SiriusPoint(SPNT) - 2025 Q1 - Quarterly Results

Introduction and Disclaimers Basis of Presentation and Non-GAAP Financial Measures The report's financial results include non-GAAP measures, which management believes provide a clearer view of performance and trends by reflecting how the business is managed, particularly after the decision to exit the runoff business. These measures are intended to supplement, not replace, GAAP-based reporting - The company utilizes several non-GAAP financial measures to provide investors with what it considers a more informative view of its financial performance and underlying trends[3] - Key non-GAAP measures include: - Core underwriting income, Core net services income, Core income, Core combined ratio - Accident year loss ratio, accident year combined ratio - Attritional loss ratio, attritional combined ratio - Book value per diluted common share excluding AOCI - Tangible book value per diluted common share[3] Safe Harbor Statement Regarding Forward-Looking Statements This section contains a safe harbor statement, cautioning that forward-looking statements are not guarantees of future performance and are subject to numerous risks and uncertainties. It lists several factors that could cause actual results to differ materially, including strategic execution, catastrophic events, market performance, and geopolitical uncertainty - The report includes forward-looking statements that are subject to significant risks and uncertainties which may cause actual results to differ[4] - Key risks identified include: ability to execute strategic transformation, impact of catastrophic events, inadequacy of loss reserves, financial market performance, competition, technology breaches, climate change, and geopolitical uncertainty[4] Key Performance Indicators Key Performance Indicators For the three months ended March 31, 2025, SiriusPoint reported a consolidated combined ratio of 91.4%, an increase from 84.9% in the prior-year period. Core underwriting income decreased to $28.5 million from $44.3 million. Book value per common share increased to $15.73 from $14.92 at year-end 2024 Key Performance Indicators (Q1 2025 vs Q1 2024) | Indicator | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Combined ratio | 91.4% | 84.9% | | Core underwriting income | $28.5M | $44.3M | | Core net services income | $18.9M | $18.1M | | Core income | $47.4M | $62.4M | | Core combined ratio | 95.4% | 91.4% | | Annualized ROAE | 12.9% | 15.4% | | Book value per common share | $15.73 | $14.92 (at YE 2024) | | Tangible book value per diluted common share | $14.21 | $13.42 (at YE 2024) | Consolidated Financial Statements Consolidated Balance Sheets - by Quarter As of March 31, 2025, total assets were $12.3 billion, a decrease from $12.5 billion at December 31, 2024, primarily driven by a reduction in total investments. Total shareholders' equity increased to $2.03 billion from $1.94 billion over the same period, reflecting net income generation Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total investments | $5,118.7 | $5,705.5 | | Total assets | $12,280.5 | $12,524.9 | | Total liabilities | $10,253.8 | $10,586.1 | | Total shareholders' equity | $2,026.7 | $1,938.8 | Consolidated Statements of Income - by Quarter For the first quarter of 2025, SiriusPoint reported net income available to common shareholders of $57.6 million, or $0.50 per basic share. This is a decrease from $90.8 million, or $0.50 per basic share, in the first quarter of 2024. The decline was primarily due to lower underwriting income and a shift from net investment gains to a small loss Consolidated Income Statement Highlights (in millions, except per share data) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net premiums earned | $626.7 | $593.8 | | Total revenues | $727.3 | $685.5 | | Loss and loss adjustment expenses incurred, net | $401.8 | $317.5 | | Total expenses | $652.0 | $579.9 | | Net income available to SiriusPoint common shareholders | $57.6 | $90.8 | | Basic earnings per share | $0.50 | $0.50 | | Diluted earnings per share | $0.49 | $0.49 | Consolidated Statements of Comprehensive Income - by Quarter Comprehensive income available to SiriusPoint was $92.1 million for Q1 2025, compared to $74.3 million in Q1 2024. The Q1 2025 result was significantly boosted by $30.5 million in other comprehensive income, primarily from unrealized gains on debt securities, which contrasted with a $20.5 million other comprehensive loss in the prior-year period Consolidated Comprehensive Income (in millions) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) | $62.0 | $95.9 | | Total other comprehensive income (loss) | $30.5 | $(20.5) | | Comprehensive income (loss) | $92.5 | $75.4 | | Comprehensive income (loss) available to SiriusPoint | $92.1 | $74.3 | Operating Segment Information Segment Reporting - Three months ended March 31, 2025 In Q1 2025, the Insurance & Services segment generated higher underwriting income ($20.1 million) than the Reinsurance segment ($8.4 million). The Reinsurance segment's results were impacted by a high catastrophe loss ratio of 21.8%, leading to a combined ratio of 97.1%. The Insurance & Services segment had a combined ratio of 94.0% Q1 2025 Segment Performance (in millions) | Segment | Gross Premiums Written | Underwriting Income (Loss) | Combined Ratio | | :--- | :--- | :--- | :--- | | Reinsurance | $354.8 | $8.4 | 97.1% | | Insurance & Services | $635.1 | $20.1 | 94.0% | | Core Total | $989.9 | $28.5 | 95.4% | - The Reinsurance segment experienced significant catastrophe losses of $63.1 million, contributing 21.8 points to its loss ratio[13] Segment Reporting - Three months ended March 31, 2024 For Q1 2024, the Reinsurance segment was the primary driver of underwriting profit with $39.9 million in underwriting income and a strong combined ratio of 84.2%. The Insurance & Services segment contributed $4.4 million in underwriting income with a combined ratio of 98.4%. Total Core underwriting income was $44.3 million Q1 2024 Segment Performance (in millions) | Segment | Gross Premiums Written | Underwriting Income (Loss) | Combined Ratio | | :--- | :--- | :--- | :--- | | Reinsurance | $356.4 | $39.9 | 84.2% | | Insurance & Services | $524.3 | $4.4 | 98.4% | | Core Total | $880.7 | $44.3 | 91.4% | Consolidated Results - by Quarter Consolidated underwriting income was $54.1 million in Q1 2025, a decrease from $89.6 million in Q1 2024. The combined ratio deteriorated to 91.4% in Q1 2025 from 84.9% in Q1 2024, driven by higher catastrophe losses ($67.9 million in Q1 2025 vs. none in Q1 2024) Consolidated Underwriting Results by Quarter (in millions) | Metric | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Gross premiums written | $984.7 | $759.5 | $714.0 | $864.6 | $906.6 | | Underwriting income | $54.1 | $32.7 | $89.0 | $65.1 | $89.6 | | Combined ratio | 91.4% | 94.4% | 84.4% | 89.0% | 84.9% | Core Results - by Quarter Core results, which combine the Reinsurance and Insurance & Services segments, showed a decrease in underwriting income to $28.5 million in Q1 2025 from $44.3 million in Q1 2024. The Core combined ratio increased to 95.4% from 91.4%, largely due to higher catastrophe losses. Net services income remained stable at $18.9 million - Core results represent the sum of the Reinsurance and Insurance & Services segments, reflecting how management views the ongoing business after exiting runoff operations[20] Core Results Highlights (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net premiums earned | $625.8 | $517.8 | | Underwriting income | $28.5 | $44.3 | | Net services income | $18.9 | $18.1 | | Segment income | $47.4 | $62.4 | | Combined ratio | 95.4% | 91.4% | | Accident year combined ratio | 100.9% | 93.0% | Reinsurance Segment - by Quarter The Reinsurance segment's underwriting income fell sharply to $8.4 million in Q1 2025 from $39.9 million in Q1 2024. This was driven by $63.1 million in catastrophe losses, which pushed the combined ratio to 97.1% from 84.2% in the prior-year quarter. Net premiums earned grew to $289.6 million from $253.6 million Reinsurance Segment Highlights (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross premiums written | $354.8 | $356.4 | | Net premiums earned | $289.6 | $253.6 | | Underwriting income | $8.4 | $39.9 | | Catastrophe losses | $63.1 | $0.0 | | Combined ratio | 97.1% | 84.2% | Insurance & Services Segment - by Quarter The Insurance & Services segment showed significant improvement, with underwriting income increasing to $20.1 million in Q1 2025 from $4.4 million in Q1 2024. The combined ratio improved to 94.0% from 98.4%. Gross premiums written grew substantially to $635.1 million from $524.3 million year-over-year Insurance & Services Segment Highlights (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross premiums written | $635.1 | $524.3 | | Net premiums earned | $336.2 | $264.2 | | Underwriting income | $20.1 | $4.4 | | Net services income | $18.9 | $18.1 | | Segment income | $39.0 | $22.5 | | Combined ratio | 94.0% | 98.4% | Investments Investments - by Quarter The total investment portfolio decreased to $5.12 billion at March 31, 2025, from $5.71 billion at year-end 2024. The portfolio remains heavily weighted towards debt securities, which constitute 92.9% of total investments. Corporate debt securities and asset-backed securities are the largest holdings - Total investments decreased by $586.8 million during the first quarter of 2025[28] Investment Portfolio Composition (Fair Value in millions) | Asset Class | March 31, 2025 | % of Total | December 31, 2024 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Total debt securities, available for sale | $4,635.2 | 90.6% | $5,131.0 | 89.9% | | Total debt securities, trading | $117.6 | 2.3% | $162.2 | 2.9% | | Other investments (Short-term, long-term, etc.) | $365.9 | 7.1% | $412.3 | 7.2% | | Total investments | $5,118.7 | 100.0% | $5,705.5 | 100.0% | Other Earnings per Share - by Quarter For Q1 2025, basic earnings per share (EPS) was $0.50 and diluted EPS was $0.49. This compares to a basic EPS of $0.50 and diluted EPS of $0.49 in Q1 2024. The weighted average number of basic shares outstanding decreased significantly to 116.0 million from 168.9 million in the prior-year quarter, reflecting share repurchase activity Earnings Per Share (EPS) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income available to common shareholders | $57.6M | $90.8M | | Basic weighted-average shares | 115,975,961 | 168,934,114 | | Diluted weighted-average shares | 118,555,166 | 174,380,963 | | Basic EPS | $0.50 | $0.50 | | Diluted EPS | $0.49 | $0.49 | Annualized Return on Average Common Shareholders' Equity - by Quarter The annualized return on average common shareholders' equity (ROAE) was 12.9% for Q1 2025. This represents a decrease from the 15.4% ROAE reported in Q1 2024, primarily due to lower net income available to common shareholders Annualized ROAE Calculation | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income available to common shareholders | $57.6M | $90.8M | | Average common shareholders' equity | $1,781.3M | $2,358.3M | | Annualized ROAE | 12.9% | 15.4% | Book Value per Share - by Quarter As of March 31, 2025, book value per common share increased to $15.73 from $14.92 at December 31, 2024. Tangible book value per diluted common share, a non-GAAP measure, also increased to $14.21 from $13.42 over the same period. The growth reflects the company's quarterly earnings Book Value Per Share Metrics | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Book value per common share | $15.73 | $14.92 | | Book value per diluted common share | $15.37 | $14.60 | | Book value per diluted common share ex. AOCI | $15.15 | $14.64 | | Tangible book value per diluted common share | $14.21 | $13.42 | - Management presents book value excluding AOCI and tangible book value per share because they believe these non-GAAP measures provide a more accurate view of realizable value and underlying trends, excluding volatile interest rate impacts and non-operational intangible assets[33] Net Corporate and Other Expenses - by Quarter Net corporate and other expenses for Q1 2025 totaled $60.6 million, an increase from $56.0 million in Q1 2024. The total is composed of $43.1 million in MGA Service expenses and $17.5 million in other corporate and non-recurring expenses Net Corporate and Other Expenses Breakdown (in millions) | Expense Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | MGA Service expenses | $43.1 | $46.0 | | Corporate and other expenses | $16.9 | $8.8 | | Non-recurring corporate and other expenses | $0.6 | $1.2 | | Total | $60.6 | $56.0 |