Amid a return to underwriting profitability, specialty re/insurer SiriusPoint has maintained its credit and financial strength ratings, as well as a stable outlook.
Fitch Ratings confirmed SiriusPoint’s long-term issuer default rating (IDR) at “BBB,” its senior debt at “BBB-,” and its operating subsidiaries’ insurer financial strength (IFS) rating at “A-” (Strong).
The rating follows a notable turnaround in SiriusPoint’s financial health, marked by a return to underwriting profitability in 2023 after a period of challenges exacerbated by several catastrophic events.
The recovery can also be attributed to strategic portfolio adjustments and a company-wide cost reduction initiative implemented by SiriusPoint’s management team.
In 2023, the company reported a core combined ratio of 89.1%, an improvement from the previous year’s 101.6%. The improvement was influenced by minimal impact from catastrophic events and significant favorable reserve developments.
SiriusPoint achieved a net income of $339 million in 2023, a recovery from a net loss of $403 million in 2022. This was driven by underwriting profits, higher investment income facilitated by increased interest rates, and a notable deferred tax benefit related to upcoming corporate tax changes in Bermuda.
Financial leverage and coverage ratios have also seen improvements, with a reduced financial leverage ratio of 25.6% at the end of 2023 and an enhanced fixed-charge coverage ratio, indicating the company’s strengthened financial structure and ability to meet its debt obligations.
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