SiriusPoint posts sobering 2022 loss
Bermuda-based SiriusPoint has unveiled a big loss last year on the back of heavy catastrophe losses and even heavier investment losses. But its CEO highlighted the progress it has shown in its underwriting results, the fact it has repositioned its investment portfolio and said he is confident but not complacent moving into 2023.
The re/insurer made a net loss of $403 million last year, a sobering swing on the $42 million profit it made the year before. This was despite a much better combined ratio of 96.4% compared with 109.1% a year earlier.
It was hit by $138 million of cat losses including $81 million from Hurricane Ian. It posted a net investment loss of $323 million, which included a negative 29% return from its TP Enhanced Fund equivalent to a loss of $202 million.
Its total revenues last year were almost unchanged at $2.1 billion though its reinsurance segment enjoyed some growth posting gross written premiums of $1.5 billion, an increase of $171 million on the year before.
On the reinsurance side of the business, it also stressed that it has rebalanced its book away from volatile global property business. “We rebalanced our property portfolio by decreasing our market share and exposure in the global property catastrophe reinsurance business as well as reducing other property reinsurance with material catastrophe exposure.”
Scott Egan, CEO, said: “We are pleased with the progress shown in our underwriting results in the second half of 2022. It gives us a strong platform and momentum to build on for 2023 as we look to reinforce our credentials as an underwriter. Added to this is the strong contribution from our MGAs on both an underwriting and fee basis, which we will look to enhance and leverage further where it complements our underwriting strategy.
“Our 2023 journey is well underway. We will continue to reduce volatility and improve quality in our underwriting results as we re-build stakeholder confidence in the company. In addition to our underwriting improvements, we have also materially repositioned our investment portfolio, reducing volatility, capital intensity and locking in higher yield. Our owned and part-owned MGAs continue to produce stable capital-light earnings on the back of a growing top line. Finally, we aim to improve the effectiveness and efficiency of our operating model with targeted cost reductions during 2023 and 2024.
“We feel confident but not complacent as we look into 2023, repositioning the company for profitability, growth and long-term success. We have a healthy balance sheet, excellent people and resources, strong client and broker relationships, and a diversified business model that has potential to deliver higher returns. We look forward to sharing updates on our meaningful progress as we go through the year.”
