S&P Global Ratings has upgraded SiriusPoint’s core insurance operating subsidiaries’ long-term issuer credit and financial strength ratings to ‘A’ from ‘A-‘, marking the company’s third ratings upgrade this year.
In addition, S&P raised SiriusPoint’s long-term issuer credit rating to ‘BBB+’ from ‘BBB’, with a stable outlook.
S&P said the upgrade reflects its view that SiriusPoint’s de-risking of both its underwriting and investment portfolios, alongside consistent performance, has significantly strengthened its capital position and overall credit fundamentals in recent years.
The ratings agency also expects the group to continue delivering robust underwriting results in line with peers (with combined ratios below 95%) and to maintain capital above its 99.99% confidence level over the next two years.
S&P recognised the actions SiriusPoint has taken in recent years, including reducing its catastrophe exposure, the full repurchase of all SiriusPoint common shares and warrants held by CM Bermuda Limited, the retirement of $200 million of preference shares, and the recent sale of its stakes in ArmadaCare and Arcadian.
This year, AM Best and Fitch Ratings upgraded SiriusPoint to A (Excellent) and A (Strong), respectively, citing the company’s improved earnings, disciplined underwriting, prudent capital management, and its ability to absorb volatility across underwriting cycles.
Scott Egan, Chief Executive Officer at SiriusPoint, said, “We are very proud to have achieved our third ratings upgrade this year, which is a strong endorsement of the company we are today. The S&P upgrade reflects the real progress we’ve made in building a stronger, more resilient business with firm foundations for long-term success.”
