AM Best has revised the outlook of the rated operating subsidiaries of SiriusPoint Ltd. to positive from stable, citing the company’s "very strong balance sheet."
The rating agency affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit ratings (Long-Term ICR) of "a-" (Excellent) for SiriusPoint’s rated operating subsidiaries. AM Best also affirmed the Long-Term ICR of "bbb-" (Good) for SiriusPoint Ltd.
According to AM Best, the change in outlook reflects improvements to SiriusPoint’s balance sheet strength, driven by actions taken by management, including the derisking of its investment portfolio and a reduction in catastrophe exposure.
AM Best also cited the ratings revision to the recent repurchase of shares and warrants previously held by CM Bermuda Ltd.
Scott Egan (pictured above), chief executive officer of SiriusPoint, said the outlook revision reflects the company’s focus on stability, underwriting profitability, and building a leading insurance and reinsurance platform.
For 2024, the company reported a fourth-quarter combined ratio of 90.2% for its core business, a 3.2-point improvement from the previous year. The full-year core combined ratio stood at 91.0%, contributing to US$200 million in core underwriting income.
In its statement, AM Best said the ratings reflect SiriusPoint’s consolidated balance sheet strength, which it assesses as very strong, alongside adequate operating performance, a neutral business profile, and appropriate enterprise risk management.
AM Best noted that it expects SiriusPoint to maintain its risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by prudent capital management, effective underwriting exposure management, and positive operating results.
The financial strength rating of A- (Excellent) and the Long-Term ICRs of "a-" (Excellent) were affirmed for the following SiriusPoint subsidiaries, with the outlooks revised to Positive from Stable: SiriusPoint America Insurance Company, SiriusPoint Bermuda Insurance Company Ltd., SiriusPoint International Insurance Corporation (publ), and SiriusPoint Specialty Insurance Corporation.
The outlook revision from AM Best follows Fitch Ratings' announcement one month earlier, where it affirmed SiriusPoint’s Long-term issuer default rating at ‘BBB’, its senior debt rating at ‘BBB-’, and its insurer financial strength (IFS) rating at ‘A-’ for SiriusPoint’s subsidiaries. Fitch also revised the company’s outlook to positive from stable.
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