SiriusPoint Ltd
For the period ended Dec 31, 2024. Filed Feb 21, 2025.
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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2024 · Filed Feb 21, 2025
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-K
Period ended 2023-12-31; filed 2024-02-29.
0001576018-24-000018
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2024-12-31; filed 2025-02-21.
0001576018-25-000010
Item 7. 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 291 previous paragraphs and 278 current paragraphs.
153 unchanged; 70 reworded; 52 added; 67 removed; 1 previous and 3 current paragraphs rearranged.
Tables are not compared: 18 previous and 18 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 (52)
Current report
CM Bermuda Series A Preference Shares Settlement and Share Repurchase
Current report
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 Series A and Repurchase Agreement”), in each case, with CM Bermuda and CMIG International Holding Pte. Ltd.
Current report
We paid CM Bermuda a total consideration of $261.3 million upon the closing of the transactions under the CMIG Series A and Repurchase Agreement. Pursuant to the Settlement Agreement, we paid CM Bermuda for full satisfaction and discharge of all obligations and all other claims of any nature related to our Series A Preference Shares held by CM Bermuda and the related Certificate of Designation of Series A Preference Shares of our Company, and recorded a loss of $90.7 million in our consolidated income statement. All Series A Preference shares held by CM Bermuda were cancelled and retired at the closing of the transaction. Pursuant to the Share Repurchase Agreement, we repurchased 9,077,705 of our issued and outstanding common shares held by CM Bermuda for approximately $125.0 million, which were cancelled and retired at the closing of the transaction.
Current report
CM Bermuda Merger Warrant Settlement and Share Repurchase
Current report
On December 30, 2024, we entered into a Securities Purchase Agreement (the “CMIG Securities Purchase Agreement”) with CM Bermuda. The CMIG Securities Purchase Agreement provides that, subject to the satisfaction or waiver of certain customary conditions set forth therein, we will repurchase all common shares and all warrants to purchase common shares held by CM Bermuda.
Current report
Upon the terms and subject to the conditions in the CMIG Securities Purchase Agreement, we will repurchase 20,991,337 warrants at $3.56 per warrant and 45,720,732 common shares at $14.25 per common share. The aggregate amount payable by the Company under the CMIG Securities Purchase Agreement will be approximately $733.0 million, including certain costs and expenses. Following the closing, CM Bermuda will have no remaining ownership interest in SiriusPoint. The common shares will be purchased into treasury and the warrants will be cancelled. The CMIG Securities Purchase Agreement contains customary representations, warranties and covenants of the parties. Consummation of the transactions contemplated by the
Current report
CMIG Securities Purchase Agreement is subject only to the representations and warranties of each party being true and correct as of the closing date.
Current report
The closing is expected to be completed on or before February 28, 2025. The CMIG Securities Purchase Agreement contemplates that payment thereunder be made in two tranches. The first payment of $250.0 million was made concurrently with the execution of the CMIG Securities Purchase Agreement. At the closing, we will pay an additional $483.0 million to CM Bermuda. Pursuant to the CMIG Securities Purchase Agreement, we recorded a loss of $25.9 million in our consolidated income statement, which includes $6.8 million of CM Bermuda’s costs and expenses.
Current report
In connection with the transactions contemplated by the CMIG Securities Purchase Agreement, the parties have agreed that, effective and contingent upon the closing, CM Bermuda’s appointed board representative, Meng Tee Saw, will resign from the Board and each committee of the Board of which he is a member; and we and CM Bermuda will terminate that certain Investor Rights Agreement, dated as of February 26, 2021, by and between SiriusPoint and CM Bermuda (the “IRA”). CM Bermuda has similarly placed an executed resignation letter and IRA termination agreement into escrow. Via the termination of the IRA, CM Bermuda will no longer have observer rights on the Board.
Current report
Workers’ Compensation Loss Portfolio Transfer
Current report
On April 30, 2024, SiriusPoint America Insurance Company (“SiriusPoint America”), a subsidiary of the Company, 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”). The Company received the appropriate regulatory approvals and the transaction closed on October 1, 2024.
Current report
Pursuant to the Master Agreement, on the closing of the transactions contemplated therein, among other documents, (a) SiriusPoint America and Clarendon National entered into a Loss Portfolio Transfer Reinsurance Agreement (the “2024 LPT”), pursuant to which SiriusPoint America cedes and Clarendon National assumes 100% of the net liability with respect to certain workers’ compensation insurance exposures of SiriusPoint America (the “Subject Business”) on a funds withheld basis, subject to the terms and conditions of the 2024 LPT including an aggregate limit; (b) SiriusPoint America and an affiliate of Clarendon National (the “Administrator”) entered into an Administrative Services Agreement concerning the Administrator’s authority and responsibility for certain administrative services related to the Subject Business, including claims handling; and (c) Enstar issued a Parental Guarantee in favor of SiriusPoint America guaranteeing Clarendon National’s obligations under the 2024 LPT. In certain circumstances and in lieu of the guarantee obligations provided thereunder, Clarendon National may post letters of credit as collateral securing Clarendon National’s reinsurance obligations with respect to the Subject Business. Immediately prior to the effective date of the 2024 LPT, SiriusPoint commuted certain ceded workers’ compensation reinsurance contracts, and the liabilities related to those commuted contracts are included in the Subject Business.
Current report
The transaction price of approximately $400 million covered SiriusPoint loss and unearned premium reserves, including commuted liabilities, and the reinsurance premium as of the December 31, 2023 valuation date. The subject loss reserves are now included in Loss and loss adjustment expenses recoverable in the Company’s consolidated balance sheets. Following the commutation of certain liabilities, the Company recognized a loss of $20.1 million at the effective date of October 1, 2024. The agreement between SiriusPoint America and Clarendon National is on a funds withheld basis, and the funds held liability (including reinsurance premium) of $297.2 million as of December 31, 2024 is included within Reinsurance balances payable in the Company’s consolidated balance sheets. The aggregate limit under the 2024 LPT is 150% of the premium paid.
Current report
Debt Restructuring
Current report
On April 5, 2024, we issued $400.0 million aggregate principal amount of 7.0% Senior Notes due 2029 (the “2024 Senior Notes”). Interest is payable on the 2024 Senior Notes semi-annually in arrears. The 2024 Senior Notes were issued pursuant to an indenture, dated as of April 5, 2024, between us and The Bank of New York Mellon, as trustee. We used certain of the proceeds from the 2024 Senior Notes, together with available cash, to fund a tender offer for our 2016 Senior Notes and subsequent redemptions of the then-outstanding amounts of the 2016 Senior Notes and the 2015 Senior Notes. We repurchased and redeemed the full outstanding amount of $400.0 million aggregate principal amount of our 2016 Senior Notes. We redeemed the full outstanding amount of $115.0 million aggregate principal amount of our 2015 Senior Notes.
Current report
The decrease in return on average common shareholders’ equity attributable to SiriusPoint common shareholders for the year ended December 31, 2024 compared to the year ended December 31, 2023 was driven by lower net income as the year ended December 31, 2024 included nonrecurring costs associated with the Series A Preference Share and Merger Warrant settlements and share repurchase from CMIG, compared to the year ended December 31, 2023 which included favorable development linked to the 2023 LPT.
Current report
The decreasein net underwriting income for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily driven by lower favorable prior year loss reserve development, as the year ended December 31, 2023 included$127.8 million driven by reserving analyses performed in connection with the 2023 LPT.
Current report
Excluding the favorable development linked to the 2023 LPT, net underwriting income increased by $15.8 million primarily driven by favorable development in Reinsurance, as well as lower attritional losses in both Reinsurance and Insurance & Services, partially offset by higher acquisition costs from business mix changes, including the growth of Insurance & Services, and higher catastrophe losses. See “Segment Results” below for additional information.
Current report
Catastrophe losses, net of reinsurance and reinstatement premiums, were $54.8 million, or 2.3 percentage points on the combined ratio, for the year ended December 31, 2024, primarily driven by Hurricanes Milton and Helene, compared to $24.8 million, or 1.0 percentage point on the combined ratio, for the year ended December 31, 2023, primarily driven by the Turkey Earthquake and Chile Wildfire.
Current report
The decrease in total invested assets and cash as of December 31, 2024 was primarily driven by the use of funds to support the CMIG Series A and Repurchase Agreement for $261.3 million, the first payment under the CMIG Securities Purchase Agreement of $250.0 million, the redemption of $115.0 million of outstanding debt and the commutation of a deposit accounted contract of $100.8 million resulting in the return of funds to the cedant, partially offset by gains on the AFS portfolio.
Current report
(1)Investment grade securities are considered rated BBB or higher.
Current report
(2)Non-investment grade securities are considered rated below BBB.
Current report
For the year ended December 31, 2024, Other revenues primarily consisted of a gain of $95.9 million from the deconsolidation of Arcadian Risk Capital Ltd. (“Arcadian”) and $90.1 million of service fee revenue from MGAs, compared to $87.9 million of service fee revenue from MGAs and a gain of $4.5 million from the sale of renewal rights of our environmental business for the year ended December 31, 2023. The increase in service fee revenue for the year ended December 31, 2024 compared to the year ended December 31, 2023 is primarily driven 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’ agreement and termination of the unsecured promissory note which resulted in our Company ceasing to have control over Arcadian.
Current report
Loss on settlement and change in fair value of liability classified instruments for the year ended December 31, 2024 was $148.5 million compared to $59.4 million for the year ended December 31, 2023. The loss for the year ended December 31, 2024 included a loss of $90.7 million from the settlement of the Series A Preference Shares under the CMIG Series A and Repurchase Agreement and $25.9 million from the settlement of the Merger Warrants under the CMIG Securities Purchase Agreement, which includes $6.8 million of CM Bermuda’s costs and expenses. The loss for the year ended December 31, 2023 was driven by the change in the fair value of the liability-classified capital instruments due to the increases in the Company’s common share price.
Current report
The decrease in net corporate and other expenses for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily driven by restructuring charges of $30.0 million, which include severance-related charges, incurred during the year ended December 31, 2023. In addition, the Company incurred $7.9 million of costs associated with the 2023 LPT and a standstill agreement with an investor in the year ended December 31, 2023. This decrease was partially offset by 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 year ended December 31, 2024.
Current report
Service fee expense decreased to$176.2 million for the year ended December 31, 2024, compared to $187.8 millionfor the year ended December 31, 2023. The decrease was primarily driven by the deconsolidation of Arcadian in the second quarter of 2024 and Banyan in the fourth quarter of 2023, partially offset by increases in IMG.
Current report
Interest expense for the year ended December 31, 2024 was $69.6 million compared to $64.1 millionfor the year ended December 31, 2023. The increase was primarily due increased funds held interest expense, as well as higher expenses on external debt instruments and the debt refinancing completed during the year, partially offset by a gain on the commutation of a deposit accounted contract.
Current report
Funds held interest expense included $25.5 million from the 2023 LPT and $4.0 million from the 2024 LPT for the year ended December 31, 2024, compared to $16.2 million from the 2023 LPT for the year ended December 31, 2023, as the 2023 LPT closed on June 30, 2023 and only included two quarters of expense. See Note 3 “Significant transactions” in our audited consolidated financial statements included elsewhere in this Annual Report for additional information on the 2024 LPT and 2023 LPT.
Current report
The foreign exchange gains of $10.0 million for the year ended December 31, 2024 were primarily due to the impact of certain foreign exchange exposures related to our underwriting activities, partially offset by the impact of our currency hedges.
Current report
Income Tax Expense
Current report
In January 2025, the OECD released administrative guidance including new provisions that are relevant to the GMT calculation taking into account the ETA component of the Bermudian DTA. If this guidance is enacted into legislation by participating OECD member countries, this ETA component generally will be disregarded solely for GMT calculation purposes starting in 2027. The OECD guidance does not directly impact Bermuda CIT law or, in turn, the Company’s existing Bermudian DTA. It is possible in the future that the Bermudian government could enact new tax provisions or issue new tax guidance in reaction to the OECD guidance, which could have financial statement effects to the Company.
Current report
Excluding the favorable development linked to the 2023 LPT, net underwriting income increased by $49.0 million primarily driven by favorable development in Reinsurance, mainly in Property and Specialty from reserve releases relating to prior year’s catastrophe events, as well as lower attritional losses in both Reinsurance and Insurance & Services, partially offset by higher acquisition costs from business mix changes, including the growth of Insurance & Services, and higher catastrophe losses.
Current report
Gross premiums written in the Reinsurance segment increased by $64.6 million, or 5.1%, for the year ended December 31, 2024 compared to the year ended December 31, 2023, primarily driven by new business and renewal growth across Specialty and Property, partially offset by reduced premiums written in Casualty reflecting underwriting actions to improve profitability.
Current report
Gross premiums written in the Insurance & Services segment decreased by $198.9 million, or 9.8%, for the year ended December 31, 2024 compared to the year ended December 31, 2023, 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, representing $421.8 million of gross premiums written for the year ended December 31, 2023, as well as lower A&H premiums, partially offset by strategic organic and new program growth.
Current report
We deconsolidated Banyan as of October 31, 2023 when we sold our ownership shares. However, we executed a three-year extension of the commercial relationship with Banyan, extending our partnership. We also deconsolidated Arcadian as of June 30, 2024 as a result of no longer having a controlling interest. The results of operations of Arcadian are included in our consolidated financial statements through June 30, 2024. There has been no change to our underwriting relationship with Arcadian.
Current report
Gross premiums written generated by the consolidated MGAs in the aggregate decreased by $422.2 million, or 61.8%, to $260.9 million for the year ended December 31, 2024 compared to $683.1 million for the year ended December 31, 2023, primarily driven by the deconsolidation of Banyan and Arcadian, as well as lower premiums from Armada.
Current report
Book value for the consolidated MGAs was $90.1 million as of December 31, 2024, compared to $76.3 million at December 31, 2023, when adjusted to exclude Arcadian.
Current report
The increase in underwriting income of $31.2 million for the year ended December 31, 2024, compared to the year ended December 31, 2023, was primarily driven by our decreased loss ratio mainly from lower attritional losses, partially offset by higher acquisition costs from business mix changes as we grow our Insurance & Services segment.
Current report
The decrease in services revenue of $15.7 million for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily due to the deconsolidation of Arcadian, partially offset by increased services revenue from IMG due to continued demand for travel insurance products and services. Services noncontrolling income also decreased for the year ended December 31, 2024 compared to the year ended December 31, 2023 due to the deconsolidation of Arcadian, which resulted in an increase in net services income of $2.3 million.
Current report
The increase in underwriting loss for the year ended December 31, 2024 compared to the year ended December 31, 2023 is primarily driven by increased attritional losses from themovement 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, as well as increased commissions on a sliding scale commission contract that experienced favorable development duringthe year ended December 31, 2024, partially offset by lower catastrophe losses.
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Removed paragraphs (67)
Previous report
We continue to reposition our investment portfolio to better align with our underwriting strategy. The increase in interest rates provided an opportunity to rotate the portfolio and capture yield. The repositioning lowers our volatility, while taking advantage of opportunities to improve risk-adjusted returns across asset classes.
Previous report
SiriusPoint International Loss Portfolio Transfer
Previous report
On March 2, 2023, we agreed, subject to applicable regulatory approvals and other closing conditions, to enter into a loss portfolio transfer transaction (“2023 LPT”), on a funds withheld basis, with Pallas Reinsurance Company Ltd., a subsidiary of the Compre Group, an insurance and reinsurance legacy specialist. The transaction covered loss reserves ceded initially estimated at $1.3 billion as of the valuation date of September 30, 2022, which were reduced to $905.6 million as of June 30, 2023 at closing, as a result of paid losses and favorable prior accident year reserve development recognized during the interim period. As of December 31, 2023, we recorded funds held payable of $763.3 million, reinsurance recoverable of $786.2 million and our estimate of deferred gain is $27.9 million. The 2023 LPT comprises several classes of business from 2021 and prior underwriting years. The aggregate limit under the 2023 LPT is 130% of roll forward reserves at the inception of the contract.
Previous report
Ratings
Previous report
On March 22, 2023, Fitch Ratings revised our outlook from negative to stable to reflect recent underwriting performance improvement. On April 19, 2023, AM Best affirmed our financial strength rating and outlook. On November 9, 2023 S&P also revised our outlook from negative to stable to reflect recent underwriting performance improvement, and affirmed our financial strength rating. On January 29, 2024, S&P also removed our holding company, SiriusPoint Ltd., from CreditWatch.
Previous report
CMIG Receivership
Previous report
EisnerAmper, a global audit, accounting and tax firm, has been appointed as a private Receiver in Singapore over approximately 82% of the shares of CMIG International Holding Pte Ltd (CMIH), the parent company of CM Bermuda, one of our shareholders. CM Bermuda is a 32.6% shareholder of SiriusPoint, although its voting rights are limited to 9.9%. EisnerAmper is tasked with assessing the relevant assets and liabilities of certain charged assets of CMIH and determining any future restructuring plans.
Previous report
Standstill Agreement with Mr. Daniel S. Loeb
Previous report
On April 12, 2023, we acknowledged that Dan Loeb, and certain of his affiliates, disclosed in a Schedule 13D/A filing an indication of interest to explore a potential acquisition of all, or substantially all, of the outstanding common shares of the Company (“Indication of Interest”).
Previous report
On May 12, 2023, we acknowledged that Dan Loeb, and certain of his affiliates, disclosed in a Schedule 13D/A filing the decision to conclude discussions regarding a potential transaction to acquire the Company.
Previous report
On August 9, 2023, we entered into a standstill agreement (the “Agreement”) with Dan Loeb, which provides that he will not, subject to certain limited exceptions, make a take-over or purchase proposal for the Company or acquire more than 9.5% of the outstanding shares of the Company or an amount of ownership requiring regulatory approval. Further, the Agreement provides that Dan Loeb would not take any action in support of or make any proposal with respect to controlling, changing or influencing the Company’s management, business, capitalization or corporate structure. The Agreement terminates on July 1, 2025 or a potential earlier date, subject to certain terms and conditions.
Previous report
Restructuring Plan
Previous report
On November 2, 2022, we announced a restructuring of our underwriting platform to support the future shape of our business. In line with our strategy to strengthen underwriting results and align our operating platform to our business portfolio, we have made changes to the structure and composition of our international branch network (the "Restructuring Plan"). We are in the process of closing our offices in Hamburg, Miami and Singapore, and reducing our footprint in Liege, Toronto and Stockholm. Following the anticipated closures and scaling of our operating platform, we will continue to serve clients and underwrite all property catastrophe business from Bermuda.
Previous report
Interest Rates and Inflation
Previous report
The Central banks’ monetary policies across the globe resulted in increased interest rates during the year. While the rise in interest rates negatively affects the fair value of current debt security holdings, it also provides higher reinvestment rates upon maturity or sales of our existing portfolio. Additionally, our 2017 SEK Subordinated Notes bear interest at a variable rate based on the Stockholm Interbank Offered Rate plus a margin.
Previous report
We continue to evaluate the impact of inflation on our underwriting results and reserves. We proactively adjusted trend assumptions in our pricing. As of December 31, 2023, we believe our estimate of the impact of inflation is within our established reserves given the existing provisions for uncertainty that we previously established. As the inflationary environment is dynamic with a relatively high degree of uncertainty, we will continue to monitor and analyze the inflationary environment and its effect on our portfolio in order to maintain adequate pricing and reserving estimates.
Previous report
Additionally, we de-risked our investment portfolio resulting in materially improved and reduced volatility investment returns. Based on management’s view and expectation, we are targeting to achieve between $250 million and $265 million of net investment income for the full year 2024.
Previous report
Our vision for SiriusPoint is to be high performing underwriter. 2023 was a significant restructuring year resulting in improved financial profitability, operational transformation and simplification, and cultural change to reflect an Underwriting First, One SiriusPoint culture. We plan to build on this foundation and create a business that can grow and deliver consistent results. We endeavor to maintain a conservative capital position while being a prudent custodian of capital as we continue to rebuild credibility with our stakeholders. Looking forward, we aim to achieve a consistent return on equity of 12-15% in the medium term.
Previous report
The increase in return on average common shareholders’ equity attributable to SiriusPoint common shareholders for the year ended December 31, 2023 compared to the year ended December 31, 2022 was due tonet income during the year ended December 31, 2023, primarily as a result of increased underwriting income, due to favorable prior year loss reserve development and lower catastrophe losses, and increased investment income, compared to a net loss for the year ended December 31, 2022, primarily as a result of realized and unrealized investment losses and higher catastrophe losses.
Previous report
The improvementin net underwriting results for the year ended December 31, 2023 was driven by increased favorable prior year loss reserve development, lower catastrophe losses and a favorable commission ratio, which results in a higher underwriting gain. Favorable prior year loss reserve development was $174.2 millionfor the year ended December 31, 2023 compared to $21.3 million for the year ended December 31, 2022. This increase was primarily the result of management reflecting the continued favorable reported loss emergence through December 31, 2023 in its best estimate of reserves, which was further validated by the pricing of the 2023 LPT from external reinsurers, which represents $127.8 million of the favorable loss reserve development, in addition to favorable prior year loss reserve development in Accident & Health. See “Segment Results” below for additional information. See “Segment Results” below for additional information.
Previous report
In addition, catastrophe losses, net of reinsurance and reinstatement premiums, were $24.8 million, or 1.0 percentage points on the combined ratio, for the year ended December 31, 2023, primarily driven by the Turkey Earthquake and Chile Wildfire, compared to $137.9 million, or 5.9 percentage points on the combined ratio, for the year ended December 31, 2022, primarily driven by Hurricane Ian. The lower catastrophe losses were a result of the Company’s significant reduction in catastrophe exposed business, as evidenced by the reduction its overall probable maximum loss (“PML”) by 16.9% from January 1, 2023 to January 1, 2024. The improvement in underwriting results was partially offset by $42.0 million, or 1.7 percentage points on the combined ratio, of overhead expenses included in Other underwriting expense for the year ended December 31, 2023 that were previously included in Net corporate and other expenses for the year ended December 31, 2022. See “Net Corporate and Other Expenses” below for additional information.
Previous report
The main driver for the increase in total investments as of December 31, 2023 was net investment income of $283.7 million, which primarily benefited from increases in interest rates by central banks in 2023. Our fixed income securities are primarily made up of treasury, corporate, and securitized positions.
Previous report
The Company has elected to classify debt securities purchased on or after April 1, 2022 as available for sale which has resulted in decreased volatility in net income. This election was made as the AFS model more accurately reflects the investment strategy as we do not actively trade individual securities within our investment portfolio. The AFS portfolio has been funded by sales of the trading portfolio and reallocation of investments from the TP Enhanced Fund.
Previous report
The decrease in Net corporate and other expenses for the year ended December 31, 2023 compared to the year ended December 31, 2022 was primarily driven by the reclassification of certain compensation costs, including compensation expenses, previously included in Net corporate and other expense into Other underwriting expense. For the year ended December 31, 2023,$42.0 million of costs were included in Other underwriting expenses that were previously included in Net corporate and other expenses inthe year ended December 31, 2022. These amounts were offset by restructuring charges of $30.0 million, which include severance-related charges, for the year ended December 31, 2023, compared to $46.0 million of severance and other related charges for the year ended December 31, 2022. In addition, the Company incurred $7.9 million of costs associated with the 2023 LPT and the Indication of Interest in the year ended December 31, 2023.
Previous report
Service fee expense increased to$187.8 million for the year ended December 31, 2023, compared to $179.2 millionfor the year ended December 31, 2022. This was primarily due to increased service expenses from IMG.
Previous report
For the year ended December 31, 2023, we recorded a CECL gain of $1.5 million driven by the reversal of certain balances previously included in the allowance, partially offset by an expense for uncollectible recoverables, compared to a loss of $12.7 million for theyear ended December 31, 2022 primarily due to credit exposure from Russian (re)insurers and cedents and downgrades of certain Florida catastrophe exposed insurers. See Note 14 “Allowance for expected credit losses” in our audited consolidated financial statements included elsewhere in this Annual Report for additional information on the credit loss methodology.
Previous report
The foreign exchange gains of$66.0 millionfor the year ended December 31, 2022 were primarily due to$36.0 million of foreign exchange gains from our international operations and $38.0 million of foreign currency gains from the 2017 SEK Subordinated Notes, as a result of the weakening of the U.S. Dollar. These gains were partially offset by losses on foreign currency derivatives intended to reduce foreign currency exposure.
Previous report
Income Tax Benefit
Previous report
Losses incurred included $167.4 million of favorable prior year loss reserve development for the year ended December 31, 2023 compared to favorable prior year loss reserve development of $13.5 million for the year ended December 31, 2022. This increase in favorable prior year loss reserve development was primarily the result of management reflecting the continued favorable reported loss emergence through December 31, 2023 in its best estimate of reserves, which was further validated by the pricing of the 2023 LPT from external reinsurers, in addition to a reduction in unallocated loss adjustment expense reserves related to the claims that will no longer be managed by SiriusPoint under the terms of the 2023 LPT.
Previous report
Gross premiums written in the Reinsurance segment decreased by $250.4 million, or 16.5%, for the year ended December 31, 2023 compared to the year ended December 31, 2022, primarily driven by lower premiums written in International reinsurance, primarily in the property lines, as we execute the Restructuring Plan.
Previous report
Net favorable prior year loss reserve development was $140.8 million for the year ended December 31, 2023 compared to $8.8 million for the year ended December 31, 2022. The favorable loss reserve development for the year ended December 31, 2023 was primarily the result of management reflecting the continued favorable reported loss emergence through December 31, 2023 in its best estimate of reserves, which was further validated by the pricing of the 2023 LPT from external reinsurers, in addition to a reduction in unallocated loss adjustment expense reserves related to the claims that will no longer be managed by SiriusPoint under the terms of the 2023 LPT.
Previous report
Gross premiums written in the Insurance & Services segment increased by $155.5 million, or 8.3%, for the year ended December 31, 2023 compared to the year ended December 31, 2022, primarily driven by growth in premiums from strategic partnerships, partially offset by decreases in North America A&H.
Previous report
Gross premiums written generated by the consolidated MGAs, excluding Banyan, in the aggregate increased by $13.7 million, or 2.2%, to $631.1 million for the year ended December 31, 2023 compared to $617.4 million for the year ended December 31, 2022, primarily driven by increases in Arcadian. We sold our ownership shares in Banyan in the fourth quarter of 2023, which resulted in deconsolidation of our ownership position. However, we executed a three-year extension of the commercial relationship with Banyan, extending the partnership.
Previous report
The increase in underwriting income of $11.9 million for the year ended December 31, 2023, compared to the year ended December 31, 2022, was primarily driven by the increased favorable prior loss reserve development. Net favorable prior year loss reserve development was$26.6 million for the year ended December 31, 2023, compared to$4.7 million for theyear ended December 31, 2022 due to improved favorable loss reserve emergence in A&H and lower adverse prior year loss development in workers compensation.
Previous report
The increase in services revenue of $22.9 million for the year ended December 31, 2023 compared to the year ended December 31, 2022 was primarily due to continued growth in Arcadian as well as higher services revenues in IMG from increased demand for its travel products and services.
Previous report
The increase in net services income of $4.7 million for theyear ended December 31, 2023 compared to theyear ended December 31, 2022 was primarily due to higher margins achieved in Arcadian, partially offset by services noncontrolling income from our consolidated MGAs for the year ended December 31, 2023 compared to noncontrolling losses the year ended December 31, 2022.
Previous report
The underwriting loss of $16.9 million for Corporate for the year ended December 31, 2023 includes higher catastrophe incurred losses, including $5.0 million from Storm Hans, a single runoff contract that is generating a high attritional losses incurred without significant earned premiums, as well asacquisition costs associated with a runoff A&H contract. These amounts were partially offset by net favorable prior period loss reserve development of $6.8 million, resulting from various actions taken for the year ended December 31, 2023 including favorable reported emergence in prior accident year loss reserves as validated by the pricing from external reinsurers of the 2023 LPT, and a reduction in unallocated loss adjustment expense reserves related to the claims that will no longer be managed by SiriusPoint under the terms of the 2023 LPT. This favorable loss reserve development was partially offset by reserve strengthening for specific areas of uncertainty.
Previous report
The underwriting loss of $5.7 million for the year ended December 31, 2022, was primarily driven by the Russian/Ukraine conflict losses of $5.3 million.
Previous report
In connection with our group capital, as assessed by rating agencies and the Bermuda Monetary Authority, the 2023 LPT, together with the first half of 2023 release of reserves linked to the 2023 LPT, is expected to result in a net increase in capital in excess of $150 million and more than 15% improvement in the BSCR ratio compared to December 31, 2022. We are currently completing our group BSCR for the year ended December 31, 2023, which must be filed with the BMA on or before May 31, 2024. This projected capital increase is expected to be attributable primarily to a reduction in required capital associated with reserve risks and an increase in available capital due to the cession of loss reserves to the 2023 LPT below their original carrying value due to the first half of 2023 favorable prior year loss reserve development. For additional information see Note 4 “Significant transactions” and Note 12 “Loss and loss adjustment expense reserves” in our audited consolidated financial statements included elsewhere in this Annual Report for additional information.
Previous report
As of December 31, 2023 the carrying value of the 2017 SEK Subordinated Notes was $267.9 million and reflected as debt in the in the consolidated balance sheets(December 31, 2022 -$258.6 million).
Showing the first 40 of 67 passages. Open the source sections for the rest.
Reworded paragraphs (70)
Previous wording
For discussion of our results of operations and changes in financial condition for the year ended December 31, 2022 compared to the year ended December 31, 2021 refer to Part II, Item 7. “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K, for the year ended December 31. 2022, which was filed with the SEC on February 24,2023.
Current wording
For discussion of our results of operations and changes in financial condition for the year ended December 31, 2023 compared to the year ended December 31, 2022 refer to Part II, Item 7. “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K, for the year ended December 31. 2023, which was filed with the SEC on February 29, 2024.
Previous wording
We are an underwriting company first 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 December 31, 2023, we had equity stakes in 26 entities (MGAs, Insurtech and Other) which underwrite or distribute a wide range of lines of business. Refer to Part I. Item 1. “Business” for additional information.
Current wording
We are an underwriting company first 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 carefully selected partners, 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 December 31, 2024, we had equity stakes in 20 entities (MGAs, Insurtech and Other) which underwrite or distribute a wide range of lines of business. Refer to Part I. Item 1. “Business” for additional information.
Previous wording
In our Insurance & Services segment, we predominantly provide insurance coverage in addition to receiving fees for services provided within Insurance & Services and to third parties. Insurance & Services revenue allows us to diversify our traditional reinsurance portfolio and generally has lower capital requirements. In addition, service fees from MGAs and their insurance provided are generally not as prone to the volatile underwriting cycle that is common in reinsurance marketplace. The Insurance & Services segment provides coverage in Accident & Health (“A&H”), Property & Casualty, and Specialty.
Current wording
In our Insurance & Services segment, we predominantly provide insurance coverage in addition to receiving fees for services provided within Insurance & Services and to third parties. Insurance & Services revenue allows us to diversify our traditional reinsurance portfolio and generally has lower capital requirements. In addition, service fees from MGAs and their insurance provided are generally not as prone to the volatile underwriting cycle that is common in the reinsurance marketplace. The Insurance & Services segment provides coverage in Accident & Health (“A&H”), Property & Casualty, and Specialty.
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
We manage our investment portfolio to balance quality, liquidity, and diversification with asset/liability matching and investment return. Our investment objective is to optimize risk-adjusted 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.
Previous wording
The majority of insurance lines we underwrite continue to show rate improvement, albeit at reduced rate of increase. Although some lines, such as directors & officers, are experiencing rate declines, we believe rate is still outpacing loss cost in most lines of business. In select lines, such as commercial auto, significant rate increases continue due to continued poor prior years’ experience exacerbated by the impacts of social inflation. We continue to see strong growth in the program business, with momentum for new MGAs, largely in casualty and both short and long-tail specialty lines. This momentum is partially driven by continued growth in the program sector from underwriting talent migration from insurance carriers to MGAs. In addition we are benefiting from MGAs seeking carrier partners with limited channel conflict, meaningful levels of capitalization, a focus on distribution via the program space, and disruption in the fronting carrier market.
Current wording
The majority of insurance lines we underwrite continue to show rate improvement, albeit at reduced rate of increase. Although some lines, such as directors & officers and direct aviation, are experiencing rate declines, we believe rate is still outpacing loss cost in most lines of business. In select lines, such as commercial auto, significant rate increases continue due to continued poor prior years’ experience exacerbated by the impacts of social inflation. We continue to see strong growth in the program business, with momentum for new MGAs, largely in U.K and E.U. property, casualty and both short and long-tail specialty lines. This momentum is partially driven by continued growth in the program sector from underwriting talent migration from insurance carriers to MGAs. In addition, we are benefiting from MGAs seeking carrier partners with limited channel conflict, meaningful levels of capitalization and appetite for risk retention, and a focus on distribution via the program space.
Previous wording
Reinsurance markets are benefiting from the positive primary insurance environment across most insurance lines. While primary insurance companies, especially those in the U.S. homeowners market, have been materially affected by another year of elevated levels of catastrophe losses, the property reinsurance market has performed well, resulting in materially improved returns on capital in reinsurance. This is due to reinsurers re-evaluating their positions in property, reducing aggregates and focusing on higher excess reinsurance moving away from primary exposures. A combination of significantly increased pricing for catastrophe exposed business, a tightening of contractual terms and conditions, and a focus on higher excess business has resulted in a bifurcation of performance of primary carrier catastrophe exposed business versus catastrophe reinsurance.
Current wording
Reinsurance markets continue to benefit from the positive primary insurance environment across most insurance lines, although at moderating levels. While primary insurance companies, especially those in the U.S. homeowners market, have been materially affected by another year of elevated levels of catastrophe losses, the property reinsurance market has performed well, resulting in materially improved returns on capital in reinsurance. This is due to reinsurers re-evaluating their positions in property, reducing aggregates and focusing on higher excess reinsurance moving away from primary exposures. A combination of increased pricing for catastrophe exposed business, a tightening of contractual terms and conditions, and a focus on higher excess business has resulted in a bifurcation of performance of primary carrier catastrophe exposed business versus catastrophe reinsurance. However, the recent fires in Southern California are expected to impact the reinsurance market, specifically the property catastrophe line of business. In a span of five months, the U.S. property insurance and reinsurance markets experienced two major hurricanes, Helene and Milton, and what may prove to be the costliest fire in recent history. The heightened frequency and severity of catastrophic events in the U.S. and globally, with recent events in Canada, Europe, the Middle East, and other parts of the world, continue to financially burden the property insurance industry globally and amplify the potential impacts of climate change on catastrophic loss activity.
Previous wording
Outside of property, in the casualty and specialty reinsurance markets, rate momentum and performance remain strong. Ceding commissions on proportional business have stabilized and reduced for some casualty product lines, such as public directors & officers and commercial auto. The MGA market continues to show significant growth in casualty and specialty program reinsurance business fueled, in part, by an increasing universe of fronting carriers. These programs and fronting carriers rely heavily on proportional reinsurance support as a primary source of underwriting capital.
Current wording
Outside of property, in the casualty and specialty reinsurance markets, rate momentum and performance for most lines remains strong, albeit reduced rate of increase. Ceding commissions on proportional business have stabilized and reduced for some casualty product lines, such as public directors & officers and commercial auto. The MGA market continues to show significant growth in casualty and specialty program reinsurance business fueled, in part, by fronting carrier growth. These programs and fronting carriers rely heavily on proportional reinsurance support as a primary source of underwriting capital.
Previous wording
Our business model is diversified and differentiated compared to a traditional P&C insurer given we have three uncorrelated sources of earnings; (i) underwriting results where we bear insurance risk; (ii) services fee income from MGAs we consolidate; and (iii) investment results.
Current wording
We are an underwriting-first company as we aim to create a business model which is simplified, fully-integrated and globally connected. Our business model is diversified and differentiated compared to a traditional P&C insurer given we have three uncorrelated sources of earnings; (i) underwriting results where we bear insurance risk; (ii) services fee income from MGAs we consolidate; and (iii) investment results. We took decisive actions on our strategic priorities during 2024 to reduce volatility and increase profitability. Our underwriting results benefited from portfolio refinement, improving our mix of business, and reducing historical volatility from our property reinsurance business, resulting in our ninth straight quarter of underwriting profit. We de-risked our investment portfolio resulting in materially improved and reduced volatility investment returns. We simplified our capital structure through a $400 million debt refinancing and increased share repurchase authorization for a full repurchase of all CM Bermuda common shares.
Previous wording
(1) Core underwriting income (loss), Core net services income, Core income and Core combined ratio are non-GAAP financial measures. See definitions in “Non-GAAP Financial Measures” and reconciliations in “Segment Results” below and Note 5 “Segment reporting” in our audited consolidated financial statements included elsewhere in this Annual Report. Tangible book value per diluted common share is a non-GAAP financial measure. See definition and reconciliation in “Non-GAAP Financial Measures”.
Current wording
(1) Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. See definitions in “Non-GAAP Financial Measures” and reconciliations in “Segment Results” below and Note 4 “Segment reporting” in our audited consolidated financial statements included elsewhere in this Annual Report. Tangible book value per diluted common share is a non-GAAP financial measure. See definition and reconciliation in “Non-GAAP Financial Measures”.
Previous wording
Return on average common shareholders’ equity attributable to SiriusPoint common shareholders is calculated by dividing net income (loss) available to SiriusPoint common shareholders for the year by the average common shareholders’ equity determined using the common shareholders' equity balances at the beginning and end of the year.
Current wording
Return on average common shareholders’ equity attributable to SiriusPoint common shareholders is calculated by dividing net income available to common shareholders for the year by the average common shareholders’ equity determined using the common shareholders' equity balances at the beginning and end of the year.
Previous wording
As of December 31, 2023, book value per common share was $13.76, representing an increase of $2.20 per share, or 19.0%, from $11.56 as of December 31, 2022. As of December 31, 2023, book value per diluted common share was $13.35, representing an increase of $2.03 per share, or 17.9%, from $11.32 as of December 31, 2022. As of December 31, 2023, tangible book value per diluted common share was $12.47, representing an increase of $2.04 per share, or 19.6%, from $10.43 as of December 31, 2022. The increases were due to net income in the current year.
Current wording
As of December 31, 2024, book value per common share was $14.92, representing an increase of $1.16 per share, or 8.4%, from $13.76 as of December 31, 2023. As of December 31, 2024, book value per diluted common share was $14.60, representing an increase of $1.25 per share, or 9.4%, from $13.35 as of December 31, 2023. As of December 31, 2024, tangible book value per diluted common share was $13.42, representing an increase of $0.95 per share, or 7.6%, from $12.47 as of December 31, 2023. The increases reflect continued positive underwriting and investment results during the year ended December 31, 2024, and the impact of the share repurchases in the year.
Previous wording
(1)Includes$562.0 million of investments in the Third Point Optimized Credit portfolio (“TPOC Portfolio”) as of December 31, 2023. (December 31, 2022 - $530.7 million).
Current wording
(1)Includes$595.8 million of investments in the Third Point Optimized Credit portfolio (“TPOC Portfolio”) as of December 31, 2024 (December 31, 2023 - $562.0 million).
Previous wording
(2)Primarily consists of cash and fixed income securities such as U.S. Treasuries, money markets funds, and sovereign debt, securing our contractual obligations under certain insurance and reinsurance contracts that we will not be released from until the underlying risks have expired or have been settled.
Current wording
(2)Primarily consists of cash and fixed income securities such as U.S. Treasuries, money markets funds, and sovereign debt, securing our contractual obligations under certain (re)insurance contracts that will not be released from until the underlying risks have expired or have been settled.
Previous wording
The duration of our fixed income portfolio, excluding cash and cash equivalents, is 2.8 years (December 31, 2022 - 1.8 years). The increase from the comparative period is due to our effort to lock-in yields on longer-duration investment products in the current interest rate environment. The average credit rating of our investment portfolio is AA as of December 31, 2023 (December 31, 2022 - AA) with no defaults in the investment portfolio.
Current wording
The duration of our fixed income portfolio, excluding cash and cash equivalents, is 3.1 years (December 31, 2023 - 2.8). The increase from the prior year is due to our effort to lock-in yields on longer-duration investment products in the current interest rate environment. The average credit rating of our investment portfolio is “AA-” as of December 31, 2024 (December 31, 2023 - “AA”) with no defaults in the investment portfolio.
Previous wording
The following table provides a breakdown of structured products between investment and non-investment grade securities as of December 31, 2023. These are fixed income investments which are included in debt securities in the table above. Refer to
Current wording
The following table provides a breakdown of structured products between investment and non-investment grade securities as of December 31, 2024 and 2023. These are fixed income investments which are included in debt securities in the table above.
Previous wording
Note 8 “Investments” in our audited consolidated financial statements included elsewhere in this Annual Report for further discussion of these securities.
Current wording
Refer to Note 7 “Investments” in our audited consolidated financial statements included elsewhere in this Annual Report for further discussion of these securities.
Previous wording
Total net investment income and realized and unrealized investment gains (losses) for the year ended December 31, 2023 was primarily attributable to net investment income related to interest income from our debt and short-term investment portfolio of $277.0 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.
Current wording
Total net investment income and realized and unrealized investment gains (losses) for the year ended December 31, 2024 was primarily attributable to net investment income related to interest income from our debt and short-term investment portfolio of $289.7 million, partially offset by unrealized losses on other long-term investments of $70.0 million. Increased investment income is primarily due to the 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. Our net investment income growth was partially offset by an increase in the allocation of incentive compensation expenses resulting from the investment portfolio’s outperformance relative to targets. 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 gains (losses) for the year ended December 31, 2022 was primarily attributable to a net investment loss of $202.0 million from our investment in the TP Enhanced Fund. We also recognized losses of $80.5 million on our debt securities and $10.6 million on the other long-term investment portfolio due to revised valuations on private investments.
Current wording
Total net investment income and realized and unrealized investment gains (losses) for the year ended December 31, 2023 was primarily attributable to net investment income related to interest income from our debt and short-term investment portfolio of $277.0 million.
Previous wording
For the year ended December 31, 2023, other revenues primarily consisted of $87.9 million of service fee revenue from MGAsand a gain of $4.5 million from the sale of renewal rights of our environmental business, partially offset by a loss of $59.4 million from the change in fair value of liability-classified capital instruments. For the year ended December 31, 2022, other revenues consisted of $82.1 million of service fee revenue from MGA and a gain of $27.4 million of changes in the fair value of liability-classified capital instruments. The decrease in other revenues is driven by the loss from the change in fair value of liability-classified capital instruments due to the increase in the Company’s common share price, partially offset by an increase in service fee revenue from IMG from improved market conditions and Arcadian from continued growth.
Current wording
Loss on Settlement and Change in Fair Value of Liability Classified Instruments
Previous wording
Amortization of intangible assets for the year ended December 31, 2023 was$11.1 million (2022 - $8.1 million). Amortization patterns 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 year ended December 31, 2024 was$11.9 million (2023 - $11.1 million). Amortization patterns 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 as well as interest associated with certain reinsurance contracts. Total interest expense for the year ended December 31, 2023 was $64.1 million (2022 -$38.6 million). The increase is due to the interest expense associated with funds held on the 2023 LPT, in addition to increases in the variable interest rate on the 2017 SEK Subordinated Note.
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
Except for the Canadian reinsurance operations of SiriusPoint America andcertain subsidiaries of IMG, the U.S. dollar is the functional currency for SiriusPoint’s business. Assets and liabilities are remeasured into the functional currency using current exchange rates; revenues and expenses are remeasured into the functional currency using the average exchange rate for the period. The remeasurement process results in foreign exchange gains (losses) in the consolidated results of operations. Foreign exchange (gains) losses exclude investment generated net realized and unrealized investment gains (losses) asaddressed in Investment Results above.
Current wording
Except for the Canadian reinsurance operations of SiriusPoint America andcertain subsidiaries of IMG, the U.S. dollar is the functional currency for our business. Assets and liabilities are remeasured into the functional currency using current exchange rates; revenues and expenses are remeasured into the functional currency using the average exchange rate for the period. The remeasurement process results in foreign exchange (gains) losses in the consolidated results of operations. Foreign exchange (gains) losses exclude investment generated net realized and unrealized investment gains (losses) asaddressed in Investment Results above.
Previous wording
The foreign exchange losses of $34.9 million for the year ended December 31, 2023 were primarily due to $34.4 million of foreign exchange losses from our international operations. These amounts were primarily unrealized and resulted from the effects of revaluing net insurance liabilities settled in foreign currencies.
Current wording
The foreign exchange losses of $34.9 million for the year ended December 31, 2023 were primarily due to$34.4 million of foreign exchange losses from our international operations. These amounts were primarily unrealized and resulted from the effects of revaluing net insurance liabilities settled in foreign currencies.
Previous wording
Additional foreign currency gains (losses) were recorded as part of the investments results. This includes changes in the value of available-for-sale investments held in foreign currencies which are reflected as a increase or decrease to shareholder’s equity and are not included net income. See Note 9 “Total net investment income and realized and unrealized investment gains (losses)” in our audited consolidated financial statements included elsewhere in this Annual Report for additional information.
Current wording
Additional foreign currency gains (losses) were recorded as part of the investments results. This includes changes in the value of available-for-sale investments held in foreign currencies which are reflected as an increase or decrease to shareholder’s equity and are not included net income. See Note 8 “Total net investment income and net realized and unrealized investment gains (losses)” in our audited consolidated financial statements included elsewhere in this Annual Report for additional information.
Previous wording
On an aggregate basis including foreign currency gains (losses) from investments, the effects of foreign exchange resulted in a decrease to net income of $23.8 million and comprehensive income of $13.5 million for the year ended December 31, 2023.
Current wording
On an aggregate basis including foreign currency gains (losses) from investments, the effects of foreign exchange resulted in an increase to net income of $14.6 million and comprehensive income of $13.0 million for the year ended December 31, 2024.
Previous wording
Income tax benefit of $45.0 million for the year ended December 31, 2023 is due to a one-time tax benefit attributable to the enactment of the Bermuda CIT, offset by tax expense on increased underwriting profits and investment income, compared to $36.7 million for the year ended December 31, 2022 due to losses in taxable jurisdictions.
Current wording
Income tax expense is $30.7 million for the year ended December 31, 2024, primarily driven by income in taxable jurisdictions, compared to income tax benefit of $45.0 million for the year ended December 31, 2023, driven by a one-time tax benefit attributable to the enactment of the Bermuda CIT during the year ended December 31, 2023.
Previous wording
The determination of our reportable segments is based on the manner in which management monitors the performance of our operations. We classify our business into two reportable segments - Reinsurance and Insurance & Services. Collectively, the sum of these two segments constitute “Core” results. Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. We believe it is useful to review Core results as it better reflects how management views the business and reflects our decision to exit the runoff business. The sum of Core results and Corporate results are equal to the consolidated results of operations.
Current wording
The determination of our reportable segments is based on the manner in which management monitors the performance of our operations. We classify our business into two reportable segments - Reinsurance and Insurance & Services. Collectively, the sum of these two segments constitutes “Core” results. Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. We believe it is useful to review Core results as it better reflects how management views the business and reflects our decision to exit the runoff business. The sum of Core results and Corporate results are equal to the consolidated results of operations.
Previous wording
Corporate includes the results of all runoff business, which represents certain classes of business that we no longer actively underwrite, including the effect of 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.
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 decreased by $94.9 million, or 2.8%, for the year ended December 31, 2023 compared to the year ended December 31, 2022. Net premiums written decreased by $201.9 million, or 7.9%, for the year ended December 31, 2023 compared to the year ended December 31, 2022. Net premiums earned decreased by $19.3 million, or 0.8%, for the year ended December 31, 2023 compared to the year ended December 31, 2022. The decreases in written premium volume were primarily driven by a decrease in the Reinsurance segment as we execute the Restructuring Plan.
Current wording
Gross premiums written decreased by $134.3 million, or 4.1%, for the year ended December 31, 2024 compared to the year ended December 31, 2023. Net premiums written decreased by $2.8 million, or 0.1%, for the year ended December 31, 2024 compared to the year ended December 31, 2023. Net premiums earned decreased by $81.5 million, or 3.6%, for the year ended December 31, 2024 compared to the year ended December 31, 2023. The decreases in premium volume were primarily due to 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, with the most significant offset being strategic organic and new program growth within Insurance & Services.
Previous wording
We generated underwriting income of $250.2 million and a combined ratio of 89.1% for the year ended December 31, 2023, compared to an underwriting loss of $34.8 million and a combined ratio of 101.6% for the year ended December 31, 2022. The increase in net underwriting results in was primarily driven by favorable prior year loss reserve development, lower catastrophe losses and a favorable commission ratio, which results in a higher underwriting gain.
Current wording
We generated underwriting income of $200.0 million and a combined ratio of 91.0% for the year ended December 31, 2024, compared to underwriting income of $250.2 million and a combined ratio of 89.1% for the year ended December 31, 2023. The decrease in net underwriting income was primarily driven by lower favorable prior year loss reserve development, as the year ended December 31, 2023 included$104.8 million driven by reserving analyses performed in connection with the 2023 LPT.
Previous wording
For the year ended December 31, 2023 catastrophe losses, net of reinsurance and reinstatement premiums, were $13.5 million, or 0.6 percentage points on the combined ratio, which includes losses of $6.8 million from the Turkey Earthquake, $3.8 million from the Hawaii wildfires and $3.3 million from Hurricane Idalia compared to $137.9 million, or 6.0 percentage points on the combined ratio, including $80.8 million for Hurricane Ian and $57.1 million for other catastrophe events, including the South Africa floods and France hail storms. For the year ended December 31, 2022, losses from the Russia/Ukraine conflict, including losses from the political risk, trade credit, and aviation lines of business, were $12.2 million, or 0.5 percentage points on the combined ratio.
Current wording
For the year ended December 31, 2024 catastrophe losses, net of reinsurance and reinstatement premiums, were $54.8 million, or 2.5 percentage points on the combined ratio, which includes losses from Hurricanes Milton and Helene compared to $13.5 million, or 0.6 percentage points on the combined ratio, including losses from the Turkey Earthquake, Hawaii wildfires and Hurricane Idalia, for the year ended December 31, 2023.
Previous wording
Services revenue was $237.5 million for the year ended December 31, 2023 compared to $215.5 million for the year ended December 31, 2022. The increase was primarily due to higher services revenue in IMG from increased demand for travel insurance products and services, as well as continued growth in Arcadian.
Current wording
Services revenue was $222.9 million for the year ended December 31, 2024 compared to $237.5 million for the year ended December 31, 2023. The decrease was primarily due to the deconsolidation of Arcadian, partially offset by increased services revenue from IMG due to continued demand for travel insurance products and services.
Previous wording
For the year ended December 31, 2023, net services fee income increased to $49.7 million from $36.3 million for the year ended December 31, 2022 primarily due to increased services revenues from Arcadian and IMG for the year ended December 31, 2023. Service margin, which is calculated as net services fee income as a percentage of services revenues, increased to 20.9% for the year ended December 31, 2023 from 16.8% for the year ended December 31, 2022.
Current wording
For the year ended December 31, 2024, net services fee income decreased to $46.7 million from $49.7 million for the year ended December 31, 2023 also driven by the deconsolidation of Arcadian, partially offset by higher fee income from IMG. Service margin, which is calculated as net services fee income as a percentage of services revenues, remained stable at 21.0% for the year ended December 31, 2024 compared to 20.9% for the year ended December 31, 2023.
Previous wording
We generated net services income of $41.2 million for the year ended December 31, 2023 compared to $37.4 million for the year ended December 31, 2022. The increase was primarily due to higher margins achieved in Arcadian, partially offset by services noncontrolling income from our consolidated MGAsfor the year ended December 31, 2023 compared to a noncontrolling loss for the year ended December 31, 2022.
Current wording
We generated net services income of $44.6 million for the year ended December 31, 2024 compared to $41.2 million for the year ended December 31, 2023 primarily due to higher margins achieved by IMG.
Previous wording
The Reinsurance segment predominantly underwriters Casualty, Property and Specialty lines of business on a worldwide basis. The following table sets forth underwriting results and ratios, and the year over year changes for the Reinsurance segment:
Current wording
The Reinsurance segment predominantly underwriters Casualty, Property and Specialty lines of business on a worldwide basis. The following table sets forth underwriting results and ratios, and the year over year changes for the Reinsurance segment for the years ended December 31, 2024 and 2023:
Previous wording
The increase in net underwriting results for the year ended December 31, 2023 compared to the year ended December 31, 2022, was primarily due to higher favorable prior year loss reserve development and lower catastrophe losses.
Current wording
The decrease in net underwriting results for the year ended December 31, 2024 compared to the year ended December 31, 2023, was primarily due to decreased favorable prior year loss reserve development and higher catastrophe losses, partially offset by lower attritional losses. Net favorable prior year loss reserve development was $75.0 million for the year ended December 31, 2024 primarily driven by favorable development in Property and Specialty, mainly from reserve releases relating to prior year’s catastrophe events, compared to $140.8 million for the year ended December 31, 2023, which included $93.0 million driven by reserving analyses performed in connection with the 2023 LPT.
Previous wording
For the year ended December 31, 2023, catastrophe losses, net of reinsurance and reinstatement premiums, were $12.2 million or 1.2 percentage points on the combined ratio, which includes losses of $5.7 million from the Turkey Earthquake, $3.8 million from the Hawaii wildfires and $3.3 million from Hurricane Idalia, compared to $136.3 million, including $79.2 million for Hurricane Ian, $57.1 million for other catastrophe events, including South Africa floods and France hail storms, for the year ended December 31, 2022.
Current wording
For the year ended December 31, 2024, catastrophe losses, net of reinsurance and reinstatement premiums, were $49.5 million, or 4.7 percentage points on the combined ratio, which includes losses from Hurricanes Milton and Helene compared to $12.2 million, or 1.2 percentage points on the combined ratio, including losses from the Turkey Earthquake, Hawaii wildfires and Hurricane Idalia for the year ended December 31, 2023.
Previous wording
As of December 31, 2023, we have equity stakes in 26 entities (MGAs, Insurtech and Other), which underwrite or distribute a wide range of lines of business, including general liability, professional liability, directors & officers, credit and bond, cyber, commercial automobile, workers compensation, accident & health, and other specialty insurance classes. We provide underwriting capacity in the form of insurance or reinsurance to 14 MGAs, while 8 are investment only.
Current wording
As of December 31, 2024, we have equity stakes in 20 entities (MGAs, Insurtech and Other), which underwrite or distribute a wide range of lines of business, including general liability, professional liability, directors & officers, credit and bond, cyber, commercial automobile, workers’ compensation, accident & health, and other specialty insurance classes. As of December 31, 2024, we consolidated three MGAs in our financial statements: ArmadaCorp Capital, LLC (“Armada”), Alta Signa Holdings (“Alta Signa”) and IMG. We provide underwriting capacity in the form of insurance or reinsurance to 10 non-consolidated entities in addition to the three consolidated MGAs. We also have investment stakes in 7 other entities where we have no underwriting relationship. The investment interests in the non-consolidated entities are included in strategic investments within Other long term investments on the consolidated balance sheet.
Previous wording
Corporate includes the results of all runoff business, which represents certain classes of business that we no longer actively underwrite, including the effect of the Restructuring Plan and certain reinsurance contracts that have interest crediting features. Corporate results also include asbestos and environmental and other latent liability exposures on a gross basis, which have mostly been ceded. The following table sets forth underwriting results and the year over year changes for the years ended December 31, 2023 and 2022:
Current wording
Corporate includes the results of all runoff business, which represents certain classes of business that we no longer actively underwrite, including the effects of the Restructuring Plan and certain reinsurance contracts that have interest crediting features. Corporate results also 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. The following table sets forth underwriting results and the year over year changes for the years ended December 31, 2024 and 2023:
Previous wording
We have included certain financial measures that are not calculated under standards or rules that comprise U.S. GAAP. Such measures, including Core underwriting income, Core net services income, Core income, Core combined ratio, accident year loss ratio, accident year combined ratio, attritional loss ratio and tangible book value per diluted common share, are referred to as non-GAAP financial measures. These non-GAAP financial measures may be defined or calculated differently by other companies. We believe these measures allow for a more complete understanding of our underlying business. These measures are used by management to monitor our results and should not be viewed as a substitute for those determined in accordance with U.S. GAAP. Reconciliations of non-GAAP measures to the most comparable U.S. GAAP measures are included below.
Current wording
We have included certain financial measures that are not calculated under standards or rules that comprise U.S. GAAP. Such measures, including Underlying income, Core underwriting income, Core net services income, Core income, Core combined ratio, accident year loss ratio, accident year combined ratio, attritional loss ratio and tangible book value per diluted common share, are referred to as non-GAAP financial measures. These non-GAAP financial measures may be defined or calculated differently by other companies. We believe these measures allow for a more complete understanding of our underlying business. These measures are used by management to monitor our results and should not be viewed as a substitute for those determined in accordance with U.S. GAAP. Reconciliations of non-GAAP measures to the most comparable U.S. GAAP measures are included below.
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Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
On December 19, 2024, we amended and restated our existing senior unsecured revolving credit facility with JPMorgan Chase Bank, N.A. and entered into a 4-year, $400.0 million senior unsecured revolving credit facility with JPMorgan Chase Bank, N.A. as administrative agent.
Current report — wording carried from elsewhere
As of December 31, 2024, there were no outstanding borrowings under the 2024 Facility. In addition, as of December 31, 2024, the Company was in compliance with all of the covenants under the 2024 Facility.
Current report — wording carried from elsewhere
On April 5, 2024, we issued $400.0 million aggregate principal amount of registered 7.0% Senior Notes due 2029 (the “2024 Senior Notes”) at an issue price of 99.6% for net proceeds of $393.9 million after taking into effect both deferrable and non-deferrable issuance costs. Interest is payable on the 2024 Senior Notes semi-annually in arrears on April 5 and October 5 of each year, commencing on October 5, 2024.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
We are an underwriting-first company as we aim to create a business model which is simplified, fully-integrated and globally connected. We made significant progress on our strategic priorities during 2023 addressing the issues that were driving historical underperformance and volatility. Specifically, our underwriting results benefited from portfolio refinement, improving our mix of business and reducing historical volatility from our property reinsurance business.