SiriusPoint Ltd
For the period ended Sep 30, 2024. Filed Oct 31, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 31, 2024
SPNT$26.33+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-01.
0001576018-24-000042
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-31.
0001576018-24-000054
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 240 previous paragraphs and 245 current paragraphs.
142 unchanged; 75 reworded; 23 added; 22 removed; 1 previous and 5 current paragraphs rearranged.
Tables are not compared: 17 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
CM Bermuda Settlement and Share Repurchase
Current report
We paid the Seller a total consideration of $261.3 million upon the closing of the transactions under the CMIG Agreement. Pursuant to the Settlement Agreement, we paid the Seller for full satisfaction and discharge of all obligations and all other claims of any nature related to our Series A Preference Shares held by the Seller and the related Certificate of Designation of Series A Preference Shares of our Company. Pursuant to the Share Repurchase Agreement, we repurchased 9,077,705 of our issued and outstanding common shares held by the Seller for approximately $125.0 million, which were cancelled and retired.
Current report
We received the appropriate regulatory approvals and the transaction closed on October 1, 2024. The financial impacts of the transaction will be included in our fourth quarter results, and we expect to recognize a loss of approximately $22.0 million.
Current report
The decrease in annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders was driven by lower net income for the three months ended September 30, 2024, primarily as a result of the loss from the settlement of the Series A Preference shares under the CMIG Agreement.
Current report
The increases reflect continued positive underwriting and investment results during the three and nine months ended September 30, 2024, and the impact of the share repurchase in the period.
Current report
The improvement in net underwriting results for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 was primarily driven by increased favorable prior year loss reserve development and a more favorable commission ratio. For the three months ended September 30, 2024, favorable prior year loss reserve development was $30.6 million from favorable development in Property, mainly driven by reserve releases relating to favorable COVID-19 development trends, as well as favorable development in A&H due to lower than expected reported attritional losses, compared to $24.7 million for the three months ended September 30, 2023 driven by reserving analyses performed in connection with the March 2, 2023 loss portfolio transfer transaction (“2023 LPT”).
Current report
Loss on Settlement and Change in Fair Value of Liability Classified Instruments
Current report
Loss on settlement and change in fair value of liability classified instruments for the three months ended September 30, 2024 was $117.3 million compared to $0.3 million for the three months ended September 30, 2023. The loss for the three months ended September 30, 2024 included a loss of $90.7 million from the settlement of the Series A preference shares under the CMIG Agreement and a loss of $26.7 million from the change in fair value of our Merger Warrants, mainly driven by the increase in our share price.
Current report
Loss on settlement and change in fair value of liability classified instruments for the nine months ended September 30, 2024 was $122.6 million compared to $44.4 million for the nine months ended September 30, 2023. The loss for the nine months ended September 30, 2024 included a loss of $90.7 million from the settlement of the Series A preference shares under the CMIG Agreement and a loss of $28.7 million from the change in fair value of our Merger Warrants, mainly driven by the increase in our share price.
Current report
Interest expense for the three months ended September 30, 2024 was $13.8 million compared to $19.8 million for the three months ended September 30, 2023. The decrease was primarily driven by lower funds withheld interest on the 2023 LPT of
Current report
$5.9 million for the three months ended September 30, 2024 compared to $8.5 million for the three months ended September 30, 2023.
Current report
Interest expense for the nine months ended September 30, 2024 was $50.0 million compared to $44.3 million for the nine months ended September 30, 2023. The increase was primarily due to higher expenses on external debt instruments and the debt refinancing, as well as higher expense on the 2023 LPT, which was $20.1 million for the nine months ended September 30, 2024 compared to $8.5 million for the nine months ended September 30, 2023. The increase was partially offset by a gain on the commutation of a deposit accounted contract.
Current report
The foreign exchange losses for the three and nine months ended September 30, 2024 of $3.0 million and $2.9 million, respectively, were primarily driven by the impact of certain foreign exchange exposures related to our underwriting activities, partially offset by the impact of our currency hedges.
Current report
The foreign exchange gains of $1.8 million for the three months ended September 30, 2023 were primarily due to $2.5 million of foreign exchange gains from our international operations. The foreign exchange losses of $15.7 million for the nine months ended September 30, 2023 were primarily due to $14.0 million of foreign exchange losses from our international operations.
Current report
Services revenues decreased to $48.1 million for the three months ended September 30, 2024 compared to $58.6 million for the three months ended September 30, 2023, primarily due to the deconsolidation of Arcadian, partially offset by higher services revenues in IMG from increased demand for its travel products and services.
Current report
Services revenues decreased to $171.3 million for the nine months ended September 30, 2024 compared to $181.8 million for the nine months ended September 30, 2023 primarily due to the deconsolidation of Arcadian.
Current report
We generated net services income of $34.2 million for the nine months ended September 30, 2024, compared to $31.9 million for the nine months ended September 30, 2023, primarily driven by higher margins from IMG.
Current report
The increase in net underwriting results for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 was primarily driven by lower attritional losses and favorable commission ratio, partially offset by higher catastrophe losses. Catastrophe losses, net of reinsurance and reinstatement premiums, for the three months ended
Current report
September 30, 2024, were $11.3 million or 4.2 percentage points on the combined ratio, including $10.0 million from Hurricane Helene, compared to $6.8 million or 2.6 percentage points on the combined ratio for the three months ended September 30, 2023, which includes losses of $3.8 million from the Hawaii wildfires and $3.3 million from Hurricane Idalia.
Current report
The decrease in services revenues of $13.3 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 was primarily due to the deconsolidation of Arcadian.
Current report
The increase in underwriting income for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 is primarily driven by catastrophe losses, net of reinsurance and reinstatement premiums, of $5.3 million, primarily from Storm Hans, included in the three months ended September 30, 2023.
Current report
Pursuant to the CMIG Agreement, the Company settled all Series A Preference Shares held by CM Bermuda Ltd. during the three months ended September 30, 2024.
Current report
Cash flows provided by investing activities for the nine months ended September 30, 2024 are driven by higher proceeds from sales and maturities of debt securities compared to purchases during the period, primarily to fund financing activities. Cash flows used in investing activities for the nine months ended September 30, 2023 primarily relates to purchases of debt securities during the period.
Removed paragraphs (22)
Previous report
Additionally, the transactions contemplated by the Agreement are subject to risks and uncertainties and factors that could cause the Company’s actual results to differ from those statements herein including, but not limited to: that the Company may be unable to complete the proposed transactions because, among other reasons, conditions to the closing of the proposed transactions are not be satisfied or waived; the occurrence of any event, change or other circumstance that could give rise to the termination of the Agreement; and the outcome of any legal proceedings to the extent initiated against the Company or others following the announcement of the proposed transaction, as well as the Company’s response to any of the aforementioned factors.
Previous report
Workers’ Compensation Loss Portfolio Transfer
Previous report
The Master Agreement and the LPT Agreements include customary representations and warranties, indemnification obligations, covenants and termination rights of the parties. The transaction is anticipated to close during the third quarter of 2024, subject to regulatory approvals and other customary closing conditions.
Previous report
The increase in annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders was driven by higher net income for the three months ended June 30, 2024, primarily as a result of the gain from the deconsolidation of Arcadian Risk Capital Ltd. (“Arcadian”) and the gain from the change in fair value of the liability-classified capital instruments, partially offset by a decrease in underwriting income driven by favorable prior year loss reserve development for the three months ended June 30, 2023 linked to the 2023 LPT.
Previous report
The increases reflect the gain from the deconsolidation of Arcadian, as well as continued positive underwriting and investment results, partially offset by accumulated other comprehensive loss from unrealized losses from available for sale (“AFS”) debt securities.
Previous report
The decrease in net underwriting results for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 was driven by lower favorable prior year loss reserve development. Favorable prior year loss reserve development for the three months ended June 30, 2023 included $16.6 million driven by reserving analyses performed in connection with the 2023 LPT. Excluding the favorable development linked to the 2023 LPT, net underwriting income decreased by $29.3 million for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. This decrease is consistent with our change in business mix, decreasing exposure to more volatile lines of business and growing A&H and International Insurance within the Insurance & Services segment.
Previous report
For the six months ended June 30, 2024, other revenues primarily consisted of a gain of $95.9 million from the deconsolidation of Arcadian and $51.7 million of service fee revenue from MGAs, partially offset by a loss of $5.3 million from the change in fair value of liability-classified capital instruments. For the six months ended June 30, 2023, other revenues primarily consisted of $51.9 million of service fee revenue from MGAs and a gain of $4.5 million from the sale of renewal rights of our environmental business, partially offset by a loss of $44.1 million from the change in fair value of liability-classified capital instruments. The decreased loss from the change in fair value of liability-classified capital instruments is driven by change in our share price relative to the change in the six months ended June 30, 2023.
Previous report
The foreign exchange losses of $3.6 million for the three months ended June 30, 2024 were primarily due to $3.1 million of foreign exchange losses from our international operations.
Previous report
The foreign exchange gains of $0.1 million for the six months ended June 30, 2024 were primarily due to $2.7 million of foreign exchange gains from our international operations.
Previous report
The foreign exchange losses of $17.4 million for the three months ended June 30, 2023 were primarily due to $16.5 million of foreign exchange gains from our international operationsand net losses $0.9 million of foreign currency losses on the 2017 SEK Subordinated Notes and a swap designed to minimize currency exposure on the notes as a result of the weakening of the Swedish Krona relative to the U.S. dollar.
Previous report
The foreign exchange losses of $17.5 million for the six months ended June 30, 2023 were primarily due to $16.5 million of foreign exchange gains from our international operations which were offset by $1.0 million of foreign currency losses on the 2017 SEK Subordinated Notes, as a result of the weakening of the Swedish Krona relative to the U.S. dollar.
Previous report
The decrease in net underwriting results was primarily driven by decreased favorable prior year loss reserve development. Losses incurred included $4.9 million of favorable prior year loss reserve development for the three months ended June 30, 2024 primarily driven by favorable development within North America A&H, compared to $25.2 million for the three months ended June 30, 2023 driven by reserving analyses performed in connection with the 2023 LPT.
Previous report
Excluding the favorable development linked to the 2023 LPT, net underwriting income decreased by $17.7 million for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. This decrease was driven by higher acquisition costs driven by business mix changes to decrease our exposure to more volatile lines of business, as well as $5.6 million catastrophe losses for the three months ended June 30, 2024 compared to no significant catastrophe losses the three months ended June 30, 2023, partially offset by lower attritional losses.
Previous report
Services revenues was $57.4 million for the three months ended June 30, 2024 compared to $59.4 million for the three months ended June 30, 2023, primarily due to decreases in Arcadian and Armada.
Previous report
The decrease in net underwriting results was primarily driven by decreased favorable prior year loss reserve development. Losses incurred included $12.9 million of favorable loss reserve development for the six months ended June 30, 2024 driven by decreased ultimate losses in the Credit Reinsurance portfolio and North America A&H, partially offset by increases in the Environmental business, compared to $117.1 million of favorable loss reserve development for the six months ended June 30, 2023 driven by decreases in the domestic and international property and casualty lines of business in the Reinsurance segment and A&H in the Insurance & Services segment linked to the 2023 LPT.
Previous report
Services revenues remained stable at $123.2 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023.
Previous report
The decrease in net underwriting results for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 was primarily due to decreased favorable prior year loss reserve development, as well ashigher acquisition costs driven by business mix changes. Netfavorable prior year loss reserve development for the three months ended June 30, 2024 was $6.3 million primarily driven by favorable development on a structured auto contract and Aviation, compared to
Previous report
$25.9 million for the three months ended June 30, 2023, which was driven by reserving analyses performed in connection with the 2023 LPT.
Previous report
The decrease in underwriting income for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 is primarily driven by a decrease in favorable prior year loss reserve development, which was associated with the 2023 LPT.
Previous report
SiriusPoint has 11,720,987 Series A preference shares outstanding, par value of $0.10 per share (the “Series A Preference Shares”). The Series A Preference Shares rank pari passu with the Company’s common shares with respect to the payment of dividends or distributions. Upon the third anniversary of the closing date of the Sirius Group acquisition, the Series A Preference Shares were subject to a conversion ratio calculation, based on ultimate COVID-19 losses along with other measurement criteria, to convert into the Company’s common shares. The Company and Series A Preference Share investors reviewed the COVID-19 loss estimates and the Company will settle the Series A Preference Shares in the third quarter of 2024. For further details, see Note 20 “Subsequent event” in our unaudited consolidated financial statements included elsewhere in this Form 10-Q.
Previous report
As of June 30, 2024, the estimated fair value of the Series A Preference Shares was $40.9 million based upon a stochastic model and is reflected in liability-classified capital instruments in the consolidated balance sheets. During the six months ended June 30, 2024, the Company did not declare or pay dividends to Series A Preference shareholders.
Previous report
Cash flows used in investing activities are driven by changes in our investment portfolio, primarily purchases, sales and maturities of fixed income and short term investments. Cash flows used in investing activities for the six months ended June 30, 2023 primarily relates to the increase in sales and maturities of U.S. treasuries during the period.
Reworded paragraphs (75)
Previous wording
Certain statements in this Form 10-Q may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding prospects for our industry, our business strategy, plans, goals and expectations concerning our market position, international expansion, investment portfolio expectations, future operations, margins, profitability, efficiencies, capital expenditures, liquidity and capital resources and other non-historical financial and operating information. When used in this discussion, the words “believes,” “intends,” “seeks,” “anticipates,” “aims,” “plans,” “targets,” “estimates,” “expects,” “assumes,” “continues,” “should,” “could,” “will,” “may” and the negative of these or similar terms and phrases are intended to identify forward-looking statements. These statements also include, but are not limited to, statements regarding the transactions contemplated by the Confidential Settlement and Mutual Release Agreement (the “Settlement Agreement”), and concurrently therewith, a Share Repurchase Agreement (the “Share Repurchase Agreement” and, together with the Settlement Agreement, (collectively, the “Agreement”).
Current wording
Certain statements in this Form 10-Q may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding prospects for our industry, our business strategy, plans, goals and expectations concerning our market position, international expansion, investment portfolio expectations, future operations, margins, profitability, efficiencies, capital expenditures, liquidity and capital resources and other non-historical financial and operating information. When used in this discussion, the words “believes,” “intends,” “seeks,” “anticipates,” “aims,” “plans,” “targets,” “estimates,” “expects,” “assumes,” “continues,” “should,” “could,” “will,” “may” and the negative of these or similar terms and phrases are intended to identify forward-looking statements. Specific forward-looking statements in this Form 10-Q include, but are not limited to, statements regarding the trend of our performance as compared to the previous guidance, the success of our strategic transaction with CMIG International Holding Pte. Ltd., the current insurtech market trends, our ability to generate shareholder value, whether we will continue to have momentum in our business in the future, and the financial impacts of the transactions contemplated by the Master Agreement (the “Master Agreement”), dated as of April 30, 2024, by and between SiriusPoint America Insurance Company and Clarendon National Insurance Company, and the Loss Portfolio Transfer Reinsurance Agreement (the “LPT Agreement”).
Previous wording
•the impact of unpredictable catastrophic events including uncertainties with respect to current and future COVID-19 losses across many classes of insurance business and the amount of insurance losses that may ultimately be ceded to the reinsurance market, supply chain issues, labor shortages and related increased costs, changing interest rates and equity market volatility;
Current wording
•the impact of unpredictable catastrophic events such as uncertainties with respect to COVID-19 losses across many classes of insurance business and the amount of insurance losses that may ultimately be ceded to the reinsurance market, supply chain issues, labor shortages and related increased costs, changing interest rates and equity market volatility;
Previous wording
•geopolitical uncertainty, including the ongoing conflicts in Europe and the Middle East;
Current wording
•geopolitical uncertainty, including the impact of the U.S. November 2024 presidential and congressional elections, and ongoing conflicts in Europe and the Middle East;
Previous wording
Our Company was formed following a merger between Sirius International Insurance Group, Ltd. and Third Point Reinsurance Ltd. on February 26, 2021. We are a global underwriter of insurance and reinsurance, domiciled in Bermuda. We have licenses to write property, casualty and accident & health insurance and reinsurance globally, including admitted & non-admitted licensed companies in the United States, a Bermuda Class 4 company, a Lloyd’s of London (“Lloyd’s”) syndicate and managing agency, and an internationally licensed company domiciled in Sweden. Our operating companies have a financial strength rating of A- (Stable) from AM Best, Standard & Poor's (“S&P”) and Fitch Ratings (“Fitch”) and A3 (Stable) from Moody’s Ratings (“Moody’s”).
Current wording
We are a global underwriter of insurance and reinsurance, domiciled in Bermuda. We have licenses to write property, casualty and accident & health insurance and reinsurance globally, including admitted & non-admitted licensed companies in the United States, a Bermuda Class 4 company, a Lloyd’s of London (“Lloyd’s”) syndicate and managing agency, and an internationally licensed company domiciled in Sweden. Our operating companies have a financial strength rating of A- (Stable) from AM Best, Standard & Poor's (“S&P”) and Fitch Ratings (“Fitch”) and A3 (Stable) from Moody’s Ratings (“Moody’s”).
Previous wording
We are an underwriting first company as we aim to create a business model which is simplified, fully-integrated and globally connected. Distribution relationships are important to us, as we generate premiums from various sources, including our consolidated MGAs and non-consolidated MGAs. We seek to apply our underwriting talent, capabilities and proven management expertise to underwrite a profitable book of business and identify new opportunities to create value. Our approach is to be nimble and reactive to market opportunities within our segments of Insurance & Services and Reinsurance, allocating capital where we see profitable opportunity, while remaining disciplined and consistent within our specified risk tolerances and areas of expertise. Our MGA strategy is to partner with high integrity and transparent leaders and teams with deep underwriting expertise and a track record of success. Our partnerships are structured to incentivize all parties to deliver thereby allowing capable teams to do what they do best, while we provide services where our partners are lacking. As of June 30, 2024, we had equity stakes in 22 entities (MGAs, Insurtech and Other) which underwrite or distribute a wide range of lines of business.
Current wording
We are an underwriting first company as we aim to create a business model which is simplified, fully-integrated and globally connected. Distribution relationships are important to us, as we generate premiums from various sources, including our consolidated MGAs and non-consolidated MGAs. We seek to apply our underwriting talent, capabilities and proven management expertise to underwrite a profitable book of business and identify new opportunities to create value. Our approach is to be nimble and reactive to market opportunities within our segments of Insurance & Services and Reinsurance, allocating capital where we see profitable opportunity, while remaining disciplined and consistent within our specified risk tolerances and areas of expertise. Our MGA strategy is to partner with high integrity and transparent leaders and teams with deep underwriting expertise and a track record of success. Our partnerships are structured to incentivize all parties to deliver thereby allowing capable teams to do what they do best, while providing complementary services. As of September 30, 2024, we had equity stakes in 22 entities (MGAs, Insurtech and Other) which underwrite or distribute a wide range of lines of business.
Previous wording
Our investment objective is to optimize risk-adjusted after-tax net investment income after tax while (1) maintaining a high quality, diversified investment portfolio, (2) maintaining adequate liquidity, and (3) complying with the regulatory, rating agency, and internal risk and capital management requirements, all in support of the company goal of meeting policyholder obligations.
Current wording
Our investment objective is to optimize risk-adjusted after-tax net investment income while (1) maintaining a high quality, diversified investment portfolio, (2) maintaining adequate liquidity, and (3) complying with the regulatory, rating agency, and internal risk and capital management requirements, all in support of the company goal of meeting policyholder obligations.
Previous wording
On April 30, 2024, SiriusPoint America Insurance Company (“SiriusPoint America”), a subsidiary of SiriusPoint Ltd., entered into a Master Agreement (the “Master Agreement”), dated as of April 30, 2024, made by and between SiriusPoint America and Clarendon National Insurance Company (“Clarendon National”), an insurer domiciled in Texas and an affiliate of Enstar Group Limited, a Bermuda exempted company (“Enstar”).
Current wording
On April 30, 2024, SiriusPoint America Insurance Company (“SiriusPoint America”), a subsidiary of SiriusPoint Ltd., entered into the Master Agreement, dated as of April 30, 2024, made by and between SiriusPoint America and Clarendon National Insurance Company (“Clarendon National”), an insurer domiciled in Texas and an affiliate of Enstar Group Limited, a Bermuda exempted company (“Enstar”).
Previous wording
This transaction covers approximately $400 million of SiriusPoint reserves, including liabilities to be commuted, valued as of December 31, 2023, and the reinsurance premium. The aggregate limit under the LPT Agreements is 150% of the premium paid less certain adjustments for paid losses in the interim period prior to the effective date of the contract. Upon closing and the effective date of the contract, we expect to recognize a loss of $20 million to $30 million.
Current wording
This transaction covers approximately $400 million of SiriusPoint reserves, including liabilities to be commuted, valued as of December 31, 2023 and the reinsurance premium. The aggregate limit under the LPT Agreement is 150% of the premium paid less certain adjustments for paid losses in the interim period prior to the effective date of the contract. The Master Agreement and the LPT Agreement include customary representations and warranties, indemnification obligations, covenants and termination rights of the parties.
Previous wording
Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders for the three and six months ended June 30, 2024 and 2023 was calculated as follows:
Current wording
Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders for the three and nine months ended September 30, 2024 and 2023 was calculated as follows:
Previous wording
The decrease in annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders for the six months ended June 30, 2024 was driven by lower net income relative to common shareholder’s equity in the period as the Company’s equity has grown each quarter since the beginning of 2023.
Current wording
The decrease in annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders for the nine months ended September 30, 2024 was driven by lower net income relative to common shareholder’s equity in the period as the Company’s equity has grown each quarter since the beginning of 2023.
Previous wording
As of June 30, 2024, book value per common share was $14.68, representing an increase of $0.53 per share, or 3.7%, from $14.15 per share as of March 31, 2024. As of June 30, 2024, book value per diluted common share was $14.31, representing an increase of $0.67 per share, or 4.9%, from $13.64 per share as of March 31, 2024. As of June 30, 2024, tangible book value per diluted common share was $13.47, representing an increase of $0.68 per share, or 5.3%, from $12.79 per share as of March 31, 2024.
Current wording
As of September 30, 2024, book value per common share was $15.41, representing an increase of $0.73 per share, or 5.0%, from $14.68 per share as of June 30, 2024. As of September 30, 2024, book value per diluted common share was $14.73, representing an increase of $0.42 per share, or 2.9%, from $14.31 per share as of June 30, 2024. As of September 30, 2024, tangible book value per diluted common share was $13.88, representing an increase of $0.41 per share, or 3.0%, from $13.47 per share as of June 30, 2024.
Previous wording
As of June 30, 2024, book value per common share was $14.68, representing an increase of $0.92 per share, or 6.7%, from $13.76 per share as of December 31, 2023. As of June 30, 2024, book value per diluted common share was $14.31, representing an increase of $0.96 per share, or 7.2%, from $13.35 per share as of December 31, 2023. As of June 30, 2024, tangible book value per diluted common share was $13.47, representing an increase of $1.00 per share, or 8.0%, from $12.47 per share as of December 31, 2023.
Current wording
As of September 30, 2024, book value per common share was $15.41, representing an increase of $1.65 per share, or 12.0%, from $13.76 per share as of December 31, 2023. As of September 30, 2024, book value per diluted common share was $14.73, representing an increase of $1.38 per share, or 10.3%, from $13.35 per share as of December 31, 2023. As of September 30, 2024, tangible book value per diluted common share was $13.88, representing an increase of $1.41 per share, or 11.3%, from $12.47 per share as of December 31, 2023.
Previous wording
Consolidated Results of Operations—Three and six months ended June 30, 2024 and 2023
Current wording
Consolidated Results of Operations—Three and nine months ended September 30, 2024 and 2023
Previous wording
The following table sets forth the key items discussed in the consolidated results of operations section, and the period over period change, for the three and six months ended June 30, 2024 and 2023:
Current wording
The following table sets forth the key items discussed in the consolidated results of operations section, and the period over period change, for the three and nine months ended September 30, 2024 and 2023:
Previous wording
The key changes in our consolidated results for the three and six months ended June 30, 2024 compared to the prior year periods are discussed below.
Current wording
The key changes in our consolidated results for the three and nine months ended September 30, 2024 compared to the prior year periods are discussed below.
Previous wording
The decrease in net underwriting results for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 was driven by lower favorable prior year loss reserve development. Favorable prior year loss reserve development for the six months ended June 30, 2023 included $118.2 million driven by reserving analyses performed in connection with the 2023 LPT. Excluding the favorable development linked to the 2023 LPT, underwriting income increased by $4.6 million primarily driven by lower other underwriting expenses resulting from our cost savings program, partially offset by higher acquisition costs driven by business mix changes, including the growth of Insurance & Services.
Current wording
The decrease in net underwriting results for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 was primarily driven by lower favorable prior year loss reserve development. Favorable prior year loss reserve development for the nine months ended September 30, 2023 included $122.2 million driven by reserving analyses performed in connection with the 2023 LPT. Excluding the favorable development linked to the 2023 LPT, underwriting income increased by $19.8 million primarily resulting from favorable development in Property, mainly driven by reserve releases relating to favorable COVID-19 development trends, as well as favorable development in A&H and our runoff business due to lower than expected reported attritional losses. This increase was partially offset by higher acquisition costs from business mix changes, including the growth of Insurance & Services.
Previous wording
(1)Includes$593.2 million of investments in the Third Point Optimized Credit portfolio (“TPOC Portfolio”) as of June 30, 2024 (December 31, 2023 - $562.0 million).
Current wording
(1)Includes $612.1 million of investments in the Third Point Optimized Credit portfolio (“TPOC Portfolio”) as of September 30, 2024 (December 31, 2023 - $562.0 million).
Previous wording
The decrease in investments was primarily driven by the use of funds to support the redemption of $115.0 million of outstanding debt and the commutation of a deposit accounted contract of $102.1 million resulting in the return of funds to the cedant.
Current wording
The decrease in total invested assets and cash was primarily driven by the use of funds to support the Series A Preference Shares settlement and share repurchase under the CMIG Agreement for $261.3 million, the redemption of $115.0 million of outstanding debt and the commutation of a deposit accounted contract of $98.2 million resulting in the return of funds to the cedant. This decrease is partially offset by a $90.4 million gain on the AFS portfolio, primarily driven by changes in the Federal Reserve’s monetary policies and the impact to the fair value of our fixed income portfolio.
Previous wording
The following table provides a breakdown of structured products between investment and non-investment grade securities as of June 30, 2024 and December 31, 2023. These are fixed income investments which are included in debt securities in the table above. Refer to Note 7 - Investments in our unaudited condensed financial statements included elsewhere in this Quarterly Report for further discussion of these securities.
Current wording
The following table provides a breakdown of structured products between investment and non-investment grade securities as of September 30, 2024 and December 31, 2023. These are fixed income investments which are included in debt securities in the table above. Refer to Note 7 “Investments” to our unaudited consolidated financial statements included elsewhere in this Form 10-Q for further discussion of these securities.
Previous wording
The following is a summary of the results from investments and cash for the three and six months ended June 30, 2024 and 2023:
Current wording
The following is a summary of the results from investments and cash for the three and nine months ended September 30, 2024 and 2023:
Previous wording
The following is a summary of the results from investments by investment classification for the three and six months ended June 30, 2024 and 2023:
Current wording
The following is a summary of the results from investments by investment classification for the three and nine months ended September 30, 2024 and 2023:
Previous wording
Total net investment income and realized and unrealized investment gains for the six months ended June 30, 2024 was primarily attributable to net investment income related to interest income from our debt and short-term investment portfolio of $147.0 million. Increased investment income is primarily due to increased interest rates and our rotation of the portfolio from cash and cash equivalents and U.S. government and government agency positions to high-grade corporate debt and other securitized assets, in an effort to better diversify our portfolio. Losses on private other long-term investments were the result of updated fair value analyses consistent with the current insurtech market.
Current wording
Total net investment income and realized and unrealized investment gains for the three months ended September 30, 2024 was primarily attributable to net investment income related to interest income from our debt and short-term investment portfolio of $81.5 million. Increased investment income is primarily due to increased interest rates and our rotation of the portfolio from cash and cash equivalents and U.S. government and government agency positions to high-grade corporate debt and other securitized assets, in an effort to better diversify our portfolio.
Previous wording
Total net investment income and realized and unrealized investment gains for the three months ended June 30, 2024 was primarily attributable to net investment income related to interest income from our debt and short-term investment portfolio of $70.1 million, partially offset by unrealized losses on other long-term investments of $40.6 million. Increased investment income is primarily due to increased interest rates and our rotation of the portfolio from cash and cash equivalents and U.S. government and government agency positions to high-grade corporate debt and other securitized assets, in an effort to better diversify our portfolio. Losses on private other long-term investments were the result of updated fair value analyses consistent with current insurtech market trends and disposals of positions as the Company executes its strategy to focus on underwriting relationships with MGAs.
Current wording
Total net investment income and realized and unrealized investment gains (losses) for the nine months ended September 30, 2024 was primarily attributable to net investment income related to interest income from our debt and short-term investment portfolio of $228.5 million, partially offset by unrealized losses on other long-term investments of $45.8 million. Increased investment income is primarily due to increased interest rates and our rotation of the portfolio from cash and cash equivalents and U.S. government and government agency positions to high-grade corporate debt and other securitized assets, in an effort to better diversify our portfolio. Losses on private other long-term investments were the result of updated fair value analyses consistent with the current insurtech market trends and disposals of positions as we execute our strategy to focus on underwriting relationships with MGAs.
Previous wording
Total net investment income and realized and unrealized investment gainsforthe three months ended June 30, 2023 was primarily attributable to investment results from our debt and short-term investment portfolio of $64.9 million driven by dividend and interest income primarily on U.S. treasury bill and corporate debt positions.
Current wording
Total net investment income and realized and unrealized investment gains (losses)forthe three months ended September 30, 2023 was primarily attributable to investment results from our debt and short-term investment portfolio of $71.0 million driven by dividend and interest income primarily on U.S. treasury bill and corporate debt positions.
Previous wording
Total net investment income and realized and unrealized investment gains for the six months ended June 30, 2023 was primarily attributable to net investment income related to interest income from our debt and short-term investment portfolio of $137.5 million. Increased dividend and investment income is due to the ongoing re-positioning of the portfolio to focus on investing in high grade fixed income securities.
Current wording
Total net investment income and realized and unrealized investment gains for the nine months ended September 30, 2023 was primarily attributable to net investment income related to interest income from our debt and short-term investment portfolio of $208.5 million. Increased dividend and investment income was due to the ongoing re-positioning of the portfolio to focus on investing in high grade fixed income securities.
Previous wording
For the three months ended June 30, 2024, other revenues primarily consisted of a gain of $95.9 million from the deconsolidation of Arcadian, $23.0 million of service fee revenue from MGAs and a gain of $10.6 million from the change in fair value of liability-classified capital instruments. For the three months ended June 30, 2023, other revenues consisted of $22.5 million of service fee revenue from MGAs, partially offset by a loss of $19.1 million from the change in fair value of liability-classified capital instruments. Effective June 30, 2024, we deconsolidated Arcadian when our management and Arcadian consented to certain amendments to the shareholders’ agreement and termination of the unsecured promissory note which resulted in our Company ceasing to have control over Arcadian. The change in fair value of liability-classified capital instruments is driven by movement in our Company’s share price as compared to the three months ended June 30, 2023. The increase in service fee revenue for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 is primarily driven by increases in IMG’s travel insurance business.
Current wording
For the three months ended September 30, 2024, other revenues primarily consisted of $18.2 million of service fee revenue from MGAs compared to $20.3 million of service fee revenue from MGAs for the three months ended September 30, 2023. The decrease in service fee revenue for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 is primarily driven by the deconsolidation of Arcadian Risk Capital Ltd. (“Arcadian”), partially offset by increases in the travel insurance business of International Medical Group, Inc. (“IMG”). Effective June 30, 2024, we deconsolidated Arcadian when our management and Arcadian consented to certain amendments to the shareholders’
Previous wording
Net corporate and other expenses include services expenses, costs associated with operating as a publicly-traded company, non-underwriting activities, including service fee expenses from our MGA subsidiaries, restructuring charges, and current expected credit losses from our insurance and reinsurance balances receivable and loss and loss adjustment expenses recoverable.
Current wording
Net corporate and other expenses include costs associated with operating as a publicly-traded company and non-underwriting activities, including services expenses from our MGA subsidiaries, restructuring charges, and current expected credit losses from our insurance and reinsurance balances receivable and loss and loss adjustment expenses recoverable.
Previous wording
The decrease in Net corporate and other expenses for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023 was primarily driven by restructuring charges incurred during the three and six months ended June 30, 2023 of $8.8 million and $18.8 million, respectively, partially offset by severance and compensation related expenses associated with the recent management changes, consulting fees related to nonrecurring projects and increased regulatory fees as we grow our Lloyds business.
Current wording
The decrease in Net corporate and other expenses for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 was primarily driven by restructuring charges of $23.8 million, which include severance-related charges, incurred during the nine months ended September 30, 2023. This decrease was partially offset by increased severance and compensation related expenses associated with management changes, consulting fees related to nonrecurring projects and increased regulatory fees as we grow our Lloyds business, incurred during the nine months ended September 30, 2024.
Previous wording
For the three months ended June 30, 2024 service fee expense decreased to $47.7 million compared to $50.0 million for the three months ended June 30, 2023. For the six months ended June 30, 2024 service fee expense decreased to $93.7 million compared to $95.5 million for the six months ended June 30, 2023. The decreases were primarily driven by the deconsolidation of Banyan in the fourth quarter of 2023.
Current wording
For the three months ended September 30, 2024 services expenses decreased to $41.3 million compared to $48.7 million for the three months ended September 30, 2023. For the nine months ended September 30, 2024 services expenses decreased to $135.0 million compared to $144.2 million for the nine months ended September 30, 2023. The decreases were primarily driven by the deconsolidation of Arcadian in the second quarter of 2024 and Banyan in the fourth quarter of 2023.
Previous wording
Amortization of intangible assets for the three and six months ended June 30, 2024 was $3.0 million and $5.9 million, respectively (2023 - $2.9 million and $5.3 million, respectively). The slight increases in amortization were due to the use of amortization patterns which are based on the period over which they are expected to generate future net cash inflows from the use of the underlying intangible assets.
Current wording
Amortization of intangible assets for the three and nine months ended September 30, 2024 was $3.0 million and $8.9 million, respectively (2023 - $2.9 million and $8.2 million, respectively). The slight increases in amortization were due to the use of amortization patterns which are based on the period over which they are expected to generate future net cash inflows from the use of the underlying intangible assets.
Previous wording
Interest expense and finance costs are related to interest due on our senior and subordinated notes, as well as interest associated with certain reinsurance contracts. Total interest expense for the three and six months ended June 30, 2024 was $15.7 million and $36.2 million, respectively (2023 - $11.7 million and $24.5 million, respectively). The increases in interest expense for the three and six months ended June 30, 2024 were primarily driven by interest expense associated with funds held on the 2023 LPT of $7.1 million and $14.2 million, respectively, as well as increases in the variable interest rate on the 2017 SEK Subordinated Note. These increases were partially offset by a gain on the commutation of a deposit accounted contract.
Current wording
Interest expense and finance costs are related to interest due on our senior and subordinated notes, as well as interest associated with certain reinsurance contracts.
Previous wording
Additional foreign currency gains (losses) were recorded as part of the investments results. See Note 8 “Total realized and unrealized investment gains (losses) and net investment income” in our unaudited consolidated financial statements included elsewhere in this Form 10-Q.
Current wording
Additional foreign currency gains (losses) were recorded as part of the investments results. See Note 8 “Total net investment income and net realized and unrealized investment gains (losses)” in our unaudited consolidated financial statements included elsewhere in this Form 10-Q.
Previous wording
On an aggregate basis, the effects of foreign exchange resulted in charges to net income of $3.5 million and $5.2 million as well as charges to comprehensive income of $6.3 million and $2.3 million for the three and six months ended June 30, 2024, respectively.
Current wording
On an aggregate basis, the effects of foreign exchange resulted in charges to net income of $4.5 million and $0.7 million as well as charges to comprehensive income of $5.2 million and $2.9 million for the three and nine months ended September 30, 2024, respectively.
Previous wording
The decrease in income tax expense for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023 is driven by a decrease in pre-tax income in taxable jurisdictions.
Current wording
The decrease in income tax expense for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023 is driven by a decrease in pre-tax income in taxable jurisdictions.
Previous wording
Segment Results — Three and six months ended June 30, 2024 and 2023
Current wording
Segment Results — Three and nine months ended September 30, 2024 and 2023
Previous wording
Corporate results include all runoff business, which represents certain classes of business that we no longer actively underwrite, including the effect of the including the effect of the restructuring of the underwriting platform announced in 2022 (the “Restructuring Plan”) and certain reinsurance contracts that have interest crediting features. Corporate results include asbestos and environmental and other latent liability exposures on a gross basis, which have mostly been ceded, as well as specific workers’ compensation and cyber programs which we no longer write.
Current wording
Corporate results include all runoff business, which represents certain classes of business that we no longer actively underwrite, including the effect of the restructuring of the underwriting platform announced in 2022 (the “Restructuring Plan”) and certain reinsurance contracts that have interest crediting features. Corporate results include asbestos and environmental and other latent liability exposures on a gross basis, which have mostly been ceded, as well as specific workers’ compensation and cyber programs which we no longer write.
Previous wording
Gross premiums written increased by $37.5 million, or 4.7%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. Net premiums written increased by $61.6 million, or 10.5%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. Net premiums earned decreased by $42.8 million, or 7.2%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The increases in premiums written were primarily driven by increases from Insurance & Services from strategic organic and new program growth, as well as increases across A&H. These increases were partially offset by the movement of certain lines from Insurance & Services to Corporate, including the non-renewal of a Workers’ Compensation program and the planned transition of a cyber program to another carrier, which also was the main driver of the decrease in premiums earned.
Current wording
Gross premiums written decreased by $35.0 million, or 4.8%, for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Net premiums written decreased by $30.0 million, or 5.6%, for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Net premiums earned decreased by $29.0 million, or 5.0%, for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. The decreases in premium volume were primarily driven by the movement of certain lines from Insurance & Services to Corporate, including the non-renewal of a Workers’ Compensation program and the planned transition of a Cyber program to another carrier. These decreases were partially offset by increases in Reinsurance from Property and International Specialty and increases from Insurance & Services from strategic organic and new program growth.
Previous wording
Catastrophe losses, net of reinsurance and reinstatement premiums, for the three months ended June 30, 2024, were $3.0 million or 1.2 percentage points on the combined ratio, compared to no significant catastrophe losses for the three months ended June 30, 2023. Catastrophe losses, net of reinsurance and reinstatement premiums, for the six months ended June 30, 2024, were $3.0 million or 0.6 percentage points on the combined ratio, compared to $6.0 million or 1.1 percentage points on the combined ratio, for the six months ended June 30, 2023.
Current wording
The improvement in net underwriting results of $20.0 million was primarily driven by increased favorable prior year loss reserve development and a more favorable commission ratio, partially offset by higher catastrophe losses. For the three months ended September 30, 2024 favorable prior year loss reserve development was $29.7 million from favorable development in Property, mainly driven by reserve releases relating to favorable COVID-19 development trends, as well as favorable development in A&H due to lower than expected reported attritional losses, compared to $12.6 million for the three months ended September 30, 2023 driven by reserving analyses performed in connection with the 2023 LPT. Catastrophe losses, net of reinsurance and reinstatement premiums, for the three months ended September 30, 2024, were $10.6 million or 1.9 percentage points on the combined ratio, including $10.0 million from Hurricane Helene, compared to $6.7 million or 1.2 percentage points on the combined ratio, for the three months ended September 30, 2023, which includes losses of $3.8 million from the Hawaii wildfires and $3.3 million from Hurricane Idalia.
Previous wording
Net services fee income and net services income increased slightly for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. Service margin, which is calculated as Net service fee income as a percentage of services revenues, increased to 16.9% for the three months ended June 30, 2024 from 15.8% for the three months ended June 30, 2023.
Current wording
Net services fee income was $6.8 million for the three months ended September 30, 2024 compared to $9.9 million for the three months ended September 30, 2023, also driven by the deconsolidation of Arcadian. Service margin, which is calculated as Net service fee income as a percentage of services revenues, decreased to 14.1% for the three months ended September 30, 2024 from 16.9% for the three months ended September 30, 2023.
Previous wording
There was a slight decrease in services revenues of $2.6 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. Net services income remained stable for the six months ended June 30, 2024 compared to the six months ended June 30, 2023.
Current wording
Net services income remained stable for the three months ended September 30, 2024 compared to the three months ended September 30, 2023.
Showing the first 40 of 75 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
On August 1, 2024, we entered into a Confidential Settlement and Mutual Release Agreement (the “Settlement Agreement”), and concurrently therewith, a Share Repurchase Agreement (the “Share Repurchase Agreement” and, together with the Settlement Agreement, collectively, the “CMIG Agreement”), in each case, with CM Bermuda Limited (the “Seller”) and CMIG International Holding Pte. Ltd.
Current report — wording carried from elsewhere
agreement and termination of the unsecured promissory note which resulted in our Company ceasing to have control over Arcadian.
Current report — wording carried from elsewhere
For the nine months ended September 30, 2024, other revenues primarily consisted of a gain of $95.9 million from the deconsolidation of Arcadian and $69.9 million of service fee revenue from MGAs, compared to $72.2 million of service fee revenue from MGAs for the nine months ended September 30, 2023. The decrease in service fee revenue for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 is primarily driven by the deconsolidation of Arcadian, partially offset by increases in IMG’s travel insurance business.
Current report — wording carried from elsewhere
The decrease in Net corporate and other expenses for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 was primarily driven by restructuring charges of $5.1 million, which include severance-related charges, incurred during the three months ended September 30, 2023.
Current report — wording carried from elsewhere
Net services income remained stable for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
During the three and six months ended June 30, 2024, SiriusPoint declared and paid dividends of $4.0 million and $8.0 million, respectively, to the Series B preference shareholders (2023 - $4.0 million and $8.0 million, respectively).