Release Date: November 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- SiriusPoint Ltd (SPNT, Financial) achieved its eighth consecutive quarter of underwriting profit with a combined ratio of 88.5%, marking a four-point improvement from the previous year.
- The company reported a 10% year-over-year growth in premiums for its continuing lines of business, demonstrating increasing momentum.
- Net investment income for the third quarter was strong at $78 million, contributing to a total investment result of $93 million.
- SiriusPoint Ltd (SPNT) has entered into 17 new MGA partnerships this year, strengthening its distribution strategy.
- The company's book value per share grew by 3% in the quarter and has increased by 10% year-to-date, indicating strong financial health.
Negative Points
- Hurricane Milton is expected to result in net losses of $30 to $40 million, impacting future financial results.
- The deconsolidation of Arcadian led to a reduction in MGA revenues and net service fee income.
- The company's headline net income for the third quarter was only $5 million, impacted by the CMIG transaction.
- Gross premiums written decreased by 5% quarter-on-quarter on a headline basis due to business exits in 2023.
- The attritional loss ratio increased by 1.5 points due to a shift in business mix, affecting the overall combined ratio.
Q & A Highlights
Q: Can you elaborate on the impact of Hurricane Milton on SiriusPoint's financials and how it compares to previous events?
A: Scott Egan, CEO: Hurricane Milton is estimated to result in net losses of $30 to $40 million, which will be reflected in our fourth quarter results. This represents about 1.2% to 1.6% of our opening book value for the fourth quarter. Despite this, our year-to-date catastrophe losses remain within our full-year catastrophe budget, and we expect our reinsurance business to deliver strong full-year performance.
Q: How has SiriusPoint's underwriting performance improved, and what are the key drivers?
A: Scott Egan, CEO: We achieved our eighth consecutive quarter of underwriting profit with a combined ratio of 88.5%, a four-point improvement from the previous year. This improvement is driven by our disciplined underwriting strategy, focusing on specialty and property market segments, and a refined operating model that allows us to capitalize on market opportunities.
Q: What is the status of SiriusPoint's investment portfolio, and how has it performed this quarter?
A: Jim McKinney, CFO: Our investment portfolio delivered a strong result with net investment income of $78 million for the quarter, contributing to a total investment result of $93 million. This performance is due to strong fixed income rates and ongoing portfolio optimization. We expect full-year net investment income to be between $295 and $300 million.
Q: Can you provide more details on SiriusPoint's MGA strategy and its impact on the company's growth?
A: Scott Egan, CEO: Our MGA distribution strategy is strengthening, with six new partnerships in the third quarter and 17 new programs year-to-date. This approach, supported by our MGA Center of Excellence, is crucial for achieving our goal of becoming a preferred partner for delegated business. The deconsolidation of Arcadian has no impact on our underwriting relationship or net income.
Q: How has SiriusPoint's financial position changed following the CMIG transaction?
A: Jim McKinney, CFO: The CMIG transaction involved repurchasing and retiring $125 million of CMIG's common stock and settling Series A preference shares in cash. This transaction impacted our third-quarter net income, which was $5 million, but our underlying net income was $89 million, reflecting a 69% increase from the prior year. Our book value per share grew by 3% in the quarter and 10% year-to-date.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
