Financial Data and Key Metrics Changes - For Q4 2021, the company reported a net loss of $140 million or $0.88 per diluted share compared to a net income of $134 million or $1.43 per diluted share in the same quarter of the previous year [27] - The annualized return on average common equity for the quarter was negative 23.7%, while the full year return on average common equity was 2.3% [27][28] - For the full year, net income was $45 million or $0.27 per diluted share, down from $144 million or $1.53 per diluted share in the prior year [27] Business Line Data and Key Metrics Changes - The company resegmented its business into two reporting lines: reinsurance and insurance and services, which provides greater transparency into the growing contribution from fee businesses [11][12] - The reinsurance segment produced underwriting income of $31 million with a combined ratio of 91.2%, while the insurance and services segment had a segment loss of $38 million with a combined ratio of 98% [33] - Core underwriting income for Q4 was $35 million with a combined ratio of 93.6%, improving from an underwriting loss of $45 million and a combined ratio of 128% in Q4 2020 [30] Market Data and Key Metrics Changes - The company experienced a significant reduction in gross and net exposures by 35% due to a shift in its property portfolio and a focus on reducing volatility [13] - Pricing for property cat reinsurance averaged a 10% increase, which was below expectations, indicating a market with excess supply [14][15] - The insurance and services segment delivered strong results with segment income of $34 million and a combined ratio of 95.5% [21][37] Company Strategy and Development Direction - The company is focused on a comprehensive reunderwriting of its property, casualty, and specialty reinsurance portfolios, aiming for a balanced business mix between insurance and reinsurance [6][9] - The strategy includes building value in the Insurance and Services segment and optimizing capital allocation to reduce volatility [8][49] - The company has made significant investments in over 20 MGAs and insurance services companies, aiming to accelerate growth and improve profitability [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the repositioning of the reinsurance portfolio for lower volatility and improved profitability going forward [49] - The company anticipates that the changes made will not yet be reflected in current results but are expected to yield positive outcomes in the future [49] - Management highlighted the importance of partnerships with MGAs to create value and support growth in the insurance and services segment [25][49] Other Important Information - The company completed a redemption of $450 million from the Third Point Enhanced Fund to shift its investment portfolio from equity to fixed income [11] - The net investment loss for Q4 was $151 million, driven by losses from related party investments [43] - The balance sheet remains strong, ending the quarter with $2.5 billion of shareholders' equity [46] Q&A Session Summary Question: What are the expectations for the reinsurance market? - Management noted that pricing for property cat reinsurance was underwhelming and that the market did not experience demand-supply imbalances, with new entrants gaining market share [14][15] Question: How is the company addressing the challenges in the investment portfolio? - The company is committed to reducing its ongoing exposure to equity in its investment portfolio and has made significant redemptions to facilitate this shift [43][44] Question: What is the outlook for the insurance and services segment? - Management expressed optimism about the growth potential in the insurance and services segment, particularly through partnerships with MGAs and the expected contributions from new ventures [25][49]

Financial Data and Key Metrics Changes - The company reported a net loss of $48 million or $0.34 per diluted share for Q3 2021, compared to a net income of $69 million or $0.73 per diluted share in the same quarter last year [26] - The annualized return on average common equity was negative 7.8% for the quarter [26] - The net underwriting loss for the third quarter was $266 million, with a combined ratio of 151.9%, compared to a net underwriting loss of $30 million and a combined ratio of 121% in Q3 2020 [26][27] Business Line Data and Key Metrics Changes - The A&H segment produced an underwriting profit of $15.2 million with a combined ratio of 86.4%, reflecting good results in third-party business and wholly-owned MGUs [36] - The Specialty segment reported a net underwriting loss of $6.4 million and a combined ratio of 102.6% [37] - The Property segment accounted for 28% of gross premiums written in the quarter, producing an underwriting loss of $264.7 million and a combined ratio of 276% [42] Market Data and Key Metrics Changes - The company experienced significant catastrophe losses primarily from Hurricane Ida and European floods, with estimated insured market losses of $40 billion and $14 billion respectively [8][26] - The company anticipates upwards pressure globally in property cat reinsurance rates of 5% to 8% due to increased price momentum as reinsurers assess global property exposures [43] - The casualty market has seen rate adequacy shift from 98% to over 105% currently, with expectations of slight hardening continuing into 2022 [38] Company Strategy and Development Direction - The company is focused on reducing volatility and delivering sustainable underwriting profitability by rebalancing its portfolio and rigorous risk management [54] - Strategic partnerships with MGAs and tech companies are being pursued to access unique specialty primary insurance business [16][18] - The company aims to shift its business mix from reinsurance to insurance and services, particularly in non-cat-exposed business [22] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need to manage volatility in the Property business and the importance of rebalancing the investment portfolio [9][10] - The company expects to see better terms and conditions in the property market due to heavy industry losses, while maintaining a focus on balancing the portfolio to reduce risk [12][13] - Management expressed excitement about the prospects for 2022, anticipating improvements from portfolio review and actions taken to address the mix of business [55] Other Important Information - The company completed the sale of its Runoff business to Compre, which materially reduces its Runoff segment and provides further certainty on reserve positions [21][47] - The company reported net investment income of $199.8 million for Q3 2021, driven by gains from the Third Point Enhanced Fund [48] - The balance sheet remains strong with $2.6 billion of shareholders' equity, and total capital including debt was $3.5 billion [51] Q&A Session Summary - The Q&A session concluded without specific questions or answers being documented, indicating a wrap-up of the conference call [57]

Q3: INVESTOR PRESENTATION Sirius September 30 2021 1 siriuspt.com DISCLAIMER Non-GAAP Financial Measures Forward- Looking Statements We make statements in this presentation that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company cautions you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-lo ...

[Filing Information](index=1&type=section&id=Filing%20Information) This section details SiriusPoint Ltd.'s Form 10-Q filing information, including its registrant status and common shares outstanding - SiriusPoint Ltd. filed its Form 10-Q for the quarterly period ended September 30, 2021, as an **accelerated filer**[1](index=1&type=chunk)[2](index=2&type=chunk)[3](index=3&type=chunk) Registrant Status | Status | | :--- | | Accelerated filer ☒ | - As of November 1, 2021, the registrant had **161,935,588 common shares** issued and outstanding[3](index=3&type=chunk) [INDEX](index=2&type=section&id=INDEX) The report's index outlines two main parts: Part I - Financial Information and Part II - Other Information, detailing various items and their corresponding page numbers PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents SiriusPoint Ltd.'s unaudited condensed consolidated financial statements, including balance sheets, income statements, comprehensive income, shareholders' equity, cash flows, and related notes for the specified periods [Condensed Consolidated Balance Sheets (Unaudited)](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20%28Unaudited%29) This section provides the unaudited condensed consolidated balance sheets, detailing assets, liabilities, and shareholders' equity as of September 30, 2021, and December 31, 2020 Condensed Consolidated Balance Sheets (Unaudited) - Key Figures (in millions of U.S. dollars) | Metric | September 30, 2021 | December 31, 2020 | | :------------------------------------------------- | :------------------- | :------------------ | | **Assets** | | | | Total investments | $5,073.5 | $1,160.9 | | Cash and cash equivalents | $701.2 | $526.0 | | Restricted cash and cash equivalents | $1,482.3 | $1,187.9 | | Insurance and reinsurance balances receivable, net | $1,621.4 | $441.9 | | Total assets | $10,715.3 | $3,535.2 | | **Liabilities** | | | | Loss and loss adjustment expense reserves | $4,862.3 | $1,310.1 | | Unearned premium reserves | $1,215.4 | $284.8 | | Debt | $827.0 | $114.3 | | Total liabilities | $8,077.3 | $1,969.9 | | **Shareholders' Equity** | | | | Total shareholders' equity | $2,638.0 | $1,565.3 | | Total liabilities, noncontrolling interests and shareholders' equity | $10,715.3 | $3,535.2 | - Total assets significantly increased to **$10,715.3 million** as of September 30, 2021, from **$3,535.2 million** at December 31, 2020, primarily due to the acquisition of Sirius Group[9](index=9&type=chunk) - Shareholders' equity attributable to SiriusPoint shareholders rose to **$2,638.0 million** from **$1,563.9 million**, reflecting the impact of the acquisition[9](index=9&type=chunk) [Condensed Consolidated Statements of Income (Loss) (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%28Loss%29%20%28Unaudited%29) This section presents the unaudited condensed consolidated statements of income (loss), outlining revenues, expenses, and net income (loss) for the three and nine months ended September 30, 2021 and 2020 Condensed Consolidated Statements of Income (Loss) (Unaudited) - Key Figures (in millions of U.S. dollars, except per share) | Metric | Three months ended Sep 30, 2021 | Three months ended Sep 30, 2020 | Nine months ended Sep 30, 2021 | Nine months ended Sep 30, 2020 | | :------------------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net premiums earned | $512.1 | $141.7 | $1,234.4 | $428.9 | | Net investment income | $199.8 | $122.0 | $463.7 | $74.1 | | Total revenues | $732.6 | $263.7 | $1,745.2 | $503.0 | | Loss and loss adjustment expenses incurred, net | $581.7 | $110.5 | $984.9 | $287.4 | | Total expenses | $793.0 | $194.3 | $1,583.7 | $489.5 | | Income (loss) before income tax (expense) benefit | $(60.4) | $69.4 | $161.5 | $13.5 | | Net income (loss) | $(47.4) | $68.7 | $155.1 | $9.1 | | Net income (loss) available to SiriusPoint common shareholders | $(48.0) | $68.7 | $147.4 | $9.1 | | Basic earnings (loss) per share | $(0.30) | $0.74 | $0.94 | $0.10 | | Diluted earnings (loss) per share | $(0.34) | $0.73 | $0.92 | $0.10 | - For the three months ended September 30, 2021, the company reported a **net loss of $47.4 million**, a significant decline from a **net income of $68.7 million** in the prior year, primarily due to increased loss and loss adjustment expenses[11](index=11&type=chunk) - For the nine months ended September 30, 2021, net income increased substantially to **$155.1 million** from **$9.1 million** in the prior year, driven by higher net premiums earned and net investment income[11](index=11&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29%20%28Unaudited%29) This section details the unaudited condensed consolidated statements of comprehensive income (loss), including net income (loss) and other comprehensive income (loss) components for the specified periods Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - Key Figures (in millions of U.S. dollars) | Metric | Three months ended Sep 30, 2021 | Three months ended Sep 30, 2020 | Nine months ended Sep 30, 2021 | Nine months ended Sep 30, 2020 | | :------------------------------------------ | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net income (loss) | $(47.4) | $68.7 | $155.1 | $9.1 | | Change in foreign currency translation, net of tax | $(1.8) | — | $(0.3) | — | | Total other comprehensive loss | $(1.8) | — | $(0.3) | — | | Comprehensive income (loss) | $(49.2) | $68.7 | $154.8 | $9.1 | | Comprehensive income (loss) available to SiriusPoint | $(45.8) | $68.7 | $156.6 | $9.1 | - Comprehensive income for the three months ended September 30, 2021, was a **loss of $49.2 million**, compared to an **income of $68.7 million** in the prior year, primarily due to the net loss and foreign currency translation losses[13](index=13&type=chunk) - For the nine months ended September 30, 2021, comprehensive income increased to **$154.8 million** from **$9.1 million** in the prior year, reflecting the higher net income[13](index=13&type=chunk) [Condensed Consolidated Statements of Shareholders' Equity (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity%20%28Unaudited%29) This section presents the unaudited condensed consolidated statements of shareholders' equity, showing changes in common shares, preference shares, additional paid-in capital, and retained earnings Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - Key Figures (in millions of U.S. dollars) | Metric | Sep 30, 2021 (3 months) | Sep 30, 2020 (3 months) | Sep 30, 2021 (9 months) | Sep 30, 2020 (9 months) | | :------------------------------------------------- | :---------------------- | :---------------------- | :---------------------- | :---------------------- | | Series B preference shares (end of period) | $200.0 | — | $200.0 | — | | Common shares (end of period) | $16.2 | $9.5 | $16.2 | $9.5 | | Additional paid-in capital (end of period) | $1,654.3 | $932.0 | $1,654.3 | $932.0 | | Retained earnings (end of period) | $767.8 | $486.0 | $767.8 | $486.0 | | Total shareholders' equity (end of period) | $2,638.0 | $1,428.5 | $2,638.0 | $1,428.5 | - Total shareholders' equity increased to **$2,638.0 million** as of September 30, 2021, from **$1,428.5 million** at September 30, 2020, primarily driven by the issuance of preference shares and common shares for the Sirius Group acquisition, and an increase in additional paid-in capital[17](index=17&type=chunk) - Net income (loss) for the nine months ended September 30, 2021, was **$155.1 million**, contributing to retained earnings, while dividends on preference shares totaled **$9.5 million**[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20%28Unaudited%29) This section outlines the unaudited condensed consolidated statements of cash flows, detailing cash generated from operating, investing, and financing activities for the nine months ended September 30, 2021 and 2020 Condensed Consolidated Statements of Cash Flows (Unaudited) - Key Figures (in millions of U.S. dollars) | Metric | Nine months ended Sep 30, 2021 | Nine months ended Sep 30, 2020 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $26.6 | $45.3 | | Net cash provided by (used in) investing activities | $410.0 | $(68.1) | | Net cash provided by (used in) financing activities | $33.0 | $(15.7) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $469.6 | $(38.5) | | Cash, cash equivalents and restricted cash at end of period | $2,183.5 | $1,615.5 | - Net cash provided by operating activities decreased to **$26.6 million** for the nine months ended September 30, 2021, from **$45.3 million** in the prior year, primarily due to transaction-related payments and increased loss payments[20](index=20&type=chunk)[497](index=497&type=chunk) - Investing activities generated **$410.0 million** in cash, a significant improvement from a net outflow of **$68.1 million** in the prior year, largely driven by the acquisition of Sirius Group, which included **$740.3 million** of acquired cash and restricted cash[20](index=20&type=chunk)[498](index=498&type=chunk) - Cash, cash equivalents and restricted cash at the end of the period increased to **$2,183.5 million** from **$1,615.5 million**, reflecting the overall net increase in cash[20](index=20&type=chunk) [Notes to the Condensed Consolidated Financial Statements (UNAUDITED)](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements%20%28UNAUDITED%29) [1. Organization](index=8&type=section&id=1.%20Organization) This note describes SiriusPoint Ltd.'s incorporation, global multi-line operations, the Sirius Group acquisition, and the resulting change in reportable segments - SiriusPoint Ltd. was incorporated in Bermuda on October 6, 2011, and provides global multi-line reinsurance and insurance products through its subsidiaries[22](index=22&type=chunk) - On February 26, 2021, the Company completed the acquisition of Sirius International Insurance Group, Ltd. and changed its name from Third Point Reinsurance Ltd. to SiriusPoint Ltd., integrating Sirius Group's operations from the acquisition date[23](index=23&type=chunk) - Effective January 1, 2021, the Company changed its reportable segments to Accident & Health, Specialty, Property, and Runoff & Other, reflecting expanded operations post-acquisition[27](index=27&type=chunk) [2. Significant accounting policies](index=8&type=section&id=2.%20Significant%20accounting%20policies) This note details significant accounting policy changes, including premium recognition, and the adoption of new accounting standards, along with their retrospective impact on financial statements - Effective January 1, 2021, the Company changed its accounting policy for assumed written premium recognition to recognize premiums ratably over the policy term, aligning with cedent recognition and reducing uncertainty[30](index=30&type=chunk)[32](index=32&type=chunk) Retrospective Impact of Accounting Policy Change on Balance Sheet (December 31, 2020, in millions) | Metric | As previously reported | Adjustment | As adjusted | | :------------------------------------------ | :--------------------- | :--------- | :---------- | | Insurance and reinsurance balances receivable, net | $559.4 | $(117.5) | $441.9 | | Deferred acquisition costs, net and value of business acquired | $134.3 | $(65.7) | $68.6 | | Unearned premiums ceded | $27.7 | $(7.2) | $20.5 | | Total assets | $3,725.6 | $(190.4) | $3,535.2 | | Reinsurance balances payable | $80.4 | $(2.3) | $78.1 | | Unearned premium reserves | $472.9 | $(188.1) | $284.8 | | Total liabilities | $2,160.3 | $(190.4) | $1,969.9 | | Shareholders' equity attributable to SiriusPoint common shareholders | $1,563.9 | — | $1,563.9 | - The change in accounting policy had **no impact** on previously reported net income (loss) or shareholders' equity attributable to SiriusPoint common shareholders[36](index=36&type=chunk) - The Company adopted ASU 2019-12 (Income Taxes) and ASU 2020-01 (Investments—Equity Securities) effective January 1, 2021, neither of which had a **material impact** on its financial statements[48](index=48&type=chunk)[49](index=49&type=chunk) [3. Acquisition of Sirius Group](index=12&type=section&id=3.%20Acquisition%20of%20Sirius%20Group) This note outlines the details of the Sirius Group acquisition, including the total purchase price, the resulting bargain purchase gain, and the identifiable intangible assets recognized - On February 26, 2021, SiriusPoint completed the acquisition of Sirius Group, expanding underwriting capabilities, geographic footprint, and product offerings[53](index=53&type=chunk) Total Purchase Price for Sirius Group (February 26, 2021, in millions) | Component | Amount | | :---------------------------------------------------------------- | :----- | | Cash consideration | $100.4 | | Common Shares issued by SiriusPoint | $595.6 | | Series A Preference Shares issued, at fair value | $40.8 | | Series B Preference Shares issued, at fair value | $200.0 | | Merger warrants issued, at fair value | $53.4 | | Private warrants issued, at fair value | $7.3 | | Sirius Group Public Warrants, at fair value | $2.6 | | Upside Rights issued, at fair value | $6.5 | | CVRs issued, at fair value | $27.0 | | CVR waiver restricted shares | $0.7 | | Fair value of replaced Sirius Group equity awards | $37.5 | | Transaction fee reimbursement | $8.0 | | **Total purchase price** | **$1,079.8** | - The acquisition resulted in a **bargain purchase gain of $12.9 million**, reflecting Sirius Group's shares trading at a discount to book value and the need for ownership diversification[74](index=74&type=chunk) Identifiable Intangible Assets at September 30, 2021 (in millions) | Asset | Amount | | :---------------------------------------- | :----- | | Distribution relationships | $75.0 | | MGA relationships | $34.0 | | Lloyd's Capacity - Syndicate 1945 | $41.8 | | Insurance licenses | $7.0 | | Trade name | $16.0 | | Internally developed and used computer software | $5.0 | | Net identifiable intangible assets at Sep 30, 2021 | $173.7 | [4. Significant transactions](index=18&type=section&id=4.%20Significant%20transactions) This note describes significant transactions, specifically the sale of Cedar Insurance Company and the resulting gain recognized by the Company - On August 5, 2021, the Company sold 100% of Cedar Insurance Company, a New York-domiciled insurer with a run-off book of business, for **$20.5 million**, recognizing a **$5.8 million gain**[80](index=80&type=chunk) [5. Segment reporting](index=18&type=section&id=5.%20Segment%20reporting) This note details the Company's four operating segments: Accident & Health, Specialty, Property, and Runoff & Other, and presents their financial results for the specified periods - The Company reports four operating segments: Accident & Health (A&H), Specialty, Property, and Runoff & Other, reflecting expanded operations post-Sirius Group acquisition[81](index=81&type=chunk)[27](index=27&type=chunk) Operating Segment Results (Three months ended September 30, 2021, in millions) | Metric | A&H | Specialty | Property | Runoff & Other | Total | | :------------------------------------------ | :---- | :-------- | :------- | :------------- | :------ | | Gross premiums written | $118.1 | $350.9 | $182.0 | $2.7 | $653.7 | | Net premiums earned | $111.7 | $240.6 | $150.8 | $9.0 | $512.1 | | Net underwriting income (loss) | $15.2 | $(6.4) | $(264.7) | $(9.9) | $(265.8) | | Combined ratio | 86.4% | 102.6% | 275.6% | NM | 151.9% | Operating Segment Results (Nine months ended September 30, 2021, in millions) | Metric | A&H | Specialty | Property | Runoff & Other | Total | | :------------------------------------------ | :---- | :-------- | :------- | :------------- | :------ | | Gross premiums written | $343.5 | $807.9 | $457.3 | $(25.7) | $1,583.0 | | Net premiums earned | $250.4 | $610.7 | $385.4 | $(12.1) | $1,234.4 | | Net underwriting income (loss) | $23.6 | $(6.8) | $(229.1) | $(11.5) | $(223.8) | | Combined ratio | 90.6% | 101.2% | 159.4% | NM | 118.1% | [6. Cash, cash equivalents, restricted cash and restricted investments](index=23&type=section&id=6.%20Cash%2C%20cash%20equivalents%2C%20restricted%20cash%20and%20restricted%20investments) This note provides a breakdown of cash, cash equivalents, restricted cash, and restricted investments, highlighting the significant increase primarily due to the Sirius Group acquisition Cash, Cash Equivalents, Restricted Cash and Restricted Investments (in millions) | Metric | September 30, 2021 | December 31, 2020 | | :------------------------------------------------- | :------------------- | :------------------ | | Cash and cash equivalents | $701.2 | $526.0 | | Restricted cash securing letter of credit facilities | $577.1 | $306.0 | | Restricted cash securing reinsurance contracts | $889.2 | $881.9 | | Restricted cash held by managing general underwriters | $16.0 | — | | Total cash, cash equivalents and restricted cash | $2,183.5 | $1,713.9 | | Restricted investments securing reinsurance contracts and letter of credit facilities | $997.1 | $86.4 | | Total cash, cash equivalents, restricted cash and restricted investments | $3,180.6 | $1,800.3 | - Total cash, cash equivalents, restricted cash and restricted investments increased significantly to **$3,180.6 million** as of September 30, 2021, from **$1,800.3 million** at December 31, 2020, primarily due to the Sirius Group acquisition and increased collateral requirements[101](index=101&type=chunk)[492](index=492&type=chunk) [7. Investments](index=23&type=section&id=7.%20Investments) This note details the Company's investment portfolio, including debt securities and related party investment funds, and their fair values and duration Debt Securities Fair Value by Type (in millions) | Type | September 30, 2021 | December 31, 2020 | | :--------------------------------- | :------------------- | :------------------ | | Asset-backed securities | $494.6 | $1.3 | | Residential mortgage-backed securities | $349.2 | $8.7 | | Commercial mortgage-backed securities | $121.9 | — | | Corporate debt securities | $608.2 | $37.7 | | U.S. government and government agency | $368.9 | $53.2 | | Non-U.S. government and government agency | $134.8 | — | | Preferred stocks | $22.8 | — | | Total debt securities | $2,100.9 | $101.3 | - The Company's total debt securities increased substantially to **$2,100.9 million** at September 30, 2021, from **$101.3 million** at December 31, 2020, primarily due to the Sirius Group acquisition[105](index=105&type=chunk)[106](index=106&type=chunk) - The weighted average duration of the Company's debt securities (including short-term investments) decreased to approximately **1.6 years** as of September 30, 2021, from **10.5 years** at December 31, 2020[107](index=107&type=chunk) Investments in Related Party Investment Funds (in millions) | Fund | September 30, 2021 (Fair Value) | December 31, 2020 (Fair Value) | | :---------------------------------- | :------------------------------ | :----------------------------- | | Third Point Enhanced LP | $1,430.4 | $1,055.6 | | Third Point Venture Offshore Fund I LP | $26.4 | — | | Total | $1,456.8 | $1,055.6 | - Investments in related party investment funds increased to **$1,456.8 million**, with Third Point Enhanced LP being the largest component, reflecting its investment strategy in long and short investments across various asset classes[120](index=120&type=chunk)[122](index=122&type=chunk) [8. Fair value measurements](index=28&type=section&id=8.%20Fair%20value%20measurements) This note explains the Company's fair value measurement hierarchy and presents the fair value of investments and liabilities categorized into Level 1, 2, and 3 inputs - The Company categorizes its fair value measurements into a three-level hierarchy (Level 1, 2, and 3) based on the observability of inputs, with Level 3 inputs being significant unobservable assumptions[131](index=131&type=chunk) Fair Value Hierarchy of Investments (September 30, 2021, in millions) | Category | Level 1 | Level 2 | Level 3 | Total | | :--------------------------------- | :------ | :------ | :------ | :------ | | **Assets** | | | | | | Total debt securities | $372.0 | $1,706.1 | $22.8 | $2,100.9 | | Total equity securities | $3.4 | — | — | $3.4 | | Short-term investments | $1,054.5 | $3.4 | — | $1,057.9 | | Other long-term investments | — | — | $328.1 | $328.1 | | Derivative assets | — | — | $2.5 | $2.5 | | Investments in funds valued at NAV | | | | $1,583.0 | | **Total assets** | **$1,429.9** | **$1,709.5** | **$353.4** | **$5,075.8** | | **Liabilities** | | | | | | Total securities sold, not yet purchased | — | $2.9 | — | $2.9 | | Liability-classified capital instruments | — | $26.1 | $77.3 | $103.4 | | Derivative liabilities | — | — | $2.8 | $2.8 | | **Total liabilities** | **—** | **$29.0** | **$80.1** | **$109.1** | - The majority of debt securities are classified as **Level 2**, utilizing observable inputs, while a significant portion of other long-term investments and liability-classified capital instruments are **Level 3**, requiring significant management judgment[132](index=132&type=chunk)[148](index=148&type=chunk)[150](index=150&type=chunk) [9. Derivatives](index=36&type=section&id=9.%20Derivatives) This note describes SiriusPoint's use of derivative financial instruments for risk management and investment purposes, and their fair values - SiriusPoint uses derivative financial instruments for both risk management (e.g., foreign currency risk) and investment purposes (e.g., equity warrants), with changes in fair value recognized in earnings[164](index=164&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk) Fair Value of Derivatives Not Designated as Hedging Instruments (September 30, 2021, in millions) | Derivative Type | Derivative Assets at Fair Value | Derivative Liabilities at Fair Value | Notional Value | | :-------------------------- | :------------------------------ | :--------------------------------- | :------------- | | Interest rate cap | — | — | $250.0 | | Foreign currency swaps | — | $(1.8) | $40.0 | | Foreign currency forwards | — | $(0.6) | $85.3 | | Weather derivatives | $1.1 | — | $20.4 | | Foreign currency futures contracts | — | — | $115.4 | | Equity warrants | $0.2 | — | $0.2 | - Underwriting-related derivatives, primarily reinsurance contracts accounted for as derivatives, had a fair value of **$1.2 million** in assets and **$0.3 million** in liabilities as of September 30, 2021[172](index=172&type=chunk) [10. Loss and loss adjustment expense reserves](index=38&type=section&id=10.%20Loss%20and%20loss%20adjustment%20expense%20reserves) This note details the activity in loss and loss adjustment expense reserves, highlighting the significant increase due to the Sirius Group acquisition and prior year development Loss and Loss Adjustment Expense Reserves Activity (Nine months ended September 30, in millions) | Metric | 2021 | 2020 | | :------------------------------------------------- | :----- | :----- | | Gross reserves for loss and loss adjustment expenses, beginning of period | $1,310.1 | $1,111.7 | | Net reserves for loss and loss adjustment expenses, beginning of period | $1,289.7 | $1,099.5 | | Total incurred loss and loss adjustment expenses | $984.9 | $287.4 | | Total net paid losses | $(706.0) | $(216.9) | | Amounts acquired as a result of Sirius Group acquisition | $2,467.8 | — | | Gross reserves for loss and loss adjustment expenses, end of period | $4,862.3 | $1,186.2 | - Gross reserves for loss and loss adjustment expenses significantly increased to **$4,862.3 million** at September 30, 2021, from **$1,186.2 million** at September 30, 2020, primarily due to **$2,467.8 million** acquired from the Sirius Group acquisition[174](index=174&type=chunk) - For the nine months ended September 30, 2021, the Company recorded **$25.9 million** of net favorable prior year loss reserve development, mainly from legacy Sirius Group companies' A&H and Property segments[177](index=177&type=chunk) [11. Third party reinsurance](index=39&type=section&id=11.%20Third%20party%20reinsurance) This note explains the Company's use of third-party reinsurance for risk protection and details the increase in ceded premiums and recoverable loss and loss adjustment expenses - The Company uses third-party reinsurance to protect against concentrated risks and catastrophic events, remaining liable for reinsured risks if the reinsurer defaults[181](index=181&type=chunk) - Premiums ceded increased significantly to **$322.4 million** for the nine months ended September 30, 2021, from **$29.2 million** in the prior year, with loss and loss adjustment expenses recoverable rising to **$843.5 million**[182](index=182&type=chunk) [12. Allowance for expected credit losses](index=39&type=section&id=12.%20Allowance%20for%20expected%20credit%20losses) This note discusses the increase in the allowance for expected credit losses, primarily due to the Sirius Group acquisition, and the credit quality of counterparties - The Company's allowance for expected credit losses increased to **$15.9 million** as of September 30, 2021, from **$0.6 million** at December 31, 2020, primarily due to the acquisition of Sirius Group assets[186](index=186&type=chunk) - Approximately **65%** of total gross assets in scope for credit loss assessment were with counterparties rated by AM Best or S&P, with **82%** of those rated A- or better[187](index=187&type=chunk) [13. Deposit accounted contracts](index=40&type=section&id=13.%20Deposit%20accounted%20contracts) This note presents the activity and balance of deposit liabilities, which remained relatively stable for the reporting periods Deposit Contracts Activity (Nine months ended September 30, in millions) | Metric | 2021 | 2020 | | :-------------------------- | :----- | :----- | | Balance, beginning of period | $153.0 | $172.3 | | Consideration received | $0.4 | $0.5 | | Consideration receivable | $6.9 | — | | Net investment expense allocation | $3.9 | $0.9 | | Payments | $(9.8) | $(20.8) | | Foreign currency translation | $(0.4) | $0.1 | | Balance, end of period | $154.0 | $153.0 | - The balance of deposit liabilities remained relatively stable at **$154.0 million** as of September 30, 2021, compared to **$153.0 million** at December 31, 2020[188](index=188&type=chunk) [14. Debt and letter of credit facilities](index=40&type=section&id=14.%20Debt%20and%20letter%20of%20credit%20facilities) This note details the Company's debt obligations and letter of credit facilities, highlighting the significant increase in debt due to the Sirius Group acquisition and related interest expense Summary of Debt Obligations (in millions) | Debt Obligation | September 30, 2021 (Carrying Value) | December 31, 2020 (Carrying Value) | | :-------------------------------- | :---------------------------------- | :--------------------------------- | | 2017 SEK Subordinated Notes | $306.3 | n/a | | 2016 SIG Senior Notes | $406.3 | n/a | | 2015 TPRUSA Senior Notes | $114.4 | $114.3 | | Total debt | $827.0 | $114.3 | - Total debt increased significantly to **$827.0 million** as of September 30, 2021, from **$114.3 million** at December 31, 2020, primarily due to the assumption of Sirius Group's 2017 SEK Subordinated Notes and 2016 SIG Senior Notes[189](index=189&type=chunk)[190](index=190&type=chunk) - Total interest expense for the nine months ended September 30, 2021, was **$24.4 million**, up from **$6.2 million** in the prior year, reflecting the increased debt obligations[200](index=200&type=chunk) - As of September 30, 2021, the Company had **$1,054.0 million** in issued letters of credit, fully collateralized by **$1,174.1 million** in cash, cash equivalents, and debt securities[201](index=201&type=chunk)[488](index=488&type=chunk) - Effective February 26, 2021, the Company entered into a three-year, **$300.0 million** senior unsecured revolving credit facility, with **no outstanding borrowings** as of September 30, 2021[202](index=202&type=chunk)[203](index=203&type=chunk) [15. Net investment income](index=42&type=section&id=15.%20Net%20investment%20income) This note presents the components of net investment income and realized/unrealized gains (losses), emphasizing the strong performance from related party investment funds Net Investment Income (in millions) | Metric | Three months ended Sep 30, 2021 | Three months ended Sep 30, 2020 | Nine months ended Sep 30, 2021 | Nine months ended Sep 30, 2020 | | :------------------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net investment income from investments in related party investment funds | $202.4 | $110.6 | $401.2 | $8.3 | | Other net investment income | $9.1 | $4.4 | $18.8 | $11.2 | | Net investment income | $199.8 | $122.0 | $463.7 | $74.1 | - Net investment income increased to **$199.8 million** for the three months ended September 30, 2021, from **$122.0 million** in the prior year, primarily driven by strong performance from investments in related party funds[204](index=204&type=chunk)[360](index=360&type=chunk) - For the nine months ended September 30, 2021, net investment income surged to **$463.7 million** from **$74.1 million**, largely due to a **38.3% return** from the TP Enhanced Fund and unrealized gains from Pie Insurance and other private equity/hedge funds[204](index=204&type=chunk)[362](index=362&type=chunk) Net Realized and Unrealized Investment Gains (Losses) (in millions) | Metric | Three months ended Sep 30, 2021 | Three months ended Sep 30, 2020 | Nine months ended Sep 30, 2021 | Nine months ended Sep 30, 2020 | | :------------------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net realized gains on investments | $5.7 | $3.5 | $23.0 | $44.4 | | Net unrealized gains (losses) on investments | $(17.4) | $3.5 | $20.7 | $10.2 | | Net realized and unrealized investment gains (losses) | $(11.7) | $7.0 | $43.7 | $54.6 | [16. Income taxes](index=43&type=section&id=16.%20Income%20taxes) This note discusses the Company's income tax status, its operations in various taxable jurisdictions post-acquisition, and the income tax expense (benefit) and effective tax rate - SiriusPoint and its Bermuda subsidiaries are exempt from Bermuda income or capital gains taxes until March 2035[209](index=209&type=chunk) - Post-Sirius Group acquisition, the Company operates in various taxable jurisdictions globally, including Australia, Canada, Germany, Hong Kong, Ireland, Luxembourg, Malaysia, Singapore, Sweden, Switzerland, the UK, and the US[210](index=210&type=chunk) Income Tax Expense (Benefit) and Effective Tax Rate (in millions) | Metric | Three months ended Sep 30, 2021 | Three months ended Sep 30, 2020 | Nine months ended Sep 30, 2021 | Nine months ended Sep 30, 2020 | | :------------------------------------------ | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Income tax (expense) benefit | $13.0 | $(0.7) | $(6.4) | $(4.4) | | Pre-tax income (loss) | $(60.4) | $69.4 | $161.5 | $13.5 | | Effective tax rate | 21.5% | (1.0)% | 4.0% | (32.6)% | - As of September 30, 2021, the Company recorded a net deferred tax asset of **$42.0 million**, with a net increase of **$11.8 million** in valuation allowance against deferred tax assets in Swedish and UK subsidiaries[215](index=215&type=chunk)[216](index=216&type=chunk) [17. Shareholders' equity](index=45&type=section&id=17.%20Shareholders%27%20equity) This note details changes in common shares and preference shares, including issuances related to the Sirius Group acquisition and declared dividends Common Shares Issued and Outstanding | Metric | 2021 | 2020 | | :------------------------------------------------- | :----------- | :----------- | | Common shares issued, beginning of period | 95,582,733 | 94,225,498 | | Issuance of common shares for Sirius Group acquisition | 58,331,196 | — | | Issuance of common shares to related party | 6,093,842 | — | | Common shares issued, end of period | 161,949,037 | 95,314,893 | - The number of common shares issued and outstanding significantly increased to **161,949,037** as of September 30, 2021, from **95,314,893** at September 30, 2020, primarily due to the Sirius Group acquisition[220](index=220&type=chunk) - The Company issued **8,000,000** new Series B preference shares on February 26, 2021, with cumulative quarterly dividends at an initial rate of **8.0% per annum**[222](index=222&type=chunk) - Dividends of **$4.0 million** and **$8.1 million** were declared and paid to Series B preference shareholders for the three and nine months ended September 30, 2021, respectively[225](index=225&type=chunk) [18. Share-based compensation](index=45&type=section&id=18.%20Share-based%20compensation) This note outlines the Company's share-based compensation expense, unamortized expense, and details of granted Restricted Share Units (RSUs), Performance Share Units (PSUs), and outstanding options - Total share-based compensation expense increased to **$7.7 million** for the three months ended September 30, 2021, from **$1.5 million** in the prior year, and to **$17.0 million** for the nine months, from **$4.7 million**[228](index=228&type=chunk) - As of September 30, 2021, unamortized share compensation expense was **$45.4 million**, expected to be amortized over a weighted average period of **2.6 years**[229](index=229&type=chunk) - The Company granted **6,083,318 Restricted Share Units (RSUs)** and **1,154,863 Performance Share Units (PSUs)** during the nine months ended September 30, 2021, with RSUs vesting over three years and PSUs subject to service and performance conditions[232](index=232&type=chunk)[235](index=235&type=chunk) - Options outstanding as of September 30, 2021, totaled **10,808,025**, with a weighted average exercise price of **$12.81** and a remaining contractual life of **1.6 years**[237](index=237&type=chunk) [19. Variable interest entities](index=47&type=section&id=19.%20Variable%20interest%20entities) This note identifies SiriusPoint's consolidated Variable Interest Entities (VIEs) and its role as a passive investor in certain non-consolidated VIEs, detailing associated financial exposures - SiriusPoint consolidates Alstead Re, Arcadian Risk Capital Ltd., and Joyn Insurance Services Inc. as Variable Interest Entities (VIEs) where it is the primary beneficiary[240](index=240&type=chunk)[241](index=241&type=chunk)[242](index=242&type=chunk) - The Company's financial exposure to Arcadian is limited to its investment in common shares and financial support up to **$18.0 million**, while for Joyn, it's limited to preferred shares and a term loan up to **$16.5 million**[241](index=241&type=chunk)[242](index=242&type=chunk) - SiriusPoint is a passive investor in certain non-consolidated VIEs (hedge and private equity funds), with exposure to loss limited to the carrying value of investments[244](index=244&type=chunk)[246](index=246&type=chunk) - Third Point Enhanced LP (TP Enhanced Fund) is a VIE but not consolidated, as TP GP controls investment decision-making, limiting SiriusPoint's power to direct its economic performance[247](index=247&type=chunk) [20. Investments in unconsolidated entities](index=51&type=section&id=20.%20Investments%20in%20unconsolidated%20entities) This note details the Company's other long-term investments, including significant stakes in equity method eligible unconsolidated entities valued at fair value Components of Other Long-Term Investments (in millions) | Metric | September 30, 2021 | December 31, 2020 | | :------------------------------------------------- | :------------------- | :------------------ | | Equity method eligible unconsolidated entities, at fair value | $274.5 | — | | Other unconsolidated investments, at fair value | $180.0 | $4.0 | | Total other long-term investments | $454.5 | $4.0 | - The Company holds significant investments in equity method eligible unconsolidated entities, valued at fair value, including stakes in BE Reinsurance Limited, BioVentures Investors, and various tranches of Pie Insurance[254](index=254&type=chunk)[255](index=255&type=chunk) [21. Earnings (loss) per share available to SiriusPoint common shareholders](index=52&type=section&id=21.%20Earnings%20%28loss%29%20per%20share%20available%20to%20SiriusPoint%20common%20shareholders) This note presents the basic and diluted earnings (loss) per share for SiriusPoint common shareholders, along with the number of shares outstanding for the specified periods Earnings (Loss) Per Share (in millions, except per share) | Metric | Three months ended Sep 30, 2021 | Three months ended Sep 30, 2020 | Nine months ended Sep 30, 2021 | Nine months ended Sep 30, 2020 | | :------------------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net income (loss) available to SiriusPoint common shareholders | $(48.0) | $68.7 | $147.4 | $9.1 | | Basic earnings (loss) per share | $(0.30) | $0.74 | $0.94 | $0.10 | | Diluted earnings (loss) per share | $(0.34) | $0.73 | $0.92 | $0.10 | | Basic number of common shares outstanding | 159,225,772 | 92,613,393 | 145,095,270 | 92,466,813 | | Diluted number of common shares outstanding | 160,240,888 | 92,969,646 | 147,597,964 | 92,877,674 | - Basic earnings per share for the three months ended September 30, 2021, was a **loss of $0.30**, a significant decrease from **$0.74 income** in the prior year, while diluted EPS was a **loss of $0.34**[258](index=258&type=chunk) - For the nine months ended September 30, 2021, basic EPS increased to **$0.94** from **$0.10**, and diluted EPS to **$0.92** from **$0.10**, reflecting improved net income[258](index=258&type=chunk) - Options, warrants, and Upside Rights were excluded from diluted EPS computation for the three and nine months ended September 30, 2021, as the average share price was below their exercise or reference price[258](index=258&type=chunk) [22. Related party transactions](index=52&type=section&id=22.%20Related%20party%20transactions) This note outlines related party transactions, including reinsurance contracts with affiliates, common share purchases, and management and performance fees paid to related parties - Post-Sirius Group acquisition, reinsurance contracts with affiliates generated gross written premiums of **$151.3 million** for the nine months ended September 30, 2021, with **$65.3 million** in receivables from affiliates[261](index=261&type=chunk) - Third Point Opportunities Master Fund L.P. purchased **6,093,842 common shares** of the Company for **$7.9828 per share** upon the closing of the Sirius Group acquisition[262](index=262&type=chunk) Management and Performance Fees to Related Parties (in millions) | Metric | Three months ended Sep 30, 2021 | Three months ended Sep 30, 2020 | Nine months ended Sep 30, 2021 | Nine months ended Sep 30, 2020 | | :------------------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Management fees | $5.3 | $3.5 | $14.1 | $10.6 | | Performance fees (before loss carryforward) | $50.3 | $25.3 | $99.7 | $4.9 | | Total management and performance fees to related parties | $55.6 | $20.4 | $113.8 | $27.5 | - Total management and performance fees to related parties significantly increased to **$113.8 million** for the nine months ended September 30, 2021, from **$27.5 million** in the prior year, driven by higher performance fees[264](index=264&type=chunk) [23. Commitments and contingencies](index=54&type=section&id=23.%20Commitments%20and%20contingencies) This note details the Company's commitments and contingencies, including debt obligations, letter of credit facilities, liability-classified capital instruments, and loan agreements with strategic partners - The Company has commitments including debt obligations, letter of credit facilities, and liability-classified capital instruments related to the Sirius Group acquisition[275](index=275&type=chunk)[276](index=276&type=chunk)[277](index=277&type=chunk) - As of September 30, 2021, the Company had reserved for issuance common shares underlying warrants to purchase up to **3,494,979 common shares** for founding investors and advisors, expiring December 22, 2021[278](index=278&type=chunk) - The Company has loan agreements with Arcadian (**$18.0 million** committed, none drawn) and Joyn (**$11.5 million** lent, with an option for an additional **$5.0 million**), both accruing interest at **8.0% per annum**[279](index=279&type=chunk)[280](index=280&type=chunk) - Operating lease expense for the nine months ended September 30, 2021, was **$7.6 million**, with future minimum rental commitments totaling **$21.1 million**, excluding one material lease not yet commenced[283](index=283&type=chunk)[284](index=284&type=chunk) [24. Subsequent event](index=56&type=section&id=24.%20Subsequent%20event) This note describes a subsequent event, specifically the execution of a loss portfolio transfer (LPT) agreement with Pallas Reinsurance Company Ltd. and its expected financial impact - On October 29, 2021, the Company executed definitive agreements for a loss portfolio transfer (LPT) with Pallas Reinsurance Company Ltd., covering **$369 million** of loss reserves for a premium of **$388 million**[286](index=286&type=chunk) - The LPT is expected to result in an estimated **net charge of $23 million**, including **$4 million** of federal excise tax expense, in the fourth quarter of 2021[286](index=286&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=57&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's discussion and analysis of SiriusPoint's financial condition, results of operations, liquidity, and capital resources, focusing on the Sirius Group acquisition, segment performance, investment results, and critical accounting policies [Overview](index=57&type=section&id=Overview) This section provides an overview of SiriusPoint Ltd.'s global multi-line insurance and reinsurance business, its key subsidiaries, and strategic investments in managing general underwriters (MGUs) - SiriusPoint Ltd. is a Bermuda-domiciled holding company providing global multi-line insurance and reinsurance, aiming for a highly diversified portfolio and enhanced scale post-Sirius Group acquisition[297](index=297&type=chunk) - Key insurance and reinsurance subsidiaries include SiriusPoint Bermuda, SiriusPoint International, and SiriusPoint America, alongside managing general underwriting (MGU) subsidiaries like IMG and Armada[299](index=299&type=chunk)[301](index=301&type=chunk) - The Company has made strategic investments in MGAs such as Arcadian Risk Capital Ltd., Banyan Risk Ltd., and Joyn Insurance Services Inc., and provides insurance paper and capacity to these ventures[302](index=302&type=chunk)[303](index=303&type=chunk) [Products and Services](index=59&type=section&id=Products%20and%20Services) This section describes SiriusPoint's reinsurance products and primary insurance business, emphasizing its detailed selection process and underwriting standards for MGU partners - SiriusPoint offers reinsurance products (excess of loss, quota share, prospective, retroactive) and primary insurance business, primarily through MGUs in accident and health, and casualty lines[304](index=304&type=chunk)[305](index=305&type=chunk) - The Company emphasizes a detailed selection process for MGU partners and narrowly defined underwriting standards, closely monitored by staff[305](index=305&type=chunk) [Reportable Segments](index=59&type=section&id=Reportable%20Segments) This section outlines the Company's four operating segments—Accident & Health, Specialty, Property, and Runoff & Other—and their respective business lines, effective January 1, 2021 - Effective January 1, 2021, the Company's business is classified into four operating segments: Accident & Health (A&H), Specialty, Property, and Runoff & Other, following the Sirius Group acquisition[306](index=306&type=chunk) - A&H includes insurance, reinsurance, and MGU operations; Specialty covers unique risks like Aviation & Space, Marine & Energy, and Casualty; Property includes Catastrophe Excess Reinsurance and Agriculture; and Runoff & Other manages legacy liabilities and retroactive reinsurance[307](index=307&type=chunk)[308](index=308&type=chunk) [Investment Management](index=60&type=section&id=Investment%20Management) This section details the Company's investment management strategy post-Sirius Group acquisition, focusing on portfolio repositioning, outsourced fixed income, and the role of Third Point LLC - Post-Sirius Group acquisition, the investment portfolio was repositioned for **lower volatility** and improved risk-adjusted returns, with fixed income investments outsourced to third-party managers[309](index=309&type=chunk)[310](index=310&type=chunk) - Third Point LLC continues to manage the majority of alternative investment allocation and specialty asset classes, leveraging its strategic partnership[310](index=310&type=chunk) - The investment objective is to maximize total return over the long-term without jeopardizing the insurance franchise, with a focus on matching material liabilities with assets in various currencies[311](index=311&type=chunk)[312](index=312&type=chunk) [Recent Developments](index=60&type=section&id=Recent%20Developments) [Acquisition of Sirius International Insurance Group, Ltd.](index=60&type=section&id=Acquisition%20of%20Sirius%20International%20Insurance%20Group%2C%20Ltd.) This section summarizes the Sirius Group acquisition, including the total purchase price, the resulting bargain purchase gain, and associated corporate expenses - The acquisition of Sirius Group on February 26, 2021, for **$1,079.8 million**, resulted in a **$12.9 million bargain purchase gain**, reflecting Sirius Group's shares trading at a discount to book value[313](index=313&type=chunk) - The Company incurred **$49.5 million** in corporate expenses related to the acquisition, including **$29.7 million** in professional and advisory fees and **$19.8 million** in compensation-related expenses[315](index=315&type=chunk) [COVID-19 Pandemic](index=60&type=section&id=COVID-19%20Pandemic) This section discusses the ongoing impact of the COVID-19 pandemic on the (re)insurance industry and SiriusPoint's recorded COVID-19 related losses - The COVID-19 pandemic continues to significantly impact the (re)insurance industry, leading to uncertainties in losses, supply chain issues, labor shortages, and market volatility[316](index=316&type=chunk) - SiriusPoint recorded **$2.4 million** and **$8.1 million** in COVID-19 losses for the three and nine months ended September 30, 2021, respectively, primarily from earned premium recognition[319](index=319&type=chunk) [Recent Strategic Investments](index=61&type=section&id=Recent%20Strategic%20Investments) This section highlights SiriusPoint's strategic investments and partnerships in 2021, aimed at supporting innovative businesses and driving disruptive change in the (re)insurance industry - SiriusPoint made strategic investments and partnerships in 2021, including Hestia Capital (structured specialty insurance), Outdoorsy (insurtech for RV rental), Joyn (digital commercial insurance MGA), Banyan Risk (D&O MGA), Vouch Insurance (startup insurance platform), Corvus Insurance (commercial insurance products), and Parameter Climate (climate underwriting)[320](index=320&type=chunk)[321](index=321&type=chunk)[322](index=322&type=chunk)[323](index=323&type=chunk)[324](index=324&type=chunk)[325](index=325&type=chunk)[326](index=326&type=chunk) - These partnerships aim to support innovative businesses, provide underwriting capacity, and drive disruptive change in the (re)insurance industry[327](index=327&type=chunk) [Loss Portfolio Transfer](index=61&type=section&id=Loss%20Portfolio%20Transfer) This section details the Loss Portfolio Transfer (LPT) agreement with Pallas Reinsurance Company Ltd., its coverage, and expected financial impact on net loss reserves and capital allocation - On October 29, 2021, SiriusPoint finalized a Loss Portfolio Transfer (LPT) with Pallas Reinsurance Company Ltd. (Compre Group), covering **$369 million** of loss reserves for a **$388 million** premium[328](index=328&type=chunk)[329](index=329&type=chunk) - The LPT is expected to result in a **$23 million net charge** in Q4 2021 and reduced net loss reserves from Runoff business by **46%**, optimizing capital allocation and rebalancing towards higher margin lines[329](index=329&type=chunk)[330](index=330&type=chunk) [Key Performance Indicators](index=62&type=section&id=Key%20Performance%20Indicators) [Annualized Return on Average Common Shareholders' Equity Attributable to SiriusPoint Common Shareholders](index=62&type=section&id=Annualized%20Return%20on%20Average%20Common%20Shareholders%27%20Equity%20Attributable%20to%20SiriusPoint%20Common%20Shareholders) This section analyzes the annualized return on average common shareholders' equity, highlighting changes due to underwriting losses and improved net income and investment results Annualized Return on Average Common Shareholders' Equity (in millions, except ratio) | Metric | Three months ended Sep 30, 2021 | Three months ended Sep 30, 2020 | Nine months ended Sep 30, 2021 | Nine months ended Sep 30, 2020 | | :------------------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net income (loss) available to SiriusPoint common shareholders | $(48.0) | $68.7 | $147.4 | $9.1 | | Average common shareholders' equity | $2,459.1 | $1,392.5 | $2,001.0 | $1,420.9 | | Annualized return | (7.8)% | 19.7% | 9.8% | 0.9% | - The annualized return on average common shareholders' equity decreased to **(7.8)%** for the three months ended September 30, 2021, from **19.7%** in the prior year, primarily due to higher underwriting losses from catastrophe events[336](index=336&type=chunk) - For the nine months ended September 30, 2021, the return increased to **9.8%** from **0.9%**, driven by improved net income and investment results, despite higher underwriting losses and acquisition costs[337](index=337&type=chunk) [Net Underwriting Income (Loss)](index=63&type=section&id=Net%20Underwriting%20Income%20%28Loss%29) This section defines net underwriting income (loss) as a pre-tax measure of underwriting profitability, considering net premiums earned, service fee revenue, and various underwriting expenses - Net underwriting income (loss) is a pre-tax measure of underwriting profitability, considering net premiums earned, service fee revenue, and various underwriting expenses[339](index=339&type=chunk) [Combined Ratio](index=63&type=section&id=Combined%20Ratio) This section defines the combined ratio as a key indicator of underwriting profitability, calculated by dividing the sum of net loss and loss adjustment expenses, acquisition costs, and other underwriting expenses by net premiums earned - The combined ratio, a key indicator of underwriting profitability, is calculated by dividing the sum of net loss and loss adjustment expenses, acquisition costs, and other underwriting expenses by net premiums earned[340](index=340&type=chunk) [Basic and Tangible Basic Book Value Per Share](index=63&type=section&id=Basic%20and%20Tangible%20Basic%20Book%20Value%20Per%20Share) This section analyzes the basic and tangible basic book value per share, noting decreases primarily due to net loss and the dilutive impact of shares issued for the Sirius Group acquisition - Basic book value per share decreased by **1.8%** to **$15.31** as of September 30, 2021, from **$15.59** at June 30, 2021, primarily due to a net loss in the current period[342](index=342&type=chunk) - Tangible basic book value per share decreased by **15.8%** to **$14.22** as of September 30, 2021, from **$16.88** at December 31, 2020, mainly due to the dilutive impact of shares and securities issued for the Sirius Group acquisition[343](index=343&type=chunk) [Diluted and Tangible Diluted Book Value Per Share](index=64&type=section&id=Diluted%20and%20Tangible%20Diluted%20Book%20Value%20Per%20Share) This section examines the diluted and tangible diluted book value per share, attributing decreases to net loss and the dilutive impact of shares and intangible assets from the Sirius Group acquisition - Diluted book value per share decreased by **1.5%** to **$15.14** as of September 30, 2021, from **$15.37** at June 30, 2021, due to a net loss[345](index=345&type=chunk) - Tangible diluted book value per share decreased by **15.8%** to **$14.07** as of September 30, 2021, from **$16.71** at December 31, 2020, primarily due to the dilutive impact of shares and intangible assets from the Sirius Group acquisition[346](index=346&type=chunk) - The method for calculating the dilutive effect of restricted shares, RSUs, and options was changed in Q1 2021 to align with the treasury stock method for EPS[344](index=344&type=chunk) [Consolidated Results of Operations—Three and nine months ended September 30, 2021 and 2020](index=64&type=section&id=Consolidated%20Results%20of%20Operations%E2%80%94Three%20and%20nine%20months%20ended%20September%2030%2C%202021%20and%202020) [Net Underwriting Loss](index=64&type=section&id=Net%20Underwriting%20Loss) This section analyzes the increase in net underwriting loss for the three and nine months ended September 30, 2021, primarily due to catastrophe losses and accelerated expenses in the Runoff & Other Segment - Net underwriting loss increased for both the three and nine months ended September 30, 2021, primarily driven by catastrophe losses from European floods and Hurricane Ida[349](index=349&type=chunk) - The Runoff & Other Segment also contributed to the increased loss with **$7.1 million** of accelerated expenses related to interest crediting features in reinsurance contracts[349](index=349&type=chunk) [Other Revenues](index=65&type=section&id=Other%20Revenues) This section details other revenues, including changes in fair value of liability-classified capital instruments and the bargain purchase gain from the Sirius Group acquisition - Other revenues for the three months ended September 30, 2021, included **$18.8 million** from changes in fair value of liability-classified capital instruments and a **$1.9 million bargain purchase gain**[350](index=350&type=chunk) - For the nine months ended September 30, 2021, other revenues included **$34.2 million** from changes in fair value of liability-classified capital instruments and a **$12.9 million bargain purchase gain** from the Sirius Group acquisition[351](index=351&type=chunk) [Investments](index=65&type=section&id=Investments) [Investment Portfolio](index=65&type=section&id=Investment%20Portfolio) This section provides an overview of the Company's investment portfolio, including related party investment funds, debt securities, and cash, highlighting the significant increase post-Sirius Group acquisition Total Investments, Cash, and Cash Equivalents (in millions) | Metric | September 30, 2021 | December 31, 2020 | Change | | :------------------------------------------------- | :------------------- | :------------------ | :----- | | Investments in related party investment funds | $1,456.8 | $1,055.6 | $401.2 | | Debt securities | $2,100.9 | $101.3 | $1,999.6 | | Short-term investments | $1,057.9 | — | $1,057.9 | | Equity securities | $3.4 | — | $3.4 | | Other long-term investments | $454.5 | $4.0 | $450.5 | | Total investments | $5,073.5 | $1,160.9 | $3,912.6 | | Cash and cash equivalents | $701.2 | $526.0 | $175.2 | | Restricted cash and cash equivalents | $1,482.3 | $1,187.9 | $294.4 | | Total invested assets and cash | $7,257.0 | $2,874.8 | $4,382.2 | - Total invested assets and cash increased by **$4,382.2 million** to **$7,257.0 million** as of September 30, 2021, primarily driven by the acquisition of Sirius Group and the performance of the TP Enhanced Fund[353](index=353&type=chunk)[355](index=355&type=chunk) [Investment Results](index=66&type=section&id=Investment%20Results) This section presents the Company's investment results, including net realized and unrealized gains (losses) and net investment income, emphasizing strong performance from related party investment funds Investment Results (in millions) | Metric | Three months ended Sep 30, 2021 | Three months ended Sep 30, 2020 | Nine months ended Sep 30, 2021 | Nine months ended Sep 30, 2020 | | :------------------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net realized and unrealized investment gains (losses) | $(11.7) | $7.0 | $43.7 | $54.6 | | Net investment income from investments in related party fund | $202.4 | $110.6 | $401.2 | $8.3 | | Other net investment income | $9.1 | $4.4 | $18.8 | $11.2 | | Net investment income | $199.8 | $122.0 | $463.7 | $74.1 | - Net investment income increased by **$77.8 million** for the three months and **$389.6 million** for the nine months ended September 30, 2021, primarily due to strong performance from related party investment funds[357](index=357&type=chunk) [Investment Returns](index=66&type=section&id=Investment%20Returns) This section details the net investment returns across various investment categories, highlighting the strong performance of the TP Enhanced Fund and contributions from private equity and hedge fund investments Net Investment Returns | Investment | Three months ended Sep 30, 2021 | Three months ended Sep 30, 2020 | Nine months ended Sep 30, 2021 | Nine months ended Sep 30, 2020 | | :------------------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | TP Enhanced Fund | 16.3% | 14.6% | 38.3% | 1.0% | | Collateral and other investments managed by Third Point LLC | (0.1)% | 0.6% | 0.2% | 3.8% | | Fixed income investments acquired as part of Sirius acquisition | (0.1)% | —% | 0.5% | —% | | Equity securities and other long-term investments acquired as part of Sirius acquisition | 1.2% | —% | 14.4% | —% | - The TP Enhanced Fund generated a **16.3% return** for the three months and a **38.3% return** for the nine months ended September 30, 2021, driven by strong performance in long event/fundamental and activist equities[358](index=358&type=chunk)[360](index=360&type=chunk)[362](index=362&type=chunk) - Unrealized gains of **$35.4 million** from Pie Insurance and **$18.1 million** from other private equity and hedge fund investments significantly contributed to investment income for the nine-month period[362](index=362&type=chunk) [Net Corporate and Other Expenses](index=67&type=section&id=Net%20Corporate%20and%20Other%20Expenses) This section analyzes the increase in net corporate and other expenses, primarily due to compensation-related expenses and professional fees associated with the Sirius Group acquisition, partially offset by a gain from asset sale - Net corporate and other expenses increased for both the three and nine months ended September 30, 2021, primarily due to compensation-related expenses and professional/advisory fees associated with the Sirius Group acquisition[366](index=366&type=chunk)[367](index=367&type=chunk) - The Company recorded **$49.5 million** in corporate expenses for the Sirius Group acquisition during the nine-month period, and **$15.3 million** in current expected credit losses[368](index=368&type=chunk)[369](index=369&type=chunk) - A **$5.8 million gain** from the sale of Cedar Insurance Company partially offset these expenses for the three and nine months ended September 30, 2021[370](index=370&type=chunk) [Amortization of Intangible Assets](index=68&type=section&id=Amortization%20of%20Intangible%20Assets) This section details the amortization expense for intangible assets, directly resulting from those recognized in the Sirius Group acquisition - Amortization of intangible assets for the three and nine months ended September 30, 2021, was **$2.0 million** and **$4.1 million**, respectively, directly resulting from intangible assets recognized in the Sirius Group acquisition[371](index=371&type=chunk) [Interest Expense](index=68&type=section&id=Interest%20Expense) This section analyzes the increase in interest expense, primarily due to the assumption of Sirius Group's senior and subordinated notes post-acquisition - Interest expense increased to **$9.7 million** for the three months and **$24.4 million** for the nine months ended September 30, 2021, from **$2.1 million** and **$6.2 million** respectively in the prior year[200](index=200&type=chunk) - This increase was due to the assumption of Sirius Group's senior notes and SEK subordinated notes post-acquisition[373](index=373&type=chunk) [Foreign Currency Translation](index=68&type=section&id=Foreign%20Currency%20Translation) This section discusses foreign exchange gains and losses, primarily from international operations and SEK subordinated notes, and the impact of currency revaluation - Foreign exchange gains of **$16.1 million** and **$16.5 million** were recorded for the three and nine months ended September 30, 2021, respectively, primarily from international operations and SEK subordinated notes[375](index=375&type=chunk) - In the prior year, foreign exchange losses for the three months ended September 30, 2020, were due to the revaluation of British pound-denominated loss reserves against a weakening U.S. dollar[376](index=376&type=chunk) [Income Tax (Expense) Benefit](index=68&type=section&id=Income%20Tax%20%28Expense%29%20Benefit) This section analyzes the income tax expense (benefit), reflecting the proportional operating losses or income in taxable jurisdictions post-Sirius Group acquisition - The Company recorded an income tax benefit of **$13.0 million** for the three months ended September 30, 2021, reflecting proportionally more operating losses in taxable jurisdictions[378](index=378&type=chunk) - For the nine months ended September 30, 2021, income tax expense increased, reflecting proportionally more operating income in taxable jurisdictions post-Sirius Group acquisition[379](index=379&type=chunk) [Segment Results — Three and nine months ended September 30, 2021 and 2020](index=68&type=section&id=Segment%20Results%20%E2%80%94%20Three%20and%20nine%20months%20ended%20September%2030%2C%202021%20and%202020) [A&H](index=74&type=section&id=A%26H) This section details the A&H segment's gross premiums written, net underwriting income, and combined ratio, highlighting growth from legacy Sirius Group companies and favorable loss ratio trends - A&H gross premiums written increased by **$117.9 million** for the three months and **$340.7 million** for the nine months ended September 30, 2021, primarily due to new premiums from legacy Sirius Group companies[410](index=410&type=chunk)[413](index=413&type=chunk) - The segment generated net underwriting income of **$15.2 million** (**combined ratio 86.4%**) for the t

SiriusPoint Ltd. (NYSE:SPNT) Q2 2021 Earnings Conference Call August 6, 2021 8:30 AM ET Company Participants Clare Kerrigan - Corporate Communications and Investor Relations Sid Sankaran - Chief Executive Officer and Chairman David Junius - Chief Financial Officer Conference Call Participants Operator Good morning, ladies and gentlemen, and welcome to the SiriusPoint Limited Second Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would n ...

Top 20 Global (re)insurer per S&P Global's 2020 Global Reinsurance Highlights; A TOP 20 STRONGLY CAPITALIZED AND WELL POSITIONED GLOBAL (RE)INSURER SIRIUS LPOINT August 2021 siriuspt.com DISCLAIMER Forward- Looking Statements We make statements in this presentation that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company cautions you that the forward-looking information presented in this press release is not a guarantee of future events, a ...

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________ FORM 10-Q ☒ For the quarterly period ended June 30, 2021 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-36052 SIRIUSPOINT LTD. (Exact name of registrant as specified in its charter) Bermuda 98-1599372 (State or other j ...

Financial Data and Key Metrics Changes - SiriusPoint reported a net income of $131 million for Q1 2021, which includes a $9 million bargain purchase gain, translating to $1.05 per diluted share [50] - The annualized return on average equity was 26.4%, driven by strong investment returns, particularly a 14.6% return from the TP enhanced fund [50][44] - The tangible diluted book value per share decreased by 16% from year-end to $13.97 due to share issuances related to the acquisition of Sirius Group [50] Business Line Data and Key Metrics Changes - The Accident and Health (A&H) segment accounted for 37% of gross premiums written (GPW) in Q1, producing an underwriting profit of $5.3 million and a combined ratio of 84.9 [56] - The Specialty segment represented 46% of GPW, with underwriting income largely breakeven and a combined ratio of 100.2, reflecting the early-stage nature of the business [56] - The Property segment made up 17% of GPW, generating an underwriting profit of $5.4 million and a combined ratio of 93.3, benefiting from the timing of losses [56] Market Data and Key Metrics Changes - Market conditions are stabilizing globally, driven by underwriting discipline and positive rate improvements, with some lines experiencing double-digit rate increases [52][53] - Property catastrophe reinsurance continues to see risk-adjusted rate increases, although at a declining pace, with a focus on growth in non-catastrophe lines [54] Company Strategy and Development Direction - The company aims to improve profitability through best-in-class capital allocation, managing risk, and growing higher-margin differentiated businesses [24] - Three strategic pillars have been identified: stabilizing the core insurance business, revitalizing and growing core books, and modernizing operations through technology [24][32] - The company is focused on leveraging technology and building alternative business models to adapt to changing risks and optimize its global platform [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of their strategy, expecting gradual improvement in the combined ratio as higher-margin businesses grow [45] - The company is committed to establishing a balanced and diversified business through prudent underwriting and investment risk management [66] - Management acknowledged the challenges ahead but emphasized the potential for sustained long-term value creation for shareholders [66] Other Important Information - The company ended Q1 2021 with shareholders' equity of $2.6 billion and a debt-to-capital ratio of 24%, maintaining strong capital levels and liquidity [64] - Total corporate and other expenses were $68 million, largely driven by transaction-related costs and severance [59] Q&A Session Summary - No specific questions or answers were provided in the transcript, indicating the end of the Q&A session [69]

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The acquisition of Sirius Group significantly increased total assets to $10.2 billion and drove a return to profitability Condensed Consolidated Balance Sheet Highlights | Account | March 31, 2021 (in millions) | December 31, 2020 (in millions) | | :--- | :--- | :--- | | Total Investments | $4,628.1 | $1,160.9 | | Total Assets | $10,169.7 | $3,535.2 | | Total Liabilities | $7,560.4 | $1,969.9 | | Total Shareholders' Equity | $2,609.3 | $1,565.3 | Condensed Consolidated Statement of Income Highlights (Three Months Ended) | Account | March 31, 2021 (in millions) | March 31, 2020 (in millions) | | :--- | :--- | :--- | | Total Revenues | $451.1 | $(38.7) | | Net Investment Income (Loss) | $186.5 | $(185.0) | | Total Expenses | $308.9 | $144.5 | | Net Income (Loss) | $132.4 | $(183.6) | | Diluted EPS | $1.05 | $(1.99) | - On February 26, 2021, the company completed the acquisition of Sirius International Insurance Group, Ltd ("Sirius Group") and changed its name from Third Point Reinsurance Ltd to SiriusPoint Ltd[20](index=20&type=chunk) - Effective January 1, 2021, the company changed its reportable segments to **Accident & Health (A&H), Specialty, Property, and Runoff & Other** to reflect expanded operations post-acquisition[24](index=24&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the $1.08 billion Sirius acquisition, new accounting policies, and significant balance sheet impacts - Effective January 1, 2021, the Company changed its accounting policy for assumed written premium recognition to recognize premiums ratably over the term of the policy, consistent with the ceding company[27](index=27&type=chunk)[28](index=28&type=chunk)[32](index=32&type=chunk) Sirius Group Acquisition Purchase Price (February 26, 2021) | Component | Value (in millions) | | :--- | :--- | | Cash consideration | $100.4 | | Common Shares issued | $595.6 | | Series A Preference Shares (fair value) | $40.8 | | Series B Preference Shares (fair value) | $200.0 | | Warrants issued (fair value) | $60.7 | | Upside Rights & CVRs (fair value) | $33.5 | | Other | $46.2 | | **Total purchase price** | **$1,077.2** | - The acquisition resulted in a **bargain purchase gain of $8.6 million**, representing the excess of the fair value of net assets acquired over the purchase price[66](index=66&type=chunk)[67](index=67&type=chunk) - As a result of the acquisition, the company recognized **$175.0 million in identifiable intangible assets**, including distribution relationships, MGA relationships, and Lloyd's Capacity[67](index=67&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=52&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The discussion focuses on the transformative Sirius acquisition, improved underwriting, and strong investment performance - The acquisition of Sirius Group was completed on February 26, 2021, and its results are included from that date forward, making direct comparisons to prior periods less indicative of ongoing performance[261](index=261&type=chunk)[262](index=262&type=chunk) Key Performance Indicators (Q1 2021 vs Q1 2020) | Indicator | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Annualized return on avg. common equity | 26.4% | (55.5)% | | Net underwriting income | $8.7M | $2.0M | | Combined ratio | 96.6% | 98.6% | | Basic book value per share | $15.19 | $16.88 (at 12/31/20) | | Tangible basic book value per share | $14.10 | $16.88 (at 12/31/20) | - The company incurred **$40.4 million in corporate expenses related to the Sirius Group acquisition** in Q1 2021, consisting of professional fees and compensation-related expenses[282](index=282&type=chunk)[312](index=312&type=chunk) - The company's investment strategy has been repositioned post-acquisition, with the fixed income portfolio now outsourced to a diversified range of third-party managers to reduce volatility[276](index=276&type=chunk)[277](index=277&type=chunk) [Segment Results](index=60&type=section&id=MD&A%20-%20Segment%20Results) The company reported total net underwriting income of $8.7 million, driven by the newly acquired A&H and Property segments Net Underwriting Income (Loss) by Segment (Q1 2021) | Segment | Net Underwriting Income (Loss) (in millions) | Combined Ratio | | :--- | :--- | :--- | | A&H | $5.3 | 84.9% | | Specialty | $(0.3) | 100.2% | | Property | $5.4 | 93.3% | | Runoff & Other | $(1.7) | NM | | **Total** | **$8.7** | **96.6%** | - **Gross premiums written increased by $240.9 million (191.6%)** year-over-year, primarily due to new premiums from the legacy Sirius Group companies[327](index=327&type=chunk) - Catastrophe losses for Q1 2021 were **$5.7 million, net of reinsurance**, related to winter storm Uri, adding 2.2 percentage points to the combined ratio[331](index=331&type=chunk) [Liquidity and Capital Resources](index=67&type=section&id=MD&A%20-%20Liquidity%20and%20Capital%20Resources) The company maintains adequate liquidity post-acquisition, supported by a new credit facility and access to investment funds - The company entered into a new **three-year, $300.0 million senior unsecured revolving credit facility**, which was undrawn as of March 31, 2021[371](index=371&type=chunk) - Sirius International, a Swedish subsidiary, maintains a **'Safety Reserve' of $1.1 billion**, with access restricted to covering insurance losses or solvency breaches[365](index=365&type=chunk)[366](index=366&type=chunk) Cash Flow Summary (Three Months Ended) | Activity | 2021 (in millions) | 2020 (in millions) | | :--- | :--- | :--- | | Net cash used in operating activities | $(48.8) | $(3.2) | | Net cash provided by (used in) investing activities | $624.0 | $(226.8) | | Net cash provided by (used in) financing activities | $54.6 | $(3.1) | [Quantitative and Qualitative Disclosures About Market Risk](index=76&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is principally exposed to interest rate, equity price, and foreign currency exchange risks - The company's principal market risks are identified as **interest rate risk, equity securities and other investments price risk, and foreign currency exchange risk**[419](index=419&type=chunk)[420](index=420&type=chunk) Interest Rate Risk Sensitivity on Debt Securities (as of March 31, 2021) | Assumed Change in Interest Rate | Estimated Pre-tax Change in Fair Value (in millions) | | :--- | :--- | | 100 bp decrease | $33.8 | | 100 bp increase | $(45.9) | | 200 bp increase | $(92.3) | - A hypothetical 10% increase or decrease in the value of investments in related party funds would change their carrying value by approximately **$120.9 million, pre-tax**[424](index=424&type=chunk) [Controls and Procedures](index=79&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, while noting the ongoing integration of Sirius Group's controls - Management concluded that **disclosure controls and procedures were effective** as of March 31, 2021[427](index=427&type=chunk) - The acquisition of Sirius Group is a material change to internal control over financial reporting, and the company has excluded the acquired entity from its current assessment while integration is in process[428](index=428&type=chunk)[429](index=429&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=79&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings - There are **currently no material legal proceedings** to which the company or its subsidiaries are a party[433](index=433&type=chunk) [Risk Factors](index=79&type=section&id=Item%201A.%20Risk%20Factors) Key risks include integration challenges, COVID-19 impacts, investment concentration, and heightened regulatory scrutiny - A primary risk is the **potential failure to successfully integrate Sirius Group**, which could prevent the realization of anticipated synergies[437](index=437&type=chunk) - The **COVID-19 pandemic continues to pose significant risks**, including increased claims, investment volatility, and potential adverse legislative actions[439](index=439&type=chunk)[441](index=441&type=chunk) - The company has **concentrated exposure in the TP Enhanced Fund**, which employs an investment strategy with potentially substantial risks greater than traditional fixed-income strategies[520](index=520&type=chunk) - A **downgrade in the company's 'A-' financial strength ratings** could severely limit its ability to write new business and may trigger cancellation clauses in existing contracts[479](index=479&type=chunk)[481](index=481&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=112&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any common shares during the quarter, with $61.3 million remaining under its program Share Repurchase Activity (Q1 2021) | Period | Total Shares Purchased | Average Price Paid | Maximum Value Remaining for Purchase | | :--- | :--- | :--- | :--- | | Jan 2021 | 0 | $0.00 | $61,295,462 | | Feb 2021 | 0 | $0.00 | $61,295,462 | | Mar 2021 | 0 | $0.00 | $61,295,462 | [Other Information](index=112&type=section&id=Item%205.%20Other%20Information) The company appointed Anthony L. LeHan as its new Principal Accounting Officer effective May 6, 2021 - Effective May 6, 2021, **Anthony L. LeHan was appointed as Principal Accounting Officer**[619](index=619&type=chunk)[620](index=620&type=chunk) [Exhibits](index=113&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including acquisition agreements and certifications

Financial Data and Key Metrics Changes - For Q4 2020, the company generated net income of $134 million, resulting in a full-year net income of $144 million, with a return on equity of 10.1% [8][17] - The diluted book value per share at the end of Q4 was $16.42, reflecting a 9.2% increase since year-end 2019 [8] - The combined ratio for Q4 was 123%, compared to 104.8% in the prior-year Q4, influenced by prior-year reserve development and COVID-19 impacts [9][18] Business Line Data and Key Metrics Changes - Gross premiums written for Q4 were $166 million, up from $134 million in the same period last year, primarily due to $46 million of new premium written, including $19 million from Arcadian [19] - For the full year, gross premiums written totaled $588 million, a decrease of 7% from $632 million in 2019, attributed to non-renewal of certain contracts due to a shift in underwriting strategy [19] Market Data and Key Metrics Changes - The company observed improvements in property catastrophe market pricing and expected margins during the January 1, 2021 renewals, with continued rate strengthening expected throughout 2021 [12] - The non-catastrophe business, which represents the majority of reinsurance premium, is showing underwriting improvement due to hardening market conditions [13] Company Strategy and Development Direction - The company is focused on three strategic pillars: stabilizing the current reinsurance portfolio, revitalizing and growing higher margin business lines, and modernizing through technology [28][30][31] - The merger with Sirius Group aims to create a differentiated company with a strong underwriting team and a focus on innovative and entrepreneurial approaches [26][28] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing uncertainty in the property insurance and reinsurance markets due to COVID-19 and its potential impact on business interruption insurance [12] - The company aims to improve profitability and reduce volatility in its portfolio while leveraging client relationships and expanding product offerings [35][36] Other Important Information - The company reported net investment income of $205 million for Q4, significantly higher than $62 million in Q4 2019, driven by investments in the Third Point Enhanced Fund [20] - Total general and administrative expenses for Q4 were $17 million, up from $13 million in the prior-year period, primarily due to higher stock compensation and merger-related expenses [23] Q&A Session Summary - The Q&A session concluded without specific questions being documented, indicating a focus on the presentation and strategic insights shared by management [37]