SiriusPoint marks turnaround in Q1 financial results

SiriusPoint marks turnaround in Q1 financial results | Insurance Business America

Insurance News

SiriusPoint marks turnaround in Q1 financial results

Positive net income the first since Q2 of 2021

Insurance News

By
Terry Gangcuangco

Global specialty insurer and reinsurer SiriusPoint has turned things around, reporting a profitable first quarter after being in the red in the same period in 2022.

Here’s how SiriusPoint performed in the three months ended March 31:

Metric

Q1 2023

Q1 2022

Gross written premium

$1.1 billion

$1 billion

Underwriting income

$156.5 million

$33.5 million

Net investment income

$61.5 million

$7.8 million

Total revenues

$684.9 million

$361.4 million

Net income/(loss) available to SiriusPoint common shareholders

$138.6 million

$(217 million)

Of the group’s total underwriting income, $79.7 million came from the reinsurance segment; $27.7 million from insurance & services. SiriusPoint attributed the improvement in net underwriting results to improved favorable prior year loss reserve development of $105.4 million for Q1 2023 compared to last year’s $5.5 million.

“We are pleased with the first quarter results,” chief executive Scott Egan said in SiriusPoint’s earnings release. “We have delivered positive capital generation across all business areas with our underwriting business delivering a core combined ratio of 80.5%. This quarter delivers the first positive net income since Q2 ’21, while our book value per diluted common share has increased by 9% during the quarter.

“We have a strong balance sheet made stronger following the loss portfolio transfer (LPT) of $1.3 billion we previously announced. The LPT transaction will align our balance sheet with our go forward strategy. We expect capital benefits in excess of $150 million at the closing and have released $102 million of reserves linked to the LPT. We expect the transaction to close in June subject to regulatory approval and other closing conditions.”

Egan added that SiriusPoint has been working “incredibly hard” to improve the business.

“We continue to make progress in creating ‘One SiriusPoint’,” he declared. “Our efforts are getting noticed. In late March, Fitch revised its outlook from negative to stable and reaffirmed its ratings, and, recently AM Best has reaffirmed our stable ratings and outlook. We still have much to do and are excited about the opportunities ahead.”

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