SiriusPoint reports seventh consecutive quarter of underwriting
profits and strong net income at $109.9m
HAMILTON, Bermuda, Aug. 01, 2024 (GLOBE
NEWSWIRE) -- SiriusPoint Ltd. (“SiriusPoint” or the “Company”)
(NYSE:SPNT) today announced results for its second quarter ended
June 30, 2024
- Half year core combined ratio of
92.5%, or 92.8% ex. LPT, representing a 1.0 point improvement
versus prior year
- Strong growth in the quarter of 22%
on gross written premiums for continuing lines business (excluding
2023 exited programs), contributing to 6% growth for the half
year
- Half year core underwriting income
of $81 million, or $78 million ex. LPT, up 11% on prior
year
- Balance sheet further strengthened
with Q2’24 BSCR estimate at 284%
- Headline annualized ROE of 16.7% at
half year, with underlying ROE adjusted for MGA actions of 13.0%,
tracking within 12-15% medium-term guidance range
- $125 million share repurchase (9.1
million shares) from CMIG in conjunction with full settlement of
Series A Preference shares in cash
- Board share repurchase
authorization increased to a total of $306 million
Scott Egan, Chief Executive Officer, said: “We
have continued to execute on our ambition to deliver consistent and
stable earnings that create long-term shareholder value. We had
another strong quarter, our seventh consecutive quarter of positive
underwriting income. We report a Combined ratio for the Core
operations of 92.5% for the half year, or 92.8% excluding the loss
portfolio transfer, which is a 1.0 point improvement over the prior
year period on a like-for-like basis. We are growing our continuing
lines premium in our target areas of North America programs,
International and Specialty. Q2 was strong in this regard with
growth in gross premiums of 22% for continuing lines business. We
have increased our full year 2024 net investment income guidance to
$275 million to $285 million up from $250 million to $265 million.
Net service fee income from our Consolidated MGAs increased by 6.5%
with an improved service margin of 23.9% for the half year. Net
income increased to over $200 million for the half year.
We continue to rationalize our MGA equity stakes
and realize the significant off-balance sheet value of our
Consolidated MGAs. Our total equity stakes in MGAs is down to 22
compared to 36 at the start of 2023. We have also added 11 new
distribution partnerships since the start of 2024 providing further
evidence of our intent to grow through distribution partnerships in
our targeted areas.
We remain focused on improving our performance,
delivering an underlying ROE adjusted for MGA actions of 13.0%
within our 12-15% guidance range and growing book value over the
medium term. We will continue to drive improvement in 2024 and
beyond as we move closer towards our best-in-class ambitions.
Bolstered by another quarter of strong
underwriting results and the completion of our previously announced
debt actions, our balance sheet is the strongest it has ever been.
Q2'24 BSCR estimate is 284%. This enabled us to reach an agreement
for the cash settlement of the Series A Preference shares, purchase
and retire $125 million in common stock from CMIG and announce a
share buyback authorization increase to $306 million. These
actions attest to our belief in the compelling value of our shares
and capital position, which is enhanced by strong performance and
relentless execution.”
Second Quarter
2024 Highlights
- Net income available to SiriusPoint
common shareholders of $109.9 million, or $0.57 per diluted common
share
- Core income of $46.0 million,
including underwriting income of $36.9 million, Core combined ratio
of 93.3%
- Core net services fee income of
$9.7 million, with service margin of 16.9%
- Net investment income of $78.2
million and total investment result of $23.3 million
- Book value per diluted common share
increased $0.67 per share, or 4.9%, from March 31, 2024 to
$14.31
- Return on average common equity of
17.9%
- Debt to capital ratio down to 19.3%
compared to 22.8% as of March 31, 2024.
Half Year 2024
Highlights
- Net income available to SiriusPoint
common shareholders of $200.7 million, or $1.05 per diluted common
share
- Core income of $108.4 million,
including underwriting income of $81.2 million, Core combined ratio
of 92.5%
- Core net services fee income of
$29.5 million, with service margin of 23.9%
- Net investment income of $157.0
million and total investment result of $103.1 million
- Book value per diluted common share
increased $0.96 per share, or 7.2%, from December 31, 2023 to
$14.31
- Return on average common equity of
16.7%
- Debt to capital ratio down to 19.3%
compared to 23.8% as of December 31, 2023.
Key Financial Metrics
The following table shows certain key financial
metrics for the three and six months ended June 30, 2024 and
2023:
|
|
Three months ended |
|
Six months ended |
|
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
|
|
($ in millions, except for per share data and
ratios) |
|
Combined ratio |
|
89.0 |
% |
|
|
83.0 |
% |
|
|
87.0 |
% |
|
|
78.4 |
% |
|
Core underwriting income (1) |
$ |
36.9 |
|
|
$ |
63.3 |
|
|
$ |
81.2 |
|
|
$ |
170.7 |
|
|
Core net services income (1) |
$ |
9.1 |
|
|
$ |
7.7 |
|
|
$ |
27.2 |
|
|
$ |
24.4 |
|
|
Core income (1) |
$ |
46.0 |
|
|
$ |
71.0 |
|
|
$ |
108.4 |
|
|
$ |
195.1 |
|
|
Core combined ratio (1) |
|
93.3 |
% |
|
|
89.4 |
% |
|
|
92.5 |
% |
|
|
85.1 |
% |
|
Annualized return on average common shareholders’ equity
attributable to SiriusPoint common shareholders |
|
17.9 |
% |
|
|
11.0 |
% |
|
|
16.7 |
% |
|
|
19.2 |
% |
|
Book value per common share (2) |
$ |
14.68 |
|
|
$ |
13.76 |
|
|
$ |
14.68 |
|
|
$ |
13.76 |
|
|
Book value per diluted common share (2) |
$ |
14.31 |
|
|
$ |
13.35 |
|
|
$ |
14.31 |
|
|
$ |
13.35 |
|
|
Tangible book value per diluted common share (1) (2) |
$ |
13.47 |
|
|
$ |
12.47 |
|
|
$ |
13.47 |
|
|
$ |
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. |
|
|
|
Second Quarter 2024 Summary
Consolidated underwriting income for the three
months ended June 30, 2024 was $65.1 million compared to $108.9
million for the three months ended June 30, 2023. The decrease was
driven by lower favorable prior year loss reserve development.
Favorable prior year loss reserve development for the three months
ended June 30, 2023 included $16.6 million driven by reserving
analyses performed in connection with the 2023 LPT. Excluding the
favorable development linked to the 2023 LPT, net underwriting
income decreased by $29.3 million for the three months ended
June 30, 2024 compared to the three months ended June 30, 2023.
This decrease is consistent with our change in business mix,
decreasing exposure to more volatile lines of business and growing
A&H and International Insurance within the Insurance &
Services segment.
Consolidated underwriting income for the six
months ended June 30, 2024 was $154.7 million compared to $265.4
million for the six months ended June 30, 2023. The decrease was
driven by lower favorable prior year loss reserve development.
Favorable prior year loss reserve development for the six months
ended June 30, 2023 included $118.2 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 $4.6 million primarily driven
by lower other underwriting expenses resulting from our cost
savings program, partially offset by higher acquisition costs
driven by 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 June 30, 2024 and 2023
Gross premiums written increased by
$37.5 million, or 4.7%, to $842.7 million for the three
months ended June 30, 2024 compared to $805.2 million for the
three months ended June 30, 2023. Net premiums earned decreased by
$42.8 million, or 7.2%, to $553.4 million for the three
months ended June 30, 2024 compared to $596.2 million for the
three months ended June 30, 2023. The increases in premiums written
were primarily driven by increases from Insurance & Services
from strategic organic and new program growth, as well as increases
across A&H. These increases were partially offset 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, which also was the main driver of the decrease in premiums
earned.
Six months ended June 30, 2024 and 2023
Gross premiums written decreased by $142.0
million, or 7.6%, to $1,723.4 million for the six months ended June
30, 2024 compared to $1,865.4 million for the six months ended June
30, 2023. Net premiums earned decreased by $75.7 million, or 6.6%,
to $1,071.2 million for the six months ended June 30, 2024 compared
to $1,146.9 million for the six months ended June 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.
Core Results
Three months ended June 30, 2024 and 2023
Core results for the three months ended June 30,
2024 included income of $46.0 million compared to $71.0 million for
the three months ended June 30, 2023. Income for the three months
ended June 30, 2024 consists of underwriting income of $36.9
million (93.3% combined ratio) and net services income of $9.1
million, compared to underwriting income of $63.3 million (89.4%
combined ratio) and net services income of $7.7 million for the
three months ended June 30, 2023. The decrease in net underwriting
results was primarily driven by decreased favorable prior year loss
reserve development.
Losses incurred included $4.9 million of
favorable prior year loss reserve development for the three months
ended June 30, 2024 primarily driven by favorable development
within North America A&H, compared to $25.2 million for
the three months ended June 30, 2023 driven by reserving analyses
performed in connection with the 2023 LPT.
Excluding the favorable development linked to
the 2023 LPT, net underwriting income decreased by
$17.7 million for the three months ended June 30, 2024
compared to the three months ended June 30, 2023. This decrease was
driven by higher acquisition costs driven by business mix changes
to decrease our exposure to more volatile lines of business, as
well as $5.6 million catastrophe losses for the three months
ended June 30, 2024 compared to no significant catastrophe losses
the three months ended June 30, 2023, partially offset by lower
attritional losses.
Six months ended June 30, 2024 and 2023
Core results for the three months ended June 30,
2024 included income of $108.4 million compared to
$195.1 million for the three months ended June 30, 2023.
Income for the three months ended June 30, 2024 consists of
underwriting income of $81.2 million (92.5% combined ratio)
and net services income of $27.2 million, compared to
underwriting income of $170.7 million (85.1% combined ratio)
and net services income of $24.4 million for the three months
ended June 30, 2023. The decrease in net underwriting results was
primarily driven by decreased favorable prior year loss reserve
development.
Losses incurred included $12.9 million of
favorable loss reserve development for the six months ended June
30, 2024 driven by decreased ultimate losses in the Credit
Reinsurance portfolio and North America A&H, partially offset
by increases in the Environmental business, compared to $117.1
million of favorable loss reserve development for the six months
ended June 30, 2023 driven by decreases in the domestic and
international property and casualty lines of business in the
Reinsurance segment and A&H in the Insurance & Services
segment linked to the 2023 LPT.
Excluding the favorable development linked to
the 2023 LPT, net underwriting income increased by $7.7 million
primarily driven by lower other underwriting expenses resulting
from our cost savings program and lower attritional losses,
partially offset by higher acquisition costs from business mix
changes, including the growth of Insurance & Services.
Reinsurance Segment
Three months ended June 30, 2024 and 2023
Reinsurance gross premiums written were
$352.5 million for the three months ended June 30, 2024, a
decrease of $5.2 million, or 1.5%, compared to the three months
ended June 30, 2023, primarily driven by lower premiums written in
New York Casualty, partially offset by increases in Bermuda
Property.
Reinsurance generated underwriting income of
$25.0 million (90.2% combined ratio) for the three months
ended June 30, 2024, compared to underwriting income of
$61.8 million (77.3% combined ratio) for the three months
ended June 30, 2023. The decrease in net underwriting results was
primarily due to decreased favorable prior year loss reserve
development, as well as higher acquisition costs driven by business
mix changes. Net favorable prior year loss reserve development for
the three months ended June 30, 2024 was $6.3 million
primarily driven by favorable development on a structured auto
contract and Aviation, compared to $25.9 million for the three
months ended June 30, 2023, which was driven by reserving analyses
performed in connection with the 2023 LPT.
Catastrophe losses, net of reinsurance and
reinstatement premiums, for the three months ended June 30, 2024,
were $3.0 million or 1.2 percentage points on the combined ratio,
compared to no significant catastrophe losses, net of reinsurance
and reinstatement premiums, for the three months ended June 30,
2023.
Six months ended June 30, 2024 and 2023
Reinsurance gross premiums written were $708.9
million for the six months ended June 30, 2024, a decrease of
$45.0 million, or 6.0%, compared to the six months ended June
30, 2023, primarily driven by lower premiums written in New York
Casualty and Bermuda Specialty, partially offset by increases in
London Specialty.
Reinsurance generated underwriting income of
$64.9 million (87.2% combined ratio) for the three months ended
June 30, 2024, compared to underwriting income of $141.5 million
(73.4% combined ratio) for the three months ended June 30, 2023.
The decrease in net underwriting results was primarily due to
decreased favorable prior year loss reserve development. Net
favorable prior year loss reserve development was $16.6 million for
the six months ended June 30, 2024 primarily driven by decreased
ultimate losses in the Credit Reinsurance portfolio, compared to
net favorable prior year loss reserve development of $100.5 million
for the six months ended June 30, 2023 primarily driven by
decreases in the domestic and international Property and Casualty
lines of business linked to the 2023 LPT.
Catastrophe losses, net of reinsurance and
reinstatement premiums, for the six months ended June 30, 2024,
were $3.0 million or 0.6 percentage points on the combined ratio,
compared to $6.0 million or 1.1 percentage points on the combined
ratio, for the six months ended June 30, 2023.
Insurance & Services Segment
Three months ended June 30, 2024 and 2023
Insurance & Services gross premiums written
were $490.2 million for the three months ended June 30, 2024, an
increase of $42.7 million, or 9.5%, compared to the three months
ended June 30, 2023, primarily driven by strategic organic and new
program growth, as well as increases across A&H, partially
offset 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 $117.0 million of gross
premiums written for the three months ended June 30, 2023.
Insurance & Services generated segment
income of $21.0 million for the three months ended June 30,
2024, compared to income of $12.0 million for the three months
ended June 30, 2023. Segment income for the three months ended June
30, 2024 consists of underwriting income of $11.9 million
(96.0% combined ratio) and net services income of
$9.1 million, compared to underwriting income of
$1.5 million (99.6% combined ratio) and net services income of
$10.5 million for the three months ended June 30, 2023. The
improvement in underwriting results was primarily driven by
increased profitability in North America A&H and growth in the
Arcadian business.
Six months ended June 30, 2024 and 2023
Insurance & Services gross premiums written
decreased by $97.0 million, or 8.7%, for the six months ended June
30, 2024 compared to the six months ended June 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 $233.8 million of gross
premiums written for the six months ended June 30, 2023, as well as
lower A&H premiums, partially offset by strategic organic and
new program growth.
Insurance & Services generated segment
income of $43.5 million for the six months ended June 30, 2024,
compared to income of $56.2 million for the six months ended June
30, 2023. Segment income for the six months ended June 30, 2024
consists of underwriting income of $16.3 million (97.1% combined
ratio) and net services income of $27.2 million, compared to
underwriting income of $29.2 million (95.3% combined ratio) and net
services income of $27.0 million for the six months ended June 30,
2023. The decrease in underwriting income of $12.9 million for the
six months ended June 30, 2024 compared to the six months ended
June 30, 2023 was primarily driven by net adverse prior year loss
reserve development of $3.7 million for the six months ended
June 30, 2024, compared to net favorable prior year loss reserve
development of $16.6 million for the six months ended June 30,
2023, which was driven by reserving analyses performed in
connection with the 2023 LPT.
Corporate
Three months ended June 30, 2024 and 2023
Corporate results include all runoff business,
which represents certain classes of business that we no longer
actively underwrite, including the effect of the including the
effect of the restructuring of the underwriting platform announced
in 2022 and certain reinsurance contracts that have interest
crediting features. Corporate results also include asbestos and
environmental and other latent liability exposures on a gross
basis, which have mostly been ceded, as well as specific workers’
compensation and cyber programs which we no longer write. The
decrease in underwriting income is primarily driven by a decrease
in favorable prior year loss reserve development for the three
months ended June 30, 2024 compared to the three months ended June
30, 2023, which was associated with the 2023 LPT.
Six months ended June 30, 2024 and 2023
The decrease in underwriting income is driven by
a decrease in favorable prior year loss reserve development for the
six months ended June 30, 2024 compared to the six months ended
June 30, 2023, which was associated with the 2023 LPT. For the six
months ended June 30, 2024, the increase in acquisition costs, net
was due to increased commissions on a sliding scale commission
contract that experienced favorable development in the period.
Investments
Three months ended June 30, 2024 and 2023
Total net investment income and realized and
unrealized investment gains for the three months ended June 30,
2024 was primarily attributable to net investment income related to
interest income from our debt and short-term investment portfolio
of $70.1 million, partially offset by unrealized losses on
other long-term investments of $40.6 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 current
insurtech market trends and disposals of positions as the Company
executes its strategy to focus on underwriting relationships with
MGAs.
Total net investment income and realized and
unrealized investment gains for the three months ended June 30,
2023 was primarily attributable to investment results from our debt
and short-term investment portfolio of $64.9 million driven by
dividend and interest income primarily on U.S. treasury bill and
corporate debt positions.
Six months ended June 30, 2024 and 2023
Total net investment income and realized and
unrealized investment gains for the six months ended June 30, 2024
was primarily attributable to net investment income related to
interest income from our debt and short-term investment portfolio
of $147.0 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.
Total net investment income and realized and
unrealized investment gains for the six months ended June 30, 2023
was primarily attributable to net investment income related to
interest income from our debt and short-term investment portfolio
of $137.5 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.
Second Quarter Subsequent
Events
Share Repurchase
Program
SiriusPoint announced today that in July 2024,
the Company’s Board of Directors authorized the Company to
repurchase up to an additional $250.0 million of the Company’s
common shares. Together with amounts remaining available under
previously announced share repurchase authorizations, the Company
is authorized to repurchase up to $306.3 million of the
Company’s common shares in the aggregate. The share repurchase
program does not have an expiration date.
Under the share repurchase program, the Company
may repurchase its common stock from time to time, in amounts, at
prices and at times the Company deems appropriate in its sole
discretion, subject to market conditions and other considerations.
The share repurchases may be effected through a variety of methods,
which may include open market purchases, privately negotiated
transactions, block trades and accelerated share repurchase
programs, including in accordance with Rule 10b5-1 and Rule 10b-18
under the Securities Exchange Act of 1934, or any combination of
such methods.
CM Bermuda Settlement and Share
Repurchase
On August 1, 2024, the Company entered into a
Confidential Settlement and Mutual Release Agreement (the
“Settlement Agreement”), and concurrently therewith, a Share
Repurchase Agreement (the “Share Repurchase Agreement” and,
together with the Settlement Agreement, collectively the
“Agreement”), in each case, with CM Bermuda Limited (the “Seller”)
and CMIG International Holding Pte. Ltd. (“CMIH”).
The Settlement Agreement provides, among other
things, that the Company will pay the Seller for full satisfaction
and discharge of all obligations and all other claims of any nature
related to the Company’s Series A Preference Shares held by the
Seller and the related Certificate of Designation of Series A
Preference Shares of the Company. The Share Repurchase Agreement
provides that the Company will repurchase 9,077,705 of the
Company’s issued and outstanding common shares held by the Seller,
for an aggregate consideration of approximately $125 million,
pursuant to the share repurchase program.
The Company will pay the Seller a total
consideration of approximately $261.0 million upon the closing
of the transactions contemplated by the Agreement, which is
expected to occur in the third quarter of 2024.
Webcast Details
The Company will hold a webcast to discuss its
second quarter 2024 results at 8:30 a.m. Eastern Time on August 2,
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.
second 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. These statements also include, but are not limited to,
statements regarding the transactions contemplated by the
Agreement. 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 including uncertainties with respect to current and future
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 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. Additionally, the transactions contemplated by the
Agreement are subject to risks and uncertainties and factors that
could cause the Company's actual results to differ from those
statements herein including, but not limited to: that the
Company may be unable to complete the proposed transactions
because, among other reasons, conditions to the closing of the
proposed transactions are not be satisfied or waived; the
occurrence of any event, change or other circumstance that could
give rise to the termination of the Agreement; and the outcome of
any legal proceedings to the extent initiated against the
Company or others following the announcement of the proposed
transaction, as well as the Company's response to any of the
aforementioned factors.
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. 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
Sarah Singh, VP, Strategy and Investor Relations
Sarah.singh@siriuspt.com
+1 646 884 4310
Media
Natalie King, Global Head of Marketing and External
Communications
Natalie.king@siriuspt.com
+ 44 20 3772 3102
|
|
SIRIUSPOINT LTD.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of June 30, 2024
and December 31, 2023
(expressed in millions of U.S. dollars, except per share
and share amounts) |
|
|
|
|
June 30,
2024 |
|
December 31,
2023 |
|
Assets |
|
|
|
|
Debt securities, available for sale, at fair value, net of
allowance for credit losses of $0.0 (2023 - $0.0) (cost - $5,375.5;
2023 - $4,754.6) |
$ |
5,345.3 |
|
|
$ |
4,755.4 |
|
|
Debt securities, trading, at fair value (cost - $330.6; 2023 -
$568.1) |
|
307.7 |
|
|
|
534.9 |
|
|
Short-term investments, at fair value (cost - $97.9; 2023 -
$370.8) |
|
97.5 |
|
|
|
371.6 |
|
|
Investments in related party investment funds, at fair value |
|
106.6 |
|
|
|
105.6 |
|
|
Other long-term investments, at fair value (cost - $328.4; 2023 -
$356.2) (includes related party investments at fair value of $146.0
(2023 - $173.7)) |
|
241.7 |
|
|
|
308.5 |
|
|
Equity securities, at fair value (cost - $0.0; 2023 - $1.9) |
|
— |
|
|
|
1.6 |
|
|
Total investments |
|
6,098.8 |
|
|
|
6,077.6 |
|
|
Cash and cash equivalents |
|
598.1 |
|
|
|
969.2 |
|
|
Restricted cash and cash equivalents |
|
125.9 |
|
|
|
132.1 |
|
|
Redemption receivable from related party investment fund |
|
— |
|
|
|
3.0 |
|
|
Due from brokers |
|
28.6 |
|
|
|
5.6 |
|
|
Interest and dividends receivable |
|
50.7 |
|
|
|
42.3 |
|
|
Insurance and reinsurance balances receivable, net |
|
2,120.2 |
|
|
|
1,966.3 |
|
|
Deferred acquisition costs, net |
|
341.9 |
|
|
|
308.9 |
|
|
Unearned premiums ceded |
|
496.1 |
|
|
|
449.2 |
|
|
Loss and loss adjustment expenses recoverable, net |
|
2,191.5 |
|
|
|
2,295.1 |
|
|
Deferred tax asset |
|
285.1 |
|
|
|
293.6 |
|
|
Intangible assets |
|
146.8 |
|
|
|
152.7 |
|
|
Other assets |
|
280.3 |
|
|
|
175.9 |
|
|
Total assets |
$ |
12,764.0 |
|
|
$ |
12,871.5 |
|
|
Liabilities |
|
|
|
|
Loss and loss adjustment expense reserves |
$ |
5,606.0 |
|
|
$ |
5,608.1 |
|
|
Unearned premium reserves |
|
1,769.7 |
|
|
|
1,627.3 |
|
|
Reinsurance balances payable |
|
1,544.5 |
|
|
|
1,736.7 |
|
|
Deposit liabilities |
|
22.1 |
|
|
|
134.4 |
|
|
Deferred gain on retroactive reinsurance |
|
23.0 |
|
|
|
27.9 |
|
|
Debt |
|
648.6 |
|
|
|
786.2 |
|
|
Due to brokers |
|
40.2 |
|
|
|
6.2 |
|
|
Deferred tax liability |
|
56.1 |
|
|
|
68.7 |
|
|
Liability-classified capital instruments |
|
72.6 |
|
|
|
67.3 |
|
|
Accounts payable, accrued expenses and other liabilities |
|
275.7 |
|
|
|
278.1 |
|
|
Total liabilities |
|
10,058.5 |
|
|
|
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: 170,572,790; 2023 -
168,120,022) |
|
17.1 |
|
|
|
16.8 |
|
|
Additional paid-in capital |
|
1,713.3 |
|
|
|
1,693.0 |
|
|
Retained earnings |
|
801.7 |
|
|
|
601.0 |
|
|
Accumulated other comprehensive income (loss), net of tax |
|
(28.0 |
) |
|
|
3.1 |
|
|
Shareholders’ equity attributable to SiriusPoint
shareholders |
|
2,704.1 |
|
|
|
2,513.9 |
|
|
Noncontrolling interests |
|
1.4 |
|
|
|
16.7 |
|
|
Total shareholders’ equity |
|
2,705.5 |
|
|
|
2,530.6 |
|
|
Total liabilities, noncontrolling interests and
shareholders’ equity |
$ |
12,764.0 |
|
|
$ |
12,871.5 |
|
| |
|
|
|
|
|
|
|
SIRIUSPOINT LTD.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
For the three and six
months ended June 30, 2024
and 2023
(expressed in millions of U.S. dollars, except per share
and share amounts) |
|
|
|
|
Three months ended |
|
Six months ended |
|
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
|
Revenues |
|
|
|
|
|
|
|
|
Net premiums earned |
$ |
590.5 |
|
|
$ |
639.7 |
|
|
$ |
1,184.3 |
|
|
$ |
1,235.2 |
|
|
Net investment income |
|
78.2 |
|
|
|
68.5 |
|
|
|
157.0 |
|
|
|
130.2 |
|
|
Net realized and unrealized investment gains (losses) |
|
(55.9 |
) |
|
|
(1.8 |
) |
|
|
(54.9 |
) |
|
|
9.5 |
|
|
Net realized and unrealized investment gains (losses) from related
party investment funds |
|
1.0 |
|
|
|
(0.9 |
) |
|
|
1.0 |
|
|
|
(0.1 |
) |
|
Net investment income and net realized and unrealized investment
gains (losses) |
|
23.3 |
|
|
|
65.8 |
|
|
|
103.1 |
|
|
|
139.6 |
|
|
Other revenues |
|
129.5 |
|
|
|
5.3 |
|
|
|
141.4 |
|
|
|
14.1 |
|
|
Total revenues |
|
743.3 |
|
|
|
710.8 |
|
|
|
1,428.8 |
|
|
|
1,388.9 |
|
|
Expenses |
|
|
|
|
|
|
|
|
Loss and loss adjustment expenses incurred, net |
|
364.4 |
|
|
|
375.7 |
|
|
|
681.9 |
|
|
|
642.8 |
|
|
Acquisition costs, net |
|
119.9 |
|
|
|
111.8 |
|
|
|
264.8 |
|
|
|
231.5 |
|
|
Other underwriting expenses |
|
41.1 |
|
|
|
43.3 |
|
|
|
82.9 |
|
|
|
95.5 |
|
|
Net corporate and other expenses |
|
66.6 |
|
|
|
70.3 |
|
|
|
122.6 |
|
|
|
130.3 |
|
|
Intangible asset amortization |
|
3.0 |
|
|
|
2.9 |
|
|
|
5.9 |
|
|
|
5.3 |
|
|
Interest expense |
|
15.7 |
|
|
|
11.7 |
|
|
|
36.2 |
|
|
|
24.5 |
|
|
Foreign exchange (gains) losses |
|
3.6 |
|
|
|
17.4 |
|
|
|
(0.1 |
) |
|
|
17.5 |
|
|
Total expenses |
|
614.3 |
|
|
|
633.1 |
|
|
|
1,194.2 |
|
|
|
1,147.4 |
|
|
Income before income tax expense |
|
129.0 |
|
|
|
77.7 |
|
|
|
234.6 |
|
|
|
241.5 |
|
|
Income tax expense |
|
(14.2 |
) |
|
|
(15.8 |
) |
|
|
(23.9 |
) |
|
|
(41.3 |
) |
|
Net income |
|
114.8 |
|
|
|
61.9 |
|
|
|
210.7 |
|
|
|
200.2 |
|
|
Net income attributable to noncontrolling interests |
|
(0.9 |
) |
|
|
(2.0 |
) |
|
|
(2.0 |
) |
|
|
(4.4 |
) |
|
Net income available to SiriusPoint |
|
113.9 |
|
|
|
59.9 |
|
|
|
208.7 |
|
|
|
195.8 |
|
|
Dividends on Series B preference shares |
|
(4.0 |
) |
|
|
(4.0 |
) |
|
|
(8.0 |
) |
|
|
(8.0 |
) |
|
Net income available to SiriusPoint common
shareholders |
$ |
109.9 |
|
|
$ |
55.9 |
|
|
$ |
200.7 |
|
|
$ |
187.8 |
|
|
Earnings per share available to SiriusPoint common
shareholders |
|
|
|
|
|
|
|
|
Basic earnings per share available to SiriusPoint common
shareholders |
$ |
0.60 |
|
|
$ |
0.32 |
|
|
$ |
1.11 |
|
|
$ |
1.08 |
|
|
Diluted earnings per share available to SiriusPoint common
shareholders |
$ |
0.57 |
|
|
$ |
0.31 |
|
|
$ |
1.05 |
|
|
$ |
1.05 |
|
|
Weighted average number of common shares used in the
determination of earnings per share |
|
|
|
|
|
|
|
|
Basic |
|
170,173,022 |
|
|
|
162,027,831 |
|
|
|
169,453,656 |
|
|
|
161,473,011 |
|
|
Diluted |
|
178,711,254 |
|
|
|
166,708,932 |
|
|
|
178,085,119 |
|
|
|
165,997,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SIRIUSPOINT LTD.
SEGMENT REPORTING |
|
|
|
|
Three months ended June 30, 2024 |
|
|
Reinsurance |
|
Insurance &
Services |
|
Core |
|
Eliminations
(2) |
|
Corporate |
|
Segment
Measure
Reclass |
|
Total |
|
Gross premiums written |
$ |
352.5 |
|
|
$ |
490.2 |
|
|
$ |
842.7 |
|
|
$ |
— |
|
|
$ |
21.8 |
|
|
$ |
— |
|
|
$ |
864.5 |
|
|
Net premiums written |
|
308.8 |
|
|
|
341.1 |
|
|
|
649.9 |
|
|
|
— |
|
|
|
(6.3 |
) |
|
|
— |
|
|
|
643.6 |
|
|
Net premiums earned |
|
256.2 |
|
|
|
297.2 |
|
|
|
553.4 |
|
|
|
— |
|
|
|
37.1 |
|
|
|
— |
|
|
|
590.5 |
|
|
Loss and loss adjustment expenses incurred, net |
|
143.8 |
|
|
|
192.2 |
|
|
|
336.0 |
|
|
|
(1.3 |
) |
|
|
29.7 |
|
|
|
— |
|
|
|
364.4 |
|
|
Acquisition costs, net |
|
67.2 |
|
|
|
75.8 |
|
|
|
143.0 |
|
|
|
(36.5 |
) |
|
|
13.4 |
|
|
|
— |
|
|
|
119.9 |
|
|
Other underwriting expenses |
|
20.2 |
|
|
|
17.3 |
|
|
|
37.5 |
|
|
|
— |
|
|
|
3.6 |
|
|
|
— |
|
|
|
41.1 |
|
|
Underwriting income (loss) |
|
25.0 |
|
|
|
11.9 |
|
|
|
36.9 |
|
|
|
37.8 |
|
|
|
(9.6 |
) |
|
|
— |
|
|
|
65.1 |
|
|
Services revenues |
|
— |
|
|
|
57.4 |
|
|
|
57.4 |
|
|
|
(34.4 |
) |
|
|
— |
|
|
|
(23.0 |
) |
|
|
— |
|
|
Services expenses |
|
— |
|
|
|
47.7 |
|
|
|
47.7 |
|
|
|
— |
|
|
|
— |
|
|
|
(47.7 |
) |
|
|
— |
|
|
Net services fee income |
|
— |
|
|
|
9.7 |
|
|
|
9.7 |
|
|
|
(34.4 |
) |
|
|
— |
|
|
|
24.7 |
|
|
|
— |
|
|
Services noncontrolling income |
|
— |
|
|
|
(0.6 |
) |
|
|
(0.6 |
) |
|
|
— |
|
|
|
— |
|
|
|
0.6 |
|
|
|
— |
|
|
Net services income |
|
— |
|
|
|
9.1 |
|
|
|
9.1 |
|
|
|
(34.4 |
) |
|
|
— |
|
|
|
25.3 |
|
|
|
— |
|
|
Segment income (loss) |
|
25.0 |
|
|
|
21.0 |
|
|
|
46.0 |
|
|
|
3.4 |
|
|
|
(9.6 |
) |
|
|
25.3 |
|
|
|
65.1 |
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
78.2 |
|
|
|
— |
|
|
|
78.2 |
|
|
Net realized and unrealized investment losses |
|
|
(55.9 |
) |
|
|
— |
|
|
|
(55.9 |
) |
|
Net realized and unrealized investment gains from related party
investment funds |
|
|
1.0 |
|
|
|
— |
|
|
|
1.0 |
|
|
Other revenues |
|
|
|
|
|
|
|
|
|
106.5 |
|
|
|
23.0 |
|
|
|
129.5 |
|
|
Net corporate and other expenses |
|
|
|
|
|
|
|
|
|
(18.9 |
) |
|
|
(47.7 |
) |
|
|
(66.6 |
) |
|
Intangible asset amortization |
|
|
|
|
|
|
|
|
|
(3.0 |
) |
|
|
— |
|
|
|
(3.0 |
) |
|
Interest expense |
|
|
|
|
|
|
|
|
|
(15.7 |
) |
|
|
— |
|
|
|
(15.7 |
) |
|
Foreign exchange losses |
|
|
|
|
|
|
|
|
|
(3.6 |
) |
|
|
— |
|
|
|
(3.6 |
) |
|
Income before income tax expense |
$ |
25.0 |
|
|
$ |
21.0 |
|
|
|
46.0 |
|
|
|
3.4 |
|
|
|
79.0 |
|
|
|
0.6 |
|
|
|
129.0 |
|
|
Income tax expense |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(14.2 |
) |
|
|
— |
|
|
|
(14.2 |
) |
|
Net income |
|
|
|
|
|
46.0 |
|
|
|
3.4 |
|
|
|
64.8 |
|
|
|
0.6 |
|
|
|
114.8 |
|
|
Net income attributable to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
(0.3 |
) |
|
|
(0.6 |
) |
|
|
(0.9 |
) |
|
Net income available to SiriusPoint |
|
$ |
46.0 |
|
|
$ |
3.4 |
|
|
$ |
64.5 |
|
|
$ |
— |
|
|
$ |
113.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Ratios:
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss ratio |
|
56.1 |
% |
|
|
64.7 |
% |
|
|
60.7 |
% |
|
|
|
|
|
|
|
|
61.7 |
% |
|
Acquisition cost ratio |
|
26.2 |
% |
|
|
25.5 |
% |
|
|
25.8 |
% |
|
|
|
|
|
|
|
|
20.3 |
% |
|
Other underwriting expenses ratio |
|
7.9 |
% |
|
|
5.8 |
% |
|
|
6.8 |
% |
|
|
|
|
|
|
|
|
7.0 |
% |
|
Combined ratio |
|
90.2 |
% |
|
|
96.0 |
% |
|
|
93.3 |
% |
|
|
|
|
|
|
|
|
89.0 |
% |
|
(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. |
|
|
|
|
|
Three months ended June 30, 2023 |
|
|
Reinsurance |
|
Insurance &
Services |
|
Core |
|
Eliminations
(2) |
|
Corporate |
|
Segment
Measure
Reclass |
|
Total |
|
Gross premiums written |
$ |
357.7 |
|
|
$ |
447.5 |
|
|
$ |
805.2 |
|
|
$ |
— |
|
|
$ |
37.3 |
|
|
$ |
— |
|
|
$ |
842.5 |
|
|
Net premiums written |
|
311.9 |
|
|
|
276.4 |
|
|
|
588.3 |
|
|
|
— |
|
|
|
37.3 |
|
|
|
— |
|
|
|
625.6 |
|
|
Net premiums earned |
|
271.8 |
|
|
|
324.4 |
|
|
|
596.2 |
|
|
|
— |
|
|
|
43.5 |
|
|
|
— |
|
|
|
639.7 |
|
|
Loss and loss adjustment expenses incurred, net |
|
146.7 |
|
|
|
216.7 |
|
|
|
363.4 |
|
|
|
(1.5 |
) |
|
|
13.8 |
|
|
|
— |
|
|
|
375.7 |
|
|
Acquisition costs, net |
|
51.3 |
|
|
|
80.7 |
|
|
|
132.0 |
|
|
|
(35.9 |
) |
|
|
15.7 |
|
|
|
— |
|
|
|
111.8 |
|
|
Other underwriting expenses |
|
12.0 |
|
|
|
25.5 |
|
|
|
37.5 |
|
|
|
— |
|
|
|
5.8 |
|
|
|
— |
|
|
|
43.3 |
|
|
Underwriting income |
|
61.8 |
|
|
|
1.5 |
|
|
|
63.3 |
|
|
|
37.4 |
|
|
|
8.2 |
|
|
|
— |
|
|
|
108.9 |
|
|
Services revenues |
|
(2.8 |
) |
|
|
62.2 |
|
|
|
59.4 |
|
|
|
(36.9 |
) |
|
|
— |
|
|
|
(22.5 |
) |
|
|
— |
|
|
Services expenses |
|
— |
|
|
|
50.0 |
|
|
|
50.0 |
|
|
|
— |
|
|
|
— |
|
|
|
(50.0 |
) |
|
|
— |
|
|
Net services fee income (loss) |
|
(2.8 |
) |
|
|
12.2 |
|
|
|
9.4 |
|
|
|
(36.9 |
) |
|
|
— |
|
|
|
27.5 |
|
|
|
— |
|
|
Services noncontrolling income |
|
— |
|
|
|
(1.7 |
) |
|
|
(1.7 |
) |
|
|
— |
|
|
|
— |
|
|
|
1.7 |
|
|
|
— |
|
|
Net services income (loss) |
|
(2.8 |
) |
|
|
10.5 |
|
|
|
7.7 |
|
|
|
(36.9 |
) |
|
|
— |
|
|
|
29.2 |
|
|
|
— |
|
|
Segment income |
|
59.0 |
|
|
|
12.0 |
|
|
|
71.0 |
|
|
|
0.5 |
|
|
|
8.2 |
|
|
|
29.2 |
|
|
|
108.9 |
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
68.5 |
|
|
|
— |
|
|
|
68.5 |
|
|
Net realized and unrealized investment losses |
|
|
(1.8 |
) |
|
|
— |
|
|
|
(1.8 |
) |
|
Net realized and unrealized investment losses from related party
investment funds |
|
|
(0.9 |
) |
|
|
— |
|
|
|
(0.9 |
) |
|
Other revenues |
|
|
|
|
|
|
|
|
|
(17.2 |
) |
|
|
22.5 |
|
|
|
5.3 |
|
|
Net corporate and other expenses |
|
|
|
|
|
|
|
|
|
(20.3 |
) |
|
|
(50.0 |
) |
|
|
(70.3 |
) |
|
Intangible asset amortization |
|
|
|
|
|
|
|
|
|
(2.9 |
) |
|
|
— |
|
|
|
(2.9 |
) |
|
Interest expense |
|
|
|
|
|
|
|
|
|
(11.7 |
) |
|
|
— |
|
|
|
(11.7 |
) |
|
Foreign exchange losses |
|
|
|
|
|
|
|
|
|
(17.4 |
) |
|
|
— |
|
|
|
(17.4 |
) |
|
Income before income tax expense |
$ |
59.0 |
|
|
$ |
12.0 |
|
|
|
71.0 |
|
|
|
0.5 |
|
|
|
4.5 |
|
|
|
1.7 |
|
|
|
77.7 |
|
|
Income tax expense |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(15.8 |
) |
|
|
— |
|
|
|
(15.8 |
) |
|
Net income (loss) |
|
|
|
|
|
71.0 |
|
|
|
0.5 |
|
|
|
(11.3 |
) |
|
|
1.7 |
|
|
|
61.9 |
|
|
Net income attributable to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
(0.3 |
) |
|
|
(1.7 |
) |
|
|
(2.0 |
) |
|
Net income (loss) available to SiriusPoint |
|
$ |
71.0 |
|
|
$ |
0.5 |
|
|
$ |
(11.6 |
) |
|
$ |
— |
|
|
$ |
59.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Ratios:
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss ratio |
|
54.0 |
% |
|
|
66.8 |
% |
|
|
61.0 |
% |
|
|
|
|
|
|
|
|
58.7 |
% |
|
Acquisition cost ratio |
|
18.9 |
% |
|
|
24.9 |
% |
|
|
22.1 |
% |
|
|
|
|
|
|
|
|
17.5 |
% |
|
Other underwriting expenses ratio |
|
4.4 |
% |
|
|
7.9 |
% |
|
|
6.3 |
% |
|
|
|
|
|
|
|
|
6.8 |
% |
|
Combined ratio |
|
77.3 |
% |
|
|
99.6 |
% |
|
|
89.4 |
% |
|
|
|
|
|
|
|
|
83.0 |
% |
|
(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. |
|
|
|
|
|
Six months ended June 30, 2024 |
|
|
Reinsurance |
|
Insurance &
Services |
|
Core |
|
Eliminations
(2) |
|
Corporate |
|
Segment
Measure
Reclass |
|
Total |
|
Gross premiums written |
$ |
708.9 |
|
|
$ |
1,014.5 |
|
|
$ |
1,723.4 |
|
|
$ |
— |
|
|
$ |
47.7 |
|
|
$ |
— |
|
|
$ |
1,771.1 |
|
|
Net premiums written |
|
598.9 |
|
|
|
678.2 |
|
|
|
1,277.1 |
|
|
|
— |
|
|
|
5.8 |
|
|
|
— |
|
|
|
1,282.9 |
|
|
Net premiums earned |
|
509.8 |
|
|
|
561.4 |
|
|
|
1,071.2 |
|
|
|
— |
|
|
|
113.1 |
|
|
|
— |
|
|
|
1,184.3 |
|
|
Loss and loss adjustment expenses incurred, net |
|
268.4 |
|
|
|
368.7 |
|
|
|
637.1 |
|
|
|
(2.7 |
) |
|
|
47.5 |
|
|
|
— |
|
|
|
681.9 |
|
|
Acquisition costs, net |
|
137.0 |
|
|
|
141.0 |
|
|
|
278.0 |
|
|
|
(69.7 |
) |
|
|
56.5 |
|
|
|
— |
|
|
|
264.8 |
|
|
Other underwriting expenses |
|
39.5 |
|
|
|
35.4 |
|
|
|
74.9 |
|
|
|
— |
|
|
|
8.0 |
|
|
|
— |
|
|
|
82.9 |
|
|
Underwriting income |
|
64.9 |
|
|
|
16.3 |
|
|
|
81.2 |
|
|
|
72.4 |
|
|
|
1.1 |
|
|
|
— |
|
|
|
154.7 |
|
|
Services revenues |
|
— |
|
|
|
123.2 |
|
|
|
123.2 |
|
|
|
(71.5 |
) |
|
|
— |
|
|
|
(51.7 |
) |
|
|
— |
|
|
Services expenses |
|
— |
|
|
|
93.7 |
|
|
|
93.7 |
|
|
|
— |
|
|
|
— |
|
|
|
(93.7 |
) |
|
|
— |
|
|
Net services fee income |
|
— |
|
|
|
29.5 |
|
|
|
29.5 |
|
|
|
(71.5 |
) |
|
|
— |
|
|
|
42.0 |
|
|
|
— |
|
|
Services noncontrolling income |
|
— |
|
|
|
(2.3 |
) |
|
|
(2.3 |
) |
|
|
— |
|
|
|
— |
|
|
|
2.3 |
|
|
|
— |
|
|
Net services income |
|
— |
|
|
|
27.2 |
|
|
|
27.2 |
|
|
|
(71.5 |
) |
|
|
— |
|
|
|
44.3 |
|
|
|
— |
|
|
Segment income |
|
64.9 |
|
|
|
43.5 |
|
|
|
108.4 |
|
|
|
0.9 |
|
|
|
1.1 |
|
|
|
44.3 |
|
|
|
154.7 |
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
157.0 |
|
|
|
— |
|
|
|
157.0 |
|
|
Net realized and unrealized investment losses |
|
|
(54.9 |
) |
|
|
— |
|
|
|
(54.9 |
) |
|
Net realized and unrealized investment gains from related party
investment funds |
|
|
1.0 |
|
|
|
— |
|
|
|
1.0 |
|
|
Other revenues |
|
|
|
|
|
|
|
|
|
89.7 |
|
|
|
51.7 |
|
|
|
141.4 |
|
|
Net corporate and other expenses |
|
|
|
|
|
|
|
|
|
(28.9 |
) |
|
|
(93.7 |
) |
|
|
(122.6 |
) |
|
Intangible asset amortization |
|
|
|
|
|
|
|
|
|
(5.9 |
) |
|
|
— |
|
|
|
(5.9 |
) |
|
Interest expense |
|
|
|
|
|
|
|
|
|
(36.2 |
) |
|
|
— |
|
|
|
(36.2 |
) |
|
Foreign exchange gains |
|
|
|
|
|
|
|
|
|
0.1 |
|
|
|
— |
|
|
|
0.1 |
|
|
Income before income tax expense |
$ |
64.9 |
|
|
$ |
43.5 |
|
|
|
108.4 |
|
|
|
0.9 |
|
|
|
123.0 |
|
|
|
2.3 |
|
|
|
234.6 |
|
|
Income tax expense |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(23.9 |
) |
|
|
— |
|
|
|
(23.9 |
) |
|
Net income |
|
|
|
|
|
108.4 |
|
|
|
0.9 |
|
|
|
99.1 |
|
|
|
2.3 |
|
|
|
210.7 |
|
|
Net (income) loss attributable to noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
|
(2.3 |
) |
|
|
(2.0 |
) |
|
Net income available to SiriusPoint |
|
$ |
108.4 |
|
|
$ |
0.9 |
|
|
$ |
99.4 |
|
|
$ |
— |
|
|
$ |
208.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Ratios:
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss ratio |
|
52.6 |
% |
|
|
65.7 |
% |
|
|
59.5 |
% |
|
|
|
|
|
|
|
|
57.6 |
% |
|
Acquisition cost ratio |
|
26.9 |
% |
|
|
25.1 |
% |
|
|
26.0 |
% |
|
|
|
|
|
|
|
|
22.4 |
% |
|
Other underwriting expenses ratio |
|
7.7 |
% |
|
|
6.3 |
% |
|
|
7.0 |
% |
|
|
|
|
|
|
|
|
7.0 |
% |
|
Combined ratio |
|
87.2 |
% |
|
|
97.1 |
% |
|
|
92.5 |
% |
|
|
|
|
|
|
|
|
87.0 |
% |
|
(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. |
|
|
|
|
|
Six months ended June 30, 2023 |
|
|
Reinsurance |
|
Insurance &
Services |
|
Core |
|
Eliminations
(2) |
|
Corporate |
|
Segment
Measure
Reclass |
|
Total |
|
Gross premiums written |
$ |
753.9 |
|
|
$ |
1,111.5 |
|
|
$ |
1,865.4 |
|
|
$ |
— |
|
|
$ |
87.6 |
|
|
$ |
— |
|
|
$ |
1,953.0 |
|
|
Net premiums written |
|
622.9 |
|
|
|
729.0 |
|
|
|
1,351.9 |
|
|
|
— |
|
|
|
65.4 |
|
|
|
— |
|
|
|
1,417.3 |
|
|
Net premiums earned |
|
531.3 |
|
|
|
615.6 |
|
|
|
1,146.9 |
|
|
|
— |
|
|
|
88.3 |
|
|
|
— |
|
|
|
1,235.2 |
|
|
Loss and loss adjustment expenses incurred, net |
|
232.3 |
|
|
|
389.2 |
|
|
|
621.5 |
|
|
|
(2.8 |
) |
|
|
24.1 |
|
|
|
— |
|
|
|
642.8 |
|
|
Acquisition costs, net |
|
117.3 |
|
|
|
152.4 |
|
|
|
269.7 |
|
|
|
(68.4 |
) |
|
|
30.2 |
|
|
|
— |
|
|
|
231.5 |
|
|
Other underwriting expenses |
|
40.2 |
|
|
|
44.8 |
|
|
|
85.0 |
|
|
|
— |
|
|
|
10.5 |
|
|
|
— |
|
|
|
95.5 |
|
|
Underwriting income |
|
141.5 |
|
|
|
29.2 |
|
|
|
170.7 |
|
|
|
71.2 |
|
|
|
23.5 |
|
|
|
— |
|
|
|
265.4 |
|
|
Services revenues |
|
(2.6 |
) |
|
|
125.8 |
|
|
|
123.2 |
|
|
|
(71.3 |
) |
|
|
— |
|
|
|
(51.9 |
) |
|
|
— |
|
|
Services expenses |
|
— |
|
|
|
95.5 |
|
|
|
95.5 |
|
|
|
— |
|
|
|
— |
|
|
|
(95.5 |
) |
|
|
— |
|
|
Net services fee income (loss) |
|
(2.6 |
) |
|
|
30.3 |
|
|
|
27.7 |
|
|
|
(71.3 |
) |
|
|
— |
|
|
|
43.6 |
|
|
|
— |
|
|
Services noncontrolling income |
|
— |
|
|
|
(3.3 |
) |
|
|
(3.3 |
) |
|
|
— |
|
|
|
— |
|
|
|
3.3 |
|
|
|
— |
|
|
Net services income (loss) |
|
(2.6 |
) |
|
|
27.0 |
|
|
|
24.4 |
|
|
|
(71.3 |
) |
|
|
— |
|
|
|
46.9 |
|
|
|
— |
|
|
Segment income |
|
138.9 |
|
|
|
56.2 |
|
|
|
195.1 |
|
|
|
(0.1 |
) |
|
|
23.5 |
|
|
|
46.9 |
|
|
|
265.4 |
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
130.2 |
|
|
|
— |
|
|
|
130.2 |
|
|
Net realized and unrealized investment gains |
|
|
9.5 |
|
|
|
— |
|
|
|
9.5 |
|
|
Net realized and unrealized investment losses from related party
investment funds |
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.1 |
) |
|
Other revenues |
|
|
|
|
|
|
|
|
|
(37.8 |
) |
|
|
51.9 |
|
|
|
14.1 |
|
|
Net corporate and other expenses |
|
|
|
|
|
|
|
|
|
(34.8 |
) |
|
|
(95.5 |
) |
|
|
(130.3 |
) |
|
Intangible asset amortization |
|
|
|
|
|
|
|
|
|
(5.3 |
) |
|
|
— |
|
|
|
(5.3 |
) |
|
Interest expense |
|
|
|
|
|
|
|
|
|
(24.5 |
) |
|
|
— |
|
|
|
(24.5 |
) |
|
Foreign exchange losses |
|
|
|
|
|
|
|
|
|
(17.5 |
) |
|
|
— |
|
|
|
(17.5 |
) |
|
Income before income tax expense |
$ |
138.9 |
|
|
$ |
56.2 |
|
|
|
195.1 |
|
|
|
(0.1 |
) |
|
|
43.2 |
|
|
|
3.3 |
|
|
|
241.5 |
|
|
Income tax expense |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(41.3 |
) |
|
|
— |
|
|
|
(41.3 |
) |
|
Net income |
|
|
|
|
|
195.1 |
|
|
|
(0.1 |
) |
|
|
1.9 |
|
|
|
3.3 |
|
|
|
200.2 |
|
|
Net income attributable to noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
(1.1 |
) |
|
|
(3.3 |
) |
|
|
(4.4 |
) |
|
Net income available to SiriusPoint |
|
$ |
195.1 |
|
|
$ |
(0.1 |
) |
|
$ |
0.8 |
|
|
$ |
— |
|
|
$ |
195.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Ratios:
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss ratio |
|
43.7 |
% |
|
|
63.2 |
% |
|
|
54.2 |
% |
|
|
|
|
|
|
|
|
52.0 |
% |
|
Acquisition cost ratio |
|
22.1 |
% |
|
|
24.8 |
% |
|
|
23.5 |
% |
|
|
|
|
|
|
|
|
18.7 |
% |
|
Other underwriting expenses ratio |
|
7.6 |
% |
|
|
7.3 |
% |
|
|
7.4 |
% |
|
|
|
|
|
|
|
|
7.7 |
% |
|
Combined ratio |
|
73.4 |
% |
|
|
95.3 |
% |
|
|
85.1 |
% |
|
|
|
|
|
|
|
|
78.4 |
% |
|
(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. |
|
|
|
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 investment gains
(losses) from Strategic investments which are net investment gains
(losses) from our investment holdings, are no longer included in
Core net services income, with comparative financial periods
restated. 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 June 30,
2024 and December 31, 2023:
|
|
June 30,
2024 |
|
December 31,
2023 |
|
|
($ in millions, except share and
per share amounts) |
|
Common shareholders’ equity attributable to SiriusPoint common
shareholders |
$ |
2,504.1 |
|
|
$ |
2,313.9 |
|
|
Intangible assets |
|
(146.8 |
) |
|
|
(152.7 |
) |
|
Tangible common shareholders' equity attributable to SiriusPoint
common shareholders |
$ |
2,357.3 |
|
|
$ |
2,161.2 |
|
|
|
|
|
|
|
Common shares outstanding |
|
170,572,790 |
|
|
|
168,120,022 |
|
|
Effect of dilutive stock options, restricted share units and
warrants |
|
4,465,438 |
|
|
|
5,193,920 |
|
|
Book value per diluted common share denominator |
|
175,038,228 |
|
|
|
173,313,942 |
|
|
|
|
|
|
|
Book value per common share |
$ |
14.68 |
|
|
$ |
13.76 |
|
|
Book value per diluted common share |
$ |
14.31 |
|
|
$ |
13.35 |
|
|
Tangible book value per diluted common share |
$ |
13.47 |
|
|
$ |
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 six months ended June 30, 2024 and
2023 was calculated as follows:
|
|
Three months ended |
|
Six months ended |
|
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
|
|
($ in millions) |
|
Net income available to SiriusPoint common shareholders |
$ |
109.9 |
|
|
$ |
55.9 |
|
|
$ |
200.7 |
|
|
$ |
187.8 |
|
|
Common shareholders’ equity attributable to SiriusPoint common
shareholders - beginning of period |
|
2,402.6 |
|
|
|
2,029.9 |
|
|
|
2,313.9 |
|
|
|
1,874.7 |
|
|
Common shareholders’ equity attributable to SiriusPoint common
shareholders - end of period |
|
2,504.1 |
|
|
|
2,036.0 |
|
|
|
2,504.1 |
|
|
|
2,036.0 |
|
|
Average common shareholders’ equity attributable to SiriusPoint
common shareholders |
$ |
2,453.4 |
|
|
$ |
2,033.0 |
|
|
$ |
2,409.0 |
|
|
$ |
1,955.4 |
|
|
Annualized return on average common shareholders’ equity
attributable to SiriusPoint common shareholders |
|
17.9 |
% |
|
|
11.0 |
% |
|
|
16.7 |
% |
|
|
19.2 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
