SiriusPoint’s Q2’25 underwriting income improves on lower cats & higher favourable PYD

Bermuda-based carrier SiriusPoint has reported a rise in core underwriting income to $67.6 million for the second quarter of 2025, compared with $36.9 million a year earlier, as catastrophe losses decreased and favorable prior year loss reserve development increased.

The re/insurer has reported a solid set of results for the second quarter, posting income of $76.3 million, up on Q2’24’s $46 million, as the combined ratio strengthened to 86.1% from 89%, and net services income hit $8.7 million, down slightly on last year’s $9.1 million.

The impact of catastrophes was limited in the quarter, compared with losses of $5.6 million in Q2’24. Losses incurred included $13.8 million of favorable prior year loss reserve development for Q2’25, primarily driven by favorable development in Property and A&H businesses due to lower than expected reported attritional losses, compared to $4.9 million for Q2’24, driven by favorable development within A&H.

For the quarter, gross premiums written (GPW) increased by 10.4% to $930.1 million, as net premiums earned rose 17% year-on-year to $645.6 million. SiriusPoint attributes the growth to its Insurance & Services segment, including expansion of Surety within the Other Specialties business line, growth across A&H, and continued strategic organic, and new program growth in its international P&C business.

Core results include the sum of the Insurance & Services and Reinsurance segments, which both performed well in the second quarter.

Within Reinsurance, GPW increased by 5% year-on-year to $369.7 million, driven by increases in credit within the Other Specialties book of business.

The reinsurance segment produced underwriting income of $28.1 million with a combined ratio of 89.8%, compared with underwriting income of $25 million and 90.2% combined ratio in Q2’24, driven by premium growth, lower acquisition costs, and a decrease in catastrophe losses of $3.5 million.

Within Insurance & Services, GPW rose 14% year-on-year to $560.4 million, with expansion in Surety within the Other Specialties business line, growth across A&H, and continued strategic organic and new program growth in the firm’s international business, specifically London MGAs.

The segment’s underwriting income increased to $48.2 million in Q2’25 from $21 million in Q2’25, as the combined ratio improved to 89.3% from 96%, driven by a lower attritional loss ratio, as well as net favorable prior year loss reserve development of $9.7 million.

On the asset side of the balance sheet, SiriusPoint has reported net investment income and net realized and unrealized investment gains increased as a result of losses on strategic investments in Q2’24 of $40.6 million resulting from the firm’s recurring valuations of its portfolio.

For the first half of 2025, the re/insurer generated underwriting income of $96.1 million, up on the prior year’s $81.2 million, driven by premium growth combined with improved attritional and acquisition cost ratios.

Favorable prior year loss reserve development in H1’25 totalled $48.1 million, mainly driven by favorable development in Property, mainly from reserve releases relating to prior year’s catastrophe events, as well as favorable development in A&H, due to lower than expected reported losses, explains the firm.

For the first half of 2025, catastrophe losses amounted to $67.4 million, primarily from the California wildfires, compared to $5.6 million of losses in H1’24.

Top-line growth for the first half of the year was solid, with GPW rising 11% to $1.9 billion, while net earned premiums increased by 19% to $1.3 billion. The company attributes the growth to expansion in its Insurance & Services segment, including growth across A&H, expansion of Surety within the Other Specialties business line, continued strategic organic, and new program growth in its international business.

“Our second quarter results reflect the strength of our disciplined underwriting strategy. With each quarter, we demonstrate our ability to deliver consistent and stable earnings. Underlying return on equity for the quarter of 17.0%, and 15.4% for half year, both exceed our 12-15% ‘across the cycle’ target,” said Scott Egan, Chief Executive Officer.

“Our Core combined ratio for the quarter was 89.5%, an improvement of 3.8 points versus last year. Our half year Core combined ratio was flat compared to last year despite increased volatility from aviation losses and first quarter wildfires. We continued to see strong top line growth, with gross premiums written up 10% year over year.

“Beyond strong financials, the second quarter marked real and tangible progress in other areas. We were named Program Insurer of the Year in the US, achieved record scores in our employee engagement survey, and we attracted key talent to our business, including two new members of our executive leadership team.

“Our momentum continues, and this quarter is another purposeful step towards our goal of becoming a best-in-class underwriter,” he added.