SiriusPoint reclaims ‘stable’ outlook with first underwriting profit and turnaround
Global specialty re/insurer SiriusPoint has regained its ‘stable’ ratings outlook from S&P Global following its return to underwriting profitability for the first time in the group's history since its 2020 merger. The improved rating is also a nod to a sequence of strategic moves, including a shake-up of the leadership team and a reorganisation of its business operations.
The Bermuda-based company turned an underwriting profit of $73.8 million in its third quarter 2023. It said the improvement in net underwriting results was driven by lower catastrophe losses and improved favourable prior year loss reserve development.
SiriusPoint recorded a net profit of $57.5 million, gross written premiums of $758 million, and a combined ratio of 88% for the third quarter.
S&P has revised its ratings outlook from ‘negative’ to ‘stable’. It stated that the decision to revise its ratings outlook reflects the agency's “expectation that SiriusPoint will continue to post strong and improving underwriting results in 2023-2025, with combined ratios around 95% and capital maintained at the 'AA' level.”
Scott Egan, CEO, SiriusPoint, said: "S&P's decision to revise our outlook to 'Stable’ recognizes the hard work of our people, their dedication and our collective effort to establish a stable platform for 2024 and beyond.
“This is an important moment in our journey, and the outcome demonstrates that we are taking the right actions to strengthen our business. We have built both capital and cultural resilience, we have executed well against our strategy, and we have proof points to be proud of. We thank our colleagues, investors, clients, and partners for their belief and support in our business.”
SiriusPoint is currently attributed an ‘A-’ insurer financial strength rating and a 'BBB' long-term issuer credit rating by S&P. SiriusPoint continues to benefit from a strong capital position above the 'AA' confidence level based on S&P’s risk-based capital model.
On the future, Egan said: “We’re just over a year into our journey. Our focus remains on simplifying our business, reducing volatility and ultimately, continuing to build profitability. While we’re making great strides, there is still work to be done but I’m confident in our plans for the future.”
In the past year SiriusPoint has strengthened its executive leadership team, senior leadership team, and the wider business with a number of new appointments and internal promotions. Egan became chief executive officer and a board member of the Company in September 2022.
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