Sirius International Group, a global multi-line re/insurance group, has posted a loss of $23 million for the third quarter of 2018, which was largely driven by $77 million of catastrophe losses.
The Group’s combined ratio for the quarter was 111%, including 24 points of catastrophe losses, which compares with losses of $179 million and a combined ratio of 159% for the same period in 2017.
Sirius said the decrease was due to lower levels of catastrophe losses and higher net favourable prior year loss reserve development, although this improvement was partially offset by higher current accident year losses in certain lines.
The company’s Global Property segment produced an underwriting loss of $51 million for Q3 and a 130% combined ratio, which Sirius again attributed to large catastrophe losses and higher current year losses.
Catastrophe losses, net of reinsurance and reinstatement premiums, included $48 million for Typhoon Jebi, $9 million for Hurricane Florence, and $7 million for the Kerala Floods.
Sirius also experienced a $2 million underwriting loss in its Specialty & Casualty segment, driven mainly by losses in the discontinued London Marine book.
In contrast, its Global A&H and Runoff & Other segments posted underwriting income of $12 million and $8 million, respectively.
The Group’s net investment income also increased by $10 million or 83% when compared with Q3 2017, rising from $12 million to $22 million due to a higher interest rate environment.
For the first nine months of 2018 overall, Sirius’s book value grew 2.9% on comprehensive income of $56 million and its net income was $110 million, compared with a net loss of $172 million for the same period in 2017.
Furthermore, Sirius Group’s combined ratio was 94% for the first nine months of 2018, compared to 114% for the same period in 2017, a decrease which it attributed to lower catastrophe losses and higher net favorable prior year loss reserve development.
The Q3 results come shortly after Sirius completed its planned merger agreement with Easterly Acquisition Corp., through which Sirius became a publicly listed company.
