SiriusPoint(US:SPNT)2026-02-24 22:12Financial Strength and Regulatory Compliance - SiriusPoint's insurance and reinsurance subsidiaries have received strong financial strength ratings, with "A-" (Excellent) from AM Best and "A3" from Moody's, all with a positive outlook[93][94]. - The company maintains a minimum solvency margin (MSM) of at least $100 million for Class 4 insurers, which is the greater of specified percentages of net written premium or loss reserves[110]. - SiriusPoint is required to maintain a minimum liquidity ratio of 75% of relevant liabilities for general business insurers[109]. - The Bermuda Monetary Authority (BMA) mandates that insurers file annual statutory financial returns, including a capital and solvency return, within four months after the financial year-end[105]. - The company utilizes a risk-based capital model (BSCR) to determine capital requirements, ensuring that statutory economic capital and surplus meet or exceed the enhanced capital requirement (ECR)[112][111]. - SiriusPoint's Bermuda-licensed subsidiaries are subject to the Insurance Act, which imposes solvency and liquidity standards, as well as auditing and reporting requirements[99][98]. - SiriusPoint Bermuda is designated as the Designated Insurer for group supervisory and solvency purposes, required to comply with group insurance solvency rules[126]. - The Regulatory Group must maintain available statutory economic capital and surplus at least equal to or exceeding the value of its group ECR, with a target capital level set at 120% of group ECR[128]. - The BMA requires all registered insurers to notify of any material changes, including amalgamations or acquisitions, allowing a 30-day period for objections[130]. - SiriusPoint must file quarterly group financial returns and appoint a qualified group actuary approved by the BMA[129]. - The GSSA assesses the quality and quantity of capital required to cover risks, including stress testing and reflecting all assets and liabilities[128]. - SiriusPoint's U.S.-based insurance subsidiaries are regulated by state authorities, which have broad supervisory powers over solvency and financial reporting[142]. - SiriusPoint's U.S. domiciled subsidiaries exceeded all required Risk-Based Capital (RBC) regulatory thresholds as of December 31, 2025[144]. - None of SiriusPoint's U.S.-based insurance and reinsurance subsidiaries are currently subject to regulatory scrutiny based on their respective Insurance Regulatory Information System (IRIS) ratios[145]. - SiriusPoint's U.S.-based insurance and reinsurance subsidiaries have filed their Own Risk and Solvency Assessment with the Domiciliary States[147]. - The Dodd-Frank Act established the Federal Insurance Office (FIO) to monitor the insurance industry and could lead to changes in regulation for certain insurers and reinsurers[161]. - The Solvency II Regulation imposes economic risk-based solvency requirements across all member states in the European Economic Area (EEA) to ensure financial soundness of insurance and reinsurance undertakings[169]. - SiriusPoint International is subject to regulation and supervision by the Swedish Financial Supervisory Authority (SFSA) and must comply with Solvency II Regulation requirements[173]. - The SFSA has broad supervisory powers, including the ability to sanction non-compliance with regulations[174]. - The change of control requirements in the U.K. for dual regulated insurance companies require prior regulatory consent for acquisitions exceeding 10%[195]. Investment and Financial Performance - SiriusPoint's investment policy aims to optimize risk-adjusted after-tax net investment income while maintaining a high-quality, diversified portfolio[86]. - SiriusPoint's investment portfolio is designed to hold cash and fixed income investments amounting to no less than 100% of policyholder liabilities[87]. - The company employs currency forwards to hedge its net exposure across various currencies, although it does not apply hedge accounting to these instruments[88]. - SiriusPoint's investment/finance units monitor compliance with investment rules applicable to each insurance and reinsurance subsidiary[155]. - The Terrorism Risk Insurance Act provides a federal backstop for U.S.-based property and casualty insurers against terrorism-related losses[158]. - Other revenues for the year ended December 31, 2025, included a gain of $222.4 million from the sale of Armada and $107.4 million of service fee revenue from MGAs, compared to $95.9 million and $90.1 million respectively for the year ended December 31, 2024[458]. - Interest expense for the year ended December 31, 2025, was $79.7 million, an increase from $69.6 million in 2024, driven by $47.9 million related to debt obligations and $30.7 million from funds withheld interest[465]. - The foreign exchange losses for the year ended December 31, 2025, amounted to $25.2 million, compared to foreign exchange gains of $10.0 million in 2024, primarily due to underwriting activities[468]. - Income tax expense increased to $81.2 million for the year ended December 31, 2025, from $30.7 million in 2024, driven by higher income in taxable jurisdictions and the taxable gain on the sale of Armada[471]. - The estimated Bermuda Solvency Capital Requirement (BSCR) ratio for SiriusPoint is projected to be 247% for the year ended December 31, 2025, up from 228% in 2024[515]. - SiriusPoint's ability to pay dividends is constrained by regulatory requirements and the need to maintain capital levels to support insurance operations[515]. - The company may need to raise additional funds through public or private equity or debt financing if cash flow from operations is insufficient[519]. Operational and Workforce Insights - The workforce as of December 31, 2025, was 1,099 employees, an increase from 1,072 employees in 2024, with 50% located outside North America and 58% being female[211]. - The company maintained a stable employment status with 94% of employees in full-time roles as of December 31, 2025[212]. - SiriusPoint's overall employee engagement score improved to 82 in 2025, with a Net Promoter Score of 29, up from -24 in 2023[198]. - The company achieved a 91% response rate in its third enterprise-wide engagement survey conducted in 2025[198]. - The company continued to strengthen its performance management approach, emphasizing clarity and accountability, with enhancements designed to improve alignment on goals and recognition of strong performance[207]. - Leadership development remained a priority, with investments in targeted workshops and a formal mentoring program established for 25 mentor relationships[202]. Insurance Segment Performance - Gross written premium increased by $512.1 million, or 16.1%, to $2,313.5 million for the year ended December 31, 2025 compared to $1,840.8 million in 2024[479]. - Net written premium rose by $436.7 million, or 18.7%, to $1,650.2 million for the year ended December 31, 2025 compared to $1,236.2 million in 2024[479]. - Net earned premium increased by $392.4 million, or 17.8%, to $1,481.6 million for the year ended December 31, 2025 compared to $1,154.0 million in 2024[479]. - Underwriting income for 2025 was $214.3 million with a combined ratio of 91.7%, compared to $200.0 million and 91.0% in 2024[480]. - Services revenue for 2025 was $224.4 million, a slight increase from $222.9 million in 2024, driven by growth in IMG's travel business[481]. - The attritional loss ratio improved to 59.0% in 2025 from 59.8% in 2024, contributing an additional income of $20.7 million[480]. - Catastrophe losses increased by $19.6 million in 2025, primarily due to the California wildfires[480]. - The company continues to expand its Insurance & Services segment, which includes Accident & Health, Property & Casualty, and Other Specialties[483]. - Gross written premium in the Insurance & Services segment increased by $472.7 million, or 25.7%, to $2,313.5 million for the year ended December 31, 2025, compared to $1,840.8 million in 2024[486]. - Underwriting income rose by $48.6 million to $123.8 million for the year ended December 31, 2025, driven by premium growth and an improved attritional loss ratio[491]. - The Reinsurance segment's gross written premium increased by $39.4 million, or 2.9%, to $1,375.0 million for the year ended December 31, 2025, compared to $1,335.6 million in 2024[494]. - The combined ratio for the Insurance & Services segment improved to 91.7% in 2025 from 93.5% in 2024, reflecting a decrease of 1.8 percentage points[1]. - Catastrophe losses in the Reinsurance segment were $67.1 million, contributing 6.0 percentage points to the combined ratio for the year ended December 31, 2025[496]. - The loss ratio for the Reinsurance segment increased to 59.1% in 2025 from 53.0% in 2024, reflecting a rise of 6.1 percentage points[493]. Shareholder and Dividend Information - SiriusPoint Bermuda Insurance Company Ltd. declared dividends of $701.6 million to SiriusPoint for the year ended December 31, 2025, compared to $804.0 million in 2024[512]. - SiriusPoint paid dividends of $16.0 million to Series B preference shareholders in 2025, consistent with 2024, while no dividends were paid to common shareholders[513]. - As of December 31, 2025, the company has equity stakes in 18 entities, including MGAs and Insurtech, underwriting a wide range of insurance lines[484]. - The carrying value of the 2017 SEK Subordinated Notes was $292.6 million as of December 31, 2025, up from $244.3 million in 2024[524]. - SiriusPoint entered into a $400.0 million senior unsecured revolving credit facility on December 19, 2024, with no outstanding borrowings as of December 31, 2025[517]. - The liquidity sources for SiriusPoint's operating subsidiaries include net written premium, reinsurance recoveries, and investment income[516]. - SiriusPoint's subsidiaries had a dividend/distribution capacity of approximately $694.7 million as of December 31, 2025, expected to provide sufficient liquidity for the foreseeable future[512].