SiriusPoint continues to bounce back with $66m profit

SiriusPoint continued its turnaround in the second quarter with a $66 million profit – a $126 million improvement after taking a $60 million loss in the same period a year earlier.

Bermuda-based SiriusPoint, which appointed chief executive officer Scott Egan (pictured) last September and saw former Hiscox CEO Bronek Masojada become chairman in June, said the company’s reinsurance segment drove the improvement as underwriting income rose to $79.3 million compared to a $200,000 loss in the prior quarter.

Earnings per share were 37 cents compared to a loss of 38 cents a year ago.

The company slashed its combined ratio to 81.9 % from 93.1%.

Investment income jumped to $68.5 million from $17.4 million, while realised and unrealised gains were $65.8 million compared to a loss of $141 million in the prior year.

That offset a downturn in the company’s insurance segment, where net income fell from $20.4 million to $8.8 million, as claims rose $154.8 million to $227.7 million and the company also took a $4.1 million loss on a strategic investment.

Egan said: ““This quarter has been a positive one for SiriusPoint with all three areas of our business performing well as we continue our journey to improve the performance of the company.

“Our underwriting results are strong, with a combined ratio of 84.4% for our core operations. Our investment portfolio remains focused on high quality, fixed income instruments and we are tracking to the top-end of our full year 2023 net investment income guidance of $220 million to $240 million.

“Run-rate costs have been reduced by $35 million to $40 million versus previous year on an underlying basis and we are confident on our target of more than $50 million reduction by the end of 2024. The balance sheet is even stronger now given we have closed the loss portfolio transfer deal, releasing more than $150 million of capital and aligning our balance sheet to the go forward strategy. Finally, all areas of our business are capital generating and we are on track to hit double-digit ROE this year.

“Our focus on executing well against our strategy continues and with each quarter that passes, we build more credibility and track record. Our aim is to keep doing this and I look forward to sharing further progress later in the year.”

In the reinsurance segment, SiriusPoint had gross written premium of $387.1 million , up 2.3%  or $8.8 million. The company said the improvement in underwiring income was due to increased favourable prior year loss reserve developments and lower catastrophe losses.

In the insurance and services segment, the company experienced decreased favourable prior year loss reserves from loss emergence from “certain strategic partnerships”.

Insurance services income grew, largely due to growth in premiums from strategic partnerships , mainly from managing general agency Arcadian.