SiriusPoint CEO insists ‘strong progress’ after loss-making third quarter

SiriusPoint, the global specialty re/insurer launched in February this year with over $3 billion in capital, blames heavy catastrophe losses for its disappointing loss-making third quarter, but insists “strong progress” in exiting non-viable risks and reallocating capital away from property cat, following a thorough review of its business lines.

The Bermuda-based re/insurer generated a net loss of $48 million and a combined ratio of 152 percent for the third quarter of 2021.

Catastrophe losses, net of reinsurance and reinstatement premiums, for the three months ended September 30, 2021 were $286.5 million, or 55.9 percentage points on the combined ratio, including $132 million for the European floods and $100 million for Hurricane Ida.

The gross premiums written for the period came in at $653.7 million.

Sid Sankaran (pictured), chairman and chief executive officer of SiriusPoint, said: “The losses the industry has reported - not just this quarter but in the past few years - serve to validate our focus on managing the volatility of our Property business, as we continue to implement the changes identified by our line-by-line business review.

“We are making strong progress exiting risks that no longer fit our risk profile or where we do not see attractive risk-adjusted returns - the full impact of our efforts will materialize next year due to the heavy January renewal nature of the business.”

Losses were offset significantly by solid investment returns, he added, with the company reporting net investment income of $200 million.

“Our focus remains on delivering sustainable underwriting profitability to create value for our shareholders. This will be achieved by reallocating capital away from property cat and investment risk into our MGA platform within Insurance & Services, combined with rigorous risk management and disciplined underwriting,” continued Sankaran.

“We expect our actions and improvements each quarter to deliver progress towards the transformational and profitable company we are seeking to become.”

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