SiriusPoint(SPNT) - 2024 Q3 - Quarterly Report

Financial Transactions - SiriusPoint paid a total consideration of $261.3 million to CM Bermuda Limited upon closing the transactions under the CMIG Agreement, which included a share repurchase of 9,077,705 common shares for approximately$125.0 million [219]. - In April 2024, SiriusPoint issued $400.0 million aggregate principal amount of 7.0$400.0 million of 2016 Senior Notes and $115.0 million of 2015 Senior Notes [224]. - The company reported a loss on settlement and change in fair value of liability classified instruments of$122.6 million for the nine months ended September 30, 2024, compared to $44.4 million for the same period in 2023 [256]. - The company had$1,205.5 million of letters of credit issued as of September 30, 2024, in compliance with all covenants [347]. Loss Portfolio Transfer - The Loss Portfolio Transfer Reinsurance Agreement covers approximately $400 million of SiriusPoint reserves, including liabilities to be commuted, valued as of December 31, 2023 [222]. - SiriusPoint expects to recognize a loss of approximately$22.0 million from the financial impacts of the Loss Portfolio Transfer transaction in the fourth quarter results [223]. Ratings and Financial Strength - Moody's assigned a new financial strength rating of A3, stable, to SiriusPoint's operating companies on March 19, 2024 [225]. - The Company’s Bermuda Solvency Capital Requirement (BSCR) ratio improved to an estimated 265% for the third quarter of 2024, up from 255% in 2023 [334]. Investment Strategy and Performance - SiriusPoint's investment strategy focuses on optimizing risk-adjusted after-tax net investment income while maintaining a high-quality, diversified investment portfolio [216]. - The average credit rating of the investment portfolio remained at AA as of September 30, 2024, with no defaults reported [242]. - Total net investment income and realized and unrealized investment gains for the three months ended September 30, 2024 was $92.5 million, compared to$68.1 million for the same period in 2023, representing a 36.1% increase [247]. - Gross investment income for the three months ended September 30, 2024 was $85.1 million, up from$79.1 million in the same period of 2023, reflecting a 7.6% increase [245]. Underwriting Performance - The combined ratio for the three months ended September 30, 2024, improved to 84.4% from 88.0% in the same period of 2023 [226]. - Core underwriting income for the three months ended September 30, 2024, was $62.5 million, up from$42.5 million year-over-year [226]. - Total underwriting income for the three months ended September 30, 2024, was $89.0 million, compared to$73.8 million in the same period of 2023, reflecting a $15.2 million increase [236]. - The loss ratio for the nine months ended September 30, 2024 was 52.1$35.0 million, or 4.8%, for the three months ended September 30, 2024 compared to the same period in 2023 [278]. - Net premiums written decreased by $30.0 million, or 5.6$29.0 million, or 5.0%, for the three months ended September 30, 2024 compared to the same period in 2023 [278]. - Services revenues decreased to $48.1 million for the three months ended September 30, 2024, down from$58.6 million for the same period in 2023 [280]. - Services revenues decreased to $171.3 million for the nine months ended September 30, 2024 compared to$181.8 million for the same period in 2023 [289]. Financial Position - Total invested assets and cash decreased to $6,863.1 million as of September 30, 2024, from$7,178.9 million at the end of 2023 [240]. - Cash and cash equivalents decreased by $286.1 million to$815.2 million as of September 30, 2024, compared to $1,101.3 million at the beginning of the period [355]. - Total debt decreased to$660.5 million as of September 30, 2024, down from $786.2 million as of December 31, 2023 [339]. - As of September 30, 2024, total shareholders' equity increased to$2,696.5 million, up from $2,530.6 million as of December 31, 2023, driven by net income of$205.2 million [359]. Catastrophe Losses - Catastrophe losses for the three months ended September 30, 2024 were $10.6 million, or 1.9 percentage points on the combined ratio, compared to$6.7 million, or 1.2 percentage points, for the same period in 2023 [279]. - Catastrophe losses for the three months ended September 30, 2024 were $11.3 million, contributing 4.2 percentage points to the combined ratio, compared to$6.8 million and 2.6 percentage points in the same period in 2023 [296]. Dividends - SiriusPoint declared and paid dividends of $4.0 million and$12.0 million to Series B preference shareholders for the three and nine months ended September 30, 2024, consistent with the previous year [331]. - For the nine months ended September 30, 2024, the company declared and paid dividends of $12.0 million to Series B preference shareholders [345].