SiriusPoint posts Q4 2023 results

SiriusPoint posts Q4 2023 results | Insurance Business New Zealand

Reinsurance

SiriusPoint posts Q4 2023 results

How did the global re/insurer fare across its lines of businesses?

Reinsurance

By
Kenneth Araullo

Global re/insurer SiriusPoint has announced its financial results for the fourth quarter ending December 31, 2023.

In the reinsurance segment, SiriusPoint reported an underwriting income of $27.8 million for the fourth quarter of 2023, achieving an 88.6% combined ratio, an improvement over the previous year due to favorable prior year loss reserve development.

However, reinsurance gross premiums written during the quarter decreased by 16.2%, primarily due to lower premiums in international property lines as part of the company’s restructuring plan.

For the year, the reinsurance segment generated $206.2 million in underwriting income, marking a significant improvement from the previous year’s loss. This was attributed to higher favorable prior year loss reserve development and lower catastrophe losses.

Nonetheless, reinsurance gross premiums written for the year fell by 16.5%, again reflecting the strategic adjustments within the company’s international reinsurance operations.

SiriusPoint results in insurance segments

The firm highlighted a year of significant achievements including record underwriting profits, net services fee income, and net income, alongside an 18% increase in book value per share. The company also announced the completion of its cost program a year ahead of schedule and the surpassing of its 2023 guidance on net investment income.

For 2023, SiriusPoint achieved a record return on equity (ROE) of 16.2%, exceeding its initial guidance of reaching double-digit ROE by 2024. The company has set a medium-term goal to maintain ROE between 12-15%.

The improvements in the balance sheet were attributed to organic capital generation and strategic actions that led to an increased capital surplus, reduced debt, and asset leverage, while maintaining a conservative reserve position.

In the fourth quarter of 2023, SiriusPoint reported a net income of $94 million, or $0.50 per diluted common share, and a core income of $46 million with underwriting income contributing $37 million. The core combined ratio stood at 93.4%, and the company recorded a net investment income of $78 million.

Additionally, the book value per diluted common share saw a 10.2% increase from the third quarter of 2023, reaching $13.35 per share, partly due to a one-time deferred tax benefit of $101 million resulting from the enactment of Bermuda’s corporate income tax.

Over the entire year, SiriusPoint’s net income available to common shareholders was $339 million, or $1.85 per diluted common share, with a consolidated combined ratio of 84.5% and underwriting income of $376 million. The core net services fee income rose by 36.9% from the previous year, reaching $50 million.

The total investment result for the year was $273 million, and the book value per diluted common share increased by 17.9% to $13.35. The company’s debt to capital ratio improved to 23.8%, down from 27.3% at the end of 2022.

“Our improvement in profitability reflects the significant rebalancing and enhancements we have made across all areas of our business. In 2024, we look to further improve and deliver as we continue to build on last year’s strong foundation,” CEO Scott Egan said.

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