SiriusPoint Ltd. (“SiriusPoint” or the “Company”) (NYSE:SPNT) today
announced results for its fourth quarter ended December 31, 2023.
- Strong progress in
2023 as we deliver record underwriting profits, net services fee
income and net income, while growing book value per share by 18%.
Cost program completed a year in advance and we have over-delivered
on our 2023 guidance on net investment income.
- Record ROE at 16.2%
for 2023, ahead of our guidance of achieving double-digit ROE in
2024, even after excluding one-off adjustments. We now aim to
deliver 12-15% ROE during the medium term.
- Balance sheet is
stronger and of higher quality. Capital surplus increased given
organic capital generation and strategic actions, debt and asset
leverage reduced while reserve position remains conservative and we
have increased prudence during 2023.
Scott Egan, Chief Executive Officer, said: “At
full year 2022, we set out our ambition to create a business which
is simpler, generating less volatile earnings and delivering a
double digit return on equity by 2024. We have made significant
progress against these objectives in 2023. As we look ahead
following significant restructuring, our ambition in the
medium-term is to create a business with an underwriting-first
approach which can grow and deliver strong profitability in a more
consistent manner.
2023 was a turn-around year and marks the end of
restructuring. It gives us a more stable platform to build from
having exceeded our initial expectations. We delivered our fifth
consecutive quarter of positive underwriting result with the full
year 2023 combined ratio for the Group’s Core operations at 89.1%.
Our underwriting results were supported by the completion of our
cost savings program, which delivered more than $50 million of
savings ahead of schedule. We have simplified the business and have
taken great strides to improve our performance-driven culture.
Investment results were ahead of updated
guidance and we report $284 million of net investment income for
2023 with significantly less volatility. We have made further
progress around rationalizing our equity stakes in MGAs which are
down to 26 at year-end compared to 36 at the start of the year. Our
consolidated MGA revenues grew 10.2% year to date, margin increased
to 20.9% resulting in a 36.9% increase in our net service fee
income.
Our balance sheet is strong and we had upward
revisions to our financial strength rating outlook to stable from
Fitch and S&P during 2023. Our results are ahead of our
financial targets but 2023 is not a destination as we look to
improve returns and achieve an ROE of 12-15% in the medium term.
Our approach will be to remain prudent stewards of capital whilst
maintaining a conservative capital position.
Our improvement in profitability reflects the
significant rebalancing and enhancements we have made across all
areas of our business. In 2024, we look to further improve and
deliver as we continue to build on last year’s strong
foundation.”
Fourth Quarter 2023 Highlights
- Net income
available to SiriusPoint common shareholders of $94 million, or
$0.50 per diluted common share
- Core income of $46
million, which includes underwriting income of $37 million, Core
combined ratio of 93.4%
- Core net services
fee income of $12 million, with service margin of 21.7%
- Net investment
income of $78 million and total investment result of $65
million
- Book value per
diluted common share increased $1.24 per share, or 10.2%, from
September 30, 2023 to $13.35 per share
- One-time deferred
tax benefit of $101 million attributable to the enactment of the
Bermuda corporate income tax
Year ended December 31,
2023 Highlights
- Net income
available to SiriusPoint common shareholders of $339 million, or
$1.85 per diluted common share
- Consolidated
combined ratio of 84.5%, underwriting income of $376 million
- Core income of $291
million, which includes underwriting income of $250 million, Core
combined ratio of 89.1%
- Core net services
fee income of $50 million, up 36.9% from the year ended December
31, 2022, with service margin of 20.9%, up 4.1% from 2022
- Net investment
income of $284 million and total investment result of $273
million
- Book value per
diluted common share increased $2.03 per share, or 17.9%, from
December 31, 2022 to $13.35 per share
- Return on average
common equity of 16.2%
- Equity stakes in 26
entities (MGAs, Insurtech and Other) compared to 36 as of December
31, 2022
- Debt to capital
ratio down to 23.8% compared to 27.3% as of December 31, 2022
Key Financial Metrics
The following table shows certain key financial
metrics for the three and twelve months ended December 31, 2023 and
2022:
| |
Three months ended |
|
Twelve months ended |
| |
December 31,2023 |
|
December 31,2022 |
|
December 31,2023 |
|
December 31,2022 |
| |
($ in millions, except for per share data and
ratios) |
|
Combined ratio |
|
93.6 |
% |
|
|
90.4 |
% |
|
|
84.5 |
% |
|
|
96.4 |
% |
|
Core underwriting income (loss) (1) |
$ |
37.0 |
|
|
$ |
31.2 |
|
|
$ |
250.2 |
|
|
$ |
(34.8 |
) |
|
Core net services income (1) |
$ |
9.3 |
|
|
$ |
2.8 |
|
|
$ |
41.2 |
|
|
$ |
37.4 |
|
|
Core income (1) |
$ |
46.3 |
|
|
$ |
34.0 |
|
|
$ |
291.4 |
|
|
$ |
2.6 |
|
|
Core combined ratio (1) |
|
93.4 |
% |
|
|
94.8 |
% |
|
|
89.1 |
% |
|
|
101.6 |
% |
|
Annualized return on average common shareholders’ equity
attributable to SiriusPoint common shareholders |
|
17.1 |
% |
|
|
(5.7 |
)% |
|
|
16.2 |
% |
|
|
(19.3 |
)% |
|
Book value per common share |
$ |
13.76 |
|
|
$ |
11.56 |
|
|
$ |
13.76 |
|
|
$ |
11.56 |
|
|
Book value per diluted common share |
$ |
13.35 |
|
|
$ |
11.32 |
|
|
$ |
13.35 |
|
|
$ |
11.32 |
|
|
Tangible book value per diluted common share (1) |
$ |
12.47 |
|
|
$ |
10.43 |
|
|
$ |
12.47 |
|
|
$ |
10.43 |
|
(1) Core underwriting income (loss), Core net
services income, Core income and Core combined ratio are non-GAAP
financial measures. See definitions in “Non-GAAP Financial
Measures” and reconciliations in “Segment Reporting.” Tangible book
value per diluted common share is a non-GAAP financial measure. See
definition and reconciliation in “Non-GAAP Financial Measures.”
Fourth Quarter and Full
Year 2023 Summary
Consolidated underwriting income for the three
months ended December 31, 2023 was $36.7 million compared to $57.9
million for the three months ended December 31, 2022. The decrease
in Consolidated underwriting income was primarily driven by reserve
strengthening for specific areas of uncertainty for the loss
reserves.
Consolidated underwriting income for the year
ended December 31, 2023 was $375.9 million compared to $83.3
million for the year ended December 31, 2022. The improvement in
net underwriting results was driven by increased favorable prior
year loss reserve development, lower catastrophe losses and a
favorable commission ratio, which results in a higher underwriting
gain. Favorable prior year loss reserve development was $174.2
million for the year ended December 31, 2023 compared to $21.3
million for the year ended December 31, 2022. This increase was
primarily the result of management reflecting the continued
favorable reported loss emergence through December 31, 2023 in its
best estimate of reserves, which was further validated by the
pricing of the 2023 LPT from external reinsurers, which represents
$127.8 million of the favorable prior year loss reserve
development, as well as favorable prior year loss reserve
development in Accident & Health. In addition, catastrophe
losses, net of reinsurance and reinstatement premiums, were
$24.8 million, or 1.0 percentage points on the combined ratio,
for the year ended December 31, 2023, primarily driven by the
Turkey Earthquake and Chile Wildfire, compared to $137.9 million,
or 5.9 percentage points on the combined ratio, for the year ended
December 31, 2022, primarily driven by Hurricane Ian. The lower
catastrophe losses were a result of the Company’s significant
reduction in catastrophe exposed business.
Reportable Segments
The determination of our reportable segments is
based on the manner in which management monitors the performance of
our operations, which consist of two reportable segments -
Reinsurance and Insurance & Services.
Collectively, the sum of our two segments,
Reinsurance and Insurance & Services, constitute our “Core”
results. Core underwriting income, Core net services income, Core
income and Core combined ratio are non-GAAP financial measures. See
reconciliations in “Segment Reporting”. We believe it is useful to
review Core results as it better reflects how management views the
business and reflects our decision to exit the runoff business. The
sum of Core results and Corporate results are equal to the
consolidated results of operations.
Three months ended December 31, 2023 and
2022
Core Premium Volume
Gross premiums written decreased by
$22.6 million, or 3.0%, to $719.8 million for the three
months ended December 31, 2023 compared to $742.4 million for
the three months ended December 31, 2022. Net premiums earned
decreased by $47.4 million, or 7.8%, to $558.4 million
for the three months ended December 31, 2023 compared to
$605.8 million for the three months ended December 31, 2022.
The decreases in premium volume were primarily driven by a decrease
in the Reinsurance segment as we execute our “Restructuring Plan”,
reflecting our strategy to change the structure and composition of
our international branch network.
Core Results
Core results for the three months ended December
31, 2023 included income of $46.3 million compared to $34.0
million for the three months ended December 31, 2022. Income for
the three months ended December 31, 2023 consists of underwriting
income of $37.0 million (93.4% combined ratio) and net
services income of $9.3 million, compared to underwriting
income of $31.2 million (94.8% combined ratio) and net services
income of $2.8 million for the three months ended December 31,
2022. The improvement in net underwriting results was primarily
driven by increased favorable prior year loss reserve development
and favorable commission ratios, which results in a higher
underwriting gain. The increase in net services income was
primarily due to higher margins achieved in Arcadian Risk Capital
Ltd. (“Arcadian”).
Losses incurred included $37.7 million of
favorable prior year loss reserve development for the three months
ended December 31, 2023, compared to $9.6 million for the
three months ended December 31, 2022. This increase in favorable
prior year loss reserve development was driven by both Reinsurance
and Insurance & Services, primarily the result of management
reflecting the continued favorable reported loss emergence through
December 31, 2023 in its best estimate of reserves. There were no
meaningful catastrophe losses incurred during the three months
ended December 31, 2023 and December 31, 2022.
Year ended December 31, 2023 and 2022
Core Premium Volume
Gross premiums written decreased by
$94.9 million, or 2.8%, to $3,310.7 million for the year
ended December 31, 2023 compared to $3,405.6 million for the
year ended December 31, 2022. Net premiums earned decreased by
$19.3 million, or 0.8%, to $2,280.6 million for the year
ended December 31, 2023 compared to $2,299.9 million for the
year ended December 31, 2022. The decreases in premium volume were
primarily driven by a decrease in the Reinsurance segment as we
execute the Restructuring Plan.
Core Results
Core results for the year ended December 31,
2023 included income of $291.4 million compared to $2.6 million for
the year ended December 31, 2022. The income for the year ended
December 31, 2023 consists of underwriting income of $250.2 million
(89.1% combined ratio) and net services income of $41.2 million,
compared to an underwriting loss of $34.8 million (101.6% combined
ratio) and net services income of $37.4 million for the year ended
December 31, 2022. The improvement in net underwriting results was
primarily driven by favorable prior year loss reserve development,
lower catastrophe losses and a favorable commission ratio, which
results in a higher underwriting gain. The increase in net services
income was primarily due to higher margins achieved in
Arcadian.
Losses incurred included $167.4 million of
favorable prior year loss reserve development for the year ended
December 31, 2023 compared to $13.5 million for the year ended
December 31, 2022. This increase in favorable prior year loss
reserve development was primarily the result of management
reflecting the continued favorable reported loss emergence through
December 31, 2023 in its best estimate of reserves, which was
further validated by the pricing of the 2023 LPT from external
reinsurers.
For the year ended December 31, 2023,
catastrophe losses, net of reinsurance and reinstatement premiums,
were $13.5 million, or 0.6 percentage points on the combined
ratio, which includes losses of $6.8 million from the Turkey
Earthquake, $3.8 million from the Hawaii wildfires and
$3.3 million from Hurricane Idalia, compared to $137.9
million, or 6.0 percentage points on the combined ratio for the
year ended December 31, 2022, including $80.8 million for
Hurricane Ian and $57.6 million for other catastrophe events,
including the South Africa floods and France hail storms.
Reinsurance Segment
Three months ended December 31, 2023 and
2022
Reinsurance generated underwriting income of
$27.8 million (88.6% combined ratio) for the three months
ended December 31, 2023, compared to underwriting income of
$9.8 million (96.5% combined ratio) for the three months ended
December 31, 2022. The improvement in net underwriting results was
primarily due to increased favorable prior year loss reserve
development.
Reinsurance gross premiums written were
$251.7 million for the three months ended December 31, 2023, a
decrease of $48.8 million, or 16.2%, compared to the three months
ended December 31, 2022, primarily driven by lower premiums written
in International reinsurance, primarily in the property lines, as
we execute the Restructuring Plan.
Year ended December 31, 2023 and 2022
Reinsurance generated underwriting income of
$206.2 million (80.0% combined ratio) for the year ended
December 31, 2023, compared to a loss of $66.9 million (105.6%
combined ratio) for the year ended December 31, 2022. The
improvement in net underwriting results was primarily due to higher
favorable prior year loss reserve development and lower catastrophe
losses.
Reinsurance gross premiums written were
$1,271.0 million for the year ended December 31, 2023, a
decrease of $250.4 million, or 16.5%, compared to the year
ended December 31, 2022, primarily driven by lower premiums written
in International reinsurance, primarily in the property lines, as
we execute the Restructuring Plan.
Insurance & Services Segment
Three months ended December 31, 2023 and
2022
Insurance & Services generated segment
income of $16.8 million for the three months ended December
31, 2023, compared to income of $27.8 million for the three
months ended December 31, 2022. Segment income for the three months
ended December 31, 2023 consists of underwriting income of
$9.2 million (97.0% combined ratio) and net services income of
$7.6 million, compared to an underwriting income of
$21.4 million (93.4% combined ratio) and net services income
of $6.4 million for the three months ended December 31, 2022.
The decrease in underwriting results was primarily due to lower
earned premium in Accident & Health and higher other
underwriting expense. The increase in services income was primarily
due to higher margins achieved in Arcadian.
Insurance & Services gross premiums written
were $468.1 million for the three months ended December 31, 2023,
an increase of $26.2 million, or 5.9%, compared to the three months
ended December 31, 2022, primarily driven by increases in premiums
from strategic partnerships, offset by decreases in Accident &
Health.
Year ended December 31, 2023 and 2022
Insurance & Services generated segment
income of $86.3 million for the year ended December 31, 2023,
compared to $69.7 million for the year ended December 31,
2022. Segment income for the year ended December 31, 2023 consists
of underwriting income of $44.0 million (96.5% combined ratio)
and net services income of $42.3 million, compared to
underwriting income of $32.1 million (97.0% combined ratio)
and net services income of $37.6 million for the year ended
December 31, 2022. The increase in underwriting results was
primarily driven by the increased favorable prior loss reserve
development. The increase in services income was primarily due to
higher margins achieved in Arcadian.
Insurance & Services gross premiums written
were $2,039.7 million for the year ended December 31, 2023, an
increase of $155.5 million, or 8.3%, compared to the year
ended December 31, 2022, primarily driven by growth in premiums
from strategic partnerships, partially offset by decreases in
Accident & Health.
Corporate
Corporate includes the results of all runoff
business, which represents certain classes of business that we no
longer actively underwrite, including the effect of the
Restructuring Plan and certain reinsurance contracts that have
interest crediting features. Corporate results also include
asbestos and environmental and other latent liability exposures on
a gross basis, which have mostly been ceded. For the three months
ended December 31, 2023, underwriting results reflect reserve
strengthening for specific areas of uncertainty for the loss
reserves.
Investments
Three months ended December 31, 2023 and
2022
Total investment results were $65.0 million for
the three months ended December 31, 2023, compared to $52.1 million
for the three months ended December 31, 2022.
Investment results for the three months ended
December 31, 2023 from our debt and short-term investment portfolio
were $68.5 million. This result was driven by interest income
primarily on securitized assets and corporate debt positions, which
make up 65.6% of our total investments as of December 31, 2023,
compared to 39.2% of our portfolio as of December 31, 2022.
Investment results for the three months ended
December 31, 2022 were primarily attributable to income on the
fixed income portfolio of $45.5 million and income from
short-term investments of $26.4 million, partially offset by
$16.0 million of losses on other long term investments, driven
by changes in the valuations of private investments.
Year ended December 31, 2023 and 2022
Total investment result for the year ended
December 31, 2023 was primarily attributable to net investment
income related to interest income from our debt and short-term
investment portfolio of $277.0 million. Increased investment
income is primarily due to increased interest rates and our
rotation of the portfolio from cash and cash equivalents and U.S.
government and government agency positions, to high-grade corporate
debt and other securitized assets, in an effort to better diversify
our portfolio.
Investment results for the year ended December
31, 2022 was primarily attributable to a net investment loss of
$202.0 million from our investment in the TP Enhanced Fund. We
also recognized losses of $80.5 million on our debt securities
and $10.6 million on the other long-term investment portfolio
due to revised valuations on private investments.
Webcast Details
The Company will hold a webcast to discuss its
fourth quarter 2023 results at 8:30 a.m. Eastern Time on February
21, 2024. The webcast of the conference call will be available over
the Internet from the Company’s website at www.siriuspt.com under
the “Investor Relations” section. Participants should follow the
instructions provided on the website to download and install any
necessary audio applications. The conference call will be available
by dialing 1-877-451-6152 (domestic) or 1-201-389-0879
(international). Participants should ask for the SiriusPoint Ltd.
fourth quarter 2023 earnings call.
The online replay will be available on the
Company's website immediately following the call at
www.siriuspt.com under the “Investor Relations” section.
Safe Harbor Statement Regarding
Forward-Looking Statements
This press release includes “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are subject to known
and unknown risks and uncertainties, many of which may be beyond
the Company’s control. The Company cautions you that the
forward-looking information presented in this press release is not
a guarantee of future events, and that actual events may differ
materially from those made in or suggested by the forward-looking
information contained in this press release. In addition,
forward-looking statements generally can be identified by the use
of forward-looking terminology such as “believes,” “intends,”
“seeks,” “anticipates,” “aims,” “plans,” “targets,” “estimates,”
“expects,” “assumes,” “continues,” “should,” “could,” “will,” “may”
and the negative of these or similar terms and phrases. Actual
events, results and outcomes may differ materially from the
Company’s expectations due to a variety of known and unknown risks,
uncertainties and other factors. Among the risks and uncertainties
that could cause actual results to differ from those described in
the forward-looking statements are the following: our ability to
execute on our strategic transformation, including re-underwriting
to reduce volatility and improving underwriting performance,
de-risking our investment portfolio, and transforming our business;
the impact of unpredictable catastrophic events including
uncertainties with respect to current and future COVID-19 losses
across many classes of insurance business and the amount of
insurance losses that may ultimately be ceded to the reinsurance
market, supply chain issues, labor shortages and related increased
costs, changing interest rates and equity market volatility;
inadequacy of loss and loss adjustment expense reserves, the lack
of available capital, and periods characterized by excess
underwriting capacity and unfavorable premium rates; the
performance of financial markets, impact of inflation and interest
rates, and foreign currency fluctuations; our ability to compete
successfully in the (re)insurance market and the effect of
consolidation in the (re)insurance industry; technology breaches or
failures, including those resulting from a malicious cyber-attack
on us, our business partners or service providers; the effects of
global climate change, including increased severity and frequency
of weather-related natural disasters and catastrophes and increased
coastal flooding in many geographic areas; geopolitical
uncertainty, including the ongoing conflicts in Europe and the
Middle East; our ability to retain key senior management and key
employees; a downgrade or withdrawal of our financial ratings;
fluctuations in our results of operations; legal restrictions on
certain of SiriusPoint’s insurance and reinsurance subsidiaries’
ability to pay dividends and other distributions to SiriusPoint;
the outcome of legal and regulatory proceedings and regulatory
constraints on our business; reduced returns or losses in
SiriusPoint’s investment portfolio; our exposure or potential
exposure to corporate income tax in Bermuda and the E.U., U.S.
federal income and withholding taxes and our significant deferred
tax assets, which could become devalued if we do not generate
future taxable income or applicable corporate tax rates are
reduced; risks associated with delegating authority to third party
managing general agents; future strategic transactions such as
acquisitions, dispositions, investments, mergers or joint ventures;
SiriusPoint’s response to any acquisition proposal that may be
received from any party, including any actions that may be
considered by the Company’s Board of Directors or any committee
thereof; and other risks and factors listed under "Risk Factors" in
the Company's most recent Annual Report on Form 10-K and other
subsequent periodic reports filed with the Securities and Exchange
Commission. All forward-looking statements speak only as of the
date made and the Company undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result
of new information, future events or otherwise.
Non-GAAP Financial Measures and Other
Financial Metrics
In presenting SiriusPoint’s results, management
has included financial measures that are not calculated under
standards or rules that comprise accounting principles generally
accepted in the United States (“GAAP”). SiriusPoint’s management
uses this information in its internal analysis of results and
believes that this information may be informative to investors in
gauging the quality of SiriusPoint’s financial performance,
identifying trends in our results and providing meaningful
period-to-period comparisons. Core underwriting income, Core net
services income, Core income, and Core combined ratio are non-GAAP
financial measures. Management believes it is useful to review Core
results as it better reflects how management views the business and
reflects the Company’s decision to exit the runoff business.
Tangible book value per diluted common share is also a non-GAAP
financial measure and the most comparable U.S. GAAP measure is book
value per common share. Tangible book value per diluted common
share excludes intangible assets. Starting in 2023, the Company
will no longer exclude restricted shares from the calculation of
Tangible Book Value per Diluted Common Share, as the unvested
restricted shares outstanding are no longer considered material.
The resulting change in Tangible Book Value per Diluted Common
Share is ($0.05) per share at December 31, 2023 and thus the
Company will no longer adjust the calculation. Further, management
believes that effects of intangible assets are not indicative of
underlying underwriting results or trends and make book value
comparisons to less acquisitive peer companies less meaningful. The
tangible book value per diluted common share is also useful because
it provides a more accurate measure of the realizable value of
shareholder returns, excluding intangible assets. Reconciliations
of such measures to the most comparable GAAP figures are included
in the attached financial information in accordance with Regulation
G.
About the Company
SiriusPoint is a global underwriter of insurance
and reinsurance providing solutions to clients and brokers around
the world. Bermuda-headquartered with offices in New York, London,
Stockholm and other locations, we are listed on the New York Stock
Exchange (SPNT). We have licenses to write Property & Casualty
and Accident & Health insurance and reinsurance globally. Our
offering and distribution capabilities are strengthened by a
portfolio of strategic partnerships with Managing General Agents
within our Insurance & Services segment. With over $3.0 billion
total capital, SiriusPoint’s operating companies have a financial
strength rating of A- (Excellent) from AM Best, S&P and Fitch.
For more information please visit www.siriuspt.com.
Contacts
Investor RelationsDhruv Gahlaut,
Head of Investor Relations and Chief Strategy
OfficerDhruv.gahlaut@siriuspt.com+44 7514 659 918
MediaNatalie King, Global Head of
Marketing and External CommunicationsNatalie.king@siriuspt.com+ 44
20 3772 3102
|
SIRIUSPOINT LTD.CONSOLIDATED BALANCE
SHEETS (UNAUDITED)As
of December 31,
2023 and December 31,
2022(expressed in millions of U.S. dollars, except
per share and share amounts) |
| |
| |
December 31,2023 |
|
December 31,2022 |
|
Assets |
|
|
|
|
Debt securities, available for sale, at fair value, net of
allowance for credit losses of $0.0 (2022 - $0.0) (cost - $4,754.6;
2022 - $2,678.1) |
$ |
4,755.4 |
|
|
$ |
2,635.5 |
|
|
Debt securities, trading, at fair value (cost - $568.1; 2022 -
$1,630.1) |
|
534.9 |
|
|
|
1,526.0 |
|
|
Short-term investments, at fair value (cost - $370.8; 2022 -
$984.5) |
|
371.6 |
|
|
|
984.6 |
|
|
Investments in related party investment funds, at fair value |
|
105.6 |
|
|
|
128.8 |
|
|
Other long-term investments, at fair value (cost - $367.2; 2022 -
$392.0) (includes related party investments at fair value of $173.7
(2022 - $201.2)) |
|
308.5 |
|
|
|
377.2 |
|
|
Equity securities, trading, at fair value (cost - $1.9; 2022 -
$1.8) |
|
1.6 |
|
|
|
1.6 |
|
|
Total investments |
|
6,077.6 |
|
|
|
5,653.7 |
|
|
Cash and cash equivalents |
|
969.2 |
|
|
|
705.3 |
|
|
Restricted cash and cash equivalents |
|
132.1 |
|
|
|
208.4 |
|
|
Redemption receivable from related party investment fund |
|
3.0 |
|
|
|
18.5 |
|
|
Due from brokers |
|
5.6 |
|
|
|
4.9 |
|
|
Interest and dividends receivable |
|
42.3 |
|
|
|
26.7 |
|
|
Insurance and reinsurance balances receivable, net |
|
1,966.3 |
|
|
|
1,876.9 |
|
|
Deferred acquisition costs, net |
|
308.9 |
|
|
|
294.9 |
|
|
Unearned premiums ceded |
|
449.2 |
|
|
|
348.8 |
|
|
Loss and loss adjustment expenses recoverable, net |
|
2,295.1 |
|
|
|
1,376.2 |
|
|
Deferred tax asset |
|
293.6 |
|
|
|
200.3 |
|
|
Intangible assets |
|
152.7 |
|
|
|
163.8 |
|
|
Other assets |
|
175.9 |
|
|
|
157.9 |
|
|
Total assets |
$ |
12,871.5 |
|
|
$ |
11,036.3 |
|
|
Liabilities |
|
|
|
|
Loss and loss adjustment expense reserves |
$ |
5,608.1 |
|
|
$ |
5,268.7 |
|
|
Unearned premium reserves |
|
1,627.3 |
|
|
|
1,521.1 |
|
|
Reinsurance balances payable |
|
1,736.7 |
|
|
|
813.6 |
|
|
Deposit liabilities |
|
134.4 |
|
|
|
140.5 |
|
|
Deferred gain on retroactive reinsurance |
|
27.9 |
|
|
|
— |
|
|
Debt |
|
786.2 |
|
|
|
778.0 |
|
|
Securities sold, not yet purchased, at fair value |
|
— |
|
|
|
27.0 |
|
|
Securities sold under an agreement to repurchase |
|
— |
|
|
|
18.0 |
|
|
Due to brokers |
|
6.2 |
|
|
|
— |
|
|
Deferred tax liability |
|
68.7 |
|
|
|
59.8 |
|
|
Liability-classified capital instruments |
|
67.3 |
|
|
|
60.4 |
|
|
Accounts payable, accrued expenses and other liabilities |
|
278.1 |
|
|
|
266.6 |
|
|
Total liabilities |
|
10,340.9 |
|
|
|
8,953.7 |
|
|
Commitments and contingent liabilities |
|
|
|
|
Shareholders’ equity |
|
|
|
|
Series B preference shares (par value $0.10; authorized and issued:
8,000,000) |
|
200.0 |
|
|
|
200.0 |
|
|
Common shares (issued and outstanding: 168,120,022; 2022 -
162,177,653) |
|
16.8 |
|
|
|
16.2 |
|
|
Additional paid-in capital |
|
1,693.0 |
|
|
|
1,641.3 |
|
|
Retained earnings |
|
601.0 |
|
|
|
262.2 |
|
|
Accumulated other comprehensive income (loss), net of tax |
|
3.1 |
|
|
|
(45.0 |
) |
|
Shareholders’ equity attributable to SiriusPoint
shareholders |
|
2,513.9 |
|
|
|
2,074.7 |
|
|
Noncontrolling interests |
|
16.7 |
|
|
|
7.9 |
|
|
Total shareholders’ equity |
|
2,530.6 |
|
|
|
2,082.6 |
|
|
Total liabilities, noncontrolling interests and
shareholders’ equity |
$ |
12,871.5 |
|
|
$ |
11,036.3 |
|
|
SIRIUSPOINT LTD.CONSOLIDATED STATEMENTS
OF INCOME (LOSS) (UNAUDITED)For
the three and twelve months ended December 31,
2023 and 2022(expressed in millions of
U.S. dollars, except per share and share amounts) |
|
|
| |
Three months ended |
|
Twelve months ended |
| |
December 31,2023 |
|
December 31,2022 |
|
December 31,2023 |
|
December 31,2022 |
|
Revenues |
|
|
|
|
|
|
|
|
Net premiums earned |
$ |
578.0 |
|
|
$ |
607.4 |
|
|
$ |
2,426.2 |
|
|
$ |
2,318.1 |
|
|
Net investment income |
|
78.4 |
|
|
|
51.9 |
|
|
|
283.7 |
|
|
|
113.3 |
|
|
Net realized and unrealized investment gains (losses) |
|
(12.4 |
) |
|
|
10.9 |
|
|
|
(10.0 |
) |
|
|
(225.5 |
) |
|
Net realized and unrealized investment losses from related party
investment funds |
|
(1.0 |
) |
|
|
(10.7 |
) |
|
|
(1.0 |
) |
|
|
(210.5 |
) |
|
Net investment income and net realized and unrealized investment
gains (losses) |
|
65.0 |
|
|
|
52.1 |
|
|
|
272.7 |
|
|
|
(322.7 |
) |
|
Other revenues |
|
2.8 |
|
|
|
14.1 |
|
|
|
38.4 |
|
|
|
110.2 |
|
|
Total revenues |
|
645.8 |
|
|
|
673.6 |
|
|
|
2,737.3 |
|
|
|
2,105.6 |
|
|
Expenses |
|
|
|
|
|
|
|
|
Loss and loss adjustment expenses incurred, net |
|
365.4 |
|
|
|
390.1 |
|
|
|
1,381.3 |
|
|
|
1,588.4 |
|
|
Acquisition costs, net |
|
111.7 |
|
|
|
113.0 |
|
|
|
472.7 |
|
|
|
461.9 |
|
|
Other underwriting expenses |
|
64.2 |
|
|
|
46.4 |
|
|
|
196.3 |
|
|
|
184.5 |
|
|
Net corporate and other expenses |
|
64.5 |
|
|
|
92.6 |
|
|
|
258.2 |
|
|
|
312.8 |
|
|
Intangible asset amortization |
|
2.9 |
|
|
|
2.1 |
|
|
|
11.1 |
|
|
|
8.1 |
|
|
Interest expense |
|
19.8 |
|
|
|
10.5 |
|
|
|
64.1 |
|
|
|
38.6 |
|
|
Foreign exchange (gains) losses |
|
19.2 |
|
|
|
61.5 |
|
|
|
34.9 |
|
|
|
(66.0 |
) |
|
Total expenses |
|
647.7 |
|
|
|
716.2 |
|
|
|
2,418.6 |
|
|
|
2,528.3 |
|
|
Income (loss) before income tax benefit |
|
(1.9 |
) |
|
|
(42.6 |
) |
|
|
318.7 |
|
|
|
(422.7 |
) |
|
Income tax benefit |
|
101.6 |
|
|
|
19.6 |
|
|
|
45.0 |
|
|
|
36.7 |
|
|
Net income (loss) |
|
99.7 |
|
|
|
(23.0 |
) |
|
|
363.7 |
|
|
|
(386.0 |
) |
|
Net (income) loss attributable to noncontrolling interests |
|
(2.2 |
) |
|
|
0.4 |
|
|
|
(8.9 |
) |
|
|
(0.8 |
) |
|
Net income (loss) available to SiriusPoint |
|
97.5 |
|
|
|
(22.6 |
) |
|
|
354.8 |
|
|
|
(386.8 |
) |
|
Dividends on Series B preference shares |
|
(4.0 |
) |
|
|
(4.0 |
) |
|
|
(16.0 |
) |
|
|
(16.0 |
) |
|
Net income (loss) available to SiriusPoint common
shareholders |
$ |
93.5 |
|
|
$ |
(26.6 |
) |
|
$ |
338.8 |
|
|
$ |
(402.8 |
) |
|
Earnings (loss) per share available to SiriusPoint common
shareholders |
|
|
|
|
|
|
|
|
Basic earnings (loss) per share available to SiriusPoint common
shareholders |
$ |
0.52 |
|
|
$ |
(0.17 |
) |
|
$ |
1.93 |
|
|
$ |
(2.51 |
) |
|
Diluted earnings (loss) per share available to SiriusPoint common
shareholders |
$ |
0.50 |
|
|
$ |
(0.17 |
) |
|
$ |
1.85 |
|
|
$ |
(2.51 |
) |
|
Weighted average number of common shares used in the
determination of earnings (loss) per share |
|
|
|
|
|
|
|
|
Basic |
|
166,640,624 |
|
|
|
160,459,088 |
|
|
|
163,341,448 |
|
|
|
160,228,588 |
|
|
Diluted |
|
173,609,940 |
|
|
|
160,459,088 |
|
|
|
169,607,348 |
|
|
|
160,228,588 |
|
| |
|
|
|
|
|
|
|
|
SIRIUSPOINT LTD.SEGMENT
REPORTING |
| |
| |
Three months ended December 31, 2023 |
| |
Reinsurance |
|
Insurance & Services |
|
Core |
|
Eliminations(2) |
|
Corporate |
|
SegmentMeasureReclass |
|
Total |
|
Gross premiums written |
$ |
251.7 |
|
|
$ |
468.1 |
|
|
$ |
719.8 |
|
|
$ |
— |
|
|
$ |
(4.2 |
) |
|
$ |
— |
|
|
$ |
715.6 |
|
|
Net premiums written |
|
194.9 |
|
|
|
263.3 |
|
|
|
458.2 |
|
|
|
— |
|
|
|
(3.6 |
) |
|
|
— |
|
|
|
454.6 |
|
|
Net premiums earned |
|
243.2 |
|
|
|
315.2 |
|
|
|
558.4 |
|
|
|
— |
|
|
|
19.6 |
|
|
|
— |
|
|
|
578.0 |
|
|
Loss and loss adjustment expenses incurred, net |
|
121.8 |
|
|
|
206.6 |
|
|
|
328.4 |
|
|
|
(1.4 |
) |
|
|
38.4 |
|
|
|
— |
|
|
|
365.4 |
|
|
Acquisition costs, net |
|
65.5 |
|
|
|
66.8 |
|
|
|
132.3 |
|
|
|
(31.6 |
) |
|
|
11.0 |
|
|
|
— |
|
|
|
111.7 |
|
|
Other underwriting expenses |
|
28.1 |
|
|
|
32.6 |
|
|
|
60.7 |
|
|
|
— |
|
|
|
3.5 |
|
|
|
— |
|
|
|
64.2 |
|
|
Underwriting income (loss) |
|
27.8 |
|
|
|
9.2 |
|
|
|
37.0 |
|
|
|
33.0 |
|
|
|
(33.3 |
) |
|
|
— |
|
|
|
36.7 |
|
|
Services revenues |
|
1.7 |
|
|
|
54.0 |
|
|
|
55.7 |
|
|
|
(40.0 |
) |
|
|
— |
|
|
|
(15.7 |
) |
|
|
— |
|
|
Services expenses |
|
— |
|
|
|
43.6 |
|
|
|
43.6 |
|
|
|
— |
|
|
|
— |
|
|
|
(43.6 |
) |
|
|
— |
|
|
Net services fee income |
|
1.7 |
|
|
|
10.4 |
|
|
|
12.1 |
|
|
|
(40.0 |
) |
|
|
— |
|
|
|
27.9 |
|
|
|
— |
|
|
Services noncontrolling income |
|
— |
|
|
|
(2.8 |
) |
|
|
(2.8 |
) |
|
|
— |
|
|
|
— |
|
|
|
2.8 |
|
|
|
— |
|
|
Net services income |
|
1.7 |
|
|
|
7.6 |
|
|
|
9.3 |
|
|
|
(40.0 |
) |
|
|
— |
|
|
|
30.7 |
|
|
|
— |
|
|
Segment income (loss) |
|
29.5 |
|
|
|
16.8 |
|
|
|
46.3 |
|
|
|
(7.0 |
) |
|
|
(33.3 |
) |
|
|
30.7 |
|
|
|
36.7 |
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
78.4 |
|
|
|
— |
|
|
|
78.4 |
|
|
Net realized and unrealized investment losses |
|
|
(12.4 |
) |
|
|
— |
|
|
|
(12.4 |
) |
|
Net realized and unrealized investment losses from related party
investment funds |
|
|
(1.0 |
) |
|
|
— |
|
|
|
(1.0 |
) |
|
Other revenues |
|
|
|
|
|
|
|
|
|
(12.9 |
) |
|
|
15.7 |
|
|
|
2.8 |
|
|
Net corporate and other expenses |
|
|
|
|
|
|
|
|
|
(20.9 |
) |
|
|
(43.6 |
) |
|
|
(64.5 |
) |
|
Intangible asset amortization |
|
|
|
|
|
|
|
|
|
(2.9 |
) |
|
|
— |
|
|
|
(2.9 |
) |
|
Interest expense |
|
|
|
|
|
|
|
|
|
(19.8 |
) |
|
|
— |
|
|
|
(19.8 |
) |
|
Foreign exchange losses |
|
|
|
|
|
|
|
|
|
(19.2 |
) |
|
|
— |
|
|
|
(19.2 |
) |
|
Income (loss) before income tax benefit |
$ |
29.5 |
|
|
$ |
16.8 |
|
|
|
46.3 |
|
|
|
(7.0 |
) |
|
|
(44.0 |
) |
|
|
2.8 |
|
|
|
(1.9 |
) |
|
Income tax benefit |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
101.6 |
|
|
|
— |
|
|
|
101.6 |
|
|
Net income |
|
|
|
|
|
46.3 |
|
|
|
(7.0 |
) |
|
|
57.6 |
|
|
|
2.8 |
|
|
|
99.7 |
|
|
Net (income) loss attributable to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
0.6 |
|
|
|
(2.8 |
) |
|
|
(2.2 |
) |
|
Net income available to SiriusPoint |
|
$ |
46.3 |
|
|
$ |
(7.0 |
) |
|
$ |
58.2 |
|
|
$ |
— |
|
|
$ |
97.5 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Ratios:(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss ratio |
|
50.1 |
% |
|
|
65.5 |
% |
|
|
58.8 |
% |
|
|
|
|
|
|
|
|
63.2 |
% |
|
Acquisition cost ratio |
|
26.9 |
% |
|
|
21.2 |
% |
|
|
23.7 |
% |
|
|
|
|
|
|
|
|
19.3 |
% |
|
Other underwriting expenses ratio |
|
11.6 |
% |
|
|
10.3 |
% |
|
|
10.9 |
% |
|
|
|
|
|
|
|
|
11.1 |
% |
|
Combined ratio |
|
88.6 |
% |
|
|
97.0 |
% |
|
|
93.4 |
% |
|
|
|
|
|
|
|
|
93.6 |
% |
(1) Underwriting ratios are calculated by
dividing the related expense by net premiums earned.
(2) Insurance & Services MGAs recognize fees
for service using revenue from contracts with customers accounting
standards, whereas insurance companies recognize acquisition
expenses using insurance contract accounting standards. While
ultimate revenues and expenses recognized will match, there will be
recognition timing differences based on the different accounting
standards.
| |
Three months ended December 31, 2022 |
| |
Reinsurance |
|
Insurance & Services |
|
Core |
|
Eliminations(2) |
|
Corporate |
|
SegmentMeasureReclass |
|
Total |
|
Gross premiums written |
$ |
300.5 |
|
|
$ |
441.9 |
|
|
$ |
742.4 |
|
|
$ |
— |
|
|
$ |
1.3 |
|
|
$ |
— |
|
|
$ |
743.7 |
|
|
Net premiums written |
|
236.1 |
|
|
|
340.4 |
|
|
|
576.5 |
|
|
|
— |
|
|
|
1.4 |
|
|
|
— |
|
|
|
577.9 |
|
|
Net premiums earned |
|
281.5 |
|
|
|
324.3 |
|
|
|
605.8 |
|
|
|
— |
|
|
|
1.6 |
|
|
|
— |
|
|
|
607.4 |
|
|
Loss and loss adjustment expenses incurred, net |
|
170.4 |
|
|
|
212.1 |
|
|
|
382.5 |
|
|
|
(1.4 |
) |
|
|
9.0 |
|
|
|
— |
|
|
|
390.1 |
|
|
Acquisition costs, net |
|
74.3 |
|
|
|
74.8 |
|
|
|
149.1 |
|
|
|
(32.2 |
) |
|
|
(3.9 |
) |
|
|
— |
|
|
|
113.0 |
|
|
Other underwriting expenses |
|
27.0 |
|
|
|
16.0 |
|
|
|
43.0 |
|
|
|
— |
|
|
|
3.4 |
|
|
|
— |
|
|
|
46.4 |
|
|
Underwriting income (loss) |
|
9.8 |
|
|
|
21.4 |
|
|
|
31.2 |
|
|
|
33.6 |
|
|
|
(6.9 |
) |
|
|
— |
|
|
|
57.9 |
|
|
Services revenues |
|
(3.6 |
) |
|
|
49.8 |
|
|
|
46.2 |
|
|
|
(30.5 |
) |
|
|
— |
|
|
|
(15.7 |
) |
|
|
— |
|
|
Services expenses |
|
— |
|
|
|
43.9 |
|
|
|
43.9 |
|
|
|
— |
|
|
|
— |
|
|
|
(43.9 |
) |
|
|
— |
|
|
Net services fee income (loss) |
|
(3.6 |
) |
|
|
5.9 |
|
|
|
2.3 |
|
|
|
(30.5 |
) |
|
|
— |
|
|
|
28.2 |
|
|
|
— |
|
|
Services noncontrolling loss |
|
— |
|
|
|
0.5 |
|
|
|
0.5 |
|
|
|
— |
|
|
|
— |
|
|
|
(0.5 |
) |
|
|
— |
|
|
Net services income (loss) |
|
(3.6 |
) |
|
|
6.4 |
|
|
|
2.8 |
|
|
|
(30.5 |
) |
|
|
— |
|
|
|
27.7 |
|
|
|
— |
|
|
Segment income (loss) |
|
6.2 |
|
|
|
27.8 |
|
|
|
34.0 |
|
|
|
3.1 |
|
|
|
(6.9 |
) |
|
|
27.7 |
|
|
|
57.9 |
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
51.9 |
|
|
|
— |
|
|
|
51.9 |
|
|
Net realized and unrealized investment gains |
|
|
10.9 |
|
|
|
— |
|
|
|
10.9 |
|
|
Net realized and unrealized investment losses from related party
investment funds |
|
|
(10.7 |
) |
|
|
— |
|
|
|
(10.7 |
) |
|
Other revenues |
|
|
|
|
|
|
|
|
|
(1.6 |
) |
|
|
15.7 |
|
|
|
14.1 |
|
|
Net corporate and other expenses |
|
|
|
|
|
|
|
|
|
(48.7 |
) |
|
|
(43.9 |
) |
|
|
(92.6 |
) |
|
Intangible asset amortization |
|
|
|
|
|
|
|
|
|
(2.1 |
) |
|
|
— |
|
|
|
(2.1 |
) |
|
Interest expense |
|
|
|
|
|
|
|
|
|
(10.5 |
) |
|
|
— |
|
|
|
(10.5 |
) |
|
Foreign exchange losses |
|
|
|
|
|
|
|
|
|
(61.5 |
) |
|
|
— |
|
|
|
(61.5 |
) |
|
Income (loss) before income tax benefit |
$ |
6.2 |
|
|
$ |
27.8 |
|
|
|
34.0 |
|
|
|
3.1 |
|
|
|
(79.2 |
) |
|
|
(0.5 |
) |
|
|
(42.6 |
) |
|
Income tax benefit |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
19.6 |
|
|
|
— |
|
|
|
19.6 |
|
|
Net income (loss) |
|
|
|
|
|
34.0 |
|
|
|
3.1 |
|
|
|
(59.6 |
) |
|
|
(0.5 |
) |
|
|
(23.0 |
) |
|
Net (income) loss attributable to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
0.5 |
|
|
|
0.4 |
|
|
Net income (loss) available to SiriusPoint |
|
$ |
34.0 |
|
|
$ |
3.1 |
|
|
$ |
(59.7 |
) |
|
$ |
— |
|
|
$ |
(22.6 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Ratios:(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss ratio |
|
60.5 |
% |
|
|
65.4 |
% |
|
|
63.1 |
% |
|
|
|
|
|
|
|
|
64.2 |
% |
|
Acquisition cost ratio |
|
26.4 |
% |
|
|
23.1 |
% |
|
|
24.6 |
% |
|
|
|
|
|
|
|
|
18.6 |
% |
|
Other underwriting expenses ratio |
|
9.6 |
% |
|
|
4.9 |
% |
|
|
7.1 |
% |
|
|
|
|
|
|
|
|
7.6 |
% |
|
Combined ratio |
|
96.5 |
% |
|
|
93.4 |
% |
|
|
94.8 |
% |
|
|
|
|
|
|
|
|
90.4 |
% |
(1) Underwriting ratios are calculated by
dividing the related expense by net premiums earned.
(2) Insurance & Services MGAs recognize fees
for service using revenue from contracts with customers accounting
standards, whereas insurance companies recognize acquisition
expenses using insurance contract accounting standards. While
ultimate revenues and expenses recognized will match, there will be
recognition timing differences based on the different accounting
standards.
| |
Twelve months ended December 31, 2023 |
| |
Reinsurance |
|
Insurance & Services |
|
Core |
|
Eliminations(2) |
|
Corporate |
|
Segment MeasureReclass |
|
Total |
|
Gross premiums written |
$ |
1,271.0 |
|
|
$ |
2,039.7 |
|
|
$ |
3,310.7 |
|
|
$ |
— |
|
|
$ |
116.7 |
|
|
$ |
— |
|
|
$ |
3,427.4 |
|
|
Net premiums written |
|
1,061.0 |
|
|
|
1,282.7 |
|
|
|
2,343.7 |
|
|
|
— |
|
|
|
94.2 |
|
|
|
— |
|
|
|
2,437.9 |
|
|
Net premiums earned |
|
1,031.4 |
|
|
|
1,249.2 |
|
|
|
2,280.6 |
|
|
|
— |
|
|
|
145.6 |
|
|
|
— |
|
|
|
2,426.2 |
|
|
Loss and loss adjustment expenses incurred, net |
|
490.3 |
|
|
|
815.4 |
|
|
|
1,305.7 |
|
|
|
(5.4 |
) |
|
|
81.0 |
|
|
|
— |
|
|
|
1,381.3 |
|
|
Acquisition costs, net |
|
252.2 |
|
|
|
295.5 |
|
|
|
547.7 |
|
|
|
(137.2 |
) |
|
|
62.2 |
|
|
|
— |
|
|
|
472.7 |
|
|
Other underwriting expenses |
|
82.7 |
|
|
|
94.3 |
|
|
|
177.0 |
|
|
|
— |
|
|
|
19.3 |
|
|
|
— |
|
|
|
196.3 |
|
|
Underwriting income (loss) |
|
206.2 |
|
|
|
44.0 |
|
|
|
250.2 |
|
|
|
142.6 |
|
|
|
(16.9 |
) |
|
|
— |
|
|
|
375.9 |
|
|
Services revenues |
|
(1.1 |
) |
|
|
238.6 |
|
|
|
237.5 |
|
|
|
(149.6 |
) |
|
|
— |
|
|
|
(87.9 |
) |
|
|
— |
|
|
Services expenses |
|
— |
|
|
|
187.8 |
|
|
|
187.8 |
|
|
|
— |
|
|
|
— |
|
|
|
(187.8 |
) |
|
|
— |
|
|
Net services fee income (loss) |
|
(1.1 |
) |
|
|
50.8 |
|
|
|
49.7 |
|
|
|
(149.6 |
) |
|
|
— |
|
|
|
99.9 |
|
|
|
— |
|
|
Services noncontrolling income |
|
— |
|
|
|
(8.5 |
) |
|
|
(8.5 |
) |
|
|
— |
|
|
|
— |
|
|
|
8.5 |
|
|
|
— |
|
|
Net services income (loss) |
|
(1.1 |
) |
|
|
42.3 |
|
|
|
41.2 |
|
|
|
(149.6 |
) |
|
|
— |
|
|
|
108.4 |
|
|
|
— |
|
|
Segment income (loss) |
|
205.1 |
|
|
|
86.3 |
|
|
|
291.4 |
|
|
|
(7.0 |
) |
|
|
(16.9 |
) |
|
|
108.4 |
|
|
|
375.9 |
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
283.7 |
|
|
|
— |
|
|
|
283.7 |
|
|
Net realized and unrealized investment losses |
|
|
(10.0 |
) |
|
|
— |
|
|
|
(10.0 |
) |
|
Net realized and unrealized investment losses from related party
investment funds |
|
|
(1.0 |
) |
|
|
— |
|
|
|
(1.0 |
) |
|
Other revenues |
|
|
|
|
|
|
|
|
|
(49.5 |
) |
|
|
87.9 |
|
|
|
38.4 |
|
|
Net corporate and other expenses |
|
|
|
|
|
|
|
|
|
(70.4 |
) |
|
|
(187.8 |
) |
|
|
(258.2 |
) |
|
Intangible asset amortization |
|
|
|
|
|
|
|
|
|
(11.1 |
) |
|
|
— |
|
|
|
(11.1 |
) |
|
Interest expense |
|
|
|
|
|
|
|
|
|
(64.1 |
) |
|
|
— |
|
|
|
(64.1 |
) |
|
Foreign exchange losses |
|
|
|
|
|
|
|
|
|
(34.9 |
) |
|
|
— |
|
|
|
(34.9 |
) |
|
Income before income tax benefit |
$ |
205.1 |
|
|
$ |
86.3 |
|
|
|
291.4 |
|
|
|
(7.0 |
) |
|
|
25.8 |
|
|
|
8.5 |
|
|
|
318.7 |
|
|
Income tax benefit |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
45.0 |
|
|
|
— |
|
|
|
45.0 |
|
|
Net income |
|
|
|
|
|
291.4 |
|
|
|
(7.0 |
) |
|
|
70.8 |
|
|
|
8.5 |
|
|
|
363.7 |
|
|
Net income attributable to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
(0.4 |
) |
|
|
(8.5 |
) |
|
|
(8.9 |
) |
|
Net income available to SiriusPoint |
|
$ |
291.4 |
|
|
$ |
(7.0 |
) |
|
$ |
70.4 |
|
|
$ |
— |
|
|
$ |
354.8 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Ratios:(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss ratio |
|
47.5 |
% |
|
|
65.3 |
% |
|
|
57.3 |
% |
|
|
|
|
|
|
|
|
56.9 |
% |
|
Acquisition cost ratio |
|
24.5 |
% |
|
|
23.7 |
% |
|
|
24.0 |
% |
|
|
|
|
|
|
|
|
19.5 |
% |
|
Other underwriting expenses ratio |
|
8.0 |
% |
|
|
7.5 |
% |
|
|
7.8 |
% |
|
|
|
|
|
|
|
|
8.1 |
% |
|
Combined ratio |
|
80.0 |
% |
|
|
96.5 |
% |
|
|
89.1 |
% |
|
|
|
|
|
|
|
|
84.5 |
% |
(1) Underwriting ratios are calculated by dividing
the related expense by net premiums earned.(2) Insurance &
Services MGAs recognize fees for service using revenue from
contracts with customers accounting standards, whereas insurance
companies recognize acquisition expenses using insurance contract
accounting standards. While ultimate revenues and expenses
recognized will match, there will be recognition timing differences
based on the different accounting standards.
| |
Twelve months ended December 31, 2022 |
| |
Reinsurance |
|
Insurance & Services |
|
Core |
|
Eliminations(2) |
|
Corporate |
|
SegmentMeasureReclass |
|
Total |
|
Gross premiums written |
$ |
1,521.4 |
|
|
$ |
1,884.2 |
|
|
$ |
3,405.6 |
|
|
$ |
— |
|
|
$ |
4.1 |
|
|
$ |
— |
|
|
$ |
3,409.7 |
|
|
Net premiums written |
|
1,199.6 |
|
|
|
1,346.0 |
|
|
|
2,545.6 |
|
|
|
— |
|
|
|
3.6 |
|
|
|
— |
|
|
|
2,549.2 |
|
|
Net premiums earned |
|
1,213.1 |
|
|
|
1,086.8 |
|
|
|
2,299.9 |
|
|
|
— |
|
|
|
18.2 |
|
|
|
— |
|
|
|
2,318.1 |
|
|
Loss and loss adjustment expenses incurred, net |
|
855.9 |
|
|
|
718.7 |
|
|
|
1,574.6 |
|
|
|
(5.2 |
) |
|
|
19.0 |
|
|
|
— |
|
|
|
1,588.4 |
|
|
Acquisition costs, net |
|
310.3 |
|
|
|
273.2 |
|
|
|
583.5 |
|
|
|
(118.6 |
) |
|
|
(3.0 |
) |
|
|
— |
|
|
|
461.9 |
|
|
Other underwriting expenses |
|
113.8 |
|
|
|
62.8 |
|
|
|
176.6 |
|
|
|
— |
|
|
|
7.9 |
|
|
|
— |
|
|
|
184.5 |
|
|
Underwriting income (loss) |
|
(66.9 |
) |
|
|
32.1 |
|
|
|
(34.8 |
) |
|
|
123.8 |
|
|
|
(5.7 |
) |
|
|
— |
|
|
|
83.3 |
|
|
Services revenues |
|
(0.2 |
) |
|
|
215.7 |
|
|
|
215.5 |
|
|
|
(133.4 |
) |
|
|
— |
|
|
|
(82.1 |
) |
|
|
— |
|
|
Services expenses |
|
— |
|
|
|
179.2 |
|
|
|
179.2 |
|
|
|
— |
|
|
|
— |
|
|
|
(179.2 |
) |
|
|
— |
|
|
Net services fee income (loss) |
|
(0.2 |
) |
|
|
36.5 |
|
|
|
36.3 |
|
|
|
(133.4 |
) |
|
|
— |
|
|
|
97.1 |
|
|
|
— |
|
|
Services noncontrolling loss |
|
— |
|
|
|
1.1 |
|
|
|
1.1 |
|
|
|
— |
|
|
|
— |
|
|
|
(1.1 |
) |
|
|
— |
|
|
Net services income (loss) |
|
(0.2 |
) |
|
|
37.6 |
|
|
|
37.4 |
|
|
|
(133.4 |
) |
|
|
— |
|
|
|
96.0 |
|
|
|
— |
|
|
Segment income (loss) |
|
(67.1 |
) |
|
|
69.7 |
|
|
|
2.6 |
|
|
|
(9.6 |
) |
|
|
(5.7 |
) |
|
|
96.0 |
|
|
|
83.3 |
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
113.3 |
|
|
|
— |
|
|
|
113.3 |
|
|
Net realized and unrealized investment losses |
|
|
(225.5 |
) |
|
|
— |
|
|
|
(225.5 |
) |
|
Net realized and unrealized investment losses from related party
investment funds |
|
|
(210.5 |
) |
|
|
— |
|
|
|
(210.5 |
) |
|
Other revenues |
|
|
|
|
|
|
|
|
|
28.1 |
|
|
|
82.1 |
|
|
|
110.2 |
|
|
Net corporate and other expenses |
|
|
|
|
|
|
|
|
|
(133.6 |
) |
|
|
(179.2 |
) |
|
|
(312.8 |
) |
|
Intangible asset amortization |
|
|
|
|
|
|
|
|
|
(8.1 |
) |
|
|
— |
|
|
|
(8.1 |
) |
|
Interest expense |
|
|
|
|
|
|
|
|
|
(38.6 |
) |
|
|
— |
|
|
|
(38.6 |
) |
|
Foreign exchange gains |
|
|
|
|
|
|
|
|
|
66.0 |
|
|
|
— |
|
|
|
66.0 |
|
|
Income (loss) before income tax benefit |
$ |
(67.1 |
) |
|
$ |
69.7 |
|
|
|
2.6 |
|
|
|
(9.6 |
) |
|
|
(414.6 |
) |
|
|
(1.1 |
) |
|
|
(422.7 |
) |
|
Income tax benefit |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
36.7 |
|
|
|
— |
|
|
|
36.7 |
|
|
Net income (loss) |
|
|
|
|
|
2.6 |
|
|
|
(9.6 |
) |
|
|
(377.9 |
) |
|
|
(1.1 |
) |
|
|
(386.0 |
) |
|
Net income attributable to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
(1.9 |
) |
|
|
1.1 |
|
|
|
(0.8 |
) |
|
Net income (loss) available to SiriusPoint |
|
$ |
2.6 |
|
|
$ |
(9.6 |
) |
|
$ |
(379.8 |
) |
|
$ |
— |
|
|
$ |
(386.8 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Ratios:(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss ratio |
|
70.6 |
% |
|
|
66.1 |
% |
|
|
68.5 |
% |
|
|
|
|
|
|
|
|
68.5 |
% |
|
Acquisition cost ratio |
|
25.6 |
% |
|
|
25.1 |
% |
|
|
25.4 |
% |
|
|
|
|
|
|
|
|
19.9 |
% |
|
Other underwriting expenses ratio |
|
9.4 |
% |
|
|
5.8 |
% |
|
|
7.7 |
% |
|
|
|
|
|
|
|
|
8.0 |
% |
|
Combined ratio |
|
105.6 |
% |
|
|
97.0 |
% |
|
|
101.6 |
% |
|
|
|
|
|
|
|
|
96.4 |
% |
(1) Underwriting ratios are calculated by
dividing the related expense by net premiums earned.
(2) Insurance & Services MGAs recognize fees
for service using revenue from contracts with customers accounting
standards, whereas insurance companies recognize acquisition
expenses using insurance contract accounting standards. While
ultimate revenues and expenses recognized will match, there will be
recognition timing differences based on the different accounting
standards.
SIRIUSPOINT LTD.NON-GAAP
FINANCIAL MEASURES AND RECONCILIATIONS & OTHER FINANCIAL
MEASURES
Non-GAAP Financial Measures
Core Results
Collectively, the sum of the Company's two
segments, Reinsurance and Insurance & Services, constitute
"Core" results. Core underwriting income, Core net services income,
Core income and Core combined ratio are non-GAAP financial
measures. We believe it is useful to review Core results as it
better reflects how management views the business and reflects our
decision to exit the runoff business. The sum of Core results and
Corporate results are equal to the consolidated results of
operations.
Core underwriting income - calculated by
subtracting loss and loss adjustment expenses incurred, net,
acquisition costs, net, and other underwriting expenses from net
premiums earned.
Core net services income - consists of services
revenues which include commissions, brokerage and fee income
related to consolidated MGAs, and other revenues, and services
expenses which include direct expenses related to consolidated
MGAs, services noncontrolling income which represent minority
ownership interests in consolidated MGAs. Net investment gains
(losses) from Strategic investments which are net investment gains
(losses) from our investment holdings, are no longer included in
Core net services income, with comparative financial periods
restated. Net services income is a key indicator of the
profitability of the Company's services provided.
Core income - consists of two components, core
underwriting income and core net services income. Core income is a
key measure of our segment performance.
Core combined ratio - calculated by dividing the
sum of Core loss and loss adjustment expenses incurred, net,
acquisition costs, net and other underwriting expenses by Core net
premiums earned. Accident year loss ratio and accident year
combined ratio are calculated by excluding prior year loss reserve
development to present the impact of current accident year net loss
and loss adjustment expenses on the Core loss ratio and Core
combined ratio, respectively. Attritional loss ratio excludes
catastrophe losses from the accident year loss ratio as they are
not predictable as to timing and amount. These ratios are useful
indicators of our underwriting profitability.
Tangible Book Value Per Diluted Common
Share
Tangible book value per diluted common share, as
presented, is a non-GAAP financial measure and the most comparable
U.S. GAAP measure is book value per common share. Tangible book
value per diluted common share excludes intangible assets. Starting
in 2023, the Company will no longer exclude restricted shares from
calculation of Tangible Book Value per Diluted Common Share, as the
unvested restricted shares outstanding are no longer considered
material. The resulting change in Tangible Book Value per Diluted
Common Share is ($0.05) per share at December 31, 2023 and thus the
Company will no longer adjust the calculation. Further, management
believes that effects of intangible assets are not indicative of
underlying underwriting results or trends and make book value
comparisons to less acquisitive peer companies less meaningful. The
tangible book value per diluted common share is also useful because
it provides a more accurate measure of the realizable value of
shareholder returns, excluding intangible assets.
The following table sets forth the computation
of book value per common share, book value per diluted common share
and tangible book value per diluted common share as of December 31,
2023 and December 31, 2022:
| |
December 31,2023 |
|
December 31,2022 |
| |
($ in millions, except share and per share
amounts) |
|
Common shareholders’ equity attributable to SiriusPoint common
shareholders |
$ |
2,313.9 |
|
|
$ |
1,874.7 |
|
|
Intangible assets |
|
(152.7 |
) |
|
|
(163.8 |
) |
|
Tangible common shareholders' equity attributable to SiriusPoint
common shareholders |
$ |
2,161.2 |
|
|
$ |
1,710.9 |
|
| |
|
|
|
|
Common shares outstanding |
|
168,120,022 |
|
|
|
162,177,653 |
|
|
Effect of dilutive stock options, restricted share units, warrants
and Series A preference shares |
|
5,193,920 |
|
|
|
3,492,795 |
|
|
Book value per diluted common share denominator |
|
173,313,942 |
|
|
|
165,670,448 |
|
|
Unvested restricted shares |
|
— |
|
|
|
(1,708,608 |
) |
|
Tangible book value per diluted common share denominator |
|
173,313,942 |
|
|
|
163,961,840 |
|
| |
|
|
|
|
Book value per common share |
$ |
13.76 |
|
|
$ |
11.56 |
|
|
Book value per diluted common share |
$ |
13.35 |
|
|
$ |
11.32 |
|
|
Tangible book value per diluted common share |
$ |
12.47 |
|
|
$ |
10.43 |
|
Other Financial Measures
Annualized Return on Average Common
Shareholders’ Equity Attributable to SiriusPoint Common
Shareholders
Annualized return on average common
shareholders’ equity attributable to SiriusPoint common
shareholders is calculated by dividing annualized net income (loss)
available to SiriusPoint common shareholders for the period by the
average common shareholders’ equity determined using the common
shareholders’ equity balances at the beginning and end of the
period.
Annualized return on average common
shareholders’ equity attributable to SiriusPoint common
shareholders for the three and twelve months ended December 31,
2023 and 2022 was calculated as follows:
| |
Three months ended |
|
Twelve months ended |
| |
December 31,2023 |
|
December 31,2022 |
|
December 31,2023 |
|
December 31,2022 |
| |
($ in millions) |
|
Net income (loss) available to SiriusPoint common shareholders |
$ |
93.5 |
|
|
$ |
(26.6 |
) |
|
$ |
338.8 |
|
|
$ |
(402.8 |
) |
|
Common shareholders’ equity attributable to SiriusPoint common
shareholders - beginning of period |
|
2,050.0 |
|
|
|
1,884.5 |
|
|
|
1,874.7 |
|
|
|
2,303.7 |
|
|
Common shareholders’ equity attributable to SiriusPoint common
shareholders - end of period |
|
2,313.9 |
|
|
|
1,874.7 |
|
|
|
2,313.9 |
|
|
|
1,874.7 |
|
|
Average common shareholders’ equity attributable to SiriusPoint
common shareholders |
$ |
2,182.0 |
|
|
$ |
1,879.6 |
|
|
$ |
2,094.3 |
|
|
$ |
2,089.2 |
|
|
Annualized return on average common shareholders’ equity
attributable to SiriusPoint common shareholders |
|
17.1 |
% |
|
|
(5.7 |
)% |
|
|
16.2 |
% |
|
|
(19.3 |
)% |
SiriusPoint (NYSE:SPNT)
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