Sirius records a Q1 loss as COVID-19 takes its toll

Sirius International Insurance Group sank to a loss in Q1, but stressed it had set reserves for all expected losses related to COVID-19 going forward.

Sirius reported a net loss of $98 million for Q1 2020, down from a profit of $95 million recorded in the same period of 2019.

Gross written premiums were $818 million in Q1, a 31 percent increase on Q1 2019. The quarter included $70 million from a loss portfolio transfer Sirius completed in the period. Excluding that, gross written premiums increased 20 percent compared to Q1 2019.

Its combined ratio was 124 percent for Q1 2020, compared to 91 percent for Q1 2019.

Ralph Salamone, Sirius’ chief financial officer, said: "COVID-19 presents the industry with loss reserving challenges. In our Q1 results, Sirius Group set reserves for the estimated ultimate losses associated with the pandemic based on all readily available information, rather than recognising these losses into the income statement in subsequent quarters. “

Kip Oberting, the re/insurer’s president and chief executive officer, stressed the strong bonds the re/insurer enjoys with its clients. "Nearly a third of our clients have been with us for longer than twenty years, and two-thirds in excess of ten years,” he said. “Our employees have generated this loyalty by doing whatever it takes to find solutions and serve as a steady hand and honest partner.”