SiriusPoint Ltd. (“SiriusPoint” or the “Company”) (NYSE:SPNT) today
announced results for its second quarter ended June 30, 2023.
- Building on the
progress made during the last three quarters as we report positive
capital generation across all business areas and deliver on key
strategic priorities
- Capital position is
even stronger following the closure of the loss portfolio transfer,
asset and financial leverage remains stable while our investment
portfolio remains defensively positioned
- Targeting
double-digit return on average common equity in 2023, reiterating
guidance on 2024 cost savings of >$50 million and 2023 net
investment income of $220-240 million
Scott Egan, Chief Executive Officer, said: “This
quarter has been a positive one for SiriusPoint with all three
areas of our business performing well as we continue our journey to
improve the performance of the company.
Our underwriting results are strong, with a
combined ratio of 84.4% for our core operations. Our investment
portfolio remains focused on high quality, fixed income instruments
and we are tracking to the top-end of our full year 2023 net
investment income guidance of $220 million to $240 million.
Run-rate costs have been reduced by $35 million to $40 million
versus previous year on an underlying basis and we are confident on
our target of more than $50 million reduction by the end of 2024.
The balance sheet is even stronger now given we have closed the
loss portfolio transfer deal, releasing more than $150 million of
capital and aligning our balance sheet to the go forward strategy.
Finally, all areas of our business are capital generating and we
are on track to hit double-digit ROE this year.
We are also making significant progress to
improve culture and employee engagement with the intention to
create a high performing organization. We have great talent across
the organization and I am proud of their efforts in delivering
these results.
Exploratory discussions with Mr. Daniel Loeb
regarding a potential acquisition began and concluded this quarter,
following his 13-D filing, and we appreciate the Special Committee
of the Board’s support of our strategy. We welcomed Bronek Masojada
to the role of Chair of the Board. He is a proven industry leader
with over 30 years of insurance experience, who will further
strengthen our Board.
Our focus on executing well against our strategy
continues and with each quarter that passes, we build more
credibility and track record. Our aim is to keep doing this and I
look forward to sharing further progress later in the year.”
Second Quarter
2023 Highlights
- Net income
available to SiriusPoint common shareholders of $66 million, or
$0.37 per diluted common share
- Consolidated
combined ratio of 81.9%, underwriting income of $127 million
- Core income of $85
million, which includes underwriting income of $82 million, Core
combined ratio of 87.7%
- Net investment
income of $69 million and total investment result of $66
million
- Tangible book value
per diluted common share remained relatively stable from
March 31, 2023
- Annualized return
on average common equity of 13.0%
- Asset duration
increased to 2.5 years, from 2.1 years at March 31, 2023
Half Year 2023
Highlights
- Net income
available to SiriusPoint common shareholders of $205 million, or
$1.14 per diluted common share
- Consolidated
combined ratio of 78.2%, underwriting income of $284 million
- Core income of $206
million, which includes underwriting income of $189 million, Core
combined ratio of 84.4%
- Core net services
fee income of $28 million, up 9.5% from the six months ended June
30, 2022, with service margin stable at 22.5%
- Net investment
income of $130 million and total investment result of $140
million
- Tangible book value
per diluted common share increased $0.96, or 9.2%, from December
31, 2022 to $11.39 per share
- Annualized return
on average common equity of 20.9%
Key Financial Metrics
The following table shows certain key financial
metrics for the three and six months ended June 30, 2023 and
2022:
| |
Three months ended |
|
Six months ended |
| |
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
| |
|
| |
($ in millions, except for per share data and
ratios) |
|
Combined ratio |
|
81.9 |
% |
|
|
93.1 |
% |
|
|
78.2 |
% |
|
|
93.4 |
% |
| Core underwriting income
(1) |
$ |
81.7 |
|
|
$ |
9.6 |
|
|
$ |
189.1 |
|
|
$ |
22.3 |
|
| Core net services income
(1) |
$ |
3.6 |
|
|
$ |
10.6 |
|
|
$ |
16.4 |
|
|
$ |
24.6 |
|
| Core income (1) |
$ |
85.3 |
|
|
$ |
20.2 |
|
|
$ |
205.5 |
|
|
$ |
46.9 |
|
| Core combined ratio (1) |
|
87.7 |
% |
|
|
98.3 |
% |
|
|
84.4 |
% |
|
|
98.0 |
% |
| Annualized return on average
common shareholders’ equity attributable to SiriusPoint common
shareholders |
|
13.0 |
% |
|
|
(11.8 |
)% |
|
|
20.9 |
% |
|
|
(25.7 |
)% |
| Book value per common share
(2) |
$ |
12.59 |
|
|
$ |
11.56 |
|
|
$ |
12.59 |
|
|
$ |
11.56 |
|
| Book value per diluted common
share (2) |
$ |
12.29 |
|
|
$ |
11.32 |
|
|
$ |
12.29 |
|
|
$ |
11.32 |
|
| Tangible book value per
diluted common share (1)(2) |
$ |
11.39 |
|
|
$ |
10.43 |
|
|
$ |
11.39 |
|
|
$ |
10.43 |
|
(1) Core underwriting income, 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.”
(2) Prior year comparatives represent amounts as of
December 31, 2022.
Second Quarter
2023 Summary
Consolidated underwriting income for the three
months ended June 30, 2023 was $127.3 million compared to $38.8
million for the three months ended June 30, 2022. The improvement
in net underwriting results was driven by improved favorable prior
year loss reserve development of $33.0 million for the three
months ended June 30, 2023 compared to $6.4 million for the
three months ended June 30, 2022. This increase in favorable prior
year loss reserve development was primarily the result of
management reflecting the continued favorable reported loss
emergence through June 30, 2023 in its best estimate of reserves,
which was further validated by the pricing of the loss portfolio
transfer transaction (“2023 LPT”) from external reinsurers,
including $16.6 million resulting from a reduction in
unallocated loss adjustment expenses related to the claims that
will no longer be managed by SiriusPoint under the terms of the
2023 LPT. In addition, there were no property catastrophe losses
for the three months ended June 30, 2023 compared to
$16.2 million for the three months ended June 30, 2022.
Consolidated underwriting income for the six
months ended June 30, 2023 was $283.8 million compared to $72.3
million for the six months ended June 30, 2022. The improvement in
net underwriting results was driven by improved favorable prior
year loss reserve development of $138.4 million for the six months
ended June 30, 2023 compared to $11.9 million for the six months
ended June 30, 2022. This increase in favorable prior year loss
reserve development was primarily the result of management
reflecting the continued favorable reported loss emergence through
June 30, 2023 in its best estimate of reserves, which was further
validated by the pricing of the 2023 LPT from external reinsurers,
which represents $118.2 million of the favorable prior year
loss reserve development. In addition, catastrophe losses, net of
reinsurance and reinstatement premiums, were $12.9 million, or
1.0 percentage points on the combined ratio, for the six months
ended June 30, 2023, compared to $23.1 million, or 2.1
percentage points on the combined ratio, for the six months ended
June 30, 2022. 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.
Core Underwriting Results
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 June 30, 2023 and 2022
Core results for the three months ended June 30,
2023 included income of $85.3 million compared to income of
$20.2 million for the three months ended June 30, 2022. Income for
the three months ended June 30, 2023 consists of underwriting
income of $81.7 million (87.7% combined ratio) and net
services income of $3.6 million, compared to underwriting
income of $9.6 million (98.3% combined ratio) and net services
income of $10.6 million for the three months ended June 30, 2022.
The improvement in net underwriting results was primarily driven by
increased favorable prior year loss reserve development, lower
catastrophe losses and favorable expense ratios (both commission
and other underwriting expense ratios), which results in a higher
underwriting gain. Net services income for the three months ended
June 30, 2023 included net investment losses from Strategic
Investments of $4.1 million compared to losses of
$0.5 million for the three months ended June 30, 2022.
Losses incurred included $25.2 million of
favorable prior year loss reserve development for the three months
ended June 30, 2023, compared to $1.5 million for the three
months ended June 30, 2022. For the three months ended June 30,
2023, favorable prior year loss reserve development was driven by
decreases in the domestic and international property and casualty
lines of business in the Reinsurance segment, partially offset by
loss emergence in the property and casualty business lines in the
Insurance & Service segment. This increase in favorable prior
year loss reserve development was primarily the result of
management reflecting the continued favorable reported loss
emergence through June 30, 2023 in its best estimate of reserves,
which was further validated by the pricing of the 2023 LPT from
external reinsurers, in addition to a reduction in unallocated loss
adjustment expense reserves related to the claims that will no
longer be managed by SiriusPoint under the terms of the 2023
LPT.
For the three months ended June 30, 2023, there
were no significant catastrophe losses compared to
$16.2 million, or 2.9 percentage points on the combined ratio,
for the three months ended June 30, 2022.
Six months ended June 30, 2023 and 2022
Core results for the six months ended June 30,
2023 included income of $205.5 million compared to income of $46.9
million for the six months ended June 30, 2022. The income for the
six months ended June 30, 2023 consists of an underwriting income
of $189.1 million (84.4% combined ratio) and net services income of
$16.4 million, compared to an underwriting income of $22.3 million
(98.0% combined ratio) and net services income of $24.6 million for
the six months ended June 30, 2022. The improvement in net
underwriting results was primarily driven by favorable prior year
loss reserve development, lower catastrophe losses, and favorable
expense ratios (both commission and other underwriting expense
ratios), which results in a higher underwriting gain. Net services
income for the six months ended June 30, 2023 included net
investment losses from Strategic Investments of $8.0 million
compared to losses of $0.8 million for the six months ended
June 30, 2022.
Losses incurred included $117.1 million of
favorable prior year loss reserve development for the six months
ended June 30, 2023 compared to favorable prior year loss reserve
development of $6.5 million for the six months ended June 30,
2022. This increase in favorable prior year loss reserve
development was primarily the result of management reflecting the
continued favorable reported loss emergence through June 30, 2023
in its best estimate of reserves, which was further validated by
the pricing of the 2023 LPT from external reinsurers, in addition
to a reduction in unallocated loss adjustment expense reserves
related to the claims that will no longer be managed by SiriusPoint
under the terms of the 2023 LPT.
For the six months ended June 30, 2023,
catastrophe losses, net of reinsurance and reinstatement premiums,
were $7.0 million, or 0.6 percentage points on the combined
ratio, compared to $23.1 million, or 2.1 percentage points on
the combined ratio for the six months ended June 30, 2022. For the
six months ended June 30, 2022, losses from the Russia/Ukraine
conflict, including losses from the political risk, trade credit,
and aviation lines of business, were $13.2 million, or 1.2
percentage points on the combined ratio.
Reinsurance Segment
Three months ended June 30, 2023 and 2022
Reinsurance generated underwriting income of
$79.3 million (75.3% combined ratio) for the three months
ended June 30, 2023, compared to an underwriting loss of
$0.2 million (100.1% combined ratio) for the three months
ended June 30, 2022. The improvement in net underwriting results
was primarily due to increased favorable prior year loss reserve
development and lower catastrophe losses.
Reinsurance gross premiums written were
$387.1 million for the three months ended June 30, 2023, an
increase of $8.8 million, or 2.3%, compared to the three months
ended June 30, 2022, driven by growth in the property and casualty
lines of business in the North America reinsurance business,
partially offset by lower writings in International reinsurance,
primarily in the property lines, as we execute the Restructuring
Plan.
Six months ended June 30, 2023 and 2022
Reinsurance generated underwriting income of
$156.4 million (72.5% combined ratio) for the six months ended
June 30, 2023, compared to $2.9 million (99.6% combined ratio)
for the six months ended June 30, 2022. The improvement in net
underwriting results for the six months ended June 30, 2023
compared to the six months ended June 30, 2022 was primarily due to
higher favorable prior year loss reserve development and lower
catastrophe losses.
Reinsurance gross premiums written were
$783.3 million for the six months ended June 30, 2023, a
decrease of $119.2 million, or 13.2%, compared to the six
months ended June 30, 2022, driven by lower writings in
International reinsurance, primarily in the property lines, as we
execute the Restructuring Plan.
Insurance & Services Segment
Three months ended June 30, 2023 and 2022
Insurance & Services generated segment
income of $8.8 million for the three months ended June 30,
2023, compared to $20.4 million for the three months ended
June 30, 2022. Segment income for the three months ended June 30,
2023 consists of underwriting income of $2.4 million (99.2%
combined ratio) and net services income of $6.4 million,
compared to underwriting income of $9.8 million (96.1%
combined ratio) and net services income of $10.6 million for
the three months ended June 30, 2022. The decrease in underwriting
results was primarily due to decreased favorable prior year loss
reserve development from loss emergence from certain strategic
partnerships. The decrease in services income was primarily due to
net investment losses from Strategic Investments of
$4.1 million for the three months ended June 30, 2023 compared
to $0.5 million for the three months ended June 30, 2022.
Insurance & Services gross premiums written
were $462.7 million for the three months ended June 30, 2023, an
increase of $28.8 million, or 6.6%, compared to the three months
ended June 30, 2022, primarily driven by growth across Insurance
& Services, including growth in premiums from strategic
partnerships, mainly Arcadian.
Six months ended June 30, 2023 and 2022
Insurance & Services generated segment
income of $49.1 million for the six months ended June 30,
2023, compared to $44.0 million for the six months ended June
30, 2022. Segment income for the six months ended June 30, 2023
consists of underwriting income of $30.1 million (95.2%
combined ratio) and net services income of $19.0 million,
compared to underwriting income of $19.4 million (95.8%
combined ratio) and net services income of $24.6 million for
the six months ended June 30, 2022. The increase in underwriting
results was primarily driven by the increased favorable prior loss
reserve development from better than expected reported loss
emergence in A&H. The decrease in services income was primarily
due to net investment losses from Strategic Investments of $8.0
million for the six months ended June 30, 2023 compared to $0.8
million for the six months ended June 30, 2022.
Insurance & Services gross premiums written
were $1,126.7 million for the six months ended June 30, 2023,
an increase of $209.3 million, or 22.8%, compared to the six
months ended June 30, 2022, primarily driven by growth across
Insurance & Services, including growth in premiums from
strategic partnerships, mainly Arcadian and Corvus Insurance, and
A&H.
Investments
Three months ended June 30, 2023 and 2022
Total realized and unrealized investment gains
(losses) and net investment income was $65.8 million for the three
months ended June 30, 2023, compared to $(141.5) million for the
three months ended June 30, 2022.
Total realized and unrealized investment gains
and net investment income for the three months ended June 30, 2023
was primarily attributable to investment results from our debt and
short-term investment portfolio of $64.9 million. These fixed
income positions returned 0.1% in U.S. dollars and an original
currency basis, inclusive of marked to market losses on available
for sale securities of $52.7 million. Investment results were
driven by dividend and interest income primarily on U.S. treasury
bills and corporate debt positions which make up 46.6% of our total
investments as of June 30, 2023, compared to 28.5% of our portfolio
as of June 30, 2022.
Investment results for the three months ended
June 30, 2022 were primarily attributable to the net investment
loss of $57.3 million from our investment in the TP Enhanced
Fund, corresponding to a (12.5)% return.
Six months ended June 30, 2023 and 2022
Total realized and unrealized investment gains
(losses) and net investment income was $139.6 million for the six
months ended June 30, 2023, compared to $(346.6) million for the
six months ended June 30, 2022.
Total realized and unrealized investment gains
and net investment income for the six months ended June 30, 2023
was primarily attributable to net investment income related to
interest income from our debt and short-term investment portfolio
of $137.5 million. Increased dividend and investment income is
due to the ongoing re-positioning of the portfolio to focus on
investing in high grade fixed income securities.
Investment results for the six months ended June
30, 2022 were primarily attributable to the net investment loss of
$185.6 million from our investment in the TP Enhanced Fund,
corresponding to a (25.9)% return.
SiriusPoint International Loss Portfolio
Transfer
On March 2, 2023, the Company agreed, subject to
applicable regulatory approvals and other closing conditions, to
enter into a loss portfolio transfer transaction (“2023 LPT”), on a
funds withheld basis, with Pallas Reinsurance Company Ltd., a
subsidiary of the Compre Group, an insurance and reinsurance legacy
specialist. The transaction covered loss reserves ceded initially
estimated at $1.3 billion as of the valuation date of
September 30, 2022, which were reduced to $905.6 million as of
June 30, 2023, as a result of paid losses and favorable prior
accident year reserve development recognized during the interim
period. Upon closing, the Company recorded funds held payable of
$884.4 million and an initial estimate of a deferred gain of
$21.2 million, which will be amortized over the claim payout
period of the subject business. The 2023 LPT comprises several
classes of business from 2021 and prior underwriting years. The
aggregate limit under the 2023 LPT is 130% of the booked reserves
as of the inception of the contract.
Indication of Interest
On April 12, 2023, the Company acknowledged that
Dan Loeb, and certain of his affiliates, disclosed in a Schedule
13D/A filing an indication of interest to explore a potential
acquisition of all, or substantially all, of the outstanding common
shares of the Company (“Indication of Interest”).
On May 12, 2023, the Company acknowledged that
Dan Loeb, and certain of his affiliates, disclosed in a Schedule
13D/A filing the decision to conclude discussions regarding a
potential transaction to acquire the Company.
Webcast Details
The Company will hold a webcast to discuss its
second quarter 2023 results at 8:30 a.m. Eastern Time on August 3,
2023. 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.
second 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,
including re-balancing our portfolio and growing the Insurance
& Services segment; 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 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; 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 potential exposure to 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 the total number of unvested restricted shares, at
period end, and intangible assets. While restricted shares are
outstanding, they are excluded because they are unvested. 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
MediaClare Kerrigan - Chief Communications
OfficerClare.kerrigan@siriuspt.com+ 44 7720 163 949
|
SIRIUSPOINT LTD. CONSOLIDATED BALANCE
SHEETS (UNAUDITED)As of June 30,
2023 and December 31,
2022 (expressed in millions of U.S. dollars,
except per share and share amounts) |
| |
| |
June 30,2023 |
|
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 - $4,241.3;
2022 - $2,678.1) |
$ |
4,172.1 |
|
|
$ |
2,635.5 |
|
| Debt securities, trading, at
fair value (cost - $802.3; 2022 - $1,630.1) |
|
753.2 |
|
|
|
1,526.0 |
|
| Short-term investments, at
fair value (cost - $555.1; 2022 - $984.5) |
|
559.2 |
|
|
|
984.6 |
|
| Investments in related party
investment funds, at fair value |
|
111.3 |
|
|
|
128.8 |
|
| Other long-term investments,
at fair value (cost - $377.6; 2022 - $392.0) (includes related
party investments at fair value of $199.4 (2022 - $201.2)) |
|
355.4 |
|
|
|
377.2 |
|
| Equity securities, trading, at
fair value (cost - $1.8; 2022 - $1.8) |
|
1.6 |
|
|
|
1.6 |
|
| Total investments |
|
5,952.8 |
|
|
|
5,653.7 |
|
| Cash and cash equivalents |
|
676.2 |
|
|
|
705.3 |
|
| Restricted cash and cash
equivalents |
|
95.2 |
|
|
|
208.4 |
|
| Redemption receivable from
related party investment fund |
|
5.0 |
|
|
|
18.5 |
|
| Due from brokers |
|
18.2 |
|
|
|
4.9 |
|
| Interest and dividends
receivable |
|
36.8 |
|
|
|
26.7 |
|
| Insurance and reinsurance
balances receivable, net |
|
2,252.1 |
|
|
|
1,876.9 |
|
| Deferred acquisition costs,
net |
|
340.3 |
|
|
|
294.9 |
|
| Unearned premiums ceded |
|
481.3 |
|
|
|
348.8 |
|
| Loss and loss adjustment
expenses recoverable, net |
|
2,276.7 |
|
|
|
1,376.2 |
|
| Deferred tax asset |
|
164.3 |
|
|
|
200.3 |
|
| Intangible assets |
|
158.5 |
|
|
|
163.8 |
|
| Other assets |
|
165.4 |
|
|
|
157.9 |
|
| Total
assets |
$ |
12,622.8 |
|
|
$ |
11,036.3 |
|
|
Liabilities |
|
|
|
| Loss and loss adjustment
expense reserves |
$ |
5,338.8 |
|
|
$ |
5,268.7 |
|
| Unearned premium reserves |
|
1,819.2 |
|
|
|
1,521.1 |
|
| Reinsurance balances
payable |
|
1,845.4 |
|
|
|
813.6 |
|
| Deposit liabilities |
|
137.8 |
|
|
|
140.5 |
|
| Deferred gain on retroactive
reinsurance |
|
21.2 |
|
|
|
— |
|
| Debt |
|
765.9 |
|
|
|
778.0 |
|
| Securities sold, not yet
purchased, at fair value |
|
— |
|
|
|
27.0 |
|
| Securities sold under an
agreement to repurchase |
|
11.0 |
|
|
|
18.0 |
|
| Due to brokers |
|
28.1 |
|
|
|
— |
|
| Deferred tax liability |
|
61.0 |
|
|
|
59.8 |
|
| Liability-classified capital
instruments |
|
65.4 |
|
|
|
60.4 |
|
| Accounts payable, accrued
expenses and other liabilities |
|
261.3 |
|
|
|
266.6 |
|
| Total
liabilities |
|
10,355.1 |
|
|
|
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: 163,200,630; 2022 - 162,177,653) |
|
16.3 |
|
|
|
16.2 |
|
| Additional paid-in
capital |
|
1,645.6 |
|
|
|
1,641.3 |
|
| Retained earnings |
|
467.1 |
|
|
|
262.2 |
|
| Accumulated other
comprehensive loss, net of tax |
|
(74.2 |
) |
|
|
(45.0 |
) |
| Shareholders’ equity
attributable to SiriusPoint shareholders |
|
2,254.8 |
|
|
|
2,074.7 |
|
| Noncontrolling interests |
|
12.9 |
|
|
|
7.9 |
|
| Total shareholders’
equity |
|
2,267.7 |
|
|
|
2,082.6 |
|
| Total liabilities,
noncontrolling interests and shareholders’ equity |
$ |
12,622.8 |
|
|
$ |
11,036.3 |
|
|
SIRIUSPOINT LTD.CONSOLIDATED STATEMENTS
OF INCOME (LOSS)
(UNAUDITED)For the three
and six months ended June 30,
2023 and
2022(expressed in millions of U.S.
dollars, except per share and share amounts) |
| |
| |
Three months ended |
|
Six months ended |
| |
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
| Revenues |
|
|
|
|
|
|
|
|
Net premiums earned |
$ |
703.8 |
|
|
$ |
568.8 |
|
|
$ |
1,299.3 |
|
|
$ |
1,098.1 |
|
| Net realized and unrealized
investment gains (losses) |
|
(1.8 |
) |
|
|
(98.4 |
) |
|
|
9.5 |
|
|
|
(180.3 |
) |
| Net realized and unrealized
investment losses from related party investment funds |
|
(0.9 |
) |
|
|
(60.5 |
) |
|
|
(0.1 |
) |
|
|
(191.5 |
) |
| Net investment income |
|
68.5 |
|
|
|
17.4 |
|
|
|
130.2 |
|
|
|
25.2 |
|
| Net realized and unrealized
investment gains (losses) and net investment income |
|
65.8 |
|
|
|
(141.5 |
) |
|
|
139.6 |
|
|
|
(346.6 |
) |
| Other revenues |
|
(1.7 |
) |
|
|
45.8 |
|
|
|
14.1 |
|
|
|
83.0 |
|
| Total revenues |
|
767.9 |
|
|
|
473.1 |
|
|
|
1,453.0 |
|
|
|
834.5 |
|
| Expenses |
|
|
|
|
|
|
|
| Loss and loss adjustment
expenses incurred, net |
|
407.0 |
|
|
|
360.3 |
|
|
|
674.1 |
|
|
|
700.4 |
|
| Acquisition costs, net |
|
126.2 |
|
|
|
123.6 |
|
|
|
245.9 |
|
|
|
232.1 |
|
| Other underwriting
expenses |
|
43.3 |
|
|
|
46.1 |
|
|
|
95.5 |
|
|
|
93.3 |
|
| Net corporate and other
expenses |
|
70.3 |
|
|
|
72.0 |
|
|
|
130.3 |
|
|
|
149.4 |
|
| Intangible asset
amortization |
|
2.9 |
|
|
|
2.0 |
|
|
|
5.3 |
|
|
|
3.9 |
|
| Interest expense |
|
11.7 |
|
|
|
9.4 |
|
|
|
24.5 |
|
|
|
18.7 |
|
| Foreign exchange (gains)
losses |
|
17.4 |
|
|
|
(56.5 |
) |
|
|
17.5 |
|
|
|
(75.9 |
) |
| Total expenses |
|
678.8 |
|
|
|
556.9 |
|
|
|
1,193.1 |
|
|
|
1,121.9 |
|
| Income (loss) before income
tax (expense) benefit |
|
89.1 |
|
|
|
(83.8 |
) |
|
|
259.9 |
|
|
|
(287.4 |
) |
| Income tax (expense)
benefit |
|
(16.8 |
) |
|
|
27.7 |
|
|
|
(42.6 |
) |
|
|
18.0 |
|
| Net income
(loss) |
|
72.3 |
|
|
|
(56.1 |
) |
|
|
217.3 |
|
|
|
(269.4 |
) |
| Net income attributable to
noncontrolling interests |
|
(2.0 |
) |
|
|
(0.7 |
) |
|
|
(4.4 |
) |
|
|
(0.4 |
) |
| Net income (loss)
available to SiriusPoint |
|
70.3 |
|
|
|
(56.8 |
) |
|
|
212.9 |
|
|
|
(269.8 |
) |
| Dividends on Series B
preference shares |
|
(4.0 |
) |
|
|
(4.0 |
) |
|
|
(8.0 |
) |
|
|
(8.0 |
) |
| Net income (loss)
available to SiriusPoint common shareholders |
$ |
66.3 |
|
|
$ |
(60.8 |
) |
|
$ |
204.9 |
|
|
$ |
(277.8 |
) |
| Earnings (loss) per
share available to SiriusPoint common shareholders |
|
|
|
|
|
|
|
| Basic earnings (loss) per
share available to SiriusPoint common shareholders |
$ |
0.38 |
|
|
$ |
(0.38 |
) |
|
$ |
1.18 |
|
|
$ |
(1.74 |
) |
| Diluted earnings (loss) per
share available to SiriusPoint common shareholders |
$ |
0.37 |
|
|
$ |
(0.38 |
) |
|
$ |
1.14 |
|
|
$ |
(1.74 |
) |
| Weighted average
number of common shares used in the determination of earnings
(loss) per share |
|
|
|
|
|
|
|
| Basic |
|
162,027,831 |
|
|
|
160,258,883 |
|
|
|
161,473,011 |
|
|
|
160,064,319 |
|
| Diluted |
|
166,708,932 |
|
|
|
160,258,883 |
|
|
|
165,997,198 |
|
|
|
160,064,319 |
|
| |
|
|
|
|
|
|
|
|
SIRIUSPOINT LTD.SEGMENT
REPORTING |
| |
| |
Three months ended June 30, 2023 |
| |
Reinsurance |
|
Insurance & Services |
|
Core |
|
Eliminations(2) |
|
Corporate |
|
Segment Measure Reclass |
|
Total |
|
Gross premiums written |
$ |
387.1 |
|
|
$ |
462.7 |
|
|
$ |
849.8 |
|
|
$ |
— |
|
|
$ |
37.3 |
|
|
$ |
— |
|
|
$ |
887.1 |
|
| Net premiums written |
|
341.3 |
|
|
|
291.6 |
|
|
|
632.9 |
|
|
|
— |
|
|
|
37.3 |
|
|
|
— |
|
|
|
670.2 |
|
| Net premiums earned |
|
320.7 |
|
|
|
339.6 |
|
|
|
660.3 |
|
|
|
— |
|
|
|
43.5 |
|
|
|
— |
|
|
|
703.8 |
|
| Loss and loss adjustment
expenses incurred, net |
|
167.0 |
|
|
|
227.7 |
|
|
|
394.7 |
|
|
|
(1.5 |
) |
|
|
13.8 |
|
|
|
— |
|
|
|
407.0 |
|
| Acquisition costs, net |
|
62.4 |
|
|
|
84.0 |
|
|
|
146.4 |
|
|
|
(35.9 |
) |
|
|
15.7 |
|
|
|
— |
|
|
|
126.2 |
|
| Other underwriting
expenses |
|
12.0 |
|
|
|
25.5 |
|
|
|
37.5 |
|
|
|
— |
|
|
|
5.8 |
|
|
|
— |
|
|
|
43.3 |
|
| Underwriting
income |
|
79.3 |
|
|
|
2.4 |
|
|
|
81.7 |
|
|
|
37.4 |
|
|
|
8.2 |
|
|
|
— |
|
|
|
127.3 |
|
| Services revenues |
|
(2.8 |
) |
|
|
62.2 |
|
|
|
59.4 |
|
|
|
(37.0 |
) |
|
|
— |
|
|
|
(22.4 |
) |
|
|
— |
|
| Services expenses |
|
— |
|
|
|
50.0 |
|
|
|
50.0 |
|
|
|
— |
|
|
|
— |
|
|
|
(50.0 |
) |
|
|
— |
|
| Net services fee income
(loss) |
|
(2.8 |
) |
|
|
12.2 |
|
|
|
9.4 |
|
|
|
(37.0 |
) |
|
|
— |
|
|
|
27.6 |
|
|
|
— |
|
| Services noncontrolling
income |
|
— |
|
|
|
(1.7 |
) |
|
|
(1.7 |
) |
|
|
— |
|
|
|
— |
|
|
|
1.7 |
|
|
|
— |
|
| Net investment losses from
Strategic Investments |
|
— |
|
|
|
(4.1 |
) |
|
|
(4.1 |
) |
|
|
— |
|
|
|
— |
|
|
|
4.1 |
|
|
|
— |
|
| Net services income
(loss) |
|
(2.8 |
) |
|
|
6.4 |
|
|
|
3.6 |
|
|
|
(37.0 |
) |
|
|
— |
|
|
|
33.4 |
|
|
|
— |
|
| Segment
income |
|
76.5 |
|
|
|
8.8 |
|
|
|
85.3 |
|
|
|
0.4 |
|
|
|
8.2 |
|
|
|
33.4 |
|
|
|
127.3 |
|
| Net realized and
unrealized investment gains (losses) |
|
|
2.3 |
|
|
|
(4.1 |
) |
|
|
(1.8 |
) |
| Net realized and
unrealized investment losses from related party investment
funds |
|
|
(0.9 |
) |
|
|
— |
|
|
|
(0.9 |
) |
| Net investment income |
|
|
|
|
|
|
|
|
|
68.5 |
|
|
|
— |
|
|
|
68.5 |
|
| Other revenues |
|
|
|
|
|
|
|
|
|
(24.1 |
) |
|
|
22.4 |
|
|
|
(1.7 |
) |
| Net corporate and other
expenses |
|
|
|
|
|
|
|
|
|
(20.3 |
) |
|
|
(50.0 |
) |
|
|
(70.3 |
) |
| Intangible asset
amortization |
|
|
|
|
|
|
|
|
|
(2.9 |
) |
|
|
— |
|
|
|
(2.9 |
) |
| Interest expense |
|
|
|
|
|
|
|
|
|
(11.7 |
) |
|
|
— |
|
|
|
(11.7 |
) |
| Foreign exchange losses |
|
|
|
|
|
|
|
|
|
(17.4 |
) |
|
|
— |
|
|
|
(17.4 |
) |
| Income before income
tax expense |
$ |
76.5 |
|
|
$ |
8.8 |
|
|
|
85.3 |
|
|
|
0.4 |
|
|
|
1.7 |
|
|
|
1.7 |
|
|
|
89.1 |
|
| Income tax expense |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(16.8 |
) |
|
|
— |
|
|
|
(16.8 |
) |
| Net income
(loss) |
|
|
|
|
|
85.3 |
|
|
|
0.4 |
|
|
|
(15.1 |
) |
|
|
1.7 |
|
|
|
72.3 |
|
| Net income
attributable to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
(0.3 |
) |
|
|
(1.7 |
) |
|
|
(2.0 |
) |
| Net income
(loss) available to SiriusPoint |
|
$ |
85.3 |
|
|
$ |
0.4 |
|
|
$ |
(15.4 |
) |
|
$ |
— |
|
|
$ |
70.3 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Underwriting
Ratios:(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss ratio |
|
52.1 |
% |
|
|
67.0 |
% |
|
|
59.8 |
% |
|
|
|
|
|
|
|
|
57.8 |
% |
| Acquisition cost ratio |
|
19.5 |
% |
|
|
24.7 |
% |
|
|
22.2 |
% |
|
|
|
|
|
|
|
|
17.9 |
% |
| Other underwriting expenses
ratio |
|
3.7 |
% |
|
|
7.5 |
% |
|
|
5.7 |
% |
|
|
|
|
|
|
|
|
6.2 |
% |
| Combined ratio |
|
75.3 |
% |
|
|
99.2 |
% |
|
|
87.7 |
% |
|
|
|
|
|
|
|
|
81.9 |
% |
(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 June 30, 2022 |
| |
Reinsurance |
|
Insurance & Services |
|
Core |
|
Eliminations(2) |
|
Corporate |
|
Segment Measure Reclass |
|
Total |
|
Gross premiums written |
$ |
378.3 |
|
|
$ |
433.9 |
|
|
$ |
812.2 |
|
|
$ |
— |
|
|
$ |
0.4 |
|
|
$ |
— |
|
|
$ |
812.6 |
|
| Net premiums written |
|
321.5 |
|
|
|
301.4 |
|
|
|
622.9 |
|
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
623.0 |
|
| Net premiums earned |
|
319.5 |
|
|
|
244.3 |
|
|
|
563.8 |
|
|
|
— |
|
|
|
5.0 |
|
|
|
— |
|
|
|
568.8 |
|
| Loss and loss adjustment
expenses incurred, net |
|
204.7 |
|
|
|
154.8 |
|
|
|
359.5 |
|
|
|
(1.1 |
) |
|
|
1.9 |
|
|
|
— |
|
|
|
360.3 |
|
| Acquisition costs, net |
|
86.3 |
|
|
|
63.9 |
|
|
|
150.2 |
|
|
|
(26.8 |
) |
|
|
0.2 |
|
|
|
— |
|
|
|
123.6 |
|
| Other underwriting
expenses |
|
28.7 |
|
|
|
15.8 |
|
|
|
44.5 |
|
|
|
— |
|
|
|
1.6 |
|
|
|
— |
|
|
|
46.1 |
|
| Underwriting income
(loss) |
|
(0.2 |
) |
|
|
9.8 |
|
|
|
9.6 |
|
|
|
27.9 |
|
|
|
1.3 |
|
|
|
— |
|
|
|
38.8 |
|
| Services revenues |
|
— |
|
|
|
56.6 |
|
|
|
56.6 |
|
|
|
(36.7 |
) |
|
|
— |
|
|
|
(19.9 |
) |
|
|
— |
|
| Services expenses |
|
— |
|
|
|
44.8 |
|
|
|
44.8 |
|
|
|
— |
|
|
|
— |
|
|
|
(44.8 |
) |
|
|
— |
|
| Net services fee income |
|
— |
|
|
|
11.8 |
|
|
|
11.8 |
|
|
|
(36.7 |
) |
|
|
— |
|
|
|
24.9 |
|
|
|
— |
|
| Services noncontrolling
income |
|
— |
|
|
|
(0.7 |
) |
|
|
(0.7 |
) |
|
|
— |
|
|
|
— |
|
|
|
0.7 |
|
|
|
— |
|
| Net investment losses from
Strategic Investments |
|
— |
|
|
|
(0.5 |
) |
|
|
(0.5 |
) |
|
|
— |
|
|
|
— |
|
|
|
0.5 |
|
|
|
— |
|
| Net services
income |
|
— |
|
|
|
10.6 |
|
|
|
10.6 |
|
|
|
(36.7 |
) |
|
|
— |
|
|
|
26.1 |
|
|
|
— |
|
| Segment income
(loss) |
|
(0.2 |
) |
|
|
20.4 |
|
|
|
20.2 |
|
|
|
(8.8 |
) |
|
|
1.3 |
|
|
|
26.1 |
|
|
|
38.8 |
|
| Net realized and
unrealized investment losses |
|
|
(97.9 |
) |
|
|
(0.5 |
) |
|
|
(98.4 |
) |
| Net realized and
unrealized investment losses from related party investment
funds |
|
|
(60.5 |
) |
|
|
— |
|
|
|
(60.5 |
) |
| Net investment income |
|
|
|
|
|
|
|
|
|
17.4 |
|
|
|
— |
|
|
|
17.4 |
|
| Other revenues |
|
|
|
|
|
|
|
|
|
25.9 |
|
|
|
19.9 |
|
|
|
45.8 |
|
| Net corporate and other
expenses |
|
|
|
|
|
|
|
|
|
(27.2 |
) |
|
|
(44.8 |
) |
|
|
(72.0 |
) |
| Intangible asset
amortization |
|
|
|
|
|
|
|
|
|
(2.0 |
) |
|
|
— |
|
|
|
(2.0 |
) |
| Interest expense |
|
|
|
|
|
|
|
|
|
(9.4 |
) |
|
|
— |
|
|
|
(9.4 |
) |
| Foreign exchange gains |
|
|
|
|
|
|
|
|
|
56.5 |
|
|
|
— |
|
|
|
56.5 |
|
| Income (loss) before
income tax benefit |
$ |
(0.2 |
) |
|
$ |
20.4 |
|
|
|
20.2 |
|
|
|
(8.8 |
) |
|
|
(95.9 |
) |
|
|
0.7 |
|
|
|
(83.8 |
) |
| Income tax benefit |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
27.7 |
|
|
|
— |
|
|
|
27.7 |
|
| Net income
(loss) |
|
|
|
|
|
20.2 |
|
|
|
(8.8 |
) |
|
|
(68.2 |
) |
|
|
0.7 |
|
|
|
(56.1 |
) |
| Net income
attributable to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.7 |
) |
|
|
(0.7 |
) |
| Net income
(loss) available to SiriusPoint |
|
$ |
20.2 |
|
|
$ |
(8.8 |
) |
|
$ |
(68.2 |
) |
|
$ |
— |
|
|
$ |
(56.8 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Underwriting
Ratios:(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss ratio |
|
64.1 |
% |
|
|
63.4 |
% |
|
|
63.8 |
% |
|
|
|
|
|
|
|
|
63.3 |
% |
| Acquisition cost ratio |
|
27.0 |
% |
|
|
26.2 |
% |
|
|
26.6 |
% |
|
|
|
|
|
|
|
|
21.7 |
% |
| Other underwriting expenses
ratio |
|
9.0 |
% |
|
|
6.5 |
% |
|
|
7.9 |
% |
|
|
|
|
|
|
|
|
8.1 |
% |
| Combined ratio |
|
100.1 |
% |
|
|
96.1 |
% |
|
|
98.3 |
% |
|
|
|
|
|
|
|
|
93.1 |
% |
(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.
| |
Six months ended June 30, 2023 |
| |
Reinsurance |
|
Insurance & Services |
|
Core |
|
Eliminations(2) |
|
Corporate |
|
Segment Measure Reclass |
|
Total |
|
Gross premiums written |
$ |
783.3 |
|
|
$ |
1,126.7 |
|
|
$ |
1,910.0 |
|
|
$ |
— |
|
|
$ |
87.6 |
|
|
$ |
— |
|
|
$ |
1,997.6 |
|
| Net premiums written |
|
652.3 |
|
|
|
744.2 |
|
|
|
1,396.5 |
|
|
|
— |
|
|
|
65.4 |
|
|
|
— |
|
|
|
1,461.9 |
|
| Net premiums earned |
|
580.2 |
|
|
|
630.8 |
|
|
|
1,211.0 |
|
|
|
— |
|
|
|
88.3 |
|
|
|
— |
|
|
|
1,299.3 |
|
| Loss and loss adjustment
expenses incurred, net |
|
252.6 |
|
|
|
400.2 |
|
|
|
652.8 |
|
|
|
(2.8 |
) |
|
|
24.1 |
|
|
|
— |
|
|
|
674.1 |
|
| Acquisition costs, net |
|
128.4 |
|
|
|
155.7 |
|
|
|
284.1 |
|
|
|
(68.4 |
) |
|
|
30.2 |
|
|
|
— |
|
|
|
245.9 |
|
| Other underwriting
expenses |
|
40.2 |
|
|
|
44.8 |
|
|
|
85.0 |
|
|
|
— |
|
|
|
10.5 |
|
|
|
— |
|
|
|
95.5 |
|
| Underwriting
income |
|
159.0 |
|
|
|
30.1 |
|
|
|
189.1 |
|
|
|
71.2 |
|
|
|
23.5 |
|
|
|
— |
|
|
|
283.8 |
|
| Services revenues |
|
(2.6 |
) |
|
|
125.8 |
|
|
|
123.2 |
|
|
|
(71.3 |
) |
|
|
— |
|
|
|
(51.9 |
) |
|
|
— |
|
| Services expenses |
|
— |
|
|
|
95.5 |
|
|
|
95.5 |
|
|
|
— |
|
|
|
— |
|
|
|
(95.5 |
) |
|
|
— |
|
| Net services fee income
(loss) |
|
(2.6 |
) |
|
|
30.3 |
|
|
|
27.7 |
|
|
|
(71.3 |
) |
|
|
— |
|
|
|
43.6 |
|
|
|
— |
|
| Services noncontrolling
income |
|
— |
|
|
|
(3.3 |
) |
|
|
(3.3 |
) |
|
|
— |
|
|
|
— |
|
|
|
3.3 |
|
|
|
— |
|
| Net investment losses from
Strategic Investments |
|
— |
|
|
|
(8.0 |
) |
|
|
(8.0 |
) |
|
|
— |
|
|
|
— |
|
|
|
8.0 |
|
|
|
— |
|
| Net services income
(loss) |
|
(2.6 |
) |
|
|
19.0 |
|
|
|
16.4 |
|
|
|
(71.3 |
) |
|
|
— |
|
|
|
54.9 |
|
|
|
— |
|
| Segment
income |
|
156.4 |
|
|
|
49.1 |
|
|
|
205.5 |
|
|
|
(0.1 |
) |
|
|
23.5 |
|
|
|
54.9 |
|
|
|
283.8 |
|
| Net realized and
unrealized investment gains (losses) |
|
|
17.5 |
|
|
|
(8.0 |
) |
|
|
9.5 |
|
| Net realized and
unrealized investment losses from related party investment
funds |
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.1 |
) |
| Net investment income |
|
|
|
|
|
|
|
|
|
130.2 |
|
|
|
— |
|
|
|
130.2 |
|
| Other revenues |
|
|
|
|
|
|
|
|
|
(37.8 |
) |
|
|
51.9 |
|
|
|
14.1 |
|
| Net corporate and other
expenses |
|
|
|
|
|
|
|
|
|
(34.8 |
) |
|
|
(95.5 |
) |
|
|
(130.3 |
) |
| Intangible asset
amortization |
|
|
|
|
|
|
|
|
|
(5.3 |
) |
|
|
— |
|
|
|
(5.3 |
) |
| Interest expense |
|
|
|
|
|
|
|
|
|
(24.5 |
) |
|
|
— |
|
|
|
(24.5 |
) |
| Foreign exchange losses |
|
|
|
|
|
|
|
|
|
(17.5 |
) |
|
|
— |
|
|
|
(17.5 |
) |
| Income before income
tax expense |
$ |
156.4 |
|
|
$ |
49.1 |
|
|
|
205.5 |
|
|
|
(0.1 |
) |
|
|
51.2 |
|
|
|
3.3 |
|
|
|
259.9 |
|
| Income tax expense |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(42.6 |
) |
|
|
— |
|
|
|
(42.6 |
) |
| Net
income |
|
|
|
|
|
205.5 |
|
|
|
(0.1 |
) |
|
|
8.6 |
|
|
|
3.3 |
|
|
|
217.3 |
|
| Net income
attributable to noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
(1.1 |
) |
|
|
(3.3 |
) |
|
|
(4.4 |
) |
| Net income
available to SiriusPoint |
|
$ |
205.5 |
|
|
$ |
(0.1 |
) |
|
$ |
7.5 |
|
|
$ |
— |
|
|
$ |
212.9 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Underwriting
Ratios:(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss ratio |
|
43.5 |
% |
|
|
63.4 |
% |
|
|
53.9 |
% |
|
|
|
|
|
|
|
|
51.9 |
% |
| Acquisition cost ratio |
|
22.1 |
% |
|
|
24.7 |
% |
|
|
23.5 |
% |
|
|
|
|
|
|
|
|
18.9 |
% |
| Other underwriting expenses
ratio |
|
6.9 |
% |
|
|
7.1 |
% |
|
|
7.0 |
% |
|
|
|
|
|
|
|
|
7.4 |
% |
| Combined ratio |
|
72.5 |
% |
|
|
95.2 |
% |
|
|
84.4 |
% |
|
|
|
|
|
|
|
|
78.2 |
% |
(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.
| |
Six months ended June 30, 2022 |
| |
Reinsurance |
|
Insurance & Services |
|
Core |
|
Eliminations (2) |
|
Corporate |
|
Segment Measure Reclass |
|
Total |
|
Gross premiums written |
$ |
902.5 |
|
|
$ |
917.4 |
|
|
$ |
1,819.9 |
|
|
$ |
— |
|
|
$ |
2.4 |
|
|
$ |
— |
|
|
$ |
1,822.3 |
|
| Net premiums written |
|
696.4 |
|
|
|
638.9 |
|
|
|
1,335.3 |
|
|
|
— |
|
|
|
1.6 |
|
|
|
— |
|
|
|
1,336.9 |
|
| Net premiums earned |
|
627.1 |
|
|
|
457.1 |
|
|
|
1,084.2 |
|
|
|
— |
|
|
|
13.9 |
|
|
|
— |
|
|
|
1,098.1 |
|
| Loss and loss adjustment
expenses incurred, net |
|
399.2 |
|
|
|
288.8 |
|
|
|
688.0 |
|
|
|
(2.3 |
) |
|
|
14.7 |
|
|
|
— |
|
|
|
700.4 |
|
| Acquisition costs, net |
|
166.2 |
|
|
|
117.4 |
|
|
|
283.6 |
|
|
|
(52.4 |
) |
|
|
0.9 |
|
|
|
— |
|
|
|
232.1 |
|
| Other underwriting
expenses |
|
58.8 |
|
|
|
31.5 |
|
|
|
90.3 |
|
|
|
— |
|
|
|
3.0 |
|
|
|
— |
|
|
|
93.3 |
|
| Underwriting income
(loss) |
|
2.9 |
|
|
|
19.4 |
|
|
|
22.3 |
|
|
|
54.7 |
|
|
|
(4.7 |
) |
|
|
— |
|
|
|
72.3 |
|
| Services revenues |
|
— |
|
|
|
113.4 |
|
|
|
113.4 |
|
|
|
(67.5 |
) |
|
|
— |
|
|
|
(45.9 |
) |
|
|
— |
|
| Services expenses |
|
— |
|
|
|
88.1 |
|
|
|
88.1 |
|
|
|
— |
|
|
|
— |
|
|
|
(88.1 |
) |
|
|
— |
|
| Net services fee income |
|
— |
|
|
|
25.3 |
|
|
|
25.3 |
|
|
|
(67.5 |
) |
|
|
— |
|
|
|
42.2 |
|
|
|
— |
|
| Services noncontrolling
loss |
|
— |
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
| Net investment losses from
Strategic Investments |
|
— |
|
|
|
(0.8 |
) |
|
|
(0.8 |
) |
|
|
— |
|
|
|
— |
|
|
|
0.8 |
|
|
|
— |
|
| Net services
income |
|
— |
|
|
|
24.6 |
|
|
|
24.6 |
|
|
|
(67.5 |
) |
|
|
— |
|
|
|
42.9 |
|
|
|
— |
|
| Segment income
(loss) |
|
2.9 |
|
|
|
44.0 |
|
|
|
46.9 |
|
|
|
(12.8 |
) |
|
|
(4.7 |
) |
|
|
42.9 |
|
|
|
72.3 |
|
| Net realized and
unrealized investment losses |
|
|
(179.5 |
) |
|
|
(0.8 |
) |
|
|
(180.3 |
) |
| Net realized and
unrealized investment losses from related party investment
funds |
|
|
(191.5 |
) |
|
|
— |
|
|
|
(191.5 |
) |
| Net investment income |
|
|
|
|
|
|
|
|
|
25.2 |
|
|
|
— |
|
|
|
25.2 |
|
| Other revenues |
|
|
|
|
|
|
|
|
|
37.1 |
|
|
|
45.9 |
|
|
|
83.0 |
|
| Net corporate and other
expenses |
|
|
|
|
|
|
|
|
|
(61.3 |
) |
|
|
(88.1 |
) |
|
|
(149.4 |
) |
| Intangible asset
amortization |
|
|
|
|
|
|
|
|
|
(3.9 |
) |
|
|
— |
|
|
|
(3.9 |
) |
| Interest expense |
|
|
|
|
|
|
|
|
|
(18.7 |
) |
|
|
— |
|
|
|
(18.7 |
) |
| Foreign exchange gains |
|
|
|
|
|
|
|
|
|
75.9 |
|
|
|
— |
|
|
|
75.9 |
|
| Income (loss) before
income tax benefit |
$ |
2.9 |
|
|
$ |
44.0 |
|
|
|
46.9 |
|
|
|
(12.8 |
) |
|
|
(321.4 |
) |
|
|
(0.1 |
) |
|
|
(287.4 |
) |
| Income tax benefit |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
18.0 |
|
|
|
— |
|
|
|
18.0 |
|
| Net income
(loss) |
|
|
|
|
|
46.9 |
|
|
|
(12.8 |
) |
|
|
(303.4 |
) |
|
|
(0.1 |
) |
|
|
(269.4 |
) |
| Net (income) loss
attributable to noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
(0.5 |
) |
|
|
0.1 |
|
|
|
(0.4 |
) |
| Net income
(loss) available to SiriusPoint |
|
$ |
46.9 |
|
|
$ |
(12.8 |
) |
|
$ |
(303.9 |
) |
|
$ |
— |
|
|
$ |
(269.8 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Underwriting
Ratios:(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss ratio |
|
63.7 |
% |
|
|
63.2 |
% |
|
|
63.5 |
% |
|
|
|
|
|
|
|
|
63.8 |
% |
| Acquisition cost ratio |
|
26.5 |
% |
|
|
25.7 |
% |
|
|
26.2 |
% |
|
|
|
|
|
|
|
|
21.1 |
% |
| Other underwriting expenses
ratio |
|
9.4 |
% |
|
|
6.9 |
% |
|
|
8.3 |
% |
|
|
|
|
|
|
|
|
8.5 |
% |
| Combined ratio |
|
99.6 |
% |
|
|
95.8 |
% |
|
|
98.0 |
% |
|
|
|
|
|
|
|
|
93.4 |
% |
(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, services expenses
which include direct expenses related to consolidated MGAs,
services noncontrolling income which represent minority ownership
interests in consolidated MGAs, and net investment gains from
Strategic Investments which are net investment gains/losses from
investment in our strategic partners. Net services income is a key
indicator of the profitability of the Company's services provided,
including investment returns on non-consolidated investment
positions held.
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 the total number of
unvested restricted shares, at period end, and intangible assets.
While restricted shares are outstanding, they are excluded because
they are unvested. 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 June 30,
2023 and December 31, 2022:
| |
June 30,2023 |
|
December 31, 2022 |
| |
($ in millions, except share and per share
amounts) |
|
Common shareholders’ equity attributable to SiriusPoint common
shareholders |
$ |
2,054.8 |
|
|
$ |
1,874.7 |
|
| Intangible assets |
|
(158.5 |
) |
|
|
(163.8 |
) |
| Tangible diluted common
shareholders' equity attributable to SiriusPoint common
shareholders |
$ |
1,896.3 |
|
|
$ |
1,710.9 |
|
| |
|
|
|
| Common shares outstanding |
|
163,200,630 |
|
|
|
162,177,653 |
|
| Effect of dilutive stock
options, restricted share units, warrants and Series A preference
shares |
|
3,964,586 |
|
|
|
3,492,795 |
|
| Book value per diluted common
share denominator |
|
167,165,216 |
|
|
|
165,670,448 |
|
| Unvested restricted
shares |
|
(649,528 |
) |
|
|
(1,708,608 |
) |
| Tangible book value per
diluted common share denominator |
|
166,515,688 |
|
|
|
163,961,840 |
|
| |
|
|
|
| Book value per common
share |
$ |
12.59 |
|
|
$ |
11.56 |
|
| Book value per diluted
common share |
$ |
12.29 |
|
|
$ |
11.32 |
|
| Tangible book value
per diluted common share |
$ |
11.39 |
|
|
$ |
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 six months ended June 30, 2023 and
2022 was calculated as follows:
| |
Three months ended |
|
Six months ended |
| |
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
| |
|
| |
($ in millions) |
|
Net income (loss) available to SiriusPoint common shareholders |
$ |
66.3 |
|
|
$ |
(60.8 |
) |
|
$ |
204.9 |
|
|
$ |
(277.8 |
) |
| Common shareholders’ equity
attributable to SiriusPoint common shareholders - beginning of
period |
|
2,036.6 |
|
|
|
2,088.2 |
|
|
|
1,874.7 |
|
|
|
2,303.7 |
|
| Common shareholders’ equity
attributable to SiriusPoint common shareholders - end of
period |
|
2,054.8 |
|
|
|
2,023.3 |
|
|
|
2,054.8 |
|
|
|
2,023.3 |
|
| Average common shareholders’
equity attributable to SiriusPoint common shareholders |
$ |
2,045.7 |
|
|
$ |
2,055.8 |
|
|
$ |
1,964.8 |
|
|
$ |
2,163.5 |
|
| Annualized return on average
common shareholders’ equity attributable to SiriusPoint common
shareholders |
|
13.0 |
% |
|
(11.8)% |
|
|
20.9 |
% |
|
(25.7)% |
SiriusPoint (NYSE:SPNT)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024
SiriusPoint (NYSE:SPNT)
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부터 12월(12) 2023 으로 12월(12) 2024
