HAMILTON, Bermuda, Aug. 5,
2021 /PRNewswire/ -- SiriusPoint Ltd. ("SiriusPoint" or the
"Company") (NYSE: SPNT) today announced results for its second
quarter ended June 30, 2021.
Second Quarter 2021 Highlights
- Net income of $64.5 million, or
$0.37 per diluted common share
- Tangible diluted book value per share increased $0.33, or 2.4%, from the first quarter of 2021 to
$14.30
- Combined ratio of 92.8% and net underwriting income of
$33.3 million
- Catastrophe losses were $12.7
million or 2.7 percentage points on the Company's combined
ratio
- Annualized return on average common equity of 10.6%
- Net investment income of $77.4
million
- $417 million loss portfolio
transfer transaction with Compre
Sid Sankaran, Chairman and Chief
Executive Officer, SiriusPoint, said: "I am very pleased with our
team's execution through SiriusPoint's first full quarter.
Underwriting this quarter has been keenly focused on remediation.
We have made progress on re-balancing the portfolio between
reinsurance and insurance to stabilize our book, manage volatility
and deliver underwriting profit, over time. We are off to a great
start and have established strong momentum that is reflected in the
number of deals closed in our first four months of operations. We
have attracted experienced and innovative partners and launched
businesses including insurtech Joyn Insurance, with Seraina Macia, Banyan Risk, with Tim Usher-Jones, and Hestia Capital with
Jean Francois Bahier and
Peter Norris. Our existing
partnerships with MGUs including Pie, and Arcadian Risk led by
industry veteran John Boylan, also
continue to add value and offer long term opportunity."
SiriusPoint also announced today a loss portfolio transfer
transaction with Compre, a legacy runoff specialist. The loss
portfolio transfer, which is subject to regulatory approval, covers
$417 million of loss reserves subject
to or associated with the transaction, including much of the legacy
Sirius Group Runoff business, including Asbestos and Environmental,
for a premium of $430 million.
Mr. Sankaran commented: "Our transaction with Compre underscores
the ongoing transformation of SiriusPoint, our focus on optimizing
capital allocation and rebalancing towards insurance and higher
margin and growth lines, and provides further clarity on
SiriusPoint's reserve position.
"With SiriusPoint, we are embarking on a journey to create a
company with a sustainable long-term franchise and a focus on book
value creation" Mr. Sankaran continued. "Our approach to capital
allocation and our ability to be nimble has allowed us to take
advantage of current market conditions, but our strategy does not
rely on a hard market. We are building a company with a strong
entrepreneurial culture under the premise that soft markets are the
norm, while planning around long term macro trends that require
disciplined investments and a growth mindset."
Key Financial Metrics
The following table shows certain key financial metrics for the
three and six months ended June 30,
2021 and 2020:
|
Three months
ended
|
|
Six months
ended
|
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
($ in millions,
except for per share data and ratios)
|
Annualized return on
average common shareholders' equity
attributable to SiriusPoint common shareholders
|
10.6
|
%
|
|
38.3
|
%
|
|
19.3
|
%
|
|
(8.6)
|
%
|
Net underwriting
income (1)
|
$
|
33.3
|
|
|
$
|
0.2
|
|
|
$
|
42.0
|
|
|
$
|
2.3
|
|
Combined ratio
(1)
|
92.8
|
%
|
|
99.8
|
%
|
|
94.2
|
%
|
|
99.2
|
%
|
Basic book value per
share (2) (4)
|
$
|
15.59
|
|
|
$
|
16.88
|
|
|
$
|
15.59
|
|
|
$
|
16.88
|
|
Tangible basic book
value per share (2) (4)
|
$
|
14.48
|
|
|
$
|
16.88
|
|
|
$
|
14.48
|
|
|
$
|
16.88
|
|
Diluted book value
per share (2) (3) (4)
|
$
|
15.37
|
|
|
$
|
16.71
|
|
|
$
|
15.37
|
|
|
$
|
16.71
|
|
Tangible diluted book
value per share (2) (4)
|
$
|
14.30
|
|
|
$
|
16.71
|
|
|
$
|
14.30
|
|
|
$
|
16.71
|
|
|
|
(1)
|
See the accompanying
Segment Reporting for a calculation of net underwriting income and
combined ratio.
|
(2)
|
Basic book value per
share, tangible basic book value per share, diluted book value per
share and tangible diluted book value per share are non-GAAP
financial measures.
|
(3)
|
In the first quarter
of 2021, we changed the method for calculating the dilutive effect
of restricted shares, restricted share units and options to
calculate the
dilutive impact in a manner consistent with how dilution is
calculated using the treasury stock method for earnings per share.
See the accompanying
reconciliations in "Non-GAAP Measures and Reconciliations & Key
Performance Indicators".
|
(4)
|
Prior year
comparatives represent amounts as of December 31, 2020.
|
Second Quarter 2021 Summary
Underwriting Results
The acquisition of Sirius Group, which occurred on February 26, 2021, has created a highly
diversified portfolio with expanded underwriting capabilities,
geographic footprint and product offerings. Effective January 1, 2021, the Company reports four
operating segments: Accident & Health ("A&H"), Specialty,
Property and Runoff & Other.
In addition, effective January 1,
2021, the Company changed its accounting policy for assumed
written premium recognition. Previously, the Company estimated
ultimate premium written for the entire contract period and
recorded this estimate at inception of the contract. The Company
changed its accounting policy to recognize premiums written ratably
over the term of the related policy or reinsurance treaty. The
change in accounting policy had no impact on the previously
reported net income (loss) or shareholders' equity attributable to
SiriusPoint common shareholders. Prior period segment results have
been adjusted to conform to the current period presentation.
Net premiums earned increased by $325.5
million, or 231.2%, to $466.3
million for the three months ended June 30, 2021 from $140.8
million for the three months ended June 30, 2020, primarily driven by an increase in
net premiums earned of $359.9 million as a result of new premiums
from the legacy Sirius Group companies.
Net premiums earned increased by $435.2
million, or 151.6%, to $722.3
million for the six months ended June 30, 2021 from $287.1
million for the six months ended June 30, 2020, primarily driven by an increase in
net premiums earned of $475.8 million as a result of new premiums
from the legacy Sirius Group companies from the date of
acquisition.
We generated net underwriting income of $33.3 million and a combined ratio of 92.8% for
the three months ended June 30, 2021,
compared to net underwriting income of $0.2
million and a combined ratio of 99.8% for the three months
ended June 30, 2020. The improvement
in net underwriting results was primarily driven by net
underwriting income of $25.8 million from the legacy Sirius Group
companies, mainly in the Property and A&H segments.
We generated net underwriting income of $42.0 million and a combined ratio of 94.2% for
the six months ended June 30,
2021, compared to net underwriting income of $2.3 million and a combined ratio of 99.2% for
the six months ended June 30,
2020. The improvement in net underwriting results was
primarily driven by net underwriting income of $33.9 million from the legacy Sirius Group
companies from the date of acquisition, mainly in the Property and
A&H segments.
Catastrophe losses, net of reinsurance and reinstatement
premiums, for the three and six months ended June 30, 2021 were $12.7 million and $18.4 million, respectively, or 2.7 and 2.5
percentage points, respectively, on the combined ratio, from
European windstorms in the second quarter and winter storm Uri in
the first quarter compared to no catastrophe losses recorded for
the three and six months ended June 30,
2020.
A&H Segment
Gross premiums written in the A&H segment were $90.6 million for the three months ended
June 30, 2021, an increase of
$89.3 million compared to the three
months ended June 30, 2020, primarily
driven by an increase in premiums of $90.6 million as a result of new premiums
from the legacy Sirius Group companies.
For the three months ended June 30,
2021, the A&H segment generated net underwriting income
of $3.1 million and a combined
ratio of 97.0%, compared to a net underwriting loss of $1.7 million for the three months ended
June 30, 2020.
Specialty Segment
Gross premiums written in the Specialty segment were
$289.3 million for the three
months ended June 30, 2021, an
increase of $215.5 million, or
292.0%, compared to the three months ended June 30, 2020, primarily driven by an increase in
premiums of $150.6 million as a
result of new premiums from the legacy Sirius Group companies, and
due to new casualty premium of $59.8 million in the period written by our
Bermuda incorporated MGU, Arcadian
Risk, in which we invest capital and expertise.
The Specialty segment generated a net underwriting loss of
$0.1 million and a combined ratio of
100.0% for the three months ended June 30,
2021, compared to a net underwriting loss of $7.9 million and a combined ratio of 108.0% for
the three months ended June 30, 2020.
The change in underwriting results for the three months ended
June 30, 2021, compared to the three
months ended June 30, 2020,
was primarily driven by lower COVID-19 losses.
Property Segment
Gross premiums written in the Property segment were $213.2 million for the three months ended
June 30, 2021, an increase of
$140.6 million, or 193.7%, compared
to the three months ended June 30,
2020, primarily driven by an increase in premiums of
$193.1 million as a result of
new premiums from the legacy Sirius Group companies.
The Property segment generated net underwriting income of
$30.2 million and a combined ratio of
80.4% for the three months ended June 30,
2021, compared to net underwriting income of $10.4 million and a combined ratio of 74.6% for
the three months ended June 30, 2020.
The change in underwriting results for the three months ended
June 30, 2021, compared to the three
months ended June 30, 2020, was
primarily driven by net underwriting income of $25.0 million as a result of the legacy
Sirius Group companies. Catastrophe losses, net of reinsurance and
reinstatement premiums, for the three months ended June 30, 2021 were $12.7
million, primarily from European Windstorms compared to no
catastrophe losses recorded for the three months ended June 30, 2020. Net favorable prior year loss
reserve development was $8.6 million for the three months ended
June 30, 2021 compared to minimal
prior year loss reserve development for the three months ended
June 30, 2020.
Investments
Net investment income was $77.4
million for the three months ended June 30, 2021, compared to net investment income
of $137.2 million for the three
months ended June 30, 2020.
Net investment income for the three months ended June 30, 2021 was primarily attributable to
net investment income of $44.7 million from our investment in the TP
Enhanced Fund, corresponding to a 3.7% return. The return was
primarily attributable to long event/fundamental equities,
particularly in the enterprise technology and healthcare sectors,
as well as corporate and structured credit. In addition, the
Company recognized net investment income of $35.5 million on fixed maturity, short term,
cash equivalents and alternative investments. This was mainly
attributable to unrealized gains of $25.5 million resulting from both market
appreciation and favorable foreign exchange developments.
Net investment income for the three months ended June 30, 2020 was primarily attributable to
net investment income of $98.6
million from our investment in the TP Enhanced Fund, as well
as investment income from our opportunistic credit
investments made at the end of the first quarter of 2020 to
take advantage of dislocations in the credit market brought on by
the COVID-19 pandemic.
Conference Call Details
The Company will hold a conference call to discuss its second
quarter 2021 results at 8:30 a.m. Eastern
Time on August 6, 2021. The
call will be webcast live over the Internet from the Company's
website at www.siriuspt.com under the "Investor Relations" section.
Participants should follow the instructions provided on the website
to download and install any necessary audio applications. The
conference call will also be available by dialing
1-877-300-8521 (domestic) or 1-412-317-6026 (international).
Participants should ask for the SiriusPoint Ltd. second quarter
2021 earnings call.
A replay of the live conference call will be available
approximately two hours after the call. The replay will be
available on the Company's website at www.siriuspt.com under the
"Investor Relations" section.
Safe Harbor Statement Regarding Forward-Looking
Statements
This press release includes "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding optimizing capital allocation,
rebalancing towards insurance, creating a sustainable long-term
franchise and book value. Forward-looking statements are subject to
known and unknown risks and uncertainties, many of which may be
beyond the Company's control. The Company cautions you that the
forward-looking information presented in this press release is not
a guarantee of future events, and that actual events may differ
materially from those made in or suggested by the forward-looking
information contained in this press release. In addition,
forward-looking statements generally can be identified by the use
of forward-looking terminology such as "may," "plan," "seek,"
"comfortable with," "will," "expect," "intend," "estimate,"
"anticipate," "believe" or "continue" or the negative thereof or
variations thereon or similar terminology. Actual events, results
and outcomes may differ materially from the Company's expectations
due to a variety of known and unknown risks, uncertainties and
other factors. Among the risks and uncertainties that could cause
actual results to differ from those described in the
forward-looking statements are the following: the costs, expense
and difficulties of the integration of the operations of Sirius
Group; the impact of the novel coronavirus (COVID-19) pandemic or
other unpredictable catastrophic events; fluctuations in our
results of operations; a downgrade or withdrawal of our financial
ratings; inadequacy of loss and loss adjustment expenses reserves;
the effects of global climate change; periods characterized by
excess underwriting capacity and unfavorable premium rates; reduced
returns or losses in SiriusPoint's investment portfolio; adverse
changes in interest rates, foreign currency exchange rates, equity
markets, debt markets or market volatility; legal restrictions on
certain of SiriusPoint's insurance and reinsurance subsidiaries'
ability to pay dividends and other distributions to
SiriusPoint; SiriusPoint's significant deferred tax assets,
which could become devalued if either SiriusPoint does not generate
sufficient future taxable income or applicable corporate tax rates
are reduced; the lack of availability of capital; future strategic
transactions such as acquisitions, dispositions, mergers,
investments or joint ventures; technology breaches; our
concentrated exposure in Third Point Enhanced LP (the "TP Enhanced
Fund") whose investment strategy may bear substantial investment
risks; conflicts of interest among various members of TP Enhanced
Fund, Third Point LLC and SiriusPoint; and other risks and
uncertainties listed in the Company's Quarterly Report on Form 10-Q
for the quarters ended March 31, 2021
and June 30, 2021, and any subsequent
reports filed with the Securities and Exchange Commission. All
forward-looking statements speak only as of the date made and the
Company undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Non-GAAP Financial Measures and Other Financial
Metrics
In presenting SiriusPoint's results, management has included
financial measures that are not calculated under standards or rules
that comprise accounting principles generally accepted in
the United States ("GAAP").
SiriusPoint's management uses this information in its internal
analysis of results and believes that this information may be
informative to investors in gauging the quality of SiriusPoint's
financial performance, identifying trends in our results and
providing meaningful period-to-period comparisons. Book value per
share metrics are non-GAAP financial measures. We believe that
long-term growth in book value per share is an important measure of
our financial performance because it allows our management and
investors to track over time the value created by the retention of
earnings. In addition, we believe this metric is used by investors
because it provides a basis for comparison with other companies in
our industry that also report a similar measure. Reconciliations of
such measures to the most comparable GAAP figures are included in
the attached financial information in accordance with Regulation
G.
About the Company
SiriusPoint is a top 20 global insurer and reinsurer providing
solutions to clients and brokers in almost 150 countries.
Bermuda-headquartered with offices
around the world, we are listed on the New York Stock Exchange
(SPNT). We write a global portfolio of Accident & Health,
Specialty, Property and Runoff & Other business, combining data
and creative thinking to underwrite risks with skill and
discipline. With over $3 billion
total capital as of June 30, 2021,
SiriusPoint's operating companies have a financial strength rating
of A- (Excellent) from AM Best, S&P and Fitch. For more
information please visit www.siriuspt.com.
Contacts
Investor Relations
Clare Kerrigan - Corporate
Communications and Investor Relations
clare.kerrigan@siriuspt.com
+1 441 542-3333
SIRIUSPOINT
LTD.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
As of June 30,
2021 and December 31, 2020
|
(expressed
in millions of U.S. dollars, except per share and share
amounts)
|
|
|
June 30,
2021
|
|
December 31,
2020
|
Assets
|
|
|
|
Investments in
related party investment funds, at fair value (cost - $891.9; 2020
- $891.9)
|
$
|
1,254.4
|
|
|
$
|
1,055.6
|
|
Debt securities,
trading, at fair value (cost - $2,006.3; 2020 - $91.4)
|
2,009.3
|
|
|
101.3
|
|
Short-term
investments, at fair value (cost - $767.7; 2020 - N/A)
|
766.7
|
|
|
—
|
|
Equity securities,
trading, at fair value (cost - $4.9; 2020 - N/A)
|
5.0
|
|
|
—
|
|
Other long-term
investments, at fair value (cost - $414.9; 2020 - $4.0)
|
463.7
|
|
|
4.0
|
|
Total
investments
|
4,499.1
|
|
|
1,160.9
|
|
Cash and cash
equivalents
|
1,032.6
|
|
|
526.0
|
|
Restricted cash and
cash equivalents
|
1,554.4
|
|
|
1,187.9
|
|
Due from
brokers
|
55.7
|
|
|
94.9
|
|
Interest and
dividends receivable
|
11.1
|
|
|
0.9
|
|
Insurance and
reinsurance balances receivable, net
|
1,515.3
|
|
|
441.9
|
|
Deferred acquisition
costs, net and value of business acquired
|
212.1
|
|
|
68.6
|
|
Unearned premiums
ceded
|
247.0
|
|
|
20.5
|
|
Loss and loss
adjustment expenses recoverable, net
|
516.6
|
|
|
14.4
|
|
Deferred tax
asset
|
216.3
|
|
|
0.4
|
|
Intangible
assets
|
176.7
|
|
|
—
|
|
Other
assets
|
153.7
|
|
|
18.8
|
|
Total
assets
|
$
|
10,190.6
|
|
|
$
|
3,535.2
|
|
Liabilities
|
|
|
|
Loss and loss
adjustment expense reserves
|
$
|
4,232.3
|
|
|
$
|
1,310.1
|
|
Unearned premium
reserves
|
1,238.1
|
|
|
284.8
|
|
Reinsurance balances
payable
|
526.3
|
|
|
78.1
|
|
Deposit
liabilities
|
148.6
|
|
|
153.0
|
|
Securities sold, not
yet purchased, at fair value
|
10.0
|
|
|
12.0
|
|
Due to
brokers
|
38.9
|
|
|
—
|
|
Accounts payable,
accrued expenses and other liabilities
|
164.1
|
|
|
17.6
|
|
Deferred tax
liability
|
190.2
|
|
|
—
|
|
Liability-classified
capital instruments
|
122.2
|
|
|
—
|
|
Debt
|
836.5
|
|
|
114.3
|
|
Total
liabilities
|
7,507.2
|
|
|
1,969.9
|
|
Commitments and
contingent liabilities
|
|
|
|
Shareholders'
equity
|
|
|
|
Series B preference
shares (par value $0.10; authorized and issued:
8,000,000)
|
200.0
|
|
|
—
|
|
Common shares (issued
and outstanding: 161,945,750; 2020 - 95,582,733)
|
16.2
|
|
|
9.6
|
|
Additional paid-in
capital
|
1,646.6
|
|
|
933.9
|
|
Retained
earnings
|
815.8
|
|
|
620.4
|
|
Accumulated other
comprehensive income
|
1.5
|
|
|
—
|
|
Shareholders'
equity attributable to SiriusPoint shareholders
|
2,680.1
|
|
|
1,563.9
|
|
Noncontrolling
interests
|
3.3
|
|
|
1.4
|
|
Total
shareholders' equity
|
2,683.4
|
|
|
1,565.3
|
|
Total liabilities,
noncontrolling interests and shareholders' equity
|
$
|
10,190.6
|
|
|
$
|
3,535.2
|
|
|
|
|
|
SIRIUSPOINT
LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)
|
For the three and
six months ended June 30, 2021 and 2020
|
(expressed in
millions of U.S. dollars, except per share and share
amounts)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
Revenues
|
|
|
|
|
|
|
|
Net premiums
earned
|
$
|
466.3
|
|
|
$
|
140.8
|
|
|
$
|
722.3
|
|
|
$
|
287.1
|
|
Net realized and
unrealized investment gains
|
23.9
|
|
|
36.0
|
|
|
55.4
|
|
|
47.6
|
|
Net investment income
(loss) from investments in related party investment
funds
|
45.6
|
|
|
98.6
|
|
|
198.8
|
|
|
(102.2)
|
|
Other net investment
income
|
7.9
|
|
|
2.6
|
|
|
9.7
|
|
|
6.8
|
|
Net investment income
(loss)
|
77.4
|
|
|
137.2
|
|
|
263.9
|
|
|
(47.8)
|
|
Other
revenues
|
17.8
|
|
|
—
|
|
|
26.4
|
|
|
—
|
|
Total
revenues
|
561.5
|
|
|
278.0
|
|
|
1,012.6
|
|
|
239.3
|
|
Expenses
|
|
|
|
|
|
|
|
Loss and loss
adjustment expenses incurred, net
|
255.1
|
|
|
89.1
|
|
|
403.2
|
|
|
176.9
|
|
Acquisition costs,
net
|
105.6
|
|
|
43.7
|
|
|
174.6
|
|
|
92.9
|
|
Other underwriting
expenses
|
72.3
|
|
|
7.8
|
|
|
102.5
|
|
|
15.0
|
|
Net corporate and
other expenses
|
25.7
|
|
|
8.9
|
|
|
94.0
|
|
|
15.3
|
|
Intangible asset
amortization
|
1.3
|
|
|
—
|
|
|
2.1
|
|
|
—
|
|
Interest
expense
|
9.8
|
|
|
2.0
|
|
|
14.7
|
|
|
4.1
|
|
Foreign exchange
(gains) losses
|
12.0
|
|
|
(0.8)
|
|
|
(0.4)
|
|
|
(9.0)
|
|
Total
expenses
|
481.8
|
|
|
150.7
|
|
|
790.7
|
|
|
295.2
|
|
Income (loss) before
income tax expense
|
79.7
|
|
|
127.3
|
|
|
221.9
|
|
|
(55.9)
|
|
Income tax
expense
|
(9.6)
|
|
|
(3.3)
|
|
|
(19.4)
|
|
|
(3.7)
|
|
Net income
(loss)
|
70.1
|
|
|
124.0
|
|
|
202.5
|
|
|
(59.6)
|
|
Net income
attributable to noncontrolling interests
|
(1.6)
|
|
|
—
|
|
|
(1.6)
|
|
|
—
|
|
Net income (loss)
available to SiriusPoint
|
68.5
|
|
|
124.0
|
|
|
200.9
|
|
|
(59.6)
|
|
Dividends on Series B
preference shares
|
(4.0)
|
|
|
—
|
|
|
(5.5)
|
|
|
—
|
|
Net income (loss)
available to SiriusPoint common shareholders
|
$
|
64.5
|
|
|
$
|
124.0
|
|
|
$
|
195.4
|
|
|
$
|
(59.6)
|
|
Earnings (loss)
per share available to SiriusPoint common
shareholders
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share available to SiriusPoint common
shareholders
|
$
|
0.37
|
|
|
$
|
1.33
|
|
|
$
|
1.32
|
|
|
$
|
(0.65)
|
|
Diluted earnings
(loss) per share available to SiriusPoint common
shareholders
|
$
|
0.37
|
|
|
$
|
1.33
|
|
|
$
|
1.30
|
|
|
$
|
(0.65)
|
|
Weighted average
number of common shares used in the
determination of earnings (loss) per share
|
|
|
|
|
|
|
|
Basic
|
158,832,629
|
|
|
92,593,599
|
|
|
137,912,915
|
|
|
92,392,718
|
|
Diluted
|
160,894,216
|
|
|
92,738,293
|
|
|
139,561,196
|
|
|
92,392,718
|
|
SIRIUSPOINT
LTD.
|
SEGMENT
REPORTING
|
|
|
Three months ended
June 30, 2021
|
|
A&H
|
|
Specialty
|
|
Property
|
|
Runoff
&
Other
|
|
Total
|
Gross premiums
written (1)
|
$
|
90.6
|
|
|
$
|
289.3
|
|
|
$
|
213.2
|
|
|
$
|
(30.4)
|
|
|
$
|
562.7
|
|
Net premiums written
(1)
|
75.8
|
|
|
241.1
|
|
|
173.3
|
|
|
(31.2)
|
|
|
459.0
|
|
Net premiums
earned (1)
|
103.7
|
|
|
231.1
|
|
|
154.4
|
|
|
(22.9)
|
|
|
466.3
|
|
Loss and loss
adjustment expenses incurred, net (2)
|
52.1
|
|
|
151.2
|
|
|
74.3
|
|
|
(22.5)
|
|
|
255.1
|
|
Acquisition costs,
net
|
19.8
|
|
|
60.8
|
|
|
27.6
|
|
|
(2.6)
|
|
|
105.6
|
|
Other underwriting
expenses (2)
|
28.7
|
|
|
19.2
|
|
|
22.3
|
|
|
2.1
|
|
|
72.3
|
|
Net underwriting
income (loss)
|
$
|
3.1
|
|
|
$
|
(0.1)
|
|
|
$
|
30.2
|
|
|
$
|
0.1
|
|
|
33.3
|
|
Other
revenues
|
|
|
|
|
|
|
|
|
17.8
|
|
Net investment
income
|
|
|
|
|
|
|
|
|
77.4
|
|
Net corporate and
other expenses
|
|
|
|
|
|
|
|
|
(25.7)
|
|
Intangible asset
amortization
|
|
|
|
|
|
|
|
|
(1.3)
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
(9.8)
|
|
Foreign exchange
losses
|
|
|
|
|
|
|
|
|
(12.0)
|
|
Income before
income tax expense
|
|
|
|
|
|
|
|
|
$
|
79.7
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting
Ratios: (3)
|
|
|
|
|
|
|
|
|
|
Loss ratio
|
50.2
|
%
|
|
65.4
|
%
|
|
48.1
|
%
|
|
NM
|
|
54.7
|
%
|
Acquisition cost
ratio
|
19.1
|
%
|
|
26.3
|
%
|
|
17.9
|
%
|
|
NM
|
|
22.6
|
%
|
Other underwriting
expenses ratio
|
27.7
|
%
|
|
8.3
|
%
|
|
14.4
|
%
|
|
NM
|
|
15.5
|
%
|
Combined ratio
(4)
|
97.0
|
%
|
|
100.0
|
%
|
|
80.4
|
%
|
|
NM
|
|
92.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2020
|
|
A&H
|
|
Specialty
|
|
Property
|
|
Runoff
&
Other
|
|
Total
|
Gross premiums
written (1)
|
$
|
1.3
|
|
|
$
|
73.8
|
|
|
$
|
72.6
|
|
|
$
|
—
|
|
|
$
|
147.7
|
|
Net premiums written
(1)
|
1.3
|
|
|
70.7
|
|
|
57.3
|
|
|
—
|
|
|
129.3
|
|
Net premiums
earned (1)
|
0.7
|
|
|
98.5
|
|
|
41.0
|
|
|
0.6
|
|
|
140.8
|
|
Loss and loss
adjustment expenses incurred, net (2)
|
2.3
|
|
|
67.8
|
|
|
19.2
|
|
|
(0.2)
|
|
|
89.1
|
|
Acquisition costs,
net
|
—
|
|
|
33.8
|
|
|
9.8
|
|
|
0.1
|
|
|
43.7
|
|
Other underwriting
expenses (2)
|
0.1
|
|
|
4.8
|
|
|
1.6
|
|
|
1.3
|
|
|
7.8
|
|
Net underwriting
income (loss)
|
$
|
(1.7)
|
|
|
$
|
(7.9)
|
|
|
$
|
10.4
|
|
|
$
|
(0.6)
|
|
|
0.2
|
|
Net investment
income
|
|
|
|
|
|
|
|
|
137.2
|
|
Net corporate and
other expenses
|
|
|
|
|
|
|
|
|
(8.9)
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
(2.0)
|
|
Foreign exchange
gains
|
|
|
|
|
|
|
|
|
0.8
|
|
Income before
income tax expense
|
|
|
|
|
|
|
|
|
$
|
127.3
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting
Ratios: (3)
|
|
|
|
|
|
|
|
|
|
Loss ratio
|
328.6
|
%
|
|
68.8
|
%
|
|
46.8
|
%
|
|
NM
|
|
63.3
|
%
|
Acquisition cost
ratio
|
—
|
%
|
|
34.3
|
%
|
|
23.9
|
%
|
|
NM
|
|
31.0
|
%
|
Other underwriting
expenses ratio
|
14.3
|
%
|
|
4.9
|
%
|
|
3.9
|
%
|
|
NM
|
|
5.5
|
%
|
Combined ratio
(4)
|
342.9
|
%
|
|
108.0
|
%
|
|
74.6
|
%
|
|
NM
|
|
99.8
|
%
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes service fee
revenue from the Company's MGUs of $14.0 million for the three
months ended June 30, 2021 (2020 - $nil).
|
(2)
|
Loss and loss
adjustment expenses incurred, net and other underwriting expenses
include expenses associated with the Company's MGUs of
$3.5 million
and $23.6 million, respectively, for the three months ended
June 30, 2021 (2020 - $nil and $nil).
|
(3)
|
Underwriting ratios
are calculated by dividing the related expense by net premiums
earned.
|
(4)
|
Ratios considered not
meaningful ("NM") to Runoff & Other.
|
(5)
|
The Company modified
the presentation of its operating segments in the first quarter of
2021 to better align with the manner in which management
monitors
the performance of its operations. This change was primarily due to
the Company's acquisition of Sirius Group. Prior period segment
results have been
adjusted to conform to the current period presentation.
|
|
Six months ended
June 30, 2021
|
|
A&H
|
|
Specialty
|
|
Property
|
|
Runoff
&
Other
|
|
Total
|
Gross premiums
written (1)
|
$
|
225.4
|
|
|
$
|
457.0
|
|
|
$
|
275.3
|
|
|
$
|
(28.4)
|
|
|
$
|
929.3
|
|
Net premiums written
(1)
|
179.4
|
|
|
385.6
|
|
|
233.6
|
|
|
(29.3)
|
|
|
769.3
|
|
Net premiums
earned (1)
|
138.7
|
|
|
370.1
|
|
|
234.6
|
|
|
(21.1)
|
|
|
722.3
|
|
Loss and loss
adjustment expenses incurred, net (2)
|
66.1
|
|
|
238.3
|
|
|
119.7
|
|
|
(20.9)
|
|
|
403.2
|
|
Acquisition costs,
net
|
24.9
|
|
|
103.1
|
|
|
48.8
|
|
|
(2.2)
|
|
|
174.6
|
|
Other underwriting
expenses (2)
|
39.3
|
|
|
29.1
|
|
|
30.5
|
|
|
3.6
|
|
|
102.5
|
|
Net underwriting
income
|
$
|
8.4
|
|
|
$
|
(0.4)
|
|
|
$
|
35.6
|
|
|
$
|
(1.6)
|
|
|
42.0
|
|
Other
revenues
|
|
|
|
|
|
|
|
|
26.4
|
|
Net investment
income
|
|
|
|
|
|
|
|
|
263.9
|
|
Net corporate and
other expenses
|
|
|
|
|
|
|
|
|
(94.0)
|
|
Intangible asset
amortization
|
|
|
|
|
|
|
|
|
(2.1)
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
(14.7)
|
|
Foreign exchange
gains
|
|
|
|
|
|
|
|
|
0.4
|
|
Income before
income tax expense
|
|
|
|
|
|
|
|
|
$
|
221.9
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting
Ratios: (3)
|
|
|
|
|
|
|
|
|
|
Loss ratio
|
47.7
|
%
|
|
64.4
|
%
|
|
51.0
|
%
|
|
NM
|
|
55.8
|
%
|
Acquisition cost
ratio
|
18.0
|
%
|
|
27.9
|
%
|
|
20.8
|
%
|
|
NM
|
|
24.2
|
%
|
Other underwriting
expenses ratio
|
28.3
|
%
|
|
7.9
|
%
|
|
13.0
|
%
|
|
NM
|
|
14.2
|
%
|
Combined
ratio
|
94.0
|
%
|
|
100.2
|
%
|
|
84.8
|
%
|
|
NM
|
|
94.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, 2020
|
|
A&H
|
|
Specialty
|
|
Property
|
|
Runoff
&
Other
|
|
Total
|
Gross premiums
written (1)
|
$
|
2.6
|
|
|
$
|
153.2
|
|
|
$
|
117.6
|
|
|
$
|
—
|
|
|
$
|
273.4
|
|
Net premiums written
(1)
|
2.6
|
|
|
147.6
|
|
|
102.3
|
|
|
—
|
|
|
252.5
|
|
Net premiums
earned (1)
|
1.9
|
|
|
197.9
|
|
|
86.1
|
|
|
1.2
|
|
|
287.1
|
|
Loss and loss
adjustment expenses incurred, net (2)
|
3.3
|
|
|
135.2
|
|
|
37.3
|
|
|
1.1
|
|
|
176.9
|
|
Acquisition costs,
net
|
0.2
|
|
|
67.3
|
|
|
25.7
|
|
|
(0.3)
|
|
|
92.9
|
|
Other underwriting
expenses (2)
|
0.1
|
|
|
9.3
|
|
|
3.1
|
|
|
2.5
|
|
|
15.0
|
|
Net underwriting
income (loss)
|
$
|
(1.7)
|
|
|
$
|
(13.9)
|
|
|
$
|
20.0
|
|
|
$
|
(2.1)
|
|
|
2.3
|
|
Net investment
loss
|
|
|
|
|
|
|
|
|
(47.8)
|
|
Net corporate and
other expenses
|
|
|
|
|
|
|
|
|
(15.3)
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
(4.1)
|
|
Foreign exchange
gains
|
|
|
|
|
|
|
|
|
9.0
|
|
Loss before income
tax expense
|
|
|
|
|
|
|
|
|
$
|
(55.9)
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting
Ratios: (3)
|
|
|
|
|
|
|
|
|
|
Loss ratio
|
173.7
|
%
|
|
68.3
|
%
|
|
43.3
|
%
|
|
NM
|
|
61.6
|
%
|
Acquisition cost
ratio
|
10.5
|
%
|
|
34.0
|
%
|
|
29.8
|
%
|
|
NM
|
|
32.4
|
%
|
Other underwriting
expenses ratio
|
5.3
|
%
|
|
4.7
|
%
|
|
3.6
|
%
|
|
NM
|
|
5.2
|
%
|
Combined
ratio
|
189.5
|
%
|
|
107.0
|
%
|
|
76.7
|
%
|
|
NM
|
|
99.2
|
%
|
|
|
(1)
|
Includes service fee
revenue from the Company's MGUs of $24.8 million for the
six months ended June 30, 2021 (2020 - $nil).
|
(2)
|
Loss and loss
adjustment expenses incurred, net and other underwriting expenses
include expenses associated with the Company's MGUs of
$4.4 million
and $30.9 million, respectively, for the six months ended June
30, 2021 (2020 - $nil and $nil).
|
(3)
|
Underwriting ratios
are calculated by dividing the related expense by net premiums
earned.
|
(4)
|
Ratios considered not
meaningful ("NM") to Runoff & Other.
|
(5)
|
The Company modified
the presentation of its operating segments in the first quarter of
2021 to better align with the manner in which management
monitors
the performance of its operations. This change was primarily due to
the Company's acquisition of Sirius Group. Prior period segment
results have been
adjusted to conform to the current period presentation.
|
SIRIUSPOINT LTD.
NON-GAAP MEASURES
AND RECONCILIATIONS & KEY PERFORMANCE INDICATORS
Key Performance Indicator
Annualized Return on Average Common Shareholders' Equity
Attributable to SiriusPoint Common Shareholders
Annualized return on average common shareholders' equity
attributable to SiriusPoint common shareholders is calculated by
dividing annualized net income (loss) available to SiriusPoint
common shareholders for the period by the average common
shareholders' equity determined using the common shareholders'
equity balances at the beginning and end of the period.
Annualized return on average common shareholders' equity
attributable to SiriusPoint common shareholders for the three and
six months ended June 30, 2021 and
2020 was calculated as follows:
|
Three months
ended
|
|
Six months
ended
|
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
($ in
millions)
|
Net income (loss)
available to SiriusPoint common shareholders
|
$
|
64.5
|
|
|
$
|
124.0
|
|
|
$
|
195.4
|
|
|
$
|
(59.6)
|
|
Common shareholders'
equity attributable to SiriusPoint common
shareholders - beginning of period
|
$
|
2,407.5
|
|
|
$
|
1,231.7
|
|
|
$
|
1,563.9
|
|
|
$
|
1,414.1
|
|
Common shareholders'
equity attributable to SiriusPoint common
shareholders - end of period
|
2,480.1
|
|
|
1,357.3
|
|
|
2,480.1
|
|
|
1,357.3
|
|
Average common
shareholders' equity attributable to SiriusPoint
common shareholders
|
$
|
2,443.8
|
|
|
$
|
1,294.5
|
|
|
$
|
2,022.0
|
|
|
$
|
1,385.7
|
|
Annualized return on
average common shareholders' equity
attributable to SiriusPoint common shareholders
|
10.6
|
%
|
|
38.3
|
%
|
|
19.3
|
%
|
|
(8.6)
|
%
|
Net Underwriting Income
We measure segment performance for our underwriting segments
based on net underwriting income or loss. Net underwriting income
is a pre-tax measure of underwriting profitability that takes into
account net premiums earned as revenues, including service fee
revenue from the Company's managing general underwriting
subsidiaries, and loss and loss adjustment expenses incurred, net,
acquisition costs, net, and other underwriting expenses as
expenses. Other underwriting expenses include those operating
expenses that are incremental and/or directly attributable to our
individual underwriting operations. See the accompanying Segment
Reporting above for a calculation of net underwriting income.
Combined Ratio
Combined ratio is calculated by dividing the sum of loss and
loss adjustment expenses incurred, net, acquisition costs, net and
other underwriting expenses by net premiums earned. This ratio is a
key indicator of a company's underwriting profitability. See the
accompanying Segment Reporting above for a calculation of the
combined ratio.
Basic Book Value Per Share, Tangible Basic Book Value Per
Share, Diluted Book Value Per Share, Tangible Diluted Book Value
Per Share
Basic book value per share, as presented, is a non-GAAP
financial measure and is calculated by dividing common
shareholders' equity attributable to SiriusPoint common
shareholders by the number of common shares outstanding, excluding
the total number of issued unvested restricted shares, at period
end.
Tangible basic book value per share, as presented, is a non-GAAP
financial measure and is calculated by dividing tangible common
shareholders' equity attributable to SiriusPoint common
shareholders by the number of common shares outstanding, excluding
the total number of unvested restricted shares, at period end.
Tangible book value per share is useful to investors because it
measures the realizable value of shareholder returns, excluding the
impact of intangible assets.
Diluted book value per share and tangible diluted book value per
share, as presented, are non-GAAP financial measures and are
calculated using the treasury stock method. Under the treasury
stock method, we assume that proceeds received from in-the-money
options and/or warrants exercised are used to repurchase common
shares in the market. The dilutive effect of restricted shares,
restricted share units and options are calculated in a manner
consistent with how dilution is calculated using the treasury stock
method for earnings per share. We have also followed a similar
approach for calculating dilution for warrants, Series A preference
shares, Upside Rights and other potentially dilutive securities
issued as part of our acquisition of Sirius Group.
The following table sets forth the computation of basic book
value per share, tangible basic book value per share, diluted book
value per share and tangible diluted book value per share as of
June 30, 2021 and December 31, 2020:
|
June 30,
2021
|
|
December 31,
2020
|
Basic and diluted
book value per share numerator:
|
($ in millions,
except share and per
share amounts)
|
Shareholders' equity
attributable to SiriusPoint shareholders
|
$
|
2,680.1
|
|
|
$
|
1,563.9
|
|
Less: Series B
preference shares
|
(200.0)
|
|
|
—
|
|
Common shareholders'
equity attributable to SiriusPoint common shareholders -
basic
|
2,480.1
|
|
|
1,563.9
|
|
Plus: carrying value
of Series A preference shares issued in merger
|
38.4
|
|
|
—
|
|
Common shareholders'
equity attributable to SiriusPoint common shareholders -
diluted
|
2,518.5
|
|
|
1,563.9
|
|
Less: intangible
assets
|
(176.7)
|
|
|
—
|
|
Tangible common
shareholders' equity attributable to SiriusPoint common
shareholders - basic
|
2,303.4
|
|
|
1,563.9
|
|
Tangible common
shareholders' equity attributable to SiriusPoint common
shareholders - diluted
|
$
|
2,341.8
|
|
|
$
|
1,563.9
|
|
Basic and diluted
book value per share denominator:
|
|
|
|
Common shares
outstanding
|
161,945,750
|
|
|
95,582,733
|
|
Unvested restricted
shares
|
(2,879,187)
|
|
|
(2,933,993)
|
|
Basic book value per
share denominator
|
159,066,563
|
|
|
92,648,740
|
|
Effect of dilutive
Series A preference shares issued in merger
|
2,088,464
|
|
|
—
|
|
Effect of dilutive
warrants
|
24,295
|
|
|
—
|
|
Effect of dilutive
stock options, restricted shares and restricted share units issued
to directors and
employees
|
2,629,954
|
|
|
969,386
|
|
Diluted book value
per share denominator
|
163,809,276
|
|
|
93,618,126
|
|
|
|
|
|
Basic book value
per share
|
$
|
15.59
|
|
|
$
|
16.88
|
|
Tangible basic
book value per share
|
$
|
14.48
|
|
|
$
|
16.88
|
|
Diluted book value
per share
|
$
|
15.37
|
|
|
$
|
16.71
|
|
Tangible diluted
book value per share
|
$
|
14.30
|
|
|
$
|
16.71
|
|
View original
content:https://www.prnewswire.com/news-releases/siriuspoint-announces-second-quarter-2021-earnings-results-301349763.html
SOURCE SiriusPoint Ltd.