SiriusPoint CEO hails another quarter of positive underwriting performance

Bermuda-based re/insurer SiriusPoint recently posted its seventh consecutive quarter of positive underwriting results in Q2 2024, partly attributable to new managing general agent (MGA) partnerships and the expansion of existing ones, according to CEO Scott Egan.

In an interview with Reinsurance News, Egan discussed the firm’s results in both the second quarter and at the half year stage, noting that he prefers H1 analysis because there is always an element of volatility in any given quarter.

“When I think about the quality of earnings at SiriusPoint, I take the attritional loss ratio, the acquisition cost ratio, and the expense ratio. Those are the three things that we can control every single quarter. At half year, this represents a 1.5 point improvement compared to H1 2023. That really is the acid test of whether this company is improving, and the exact definition of how you gauge the success of this company,” he stated.

For Q2 and H1 2024, SiriusPoint generated consolidated underwriting income of $65.1 million and $154.7 million, respectively, while core underwriting income totalled $36.9 million and $81.2 million, respectively.

Egan continued: “In addition, at half time our combined ratio is 92.8% – on a like-for-like basis that is 1% better than H1 2023. We have calculated this by excluding one-off transactions, such as LPTs, that happened during our restructure and turnaround, in order to accurately reflect on the progress that we have made.

“This is exactly where we want to be as a company – chasing the 1%s and those marginal gains, which really drive a performance culture.”

He noted that the firm’s continuing lines of business grew 22% year-over-year in the second quarter. Egan also expressed satisfaction that the carrier’s net investment income guidance has increased.

In terms of performance, he highlighted, “Our Bermuda Solvency Capital Ratio is the highest it’s ever been, at 284% and our headline return on equity was 16.7%. We can safely say the track record that SiriusPoint is beginning to build is gaining momentum.”

Egan summarised the H1 results, saying, “Results are strong but there is no complacency. The top line is growing, and our capital position, and return on equity are strong. Our share price is the highest it has been since 2018, and our staff are engaged and working hard. That’s a great half time report, but you don’t win a match at half time – so all to play for in the second half.”

Additionally, SiriusPoint recently announced three significant capital actions: an available $306 million share repurchase authorised by the Board, a $125 million share repurchase from China Minsheng Investment Group (CMIG), and the full cash settlement of Series A preference shares from CMIG.

“None of this would be possible without a strong and improving business. Our ambition is not to be average – our vision is that SiriusPoint becomes a best-in-class insurer and reinsurer. Every quarter marks further improvements to achieve that vision,” said Egan.

The CEO also provided some comments on the firm’s MGA and program partnerships, emphasising that SiriusPoint has created a Centre of Excellence for its partners and is gaining a strong market reputation for working with best-in-class MGAs and program administrators.

“Something SiriusPoint has focused on over the last two years is maximising the unrealised value of our consolidated MGAs. Therefore, in quarter two, we were able to recognise just under a $50 million gain for an update to the market value of our consolidated MGAs. That’s a really important proof point that demonstrates the value of these MGAs.

“We are extremely selective about who we will work with – in the same way that those MGAs are selective about which insurers they will work with. A big part of what makes these relationships work is the human dynamic, and taking time to understand and identify exactly the right type of support they need from us to reach their ambitions,” stated Egan.

“SiriusPoint is building a very strong reputation for becoming a ‘go-to’ company for MGAs and program administrators. That’s deliberate on our part. It is a distribution channel that we support and want to work with,” he concluded.

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