |
% |
|
(1) |
Underwriting ratios are calculated by dividing the related expense
by net premiums earned. |
|
(2) |
Insurance & Services MGAs recognize fees for service using
revenue from contracts with customers accounting standards, whereas
insurance companies recognize acquisition expenses using insurance
contract accounting standards. While ultimate revenues and expenses
recognized will match, there will be recognition timing differences
based on the different accounting standards. |
|
|
|
|
SIRIUSPOINT LTD. NON-GAAP FINANCIAL
MEASURES AND RECONCILIATIONS & OTHER FINANCIAL
MEASURES |
| |
|
Non-GAAP Financial Measures
Core Results
Collectively, the sum of the Company's two
segments, Reinsurance and Insurance & Services, constitute
"Core" results. Core underwriting income, Core net services income,
Core income and Core combined ratio are non-GAAP financial
measures. We believe it is useful to review Core results as it
better reflects how management views the business and reflects our
decision to exit the runoff business. The sum of Core results and
Corporate results are equal to the consolidated results of
operations.
Core underwriting income - calculated by
subtracting loss and loss adjustment expenses incurred, net,
acquisition costs, net, and other underwriting expenses from net
premiums earned.
Core net services income - consists of services
revenues which include commissions, brokerage and fee income
related to consolidated MGAs, and other revenues, and services
expenses which include direct expenses related to consolidated
MGAs, services noncontrolling income which represent minority
ownership interests in consolidated MGAs. Net services income is a
key indicator of the profitability of the Company's services
provided.
Core income - consists of two components, core
underwriting income and core net services income. Core income is a
key measure of our segment performance.
Core combined ratio - calculated by dividing the
sum of Core loss and loss adjustment expenses incurred, net,
acquisition costs, net and other underwriting expenses by Core net
premiums earned. Accident year loss ratio and accident year
combined ratio are calculated by excluding prior year loss reserve
development to present the impact of current accident year net loss
and loss adjustment expenses on the Core loss ratio and Core
combined ratio, respectively. Attritional loss ratio excludes
catastrophe losses from the accident year loss ratio as they are
not predictable as to timing and amount. These ratios are useful
indicators of our underwriting profitability.
Tangible Book Value Per Diluted Common
Share
Tangible book value per diluted common share, as
presented, is a non-GAAP financial measure and the most directly
comparable U.S. GAAP measure is book value per common share.
Tangible book value per diluted common share excludes intangible
assets. Management believes that effects of intangible assets are
not indicative of underlying underwriting results or trends and
make book value comparisons to less acquisitive peer companies less
meaningful. Tangible book value per diluted common share is useful
because it provides a more accurate measure of the realizable value
of shareholder returns, excluding intangible assets.
The following table sets forth the computation
of book value per common share, book value per diluted common share
and tangible book value per diluted common share as of September
30, 2024 and December 31, 2023:
| |
|
|
|
| |
September 30,2024 |
|
December 31,2023 |
| |
($ in
millions, except share and per share amounts) |
|
Common shareholders’ equity attributable to SiriusPoint common
shareholders |
$ |
2,494.9 |
|
|
$ |
2,313.9 |
|
| Intangible
assets |
|
(143.8 |
) |
|
|
(152.7 |
) |
| Tangible
common shareholders' equity attributable to SiriusPoint common
shareholders |
$ |
2,351.1 |
|
|
$ |
2,161.2 |
|
| |
|
|
|
| Common
shares outstanding |
|
161,866,867 |
|
|
|
168,120,022 |
|
| Effect of
dilutive stock options, restricted share units and warrants |
|
7,547,229 |
|
|
|
5,193,920 |
|
| Book value
per diluted common share denominator |
|
169,414,096 |
|
|
|
173,313,942 |
|
| |
|
|
|
| Book
value per common share |
$ |
15.41 |
|
|
$ |
13.76 |
|
| Book
value per diluted common share |
$ |
14.73 |
|
|
$ |
13.35 |
|
|
Tangible book value per diluted common share |
$ |
13.88 |
|
|
$ |
12.47 |
|
| |
|
|
|
|
|
|
|
Other Financial Measures
Annualized Return on Average Common
Shareholders’ Equity Attributable to SiriusPoint Common
Shareholders
Annualized return on average common
shareholders’ equity attributable to SiriusPoint common
shareholders is calculated by dividing annualized net income
available to SiriusPoint common shareholders for the period by the
average common shareholders’ equity determined using the common
shareholders’ equity balances at the beginning and end of the
period.
Annualized return on average common
shareholders’ equity attributable to SiriusPoint common
shareholders for the three and nine months ended September 30, 2024
and 2023 was calculated as follows:
| |
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
|
|
($ in millions) |
|
Net income available to SiriusPoint common shareholders |
$ |
4.5 |
|
|
$ |
57.5 |
|
|
$ |
205.2 |
|
|
$ |
245.3 |
|
|
Common shareholders’ equity attributable to SiriusPoint common
shareholders - beginning of period |
|
2,504.1 |
|
|
|
2,036.0 |
|
|
|
2,313.9 |
|
|
|
1,874.7 |
|
|
Common shareholders’ equity attributable to SiriusPoint common
shareholders - end of period |
|
2,494.9 |
|
|
|
2,050.0 |
|
|
|
2,494.9 |
|
|
|
2,050.0 |
|
|
Average common shareholders’ equity attributable to SiriusPoint
common shareholders |
$ |
2,499.5 |
|
|
$ |
2,043.0 |
|
|
$ |
2,404.4 |
|
|
$ |
1,962.4 |
|
|
Annualized return on average common shareholders’ equity
attributable to SiriusPoint common shareholders |
|
0.7 |
% |
|
|
11.3 |
% |
|
|
11.4 |
% |
|
|
16.7 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SiriusPoint (NYSE:SPNT)
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From Nov 2024 to Dec 2024
SiriusPoint (NYSE:SPNT)
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From Dec 2023 to Dec 2024
