SiriusPoint discloses first quarter financial results

SiriusPoint discloses first quarter financial results | Insurance Business Canada

Reinsurance

SiriusPoint discloses first quarter financial results

Firm reports sixth consecutive profitable period

Reinsurance

By
Kenneth Araullo

SiriusPoint has disclosed its financial results for the first quarter ended March 31, 2024, revealing shifts in core premium volumes and core results.

In the first quarter, SiriusPoint experienced a decrease in gross premiums written by $179.5 million, or 16.9%, totaling $880.7 million, down from $1,060.2 million in the comparable period of 2023. Net premiums earned also fell by $32.9 million, or 6.0%, to $517.8 million.

These reductions were primarily due to the reclassification of certain lines from insurance & services to corporate, notably the non-renewal of a workers’ compensation program and the transition of a cyber program to another carrier, which previously contributed $116.8 million in gross premiums.

Core results for the quarter reflected income of $62.4 million, a decrease from $124.1 million in the first quarter of 2023. This included $44.3 million from underwriting (91.4% combined ratio) and $18.1 million from net services income.

The previous year’s corresponding figures were $107.4 million from underwriting (80.5% combined ratio) and $16.7 million from net services. The dip in net underwriting results was largely attributed to reduced favorable prior year loss reserve development.

The reinsurance segment reported $39.9 million in underwriting income for the quarter, marking an 84.2% combined ratio, compared to $79.7 million and a 69.3% combined ratio in the prior year. The decrease was due mainly to less favorable prior year loss reserve development.

In the insurance & services segment, income totaled $22.5 million, consisting of $4.4 million from underwriting (98.4% combined ratio) and $18.1 million from net services. This represents a decrease from the previous year’s $44.2 million, which included $27.7 million from underwriting (90.4% combined ratio) and $16.5 million from net services. The decline in underwriting results was driven by adverse prior year loss reserve development of $2.3 million.

Gross premiums written in the Insurance & Services segment dropped to $524.3 million, a 21.0% decrease, influenced by the reclassification of business lines and lower A&H premiums, albeit partially offset by growth from strategic partnerships.

Scott Egan, chief executive officer, commented on the company’s performance for the first quarter of the year.

“Overall, we are seeing good progress as we continue to execute strongly against our strategic priorities,” he said. Our first quarter performance is on track to meet our improved ROE guidance of 12%-15%. Our focus is to maintain this momentum and continue to improve our performance throughout the year.”

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