SiriusPoint posts Q1 profit and promises more to come as transformation continues
SiriusPoint reported its first quarterly results since the company’s creation in its current form, when Third Point Re acquired Sirius Group, making a healthy profit as it looks to build a new business focused on innovation and profitability.
SiriusPoint reported a net profit of $130.9 million for the three months ended March 31, 2021. In the corresponding period of 2020 Third Point Re had reported a net loss of $183.6 million.
Net premiums earned increased 75 percent year on year to $256 million in Q1 2021, from the $146.3 million Third Point Re reported in the same period the previous year. This was primarily driven by an increase in net premiums earned of $115.9 million, the re/insurer said, as a result of new premiums from the legacy Sirius Group companies from the date of acquisition.
The combined ratio fell to 96.6 percent, from 98.6 percent the previous year. Sid Sankaran, SiriusPoint’s chairman and chief executive officer, said the combined ratio reflected its focus on writing a profitable and more balanced book of business.
Sankaran expressed delight in the results. “We believe our combined company has the platform, capabilities and expertise to take advantage of changing market conditions and compete in a differentiated and effective fashion in the global re/insurance marketplace,” he said. “We are creating an entrepreneurial and innovative company that is just at the beginning of its transformation.”
He added: “We made great strides in refining our property cat portfolio, reducing catastrophe volatility through modest additional retro reinsurance purchases and rebalancing the overall portfolio to non-cat lines, including accident and health, credit, aviation, and niche US casualty lines. Through the rest of 2021, we plan to continue to execute on our underwriting strategy and be disciplined in our approach to managing risk. We are focused on better managing our catastrophe exposure and return on capital. We also plan to be disciplined in reducing classes which have been unprofitable.”
