SiriusPoint “off to a great start” in its first full quarter results since merger
SiriusPoint reported its first full quarter results since the completion of Third Point Re’s acquisition of Sirius International, with Sid Sankaran, its chairman and chief executive officer (CEO), praising the strong momentum the business has generated since the completion of the deal.
SiriusPoint reported net profit of $64.5 million in Q2 2021, down from $124 million in the same period the previous year. For the first half of the year, however, its profit lept to $195.4 million, having made a $59.6 million loss in the first six months of 2020.
Net earned premiums increased significantly over both timeframes. In Q2 earned premiums rose to $466.3 million, up from $140.8 the previous year. In H1 2021 they increased to $722.3 million, up from $287.1 million in 2020.
SiriusPoint’s combined ratio fell to 92.8 percent for Q2 2021, from 99.8 percent the previous year. For the first six months of the year it also fell, to 94.2 percent, from 99.2 percent the previous year.
Sankaran said he was very pleased with SiriusPoint’s execution through its first full quarter. “Underwriting this quarter has been keenly focused on remediation,” he said. “We have made progress on rebalancing the portfolio between reinsurance and insurance to stabilise our book, manage volatility and deliver underwriting profit, over time. We are off to a great start and have established strong momentum that is reflected in the number of deals closed in our first four months of operations.”
Sankaran said SiriusPoint is building a sustainable long-term franchise with a focus on book value creation. “Our approach to capital allocation and our ability to be nimble has allowed us to take advantage of current market conditions, but our strategy does not rely on a hard market,” he said. “We are building a company with a strong entrepreneurial culture under the premise that soft markets are the norm, while planning around long term macro trends that require disciplined investments and a growth mindset.”
