SiriusPoint Ltd. (NYSE:SPNT) Q1 2021 Earnings Conference Call May 11, 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 Operator Good morning, ladies and gentlemen, and welcome to the SiriusPoint Limited First Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the call over t ...

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

Third Point Reinsurance Ltd. (TPRE) Q4 2020 Earnings Conference Call February 24, 2021 8:30 AM ET Company Participants Christopher Coleman - CFO Dan Malloy - CEO David Junius - COO Conference Call Participants Operator Good morning, ladies and gentlemen, and welcome to the Third Point Reinsurance Ltd. Fourth Quarter 2020 Earnings Conference Call. During today's presentation, all parties will be in a listen-only mode. As a reminder this conference call is being recorded. I would now like to turn the call ove ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2020 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 001-35039 THIRD POINT REINSURANCE LTD. (Exact name of registrant as specified in its charter) Bermuda 98-1039994 (State or other jurisdiction of inc ...

Financial Data and Key Metrics Changes - For Q3 2020, the company generated net income of $69 million, with a return on equity of 5.1% [8] - The diluted book value per share increased by 4.8% to $15.06 compared to Q2 2020 [8] - The combined ratio for Q3 was 119.9%, significantly higher than 102.7% in the prior year [19] Business Line Data and Key Metrics Changes - The net underwriting loss for Q3 was $28 million, with $30 million attributed to catastrophe losses and $16 million to COVID-19 losses [19] - Gross premiums written for Q3 were $61 million, down from $95 million in the prior year, primarily due to a retroactive reinsurance contract recognized in the previous year [21] - For the nine-month period, gross premiums written decreased by 15% to $422 million compared to $498 million in the prior year [22] Market Data and Key Metrics Changes - The property catastrophe market pricing has improved, leading to an increase in expected margins while maintaining the same level of expected risk [12] - The non-catastrophe business continues to show underwriting improvement, benefiting from hardening market conditions across various lines of business [14] Company Strategy and Development Direction - The company is focused on transforming into a global specialty reinsurance company, with a strong emphasis on improving profitability in both catastrophe and non-catastrophe portfolios [28] - The merger with Sirius Group is expected to enhance underwriting talent and capitalize on improving market trends, positioning the company for growth [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the underlying profitability of the catastrophe portfolio and the potential for further improvements in the non-catastrophe portfolio as market conditions harden [28] - The merger with Sirius is anticipated to be accretive to earnings per share and return on equity in the first full year post-close, with expectations for attractive book value and earnings growth [30] Other Important Information - The company added $10 million to its reserve position due to legal uncertainties related to COVID-19 claims, despite no reported losses from cedents [10] - Total general and administrative expenses increased to $21 million for Q3, primarily due to professional and regulatory fees associated with the merger [26] Q&A Session Summary Question: What is the outlook for the merger with Sirius? - Management confirmed that the merger is on track for a first quarter 2021 close, with strong support indicated from recent financial transactions [18]

Summary of Third Point Reinsurance Ltd. and Sirius Group Merger Announcement Call Company and Industry - **Companies Involved**: Third Point Reinsurance Ltd. (TPRE) and Sirius Group - **New Entity**: The merger will create a new company named SiriusPoint Core Points and Arguments - **Strategic Merger**: The merger is positioned as a transformative opportunity to create a top-tier global reinsurer, capitalizing on current market conditions and enhancing value for stakeholders [8][10] - **Underwriting Focus**: The combined entity will emphasize underwriting profitability and expand into more profitable lines of business, moving away from the previous model that focused on low volatility reinsurance [9][10] - **Market Positioning**: The merger is expected to clear market overhangs for both companies, allowing Third Point Re to transition from its hedge fund roots and addressing concerns related to Sirius Group's major shareholder [10][11] - **Leadership Transition**: Sid Sankaran will serve as Chairman and CEO of SiriusPoint, bringing extensive industry experience from AIG and Oscar Health [12][15] - **Underwriting Talent**: The merger will combine experienced underwriting teams from both companies, enhancing the overall capabilities of SiriusPoint [12][14] Financial Aspects - **Transaction Value**: The total deal consideration is estimated at $788 million, representing approximately 80% of Sirius Group's tangible book value [31] - **Shareholder Options**: Sirius shareholders will have three options for their shares, including cash, stock, or a combination with contingent value rights [31][32] - **Accretive Transaction**: The merger is expected to be accretive to earnings per share (EPS) and return on equity (ROE) in the first year post-close, with a strong pro forma balance sheet [19][20] - **Capital Structure**: The combined company will have less than 30% leverage at close, with plans to optimize capital structure over time [20][33] Performance Metrics - **Second Quarter Results**: Third Point Re reported a net income of $124 million for Q2 2020, with a return on equity of 10.1% and a combined ratio of 98.3%, indicating underwriting profitability despite COVID-19 impacts [34][35] - **Investment Strategy**: The company anticipates benefits from a differentiated investment strategy, especially in a low-interest-rate environment [36] Additional Insights - **Global Platform**: SiriusPoint will have a global platform with access to various markets, enhancing its reinsurance offerings [17][18] - **Client Relationships**: The merger aims to strengthen long-standing relationships with clients and brokers, which are crucial for future growth [22][29] - **Technological Modernization**: There is a commitment to modernizing infrastructure and IT to improve expense ratios and overall efficiency [23] This summary encapsulates the key points from the merger announcement call, highlighting the strategic rationale, financial implications, and operational focus of the newly formed SiriusPoint.

Third Point Reinsurance Ltd. (TPRE) Q1 2020 Results Earnings Conference Call May 8, 2020 8:30 AM ET Company Participants Daniel Malloy - CEO Christopher Coleman - CFO Daniel Loeb - CEO, Third Point LLC Conference Call Participants Operator Greetings, and welcome to the Third Point Reinsurance First Quarter 2020 Earnings Conference. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder this conference ...

Start Time: 08:30 January 1, 0000 8:50 AM ET Third Point Reinsurance Ltd. (TPRE) Q4 2019 Earnings Conference Call February 28, 2020, 08:30 AM ET Company Participants Dan Malloy - CEO Chris Coleman - CFO Daniel Loeb - CEO, Third Point LLC Conference Call Participants Operator Greetings, and welcome to the Third Point Reinsurance Fourth Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator I ...

Third Point Reinsurance Ltd. (TPRE) Q2 2019 Earnings Conference Call August 8, 2019 8:30 AM ET Company Participants Chris Coleman - Chief Financial Officer Dan Malloy - Chief Executive Officer Daniel Loeb - Chief Executive Officer, Third Point LLC Conference Call Participants Sean Reitenbach - KBW Operator Thank you for standing by. This is the conference operator. Welcome to the Third Point Reinsurance Second Quarter 2019 Earnings Conference Call. [Operator Instructions] I would now like to turn the confer ...

Financial Performance - For the second quarter of 2019, Sirius Group's Gross Written Premiums were $487 million[7], and for the year-to-date 2019, the Gross Written Premiums reached $1,109 million[7] - The GAAP Combined Ratio for the second quarter of 2019 was 105%, and for the year-to-date 2019, it was 99%[7] - As of June 30, 2019, the book value per common share was $15.47, and the adjusted book value per share was $15.87[7] - As of June 30, 2019, Total Cash and Investments amounted to $3,597 million[7] Investment Portfolio - As of June 30, 2019, the investment portfolio's asset allocation included 50% in Fixed Maturity, 25% in Short-term investments, 11% in Equity Securities, 3% in Cash, and 11% in Other long-term investments[13] - As of June 30, 2019, the fixed income quality of the investment portfolio was comprised of 41% AA, 33% AAA, 15% A, 8% BBB and 3% NIG[15] Business Segments - For the second quarter of 2019, Global Property gross written premiums were $236.2 million, Global A&H gross written premiums were $152.8 million, and Specialty & Casualty gross written premiums were $96.9 million[9] - For the year-to-date 2019, Global Property gross written premiums were $566.9 million, Global A&H gross written premiums were $322.1 million, and Specialty & Casualty gross written premiums were $217.8 million[9] Company Overview - Sirius Group has clients in 150 countries and 20 global underwriting and representative offices[28] - The company's 5-year net combined ratio (average 2014-2018) is 93.3%[29]