SiriusPoint CEO Scott Egan warns of tougher market as reinsurance book shrinks
Bermuda-based specialty underwriter SiriusPoint grew core gross written premium by 6% in the second quarter of 2026 despite a planned reduction in its reinsurance portfolio, with chief executive officer Scott Egan saying the company is selectively expanding where returns remain attractive while pulling back as market conditions become more challenging.
The growth divergence came alongside market deterioration as the core combined ratio worsened to 91.4% from 89.5% a year earlier, even though the half-year combined ratio improved by 2.3 points to 90.1%. The gap between the quarterly and half-year trends reflects the prior year’s California wildfire losses, which weighed on the first half of 2025.
On a standalone quarterly basis, both segments saw their combined ratios rise, largely as higher acquisition costs and underwriting expenses tied to profit commission accruals and incentive compensation offset an improved consolidated loss ratio and stronger favourable prior-year reserve development.
Net income available to common shareholders rose to $68.6 million from $59.2 million a year earlier, helped by a swing to a foreign exchange gain from a loss in the prior-year quarter and higher net investment gains.
“Our second quarter and half year results are strong and reflect our continuing progress, the strength of our diverse and low-volatility portfolio, and our approach to capital management,” said Scott Egan (pictured), chief executive officer. Egan said the company had “both the capability and agility to target and grow in attractive areas while pulling back where we don't see adequate returns for the risk we take,” citing the insurance and services growth, as well as the reinsurance reduction. He added that market conditions were “becoming more challenging.”
Insurance & services gross written premium grew 15.0% to $644.6 million, driven by new program growth, mainly in general liability, and continued expansion in London-based MGAs. The segment’s combined ratio nonetheless rose to 90.7% from 89.3%, as earned premium grew more slowly than written premium amid the shift in business mix, alongside higher incentive compensation-linked expenses.
Reinsurance premium fell 8.9% in Q2 to $336.9 million, which the company described as deliberate reductions in casualty and rate and exposure reductions in property catastrophe. The segment’s combined ratio rose to 92.3% from 89.8%, as lower earned premiums in casualty and property catastrophe and higher acquisition costs in property and other specialty lines outweighed a lower attritional loss ratio.
Favourable prior-year reserve development across the core book increased to $16.7 million from $13.8 million, primarily from releases in accident & health and property.
Net investment income fell to $65.5 million from $68.2 million, which the company attributed to sales of investments in its TPOC portfolio and higher incentive compensation-related expenses, partially offset by higher net investment gains of $7.9 million, up from $0.7 million a year earlier.
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