Specialty insurer and reinsurer, SiriusPoint Ltd. has posted a combined ratio of 88% for the third quarter of 2023, compared to last year’s 107.7%, while also reporting a net income of $58 million for the same period.
In Q3, the company’s core income totaled $50 million, which includes an underwriting income of $43 million, as well as a core combined ratio of 92.5%.
At the same time, net investment income totaled $75 million, as well as a total investment result of $68 million for the quarter.
Consolidated underwriting income for Q3 was $73.8 million compared to underwriting loss of $46.9 million for the same period last year.
SiriusPoint noted that the improvement in net underwriting results was driven by lower catastrophe losses and improved favorable prior year loss reserve development. Catastrophe losses, net of reinsurance and reinstatement premiums, for the quarter were $12.0 million, or 2.0 percentage points on the combined ratio, including Hawaii wildfires, Hurricane Idalia, and Storm Hans, compared to $114.6 million or 18.7 points on the combined ratio for 2022, which were primarily from Hurricane Ian.
For Q3, reinsurance generated an underwriting income of $36.9 million (85.6% combined ratio), compared to an underwriting loss of $79.6 million (126.1% combined ratio) for the prior year quarter.
While reinsurance gross premiums written were $265.4 million for the quarter, a decrease of $53.0 million compared to last year.
For 9M 23, core results included an income of $245.1 million compared to a loss of $31.4 million for 9M 22.
The income for 9M 23 consisted of an underwriting income of $213.2 million (87.6% combined ratio) and net services income of $31.9 million, compared to an underwriting loss of $66.0 million (103.9% combined ratio) and net services income of $34.6 million for the same period last year.
In addition, for 9M 23, reinsurance generated an underwriting income of $178.4 million (77.4% combined ratio), compared to a loss of $76.7 million (108.2% combined ratio) for 9M 22.
Reinsurance gross premiums written were $1,019.3 million for 9M 23, representing a decrease of $201.6 million, or 16.5%, compared to the same period last year.
Scott Egan, Chief Executive Officer, said: “We have had a strong quarter as we delivered positive underwriting results in the third quarter for the first time in the Group’s history. Our combined ratio for the Group’s Core operations was 87.6% with Catastrophe losses materially down at $14 million compared to $138 million in the prior year period. There has been improvement across all areas of our business and our actions are having the desired impact.
“Investment results remain strong, and we raise our guidance on full year net investment income to $250 million to $260 million from $220 million to $240 million. MGA revenues grew at 7% while margins increased to 21%. Our balance sheet is strong, and we remain on track to hit double-digit ROE this year.
“During the quarter, we also entered into a standstill agreement with Mr. Daniel Loeb. This removes any lingering uncertainty and underlines Mr Loeb’s support for the strategy and progress he outlined in his 13D.
“I have now completed one year at SiriusPoint, and I am incredibly proud of the progress made to date. We have created significant shareholder value and our aim is to continue to improve as we go into 2024. We believe strongly there is the potential to do so. I would like to thank our shareholders and customers for their support and patience as we turnaround the performance of the Group and my colleagues for their hard work and dedication to the task.”
