Siriuspoint Ltd (NYSE:SPNT) Q1 2022 Earnings Conference Call May 5, 2022 8:30 AM ET Company Participants Clare Kerrigan - Head, Investor Relations Sid Sankaran - Chairman & Chief Executive Officer David Junius - Chief Financial Officer Conference Call Participants Operator Good morning, ladies and gentlemen, and welcome to the SiriusPoint Limited First Quarter 2022 Earnings Conference Call. During the presentation, all participants will be in a listen-only mode. As a reminder this conference is being record ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section details the company's financial statements, management's analysis, market risk disclosures, and internal control effectiveness [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company reported a significant net loss in Q1 2022, primarily due to investment losses, despite slight asset growth [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and shareholders' equity Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2022 (in millions) | December 31, 2021 (in millions) | | :--- | :--- | :--- | | **Total investments** | $4,731.3 | $4,529.9 | | **Cash and cash equivalents** | $826.1 | $999.8 | | **Total assets** | $10,916.3 | $10,618.3 | | **Loss and loss adjustment expense reserves** | $4,936.0 | $4,841.4 | | **Total liabilities** | $8,628.8 | $8,115.0 | | **Total shareholders' equity** | $2,287.5 | $2,503.3 | - Total shareholders' equity decreased from **$2.50 billion** at the end of 2021 to **$2.29 billion** as of March 31, 2022, primarily due to a net loss during the quarter[10](index=10&type=chunk) [Consolidated Statements of Income (Loss)](index=4&type=section&id=Consolidated%20Statements%20of%20Income%20%28Loss%29) This section outlines the company's revenues, expenses, and resulting net income or loss over the reporting period Consolidated Income Statement Summary (in millions, except per share data) | Metric | Q1 2022 (in millions) | Q1 2021 (in millions) | | :--- | :--- | :--- | | Net premiums earned | $529.3 | $245.2 | | Total realized and unrealized investment gains (losses) | $(205.1) | $186.5 | | **Total revenues** | $361.4 | $488.6 | | Loss and loss adjustment expenses incurred, net | $340.1 | $146.9 | | **Total expenses** | $565.0 | $308.9 | | **Net income (loss)** | $(213.3) | $169.9 | | **Diluted EPS available to common shareholders** | $(1.36) | $1.35 | - The company experienced a significant swing from a net income of **$169.9 million** in Q1 2021 to a net loss of **$213.3 million** in Q1 2022, largely due to investment performance. Net premiums earned more than doubled year-over-year, reflecting the full-quarter impact of the Sirius Group acquisition[13](index=13&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section details the company's cash inflows and outflows from operating, investing, and financing activities Consolidated Cash Flow Summary (in millions) | Activity | Q1 2022 (in millions) | Q1 2021 (in millions) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $0.1 | $(48.8) | | Net cash provided by (used in) investing activities | $(128.4) | $624.0 | | Net cash provided by (used in) financing activities | $(21.2) | $54.6 | | **Net increase (decrease) in cash** | $(149.5) | $629.8 | - Cash from investing activities was a net use of **$128.4 million** in Q1 2022, driven by investment purchases, compared to a net provision of **$624.0 million** in Q1 2021, which included cash acquired from the Sirius Group acquisition[21](index=21&type=chunk) [Notes to the Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed explanations of significant accounting policies, acquisitions, segment reporting, and other financial disclosures - On February 26, 2021, the company completed its acquisition of Sirius International Insurance Group, Ltd. ("Sirius Group") and changed its name from Third Point Reinsurance Ltd. to SiriusPoint Ltd. The results of Sirius Group are included from the acquisition date forward[24](index=24&type=chunk) - In Q4 2021, the company re-segmented its business into two operating segments: Reinsurance and Insurance & Services. Prior period figures have been revised to conform to this new presentation[27](index=27&type=chunk) - The company recorded **$5.5 million** of net favorable prior year loss reserve development in Q1 2022, driven by a **$23.5 million** reduction in COVID-19 reserves, partially offset by strengthening in property lines due to inflation[170](index=170&type=chunk) - During Q1 2022, the company repurchased **645,047** of its common shares for **$4.7 million**. As of March 31, 2022, **$56.6 million** remained authorized for repurchases of common shares, CVRs, and warrants[193](index=193&type=chunk)[194](index=194&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the Q1 2022 net loss, attributing it to investment performance and outlining strategic shifts in portfolio management - The company is repositioning its investment portfolio to better align with its underwriting strategy, aiming for lower volatility and improved risk-adjusted returns. The majority of fixed income investments are now outsourced to third-party managers, while Third Point LLC continues to manage most alternative investments[238](index=238&type=chunk)[239](index=239&type=chunk) - The Russia/Ukraine conflict resulted in an estimated underwriting loss of **$18.6 million** for the company in Q1 2022. The ultimate impact remains uncertain[241](index=241&type=chunk)[243](index=243&type=chunk) Key Performance Indicators | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Combined ratio | 93.7% | 96.5% | | Core income (Non-GAAP) | $26.7 million | $57.9 million | | Annualized return on avg. common equity | (39.5)% | 33.9% | | Basic book value per share (Non-GAAP) | $13.05 | $14.46 (at 12/31/21) | - The significant decrease in Core income to **$26.7 million** from **$57.9 million** in the prior year was primarily driven by investment losses from Strategic Investments within the Insurance & Services segment[245](index=245&type=chunk)[291](index=291&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to market risks, including interest rate, equity price, and foreign currency fluctuations Interest Rate Risk Sensitivity on Debt Securities (as of March 31, 2022) | Change in Interest Rate | Estimated Pre-tax Change in Fair Value (in millions) | | :--- | :--- | | +100 bp | $(69.0) | | -100 bp | $67.7 | - A hypothetical **10%** adverse change in the value of equity securities and other long-term investments would decrease their carrying value by approximately **$44.1 million** before tax[361](index=361&type=chunk) - A hypothetical **10%** adverse change in the value of investments in related party funds would decrease their carrying value by approximately **$67.9 million** before tax[362](index=362&type=chunk) [Controls and Procedures](index=63&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period, March 31, 2022[365](index=365&type=chunk) - No changes occurred in the company's internal control over financial reporting during the first quarter of 2022 that have materially affected, or are reasonably likely to materially affect, these controls[366](index=366&type=chunk) [PART II. OTHER INFORMATION](index=63&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides information on legal proceedings, risk factors, equity sales, and required exhibits [Legal Proceedings](index=63&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal and regulatory actions, none of which are expected to materially impact its financial condition - The company is not currently involved in any formal or informal dispute resolution procedures that it considers to be material[218](index=218&type=chunk)[368](index=368&type=chunk) [Risk Factors](index=63&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the previously disclosed risk factors were reported for the current quarter - No material changes to the risk factors disclosed in the 2021 Form 10-K were reported for the quarter ended March 31, 2022[369](index=369&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased common shares during Q1 2022, with a remaining authorization for further repurchases Share Repurchases in Q1 2022 | Period | Total Shares Purchased | Average Price Paid ($) | Total Cost (approx.) (in millions) | | :--- | :--- | :--- | :--- | | Jan 2022 | — | $— | $— | | Feb 2022 | — | $— | $— | | Mar 2022 | 645,047 | $7.26 | $4.7 million | | **Total Q1** | **645,047** | **$7.26** | **$4.7 million** | - As of March 31, 2022, the maximum amount that may yet be purchased under the company's repurchase plans is **$56.6 million**, which can be used for common shares, CVRs, and warrants[370](index=370&type=chunk)[372](index=372&type=chunk) [Exhibits](index=65&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including agreements and required certifications

Part I [Business](index=5&type=section&id=Item%201.%20Business) SiriusPoint, a global insurer and reinsurer formed in 2021, focuses on re-underwriting reinsurance, growing insurance services, and de-risking investments - 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[17](index=17&type=chunk) Company Financial Snapshot (as of Dec 31, 2021) | Metric | Value (USD) | | :--- | :--- | | Common Shareholders' Equity | $2.3 billion | | Total Capital | $3.3 billion | | Total Assets | $10.6 billion | - The company's strategy is based on three pillars: focus and stabilize, revitalize and grow, and modernize and break out, supported by re-underwriting the reinsurance portfolio, growing the insurance & services business, and de-risking the capital investments portfolio[23](index=23&type=chunk) Gross Premiums Written by Segment (2019-2021) | Segment | 2021 ($ million) | 2020 ($ million) | 2019 ($ million) | | :--- | :--- | :--- | :--- | | Reinsurance | 1,350.4 | 534.1 | 575.3 | | Insurance & Services | 897.9 | 25.5 | 5.5 | | Corporate (Runoff) | (11.8) | 28.9 | 87.6 | | **Total** | **2,236.5** | **588.5** | **668.4** | - On October 29, 2021, the company closed a loss portfolio transfer (LPT) transaction with Pallas Reinsurance Company Ltd. to cover **$362 million** of loss reserves, primarily from the legacy Sirius Group runoff portfolio, for a premium of **$381 million**, reducing net loss reserves from Runoff business by **48%**[35](index=35&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk) [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) The company faces diverse risks including strategic transformation, COVID-19, integration challenges, underwriting, market, cyber, climate, regulatory, and investment exposures - The company's business is subject to a number of key risks, categorized as: Strategic, COVID-19 & Catastrophe, Integration, Insurance Underwriting, Market/Credit/Liquidity, Competition, Cyber, Climate Change, Operational, Regulatory/Litigation, Investment, and Taxation risks[218](index=218&type=chunk) - The company may not successfully implement its strategic transformation, which involves shifting from reinsurance to insurance and services, posing risks such as lower near-term premium growth, inability to secure MGA partnerships, and increased operating expenses[219](index=219&type=chunk)[220](index=220&type=chunk) - The COVID-19 pandemic has adversely affected business through lower premium volumes in certain lines, increased risk of loss (contingency, travel, A&H, workers' comp), and volatility in the investment portfolio, with the ultimate impact remaining uncertain[221](index=221&type=chunk)[222](index=222&type=chunk)[223](index=223&type=chunk) - A significant portion of the investment portfolio is managed by Third Point LLC, exposing the company to potentially substantial investment risks associated with its event-driven, value-oriented strategy, which may include concentrated positions, leverage, and derivatives[327](index=327&type=chunk)[328](index=328&type=chunk)[329](index=329&type=chunk) - The company has significant deferred tax assets that could be devalued if future taxable income is insufficient or if corporate tax rates are reduced, and operations are also exposed to potential U.S. federal income tax, the Base Erosion and Anti-Abuse Minimum Tax (BEAT), and risks of being classified as a PFIC or CFC[377](index=377&type=chunk)[379](index=379&type=chunk)[381](index=381&type=chunk) [Unresolved Staff Comments](index=106&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[428](index=428&type=chunk) [Properties](index=106&type=section&id=Item%202.%20Properties) The company leases its principal office in Bermuda and other global locations, deeming current space adequate for operations - The Company leases its principal executive office in Pembroke, Bermuda, and has additional leased office spaces in the United States, Canada, Europe, and Asia[429](index=429&type=chunk) [Legal Proceedings](index=108&type=section&id=Item%203.%20Legal%20Proceedings) The company faces routine lawsuits and regulatory actions, with management assessing no material adverse financial impact from current proceedings - The Company is subject to lawsuits and regulatory actions in the normal course of business, which are considered in its loss and loss expense reserves, and management believes no individual proceeding is likely to have a material adverse effect on the company[431](index=431&type=chunk) [Mine Safety Disclosures](index=108&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[432](index=432&type=chunk) Part II [Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities](index=108&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) SiriusPoint common shares trade on NYSE, with no expected dividends, and a **$61.3 million** share repurchase authorization remaining available - The company's common shares are listed on the New York Stock Exchange (NYSE) under the symbol "SPNT"[434](index=434&type=chunk) - The company does not currently expect to declare or pay dividends on its common shares, intending to retain earnings to finance business growth[435](index=435&type=chunk) - As of December 31, 2021, the company had a repurchase authorization of up to **$61.3 million** for its outstanding common shares, CVRs, and warrants, with the full amount remaining available[440](index=440&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=109&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) 2021 results reflect the Sirius Group acquisition, with **net income of $55.8 million** impacted by **$329.0 million** in catastrophe losses and a **110.0% core combined ratio** - The acquisition of Sirius Group was completed on February 26, 2021, for a total consideration of **$1,079.8 million**, resulting in a bargain purchase gain of **$50.4 million**, with the company's 2021 results including Sirius Group from this date forward[454](index=454&type=chunk) - Catastrophe losses for 2021 were **$329.0 million**, net of reinsurance, primarily from European floods (**$133 million**) and Hurricane Ida (**$100 million**), contributing **18.8 percentage points** to the core combined ratio[458](index=458&type=chunk) Consolidated Results of Operations (2021 vs 2020) | Metric | 2021 ($ million) | 2020 ($ million) | | :--- | :--- | :--- | | Total underwriting loss | (156.1) | (71.7) | | Total investment gains and income | 312.5 | 278.9 | | Other revenues | 151.2 | — | | **Net income** | **55.8** | **143.8** | Key Performance Indicators (2021 vs 2020) | Indicator | 2021 | 2020 | | :--- | :--- | :--- | | Core underwriting loss | ($173.6 million) | ($68.7 million) | | Core combined ratio | 110.0% | 111.9% | | Return on avg. common equity | 2.3% | 9.6% | | Basic book value per share | $14.46 | $16.88 | | Tangible diluted book value per share | $13.27 | $16.71 | [Quantitative and Qualitative Disclosures About Market Risk](index=147&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate, equity price, and foreign currency risks, with a **100 bp rate increase** impacting fixed income by **$45.2 million** and a **10% equity decline** impacting equity by **$45.9 million** and related party funds by **$91.0 million** - The company's primary market risks are interest rate risk, equity securities and other investments price risk, and foreign currency exchange risk[663](index=663&type=chunk) Interest Rate Sensitivity on Debt Securities (as of Dec 31, 2021) | Assumed Change in Interest Rate | Estimated Pre-tax Change in Fair Value ($ million) | | :--- | :--- | | 100 bp decrease | $44.0 | | 100 bp increase | ($45.2) | | 300 bp decrease | $129.4 | | 300 bp increase | ($138.3) | - A hypothetical **10% increase or decrease** in the value of equity securities and other long-term investments would change their carrying value by approximately **$45.9 million**, and a similar **10% change** in related party investment funds would impact their value by approximately **$91.0 million**[667](index=667&type=chunk)[668](index=668&type=chunk) [Financial Statements and Supplementary Data](index=149&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This item directs readers to the consolidated financial statements and supplementary data starting on page F-1 - This item directs the reader to the consolidated financial statements and supplementary data commencing on page F-1 of the report[671](index=671&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=149&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) This item is not applicable to the company - Not applicable[672](index=672&type=chunk) [Controls and Procedures](index=149&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management deemed disclosure controls effective as of December 31, 2021, despite material changes from the Sirius Group acquisition, which excluded **59% of assets** and **58% of revenues** from the internal control assessment - Management concluded that the Company's disclosure controls and procedures were effective as of December 31, 2021[673](index=673&type=chunk) - The acquisition of Sirius Group led to material changes in internal control over financial reporting, and management's assessment of internal controls as of December 31, 2021, excluded certain non-integrated controls of Sirius Group[674](index=674&type=chunk)[676](index=676&type=chunk) - Management concluded that, as of December 31, 2021, the company's internal control over financial reporting was effective based on the COSO 2013 framework[677](index=677&type=chunk) [Other Information](index=151&type=section&id=Item%209B.%20Other%20Information) On February 23, 2022, the company amended agreements with Third Point LLC, establishing new capital withdrawal rights from TPE for reinvestment into a new TPOC portfolio - On February 23, 2022, the company entered into a Fourth Amended and Restated Exempted Limited Partnership Agreement (2022 LPA) for the Third Point Enhanced LP (TPE)[680](index=680&type=chunk) - The 2022 LPA adds the right to withdraw capital from TPE according to an agreed schedule for reinvestment into a new TP Optimized Credit (TPOC) portfolio or other Third Point strategies[685](index=685&type=chunk) - An Amended and Restated Investment Management Agreement (2022 IMA) was also entered into, under which Third Point LLC will manage the new TPOC Portfolio and provide non-discretionary advisory services[681](index=681&type=chunk)[682](index=682&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=154&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[701](index=701&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Executive Compensation, Security Ownership, Certain Relationships, and Principal Accounting Fees](index=156&type=section&id=Items%2010%2C%2011%2C%2012%2C%2013%20and%2014) Information for these items is incorporated by reference from the company's definitive proxy statement, to be filed within 120 days of fiscal year-end - Information for Items 10 through 14 is incorporated by reference from the registrant's definitive proxy statement to be filed with the SEC within 120 days after the fiscal year ended December 31, 2021[704](index=704&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=157&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section presents the company's audited consolidated financial statements, including balance sheets, income statements, cash flows, and detailed notes for 2021 and comparative periods [Report of Independent Registered Public Accounting Firm](index=166&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) PricewaterhouseCoopers LLP issued an unqualified opinion on financial statements and internal controls, excluding certain non-integrated Sirius Group elements - PricewaterhouseCoopers LLP issued an unqualified opinion on the consolidated financial statements as of December 31, 2021, and on the effectiveness of internal control over financial reporting[725](index=725&type=chunk) - The audit of internal controls excluded certain non-integrated elements of the newly acquired Sirius Group, which represented approximately **59% of consolidated assets** and **58% of consolidated revenues**[731](index=731&type=chunk) - Critical Audit Matters identified were the valuation of Value of Business Acquired (VOBA) and Distribution Relationships intangible assets from the Sirius Group acquisition, and the valuation of Loss and Loss Adjustment Expense Reserves, due to significant management judgment and complexity[734](index=734&type=chunk)[735](index=735&type=chunk)[740](index=740&type=chunk) [Consolidated Financial Statements](index=174&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated balance sheets, income statements, comprehensive income, equity, and cash flows Consolidated Balance Sheet Highlights (as of Dec 31) | Account | 2021 ($ million) | 2020 ($ million) | | :--- | :--- | :--- | | Total Investments | 4,529.9 | 1,160.9 | | Total Assets | 10,618.3 | 3,535.2 | | Loss and loss adjustment expense reserves | 4,841.4 | 1,310.1 | | Total Liabilities | 8,115.0 | 1,969.9 | | Total Shareholders' Equity | 2,503.3 | 1,565.3 | Consolidated Income Statement Highlights (Year Ended Dec 31) | Account | 2021 ($ million) | 2020 ($ million) | 2019 ($ million) | | :--- | :--- | :--- | :--- | | Net premiums earned | 1,717.0 | 610.8 | 700.1 | | Total revenues | 2,180.7 | 889.7 | 982.6 | | Loss and loss adjustment expenses incurred, net | 1,326.5 | 465.3 | 403.5 | | Total expenses | 2,135.6 | 737.8 | 781.3 | | **Net income** | **55.8** | **143.8** | **200.6** | | **Diluted EPS** | **$0.27** | **$1.53** | **$2.16** | Consolidated Cash Flow Highlights (Year Ended Dec 31) | Cash Flow | 2021 ($ million) | 2020 ($ million) | | :--- | :--- | :--- | | Net cash provided by operating activities | 1.6 | 73.3 | | Net cash provided by investing activities | 208.6 | 6.0 | | Net cash provided by (used in) financing activities | 24.3 | (19.4) | [Notes to the Consolidated Financial Statements](index=179&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) These notes detail accounting policies, the Sirius Group acquisition, segment performance, investments, loss reserves, and debt obligations - The company changed its accounting policy for assumed written premiums effective January 1, 2021, to recognize premiums ratably over the policy term, consistent with the ceding company, with prior periods retrospectively adjusted[782](index=782&type=chunk)[783](index=783&type=chunk) Sirius Group Acquisition Purchase Price Allocation (Feb 26, 2021) | | Value ($ million) | | :--- | :--- | | Total purchase price | 1,079.8 | | Total identifiable net assets acquired | 1,130.2 | | **Bargain purchase gain** | **50.4** | Loss and Loss Adjustment Expense Reserves Roll-Forward (2021) | | Value ($ million) | | :--- | :--- | | Net reserves, beginning of year | 1,289.7 | | Incurred loss and LAE (current year) | 1,369.1 | | Incurred loss and LAE (prior years - favorable) | (42.6) | | Net paid losses | (1,450.1) | | Amounts acquired from Sirius Group | 2,467.8 | | **Net reserves, end of year** | **3,624.7** | Debt Obligations (as of Dec 31, 2021) | Instrument | Carrying Value ($ million) | | :--- | :--- | | 2017 SEK Subordinated Notes | 296.3 | | 2016 Senior Notes | 406.0 | | 2015 Senior Notes | 114.4 | | **Total Debt** | **816.7** |

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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________ FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 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) (State or other jurisdiction of i ...

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 ...