SiriusPoint reports healthy Q1 profit as it focuses on innovation and profitability
SiriusPoint has reported a healthy profit in its first quarterly results since the company’s creation in its current form, following the acquisition of Sirius Group by Third Point Re. The company is now looking to build a new business focused on innovation and profitability.
SiriusPoint’s net profit was $130.9 million for the three months ended March 31, 2021, compared to a net loss of $183.6 million in the corresponding period of 2020.
Net premiums earned increased 75 percent year on year to $256 million in Q1 2021, from the $146.3 million Third Point Re reported in the same period the previous year. This was primarily driven by an increase in net premiums earned of $115.9 million, the re/insurer said, as a result of new premiums from the legacy Sirius Group companies from the date of acquisition.
The combined ratio fell to 96.6 percent, from 98.6 percent the previous year. Sid Sankaran, SiriusPoint’s chairman and chief executive officer, said the combined ratio reflected its focus on writing a profitable and more balanced book of business.
“I am delighted in our launch of SiriusPoint in the first quarter,” he said. “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 percent 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 US casualty lines.”
He added that throughout the rest of 2021, the company plans to continue to execute on its underwriting strategy and be disciplined in its approach to managing risk.
“We are focused on better managing our catastrophe exposure and return on capital,” he said. “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 optimise 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.”
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