SiriusPoint agrees RiverStone deal to unlock more than $200m in capital
Bermuda-headquartered SiriusPoint has agreed a loss portfolio transfer (LPT) with RiverStone expected to release more than $200 million in capital, covering substantially all of its remaining run-off reserves as the reinsurer continues to simplify its legacy portfolio.
The transaction, which remains subject to regulatory approval, is expected to free up capital currently supporting the legacy portfolio.
The combined ratio remained broadly stable at 86.5% for the third quarter of 2026, compared with 85.9% in the same period a year earlier. However, the core combined ratio deteriorated to 90.1% from 89.1%, despite an increase in core underwriting income to $75.9 million from $69.6 million.
Core underwriting performance benefited from lower attritional loss ratios and increased favourable prior-year reserve development, partly offset by higher expense ratios. Favourable prior-year development totalled $18.3 million for the quarter, compared with $9.1 million a year earlier, primarily driven by property and accident and health (A&H) business.
Net income dipped to $87 million in the third quarter, down from approximately $90.7 million in the corresponding period of 2025. However, the nine-month figure increased to $257.8 million from $216 million.
Consolidated underwriting income increased to $103.5 million from $91.4 million in the quarter, while the nine-month figure rose to $254.7 million from $235.7 million. The year-to-date improvement was primarily driven by lower catastrophe losses and increased favourable prior-year reserve development, partially offset by higher expenses.
Gross written premiums totalled approximately $994.9 million for the three months ended September 30, 2026, compared with $874.4 million in the same period a year earlier. Growth was largely driven by the insurance and services segment, where premiums increased to $673 million from $562 million, supported by growth in surety and an increase in estimated professional liability premiums.
Despite this growth, underwriting income in insurance and services declined to $33 million from $37.7 million, with the segment’s combined ratio deteriorating to 92.8% from 90.1%. SiriusPoint attributed the decline primarily to higher acquisition and other underwriting expense ratios, slightly offset by lower attritional loss ratios.
Reinsurance gross written premiums increased modestly to $317.6 million from $309.6 million in the quarter, driven by increases in certain specialty lines, particularly property and marine & energy.
Underwriting income improved to $42.9 million from $31.9 million, with the combined ratio improving to 86.0% from 87.9%, primarily reflecting increased favourable prior-year reserve development.
However, reinsurance gross written premiums declined 5.8% to $973.7 million over the first nine months of 2026, reflecting deliberate reductions in casualty, rate and exposure reductions in property catastrophe, and reductions in other specialty lines.
The reinsurance segment’s nine-month combined ratio improved to 87.4% from 91.7%, with underwriting income rising to $103.3 million from $68.4 million. The improvement was primarily driven by lower catastrophe losses, as the corresponding 2025 period included significant losses from the California wildfires.
SiriusPoint also announced plans to reorganise its reporting segments from the fourth quarter of 2026, replacing insurance and services and reinsurance with standalone A&H and specialty P&C divisions.
The A&H business, which now accounts for more than $1 billion in premiums, will become a standalone segment, while the remaining specialty businesses will be combined under specialty P&C. SiriusPoint said the change reflects how management now evaluates underwriting performance and allocates capital across its specialty portfolio.
Scott Egan, CEO, said: “Our third quarter results represent continued strong performance, with our diversified, low-volatility portfolio again delivering on both growth and profitability. Our Insurance & Services segment grew by 20% and our core combined ratio was 90.1% both in the quarter and year to date. With an operating return on equity of 17.6% for the quarter and 15.8% year to date, the business continues to outperform against our 12-15% target.
“We have also announced another important milestone in the quarter linked to our legacy run-off portfolio, agreeing a loss portfolio transfer with RiverStone. This will allow us to effectively close the door on this historical book of reserves, further simplifying our business and unlocking significant capital.”
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