SiriusPoint, the international specialty re/insurer recently formed via the merger of Sirius Group and Third Point Re, has reported net income of $64.5 million in the second quarter of 2021.
The company also improved its combined ratio to 92.8%, from 99.8% in Q2 of 2020, as it focused on remediation and portfolio balance.
Net underwriting income for the quarter came to $33.3 million, compared to just $0.2 million for the same period last year.
The improvement in net underwriting results was primarily driven by net underwriting income of $25.8 million from the legacy Sirius Group companies, mainly in the Property and A&H segments.
Alongside its results, SiriusPoint announced the sale of a $417 million portfolio of legacy liabilities to international specialist legacy group Compre.
Looking at the first six months of the year, underwriting income amounted to $42.0 million and the combined ratio was 94.2%.
Catastrophe losses, net of reinsurance and reinstatement premiums, for the three and six months ended June 30, 2021 were $12.7 million and $18.4 million, respectively, or 2.7 and 2.5 percentage points, respectively, on the combined ratio.
Losses mostly stemmed from European windstorms in the second quarter and winter storm Uri in the first quarter compared to no catastrophe losses recorded for the first three and six months of 2020.
SirirusPoint’s property segment specifically recorded gross premiums written of $213.2 million in Q2, an increase of $140.6 million, or 193.7%, from last year, driven by an increase in premiums of $193.1 million from the legacy Sirius Group companies.
The Property segment generated net underwriting income of $30.2 million and a combined ratio of 80.4% for the three months ended June 30, 2021, compared to net underwriting income of $10.4 million and a combined ratio of 74.6% previously.
Gross premiums written for the A&H segment were $90.6 million, again boosted by the Sirius Group acquisition, and the segment generated net underwriting income of $3.1 million and a combined ratio of 97.0%.
Finally, the Specialty segment generated gross premiums written of $289.3 million, a net underwriting loss of $0.1 million and a combined ratio of 100.0%, compared to a loss of $7.9 million and a combined ratio of 108.0% previously.
Net investment income was $77.4 million for Q2 2021, compared to $137.2 million for the same period in 2020.
“I am very pleased with our team’s execution through SiriusPoint’s first full quarter,” said Sid Sankaran, Chairman and Chief Executive Officer of SiriusPoint. “Underwriting this quarter has been keenly focused on remediation. We have made progress on re-balancing the portfolio between reinsurance and insurance to stabilize our book, manage volatility and deliver underwriting profit, over time.”
“We are off to a great start and have established strong momentum that is reflected in the number of deals closed in our first four months of operations,” Sankaran continued.
“We have attracted experienced and innovative partners and launched businesses including insurtech Joyn Insurance, with Seraina Macia, Banyan Risk, with Tim Usher-Jones, and Hestia Capital with Jean Francois Bahier and Peter Norris. Our existing partnerships with MGUs including Pie, and Arcadian Risk led by industry veteran John Boylan, also continue to add value and offer long term opportunity.”