SiriusPoint Announces 2021 Q1 Results
SiriusPoint Ltd. announced results for its first quarter ended March 31, 2021.
First Quarter 2021 Highlights
- Net income of $130.9 million, or $1.05 per diluted common share
- Tangible diluted book value per share of $13.97 as of March 31, 2021
- Combined ratio of 96.6%
- On a reported basis, catastrophe losses were $5.7 million or 2.2 percentage points on the Company’s combined ratio
- Annualized return on average common equity of 26.4%
- Net investment income of $186.5 million
- A- ratings confirmed from AM Best, S&P and Fitch during the first quarter 2021
Sid Sankaran, Chairman and Chief Executive Officer of SiriusPoint said: “I am delighted in our launch of SiriusPoint in the first quarter. We believe our combined company has the platform, capabilities and expertise to take advantage of changing market conditions and compete in a differentiated and effective fashion in the global [re]insurance marketplace.
“I am extremely proud that by the closing of our transaction we added world-class talent to our team, strengthened the quality of our balance sheet and refocused our underwriting strategy allowing us to benefit from a strong 1/1 renewal season. We are creating an entrepreneurial and innovative company that is just at the beginning of its transformation.
“SiriusPoint produced an underwriting profit of $9 million and a combined ratio of 96.6% this quarter, reflecting our focus on writing a profitable and more balanced book of business. We benefited from a focus on underwriting discipline and positive rate improvement across classes of business at January 1. We made great strides in refining our property cat portfolio, reducing catastrophe volatility through modest additional retro reinsurance purchases and rebalancing the overall portfolio to non-cat lines, including Accident and Health, Credit, Aviation, and niche U.S. Casualty lines.
“Through the rest of 2021, we plan to continue to execute on our underwriting strategy and be disciplined in our approach to managing risk. We are focused on better managing our catastrophe exposure and return on capital. We also plan to be disciplined in reducing classes which have been unprofitable. We believe our global platform and entrepreneurial culture will give us flexibility and culture to adapt to market conditions and be responsive to opportunities. While there is much work ahead we are confident we are making progress in our execution.
“We intend to remain nimble and optimize our global platform by partnering with and investing in innovative businesses and teams in the [re]insurance industry. We see these strategic partnerships as a key differentiator and a means by which we can add value and drive disruptive change in the industry. We aspire to be great allocators of capital to the best underwriting risks to drive returns.
“Investment results in the quarter were strong and above trend with notable contributions from the Third Point Enhanced Fund and legacy Sirius Group strategic investments. In rebalancing our portfolio, we increased the allocation to fixed income and cash from TPRe’s position at year end. Third Point LLP also reduced leverage in the TP Enhanced fund.
“We expect the steps we have taken this quarter towards refining our business to achieve underwriting excellence and establishing a high quality balance sheet will result in less volatility going forward. We are confident the path of sustained higher underwriting returns, less volatile investment results and growth in book value will translate into long-term value creation for our shareholders.”
