Credit ratings agency Fitch Ratings has upgraded the Insurer Financial Strength (IFS) rating of specialty insurer and reinsurer, SiriusPoint Ltd. and its operating subsidiaries to ‘A’ (Strong) from ‘A-‘, with an outlook of stable.
The insurer’s Long-Term Issuer Default Rating (IDR) has also been upgraded to ‘BBB+’ from ‘BBB’, and its senior debt rating to ‘BBB’ from ‘BBB-‘.
Fitch explained that SiriusPoint’s strong financial performance, strengthened capitalisation, and reduced leverage have ushered in the upgrade.
In its full year 2025 results, SiriusPoint posted net income of $444 million, driven by “strong” operating income from underwriting profits and a gain of $222 million on the sale of its managing general agent (MGA) ArmadaCorp Capital, LLC.
Additionally, the reinsurer, according to Fitch, also has maintained “solid underwriting results in 2025, 2024 and 2023,” with core combined ratios of 91.7%, 91% and 89.1%, respectively.
The ratios included manageable catastrophe impacts of 2.9pp in 2025, primarily from the California wildfires, 2.5pp in 2024 and only 0.6pp in 2023. The company also posted favourable reserve development of 2.8pp in 2025, 4.6pp in 2024 and 7.3pp in 2023.
All of these reflect SiriusPoint’s underlying underwriting improvement with improved risk selection, which Fitch expects the reinsurer to continue primarily in the insurance lines.
SiriusPoint’s financial leverage ratio (FLR) decreased to 24.4% at year end 2025 from 27.5% at year end 2024 due to the growth in shareholders’ equity, and is in line with Fitch’s expectations.
SiriusPoint has scored in the ‘Very Strong’ on Fitch’s Prism model at year 2025, rising from ‘Strong’ at year end 2024, which reflects a 31% increase in available capital due to the growth in shareholders’ equity.
Additionally, Fitch views SiriusPoint’s business profile as ‘Moderate’ compared with all other US/Bermuda non-life re/insurers. Its insurance and services segment contributed 59% of its core net premiums written in 2025, with the reinsurance reporting segment added 41%.
This reflects the shift in its business mix away from reinsurance and more toward insurance and services, particularly in accident and health (A&H), surety and specialty, to reduce overall volatility.
Fitch said, “The upgrade of SiriusPoint’s ratings reflects strong and improved earnings in recent years driven by favourable operating results from solid underwriting profitability, with a reduced risk profile following a strategic repositioning of the re/insurance portfolio and exiting non-core lines to lessen overall volatility.”
Scott Egan, Chief Executive Officer, SiriusPoint, added, “This recognition from Fitch means a great deal to us. The upgrade is a positive endorsement of the progress we’ve made and the strength of our balance sheet. It also follows a strong full-year 2025 performance, which marked another important step forward for SiriusPoint. We have entered 2026 with real momentum.”
As usual, Fitch will continue to monitor SiriusPoint’s operations in case of a change in the ratings.
