SiriusPoint reported its financial results for the third quarter ended September 30, 2024, posting a net income of $5 million, reflecting the impact of its previously announced CMIG shareholder transaction.
Excluding certain one-time effects, the company’s underlying net income reached $89 million, representing a 69% increase from the previous year, largely due to growth in both underwriting and investment income.
The core business achieved a combined ratio of 88.5% in the third quarter, showing a four-point improvement from the same period in 2023. The core combined ratio for the year to date stands at 91.1%, supporting core underwriting income of $144 million.
SiriusPoint’s gross premiums written for continuing business lines increased by 10% in the third quarter, excluding programs exited in 2023, contributing to a 7% rise year-to-date. The company’s book value per diluted common share grew to $14.73, reflecting a 3% increase in the quarter and a 10% gain since the end of 2023.
SiriusPoint’s estimated Bermuda Solvency Capital Requirement (BSCR) ratio reached 265% in the third quarter, while the pre-tax estimate of Hurricane Milton-related losses, net of reinsurance and reinstatement premiums, is projected to be between $30 million and $40 million.
For the third quarter of 2024, SiriusPoint’s net income available to common shareholders was $4.5 million, or $0.03 per diluted common share. Core income totaled $69.5 million, which included $62.5 million in underwriting income and a core combined ratio of 88.5%. Core net services fee income amounted to $6.8 million, with a service margin of 14.1%.
Net investment income reached $77.7 million, contributing to a total investment result of $92.5 million. Book value per diluted common share increased by $0.42, or 2.9%, from June 30, 2024, reaching $14.73. Annualized return on average common equity was 0.7%.
For the nine months ending Sept. 30, 2024, SiriusPoint reported net income available to common shareholders of $205.2 million, or $1.11 per diluted common share. Core income for the period was $177.9 million, with $143.7 million in underwriting income and a core combined ratio of 91.1%.
Core net services fee income stood at $36.3 million, reflecting a service margin of 21.2%. Net investment income for the period reached $234.7 million, with a total investment result of $195.6 million.
Book value per diluted common share increased by $1.38, or 10.3%, from Dec. 31, 2023, to $14.73. Annualized return on average common equity was 11.4%, while the debt-to-capital ratio declined to 19.7%, compared to 23.8% at year-end 2023.
Scott Egan (pictured above), CEO of SiriusPoint, highlighted the company’s eighth consecutive quarter of positive underwriting income and noted the improvement in the combined ratio to 88.5%, along with 10% growth in premiums from continuing lines.
“Our strategic partnerships are a powerful tool to help us deliver our growth and underwriting ambitions. We added six new distribution partnerships in the quarter through our MGA Centre of Excellence, which is earning a reputation in the market as an attractive and leading platform for program administrators and MGAs,” he said.
During the quarter, SiriusPoint completed a two-part strategic transaction with CMIG, involving a $125 million buyback of common shares and the cash settlement of Series A Preference Shares.
Egan emphasized that the third-quarter BSCR estimate of 265% demonstrates the company’s balance sheet resilience, and the year-to-date underlying return on equity (ROE) stands at 14.4%, in line with its medium-term guidance of 12-15%.
“This quarter marks my second full year at SiriusPoint, and I am incredibly proud of the scale and pace of transformation we have achieved so far. This company is and always will be about our people and I am incredibly grateful to them for their relentless dedication and determination to make the company better. Together, we will drive further value through strategic, targeted improvement as we build a sustainable, best-in-class business for the future,” he said.
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