Bermuda-headquartered re/insurer SiriusPoint has reported a full year net loss of $403 million, with a net loss in Q4 alone of $27 million.
The firm’s combined ratio for the year sat at 96.4%, down from 109.1% in 2021, while full year underwriting income was $83 million, compared to an underwriting loss of $156.1 million in 2021.
The improvement in underwriting results was driven by lower catastrophe losses compared to the prior year period, says SiriusPoint, alongside premium growth in Insurance & Services.
Catastrophe losses for the full year were $138 million, with the firm adding that Hurricane Ian’s loss estimate was broadly stable at $81 million.
SiriusPoint writes, “The lower catastrophe losses were a result of our significant reduction in catastrophe exposed business, with our most notable underwriting action focus centred on global property reinsurance, which represented our primary source of underwriting volatility and underperformance.
“We rebalanced our property portfolio by decreasing our market share and exposure in the global property catastrophe reinsurance business as well as reducing other property reinsurance with material catastrophe exposure.”
Net investment loss for the full year was $323 million, including (29.0)% return from its investment in the TP Enhanced Fund.
Reinsurance incurred a segment loss of $71.0 million (105.6% combined ratio) for the year ended 2022, compared to $186.4 million (115.4% combined ratio) for 2021.
SiriusPoint notes that the change in net underwriting results was due primarily to lower catastrophe losses, partially offset by lower favourable loss reserve development and $12.2 million of losses from the Russia/Ukraine conflict.
Reinsurance gross premiums written were $1,521.4 million for the year, an increase of $171.0 million compared to 2021.
Reinsurance gross premiums written in Q4 alone were $300.5 million, a decrease of $118.3 million compared to Q4 of 2021, which the firm suggests was driven by both Property and Casualty lines as it rebalances its portfolio towards Insurance & Services.
Scott Egan, CEO of SiriusPoint, commented, “We are pleased with the progress shown in our underwriting results in the second half of 2022. It gives us a strong platform and momentum to build on for 2023 as we look to reinforce our credentials as an underwriter.
“Added to this is the strong contribution from our MGAs on both an underwriting and fee basis, which we will look to enhance and leverage further where it complements our underwriting strategy.
“Our 2023 journey is well underway. We will continue to reduce volatility and improve quality in our underwriting results as we rebuild stakeholder confidence in the company.
“In addition to our underwriting improvements, we have also materially repositioned our investment portfolio, reducing volatility, capital intensity and locking in higher yield.”
Egan continued, “Our owned and part-owned MGAs continue to produce stable capital-light earnings on the back of a growing top line. Finally, we aim to improve the effectiveness and efficiency of our operating model with targeted cost reductions during 2023 and 2024.
“We feel confident but not complacent as we look into 2023, repositioning the company for profitability, growth and long-term success. We have a healthy balance sheet, excellent people and resources, strong client and broker relationships, and a diversified business model that has the potential to deliver higher returns. We look forward to sharing updates on our meaningful progress as we go through the year.”
