Bermuda-domiciled SiriusPoint Ltd., a global specialty re/insurer, has reported Q1 2024 net income of $90.8 million, with core income of $62.4 million, which includes underwriting income of $44.3 million and a combined ratio of 91.4%.
The core combined ratio deteriorated from 80.5% in Q1 2023, as did the firm’s reported combined ratio, which moved from 73.8% to 84.9%.
The re/insurer has reported Q1 2024 consolidated underwriting income of $89.6 million compared to $156.5 million for Q1 2023, attributing the decrease to lower favourable prior-year loss reserve development.
In terms of core premium volume, the firm has reported that gross premiums written decreased by 17% to $880.7 million, while net premiums earned decreased by 6% to $517.8 million, driven by “the movement of certain lines from Insurance & Services to Corporate, including the non-renewal of a workers’ compensation program and the planned transition of a cyber program to another carrier”.
Core results for the quarter included income of $62.4 million, down on last year’s $124.1 million, which consists of underwriting income of $44.3 million and a net services income of $16.7 million.
SiriusPoint has reported that losses incurred including $8 million of favourable prior-year loss reserve development for Q1 2024, driven by decreased ultimate losses in the credit reinsurance portfolio, compared to $91.9 million for Q1 2023.
The company’s reinsurance generated an underwriting income of $39.9 million with a combined ratio of 84.2% for Q1 2024, compared to underwriting income of $79.7 million and combined ratio of 69.3% for Q1 2023.
Reinsurance GPW were $356.4 million for Q1 2024, a decrease of $39.8 million, or 10% year-on-year, primarily driven by lower premiums written in New York casualty and Bermuda specialty.
In the insurance and services segment, the firm has reported income of $22.5 million for Q1 2024, compared to $44.2 million for Q1 2023, which consists of underwriting income of $4.4 million with a combined ratio of 98.4%, and net services income of $18.1 million. This is compared to underwriting income of $27.7 million, a combined ratio of 90.4% and net services income of $16.5 million in Q1 2023.
The decrease in underwriting results was primarily driven by adverse prior-year loss reserve development of $2.3 million in Q1 2024. The GPW for this segment were $524.3 million for Q1 2024, a decrease of $139.7 million, or 21% compared to Q1 2023.
Scott Egan, Chief Executive Officer, SiriusPoint, commented: “Building on the momentum from 2023, we report our sixth consecutive quarter of positive underwriting result. Combined ratio for the Core operations is 91.4%, a 5% improvement over prior year, while net income is $90.8 million for the quarter.
“We also saw improvement in our Investment and Fee results. Net investment income was strong at $78.8 million and tracking higher than our FY 2024 guidance. Net service fee income from our Consolidated MGAs increased by 8.2% with an improved service margin of 30.1%. We continued to rationalize our equity stakes in MGAs which are now down to 24 compared to 36 at the start of 2023. We have also added five new distribution partnerships since the start of 2024 providing further evidence of our intent to grow in our targeted areas during the year and into 2025.
“During the quarter we made significant progress in further optimizing our balance sheet. We refinanced $400 million of legacy senior notes and redeemed $115 million of legacy senior notes. Together these transactions will reduce our financial leverage by approximately 2.5 points and improve our Q4’23 BSCR estimate of 255% by a further c.20 points. This will make our balance sheet even stronger.
“Overall, we are seeing good progress as we continue to execute strongly against our strategic priorities. Our first quarter performance is on track to meet our improved ROE guidance of 12%-15%. Our focus is to maintain this momentum and continue to improve our performance throughout the year.”
