SiriusPoint turns underwriting profit in third quarter

Bermuda-based SiriusPoint turned an underwriting profit in its third quarter for the first time since the company was created through a merger in 2020.

The specialty re/insurer, which recorded net income of $57.5 million compared to a loss of $98.4 million in the same period in 2022, said it recorded underwriting income of  $73.8 million compared to an underwriting loss of $46.9 million a year earlier.

It said the improvement in net underwriting results was driven by lower catastrophe losses and improved favourable prior year loss reserve development.

Overall, gross written premiums were $758 million compared to $844  million in 2022 while net premiums earned increased from $612.6 million to $613 million.

Net investment income more than doubled to $75 million from $36 million while the company also recorded realised and unrealised investment gains of $68.1 million compared to a loss of $36.2 million a year earlier.

The company also saw losses drop to $272 million from $497 million.

Scott Egan, chief executive officer, said: “We have had a strong quarter as we delivered positive underwriting results in the third quarter for the first time in the Group’s history. Our combined ratio for the Group’s Core operations was 87.6% with catastrophe losses materially down at $14 million compared to $138 million in the prior year period. There has been improvement across all areas of our business and our actions are having the desired impact.

“Investment results remain strong, and we raise our guidance on full year net investment income to $250 million to $260 million from $220 million to $240 million. MGA revenues grew at 7% while margins increased to 21%. Our balance sheet is strong, and we remain on track to hit double-digit ROE this year.” 

He added: “I have now completed one year at SiriusPoint, and I am incredibly proud of the progress made to date. We have created significant shareholder value and our aim is to continue to improve as we go into 2024. We believe strongly there is the potential to do so.”

For the nine-month period, consolidated underwriting income $339.2 million compared to $25.4 million for the nine months ended September 30, 2022.

By segment, SiriusPoint recorded gross written premiums of $460 million for insurance, down from $525 million in 2022, while losses were $220 million compared to $218 million a year earlier.

Insurance delivered a $13.3 million profit compared to a $2.9 million loss in 2022.

In the reinsurance segment, SiriusPoint produced a $36.7 million profit compared to a $76 million loss in the same period in 2022 while gross written premiums were $265 million, down from $$318 million but losses plummeted from $286 million to $136 million.