SiriusPoint(SPNT) - 2025 Q2 - Quarterly Results

Key Performance Indicators Key Performance Indicators Summary For the three months ended June 30, 2025, SiriusPoint's performance improved year-over-year with a lower consolidated combined ratio of 86.1% and higher Core underwriting income of $67.6 million, though annualized return on average common shareholders' equity decreased to 12.7% from 17.9% in the prior-year period, while book value per common share increased to $16.32 from $14.92 at year-end 2024 Key Performance Indicators Comparison (Q2 & YTD) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Combined ratio | 86.1% | 89.0% | 88.8% | 87.0% | | Core underwriting income | $67.6M | $36.9M | $96.1M | $81.2M | | Core income | $76.3M | $46.0M | $123.7M | $108.4M | | Annualized ROAE | 12.7% | 17.9% | 12.8% | 16.7% | | Book value per common share | $16.32 | $14.92 (YE 2024) | $16.32 | $14.92 (YE 2024) | | Tangible book value per diluted common share | $14.89 | $13.42 (YE 2024) | $14.89 | $13.42 (YE 2024) | Consolidated Financial Statements Consolidated Balance Sheets - by Quarter As of June 30, 2025, total assets stood at $12.36 billion, a slight decrease from $12.52 billion at year-end 2024, while total shareholders' equity increased to $2.11 billion from $1.94 billion over the same period, primarily driven by growth in retained earnings and a positive shift in accumulated other comprehensive income (AOCI) Selected Balance Sheet Data (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total investments | $5,213.8 | $5,705.5 | | Total assets | $12,355.7 | $12,524.9 | | Total liabilities | $10,248.9 | $10,586.1 | | Total shareholders' equity | $2,106.8 | $1,938.8 | Consolidated Statements of Income For the second quarter of 2025, net income available to common shareholders was $59.2 million, or $0.50 per diluted share, a decrease from $109.9 million, or $0.57 per diluted share, in the same period of 2024, influenced by lower other revenues and higher net corporate expenses despite a 10.4% increase in net premiums earned Q2 Income Statement Highlights (in millions, except per share data) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--- | :--- | :--- | | Net premiums earned | $652.0 | $590.5 | | Total revenues | $748.2 | $743.3 | | Total expenses | $673.3 | $614.3 | | Net income available to common shareholders | $59.2 | $109.9 | | Diluted EPS | $0.50 | $0.57 | Consolidated Statements of Income - by Quarter Net income available to common shareholders was $59.2 million in Q2 2025, a slight sequential increase from $57.6 million in Q1 2025, with net premiums earned showing consistent quarterly growth over the past year, reaching $652.0 million in the latest quarter Quarterly Income Trend (in millions) | Period | Net Premiums Earned | Net Income available to Common Shareholders | | :--- | :--- | :--- | | Q2 2025 | $652.0 | $59.2 | | Q1 2025 | $626.7 | $57.6 | | Q4 2024 | $590.3 | $(21.3) | | Q3 2024 | $568.9 | $4.5 | | Q2 2024 | $590.5 | $109.9 | Consolidated Statements of Comprehensive Income - by Quarter Comprehensive income available to SiriusPoint was $83.3 million in Q2 2025, supported by $63.3 million in net income and $20.1 million in other comprehensive income (OCI), primarily driven by unrealized gains on debt securities Quarterly Comprehensive Income (in millions) | Period | Net Income (Loss) | Other Comprehensive Income (Loss) | Comprehensive Income (Loss) available to SiriusPoint | | :--- | :--- | :--- | :--- | | Q2 2025 | $63.3 | $20.1 | $83.3 | | Q1 2025 | $62.0 | $30.5 | $92.1 | | Q4 2024 | $(17.0) | $(85.6) | $(102.9) | | Q2 2024 | $114.8 | $(10.6) | $103.3 | Operating Segment Information Segment Reporting - Q2 2025 In Q2 2025, the Insurance & Services segment reported underwriting income of $39.5 million and a combined ratio of 89.3%, while the Reinsurance segment contributed $28.1 million in underwriting income with an 89.8% combined ratio, totaling $67.6 million in Core underwriting income Q2 2025 Segment Performance (in millions) | Segment | Gross Premiums Written | Underwriting Income | Combined Ratio | | :--- | :--- | :--- | :--- | | Insurance & Services | $560.4 | $39.5 | 89.3% | | Reinsurance | $369.7 | $28.1 | 89.8% | | Core Total | $930.1 | $67.6 | 89.5% | Segment Reporting - Q2 2024 In the prior-year second quarter, the Insurance & Services segment generated $11.9 million in underwriting income on a 96.0% combined ratio, and the Reinsurance segment produced $25.0 million in underwriting income with a 90.2% combined ratio, resulting in $36.9 million in total Core underwriting income Q2 2024 Segment Performance (in millions) | Segment | Gross Premiums Written | Underwriting Income | Combined Ratio | | :--- | :--- | :--- | :--- | | Insurance & Services | $490.2 | $11.9 | 96.0% | | Reinsurance | $352.5 | $25.0 | 90.2% | | Core Total | $842.7 | $36.9 | 93.3% | Segment Reporting - YTD 2025 For the first six months of 2025, total Core underwriting income was $96.1 million, with the Insurance & Services segment contributing $59.6 million (91.6% combined ratio) and the Reinsurance segment adding $36.5 million (93.5% combined ratio) YTD 2025 Segment Performance (in millions) | Segment | Gross Premiums Written | Underwriting Income | Combined Ratio | | :--- | :--- | :--- | :--- | | Insurance & Services | $1,195.5 | $59.6 | 91.6% | | Reinsurance | $724.5 | $36.5 | 93.5% | | Core Total | $1,920.0 | $96.1 | 92.4% | Segment Reporting - YTD 2024 In the first half of 2024, total Core underwriting income was $81.2 million, with the Insurance & Services segment's underwriting income at $16.3 million (97.1% combined ratio) and the Reinsurance segment's at $64.9 million (87.2% combined ratio) YTD 2024 Segment Performance (in millions) | Segment | Gross Premiums Written | Underwriting Income | Combined Ratio | | :--- | :--- | :--- | :--- | | Insurance & Services | $1,014.5 | $16.3 | 97.1% | | Reinsurance | $708.9 | $64.9 | 87.2% | | Core Total | $1,723.4 | $81.2 | 92.5% | Consolidated Results - by Quarter Consolidated Results - by Quarter Summary The consolidated combined ratio improved to 86.1% in Q2 2025 from 91.4% in Q1 2025 and 89.0% in Q2 2024, with strong underwriting income of $90.2 million benefiting from favorable prior year loss reserve development of $8.7 million and minimal catastrophe losses Quarterly Consolidated Underwriting Results (in millions) | Period | Net Premiums Earned | Underwriting Income | Combined Ratio | | :--- | :--- | :--- | :--- | | Q2 2025 | $652.0 | $90.2 | 86.1% | | Q1 2025 | $626.7 | $54.1 | 91.4% | | Q4 2024 | $590.3 | $32.7 | 94.4% | | Q3 2024 | $568.9 | $89.0 | 84.4% | | Q2 2024 | $590.5 | $65.1 | 89.0% | Core Results - by Quarter Core Results - by Quarter Summary Core results, representing the combination of the Insurance & Services and Reinsurance segments, showed a combined ratio of 89.5% in Q2 2025, a significant improvement from 95.4% in Q1 2025, with Core segment income for the quarter reaching $76.3 million, the highest in the last five quarters - Core results represent the sum of the Reinsurance and Insurance & Services segments, reflecting management's view of the ongoing business after the decision to exit runoff operations[28] Quarterly Core Results (in millions) | Period | Net Premiums Earned | Segment Income | Combined Ratio | | :--- | :--- | :--- | :--- | | Q2 2025 | $645.6 | $76.3 | 89.5% | | Q1 2025 | $625.8 | $47.4 | 95.4% | | Q4 2024 | $581.6 | $66.7 | 90.2% | | Q3 2024 | $546.3 | $69.5 | 88.5% | | Q2 2024 | $553.4 | $46.0 | 93.3% | Insurance & Services Segment - by Quarter Insurance & Services Segment - by Quarter Summary The Insurance & Services segment demonstrated strong performance in Q2 2025, with segment income reaching $48.2 million, the highest in the past five quarters, and the combined ratio improving significantly to 89.3% from 96.0% in the prior-year quarter, driven by a lower loss ratio Insurance & Services Quarterly Performance (in millions) | Period | Gross Premiums Written | Segment Income | Combined Ratio | | :--- | :--- | :--- | :--- | | Q2 2025 | $560.4 | $48.2 | 89.3% | | Q1 2025 | $635.1 | $39.0 | 94.0% | | Q4 2024 | $450.3 | $48.4 | 87.9% | | Q3 2024 | $376.0 | $27.9 | 92.4% | | Q2 2024 | $490.2 | $21.0 | 96.0% | Reinsurance Segment - by Quarter Reinsurance Segment - by Quarter Summary The Reinsurance segment's underwriting income increased to $28.1 million in Q2 2025 from $8.4 million in Q1 2025, with the combined ratio improving to 89.8% in Q2 2025, compared to 97.1% in the previous quarter and 90.2% in the prior-year quarter Reinsurance Quarterly Performance (in millions) | Period | Gross Premiums Written | Underwriting Income | Combined Ratio | | :--- | :--- | :--- | :--- | | Q2 2025 | $369.7 | $28.1 | 89.8% | | Q1 2025 | $354.8 | $8.4 | 97.1% | | Q4 2024 | $312.2 | $18.3 | 93.2% | | Q3 2024 | $314.5 | $41.6 | 84.6% | | Q2 2024 | $352.5 | $25.0 | 90.2% | Investments Investments - by Quarter As of June 30, 2025, total investments were $5.21 billion, a decrease from $5.71 billion at the end of 2024, with the portfolio remaining concentrated in fixed income, where debt securities available for sale and trading comprise 92.8% of the total, and corporate debt securities represent the largest single category at 32.6% Investment Portfolio Composition as of June 30, 2025 (in millions) | Asset Class | Fair Value | % of Total | | :--- | :--- | :--- | | Corporate debt securities | $1,701.3 | 32.6% | | Asset-backed securities | $984.4 | 18.9% | | U.S. government and agency | $936.2 | 18.0% | | Residential mortgage-backed securities | $916.9 | 17.6% | | Other | $675.0 | 12.9% | | Total investments | $5,213.8 | 100.0% | Other Financial Information Earnings per Share - by Quarter Diluted earnings per share (EPS) was $0.50 for Q2 2025, a slight increase from $0.49 in Q1 2025 but a decrease from $0.57 in Q2 2024, with the weighted average number of diluted shares outstanding decreasing significantly year-over-year to 118.7 million from 178.7 million, reflecting share repurchase activity Quarterly Earnings Per Share | Period | Diluted EPS | Diluted Weighted Average Shares Outstanding | | :--- | :--- | :--- | | Q2 2025 | $0.50 | 118,669,471 | | Q1 2025 | $0.49 | 118,555,166 | | Q4 2024 | $(0.13) | 161,378,360 | | Q2 2024 | $0.57 | 178,711,255 | Annualized Return on Average Common Shareholders' Equity - by Quarter The annualized return on average common shareholders' equity (ROAE) for Q2 2025 was 12.7%, a decrease from 17.9% in the prior-year quarter but remaining consistent with the 12.9% reported in Q1 2025 Quarterly Annualized ROAE | Period | Annualized ROAE | | :--- | :--- | | Q2 2025 | 12.7% | | Q1 2025 | 12.9% | | Q4 2024 | (4.0)% | | Q3 2024 | 0.7% | | Q2 2024 | 17.9% | Book Value per Share - by Quarter As of June 30, 2025, book value per common share was $16.32, a significant increase from $14.92 at year-end 2024, with tangible book value per diluted common share, a non-GAAP measure, also rising to $14.89 from $13.42 over the same period Quarterly Book Value Per Share Metrics | Period End | Book Value per Common Share | Tangible Book Value per Diluted Common Share (Non-GAAP) | | :--- | :--- | :--- | | June 30, 2025 | $16.32 | $14.89 | | March 31, 2025 | $15.73 | $14.21 | | Dec 31, 2024 | $14.92 | $13.42 | | June 30, 2024 | $14.68 | $13.47 | Net Corporate and Other Expenses - by Quarter Net corporate and other expenses totaled $70.9 million in Q2 2025, an increase from $60.6 million in Q1 2025 and $66.6 million in Q2 2024, primarily due to higher MGA Service expenses, which were $49.6 million in the quarter Quarterly Net Corporate and Other Expenses (in millions) | Period | MGA Service Expenses | Corporate and Other Expenses | Total | | :--- | :--- | :--- | :--- | | Q2 2025 | $49.6 | $21.3 | $70.9 | | Q1 2025 | $43.1 | $17.5 | $60.6 | | Q4 2024 | $41.2 | $16.9 | $58.1 | | Q2 2024 | $47.7 | $18.9 | $66.6 |