SiriusPoint marks a turnaround in first-quarter financial results

Global specialty insurer and reinsurer SiriusPoint has turned the tables, reporting a profitable first quarter after being in the red for the same period in 2022.

Here’s how SiriusPoint performed in the three months ending March 31:

Of the group’s total technical revenue, $79.7 million came from the reinsurance segment; $27.7 million for insurance and services. SiriusPoint attributed the improvement in net technical results to the improved favorable development of the prior year loss reserve of $105.4 million for the first quarter of 2023 compared to $5.5 million last year.

“We are pleased with the first quarter results,” CEO Scott Egan said in SiriusPoint Earnings Release. “We have delivered positive capital generation across all business areas with our underwriting business offering a core combined ratio of 80.5%. This quarter generates the first positive net income since the second quarter of 2021, while our diluted book value per common share increased 9% during the quarter.

“We have a strong balance sheet strengthened following the $1.3 billion loss portfolio transfer (LPT) we previously announced. The LPT transaction will align our balance sheet with our forward strategy. We expect capital gains in excess of $150 million at closing and have released $102 million of reserves tied to the LPT. We expect the transaction to close in June subject to regulatory approval and other closing conditions.”

Egan added that SiriusPoint has been working “incredibly hard” to improve business.

“We continue to make progress on the creation of ‘One SiriusPoint,’” he said. “Our efforts are being noticed. At the end of March, Fitch revised its outlook to stable from negative and reaffirmed its ratings, and AM Best recently reaffirmed our stable ratings and outlook. We still have a lot to do and we are excited about the opportunities that lie ahead.”

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