SiriusPoint rides reinsurance & investments to Q2 profits
Global specialty re/insurer SiriusPoint pressed forward on its turnaround during the second quarter, leveraging a rebound in reinsurance earnings, reserve releases and investment gains to push its way to a net profit.
“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," CEO Scott Egan (pictured) said.
The combined ratio fell a notable 11.2 percentage points to 81.9% in the second quarter, including a major 25 point reduction for the reinsurance wing.
In reinsurance, underwriting income of $79.3 million, on a 75.3% combined ratio, shined against a fractional prior year loss on a 100.1% combined ratio. Gross written premiums in the segment rose a fractional 2.3% as the restructuring plan forces cuts in international exposures versus gains in North America.
Management attributed the improvement chiefly to increased favourable prior year loss reserve development and lower cat losses.
Insurance & Services slipped to a segment profit of generated segment income of $8.8 million from $20.4 million in the year prior period. Underwriting income slipped to $2.4 million from $9.8 million prior.
The decrease in underwriting results was put primarily to a decrease in favourable prior year loss reserve development. GWP was up 6.6%, with management calling our growth in premiums from strategic partnerships, mainly Arcadian.
For the group, net earned premiums of $703.8 million was up nearly 24% from the prior year period, well ahead of the 13% progression in loss and loss adjustment expense and tight control over remaining costs.
Egan claimed the group remains "confident on our target" for more than $50 million in cost reductions by the end of 2024.
With a notable recovery in net investment income and investment portfolio performance, SiriusPoint swung to a group net profit of $70.3 million versus a prior year period $56.8 million loss. Q2 pushed the YTD net profit tally to $217.3 million.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
