Bermuda-domiciled re/insurer Sirius International has reported a $67 million loss for the third quarter of 2020, compared to $50 million loss in the prior year period last year.
$39 million of losses was related to COVID-19, net of reinsurance and additional premiums due.
Catastrophe losses were $53 million in the quarter and primarily related to Hurricane Laura ($29 million), an August Midwest derecho ($11 million) and California wildfires ($10 million).
The company also recorded a combined ratio of 115% for the quarter, improved from 123% in 2019.
Gross written premiums for the third quarter of 2020 were $356 million and decreased 14% compared to the third quarter of 2019 primarily due to COVID-19 and client reaction to Sirius Group’s rating downgrade.
Global Reinsurance produced a $36 million underwriting loss and a 115% combined ratio. The results included $6 million of losses from the COVID-19 pandemic.
Third quarter catastrophe losses, net of reinsurance and reinstatement premiums, were $53 million, as discussed above. Additionally, third quarter losses included $14 million from the August Beirut explosion.
“It was an active quarter for catastrophes and COVID-19 continues to impact our world. We remain proactive in our support of our clients as they face, endure and surmount these challenges,” said Kip Oberting, President and Chief Executive Officer of Sirius Group.
“We have taken actions over the past ten months to optimize our portfolio more aggressively than at any other time over the last decade.
“The benefits of these actions began to materialize in the third quarter with lighter catastrophe losses than Sirius Group would have experienced without such actions. Looking ahead, the full extent of these optimizations have yet to materialize.
“More significantly, market demand for our capacity is increasing, which is driving terms and conditions to become much more appropriate than they had been during the past few years.”
Oberting added, “Equally important, the successful completion of our strategic review process preserved Sirius Group’s franchise.
“Upon closing of the pending merger, our underwriting teams are poised to go on offense on behalf of a larger balance sheet — at just the right time in the market cycle. We are headed to a sweet spot. Finally.”
