SiriusPoint slips to Q1 loss as reinsurance profit tanks 81%, insurance 43% y/y

Global specialty re/insurer  SiriusPoint slipped to a loss as reinsurance profit tanked 81%, insurance and services 43% and investments brought disappointing results in the first quarter of 2022, although its chief executive Sid Sankaran (pictured) highlighted positive underwriting growth and improved combined ratio.

The company made a net loss of $217 million for the first quarter ended March 31, 2022, against a net profit of $168 million in the prior-year period.

Its combined ratio of 93.7% was a slight improvement from the Q1 2021 figure of 96.5%. Catastrophe losses were $7 million or 1 percentage point on the combined ratio, while Russia/Ukraine losses of $19 million were 4 percentage points on the combined ratio.

First quarter 2022 gross premiums written of $1 billion was almost evenly split between insurance and reinsurance on execution of strategic shift towards Insurance & Services. The GWP rose by 183% year on year from $355 million in Q1 2021.

Reinsurance segment posted a profit of $3.1 million (99.0% combined ratio), down 81% from the profit of $16.5 million (91.8% combined ratio) made in the same period of 2021. Insurance & Services generated a profit of $23.6 million, 43% lower compared to the profit of $41.4 million in Q1 2021.

Sankaran,  SiriusPoint’s chairman and CEO, said: “Our underwriting results showed positive progress in the first quarter of 2022, with a 93.7% combined ratio, reflecting the diligent execution of our strategic priorities to transform our business. Our focus on shifting our business mix towards our promising Insurance & Services segment and strategic partnerships approach gained further traction this quarter, with premiums split almost equally between Insurance & Services and Reinsurance, compared to approximately 60% Reinsurance and 40% Insurance & Services in 2021. Our fee business has strong double digit sequential growth in revenue and income.”

The company also saw progress in its reinsurance segment, he noted, which achieved profitable underwriting performance that was “reflective of the discipline with which we have approached the renewal of attractive business within the scope of our risk appetite”, he said.

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