SiriusPoint reports ninth consecutive quarter of underwriting profits with FY Core combined ratio of 91.0%

Core Insights - SiriusPoint Ltd. reported a significant improvement in its Core combined ratio, which decreased to 91.0% for the full year 2024, despite increased catastrophe activity [1][6][20] - The company achieved a 21% growth in gross premiums written for the fourth quarter and a 10% growth for the full year in its continuing lines business [1][6] - Underlying return on equity reached 14.6%, at the upper end of the target range of 12-15% set a year ago [2][10] Financial Performance - The Core combined ratio for the fourth quarter was 90.2%, reflecting a 3.2 point improvement year-over-year, with Core underwriting income of $200 million for the full year [6][20] - The company reported a net loss of $21 million for the fourth quarter, influenced by one-off items related to repositioning efforts, while underlying net income for the quarter was $44 million, contributing to a total of $304 million for the year, a 14% increase from the previous year [6][10][12] - Book value per diluted common share increased by 9.4% from December 31, 2023, to $14.60, with a strong balance sheet post-transaction [10][20] Segment Performance - The Reinsurance segment saw gross premiums written increase by 24.0% in the fourth quarter, driven by new business and renewal growth, although underwriting income decreased due to higher catastrophe losses [23][24][27] - The Insurance & Services segment experienced a 3.8% decrease in gross premiums written for the fourth quarter, but segment income improved significantly to $48.4 million, driven by lower attritional losses [29][30][32] Investment Performance - Total net investment income for the year was $289.7 million, primarily from interest income, despite unrealized losses on long-term investments [37][38] - The company shifted its investment strategy to diversify its portfolio, resulting in increased investment income compared to the previous year [37][38] Strategic Outlook - The company views 2024 as the conclusion of its significant reshaping efforts, with a focus now on growth and performance enhancement for 2025 [3][4] - SiriusPoint continues to rationalize its equity stakes in managing general agents, reducing the number from 36 to 20, while increasing the book value of consolidated MGAs [34]