SiriusPoint(US:SPNT)2021-11-06 21:49Financial Data and Key Metrics Changes - The company reported a net loss of $48 million or $0.34 per diluted share for Q3 2021, compared to a net income of $69 million or $0.73 per diluted share in the same quarter last year [26] - The annualized return on average common equity was negative 7.8% for the quarter [26] - The net underwriting loss for the third quarter was $266 million, with a combined ratio of 151.9%, compared to a net underwriting loss of $30 million and a combined ratio of 121% in Q3 2020 [26][27] Business Line Data and Key Metrics Changes - The A&H segment produced an underwriting profit of $15.2 million with a combined ratio of 86.4%, reflecting good results in third-party business and wholly-owned MGUs [36] - The Specialty segment reported a net underwriting loss of $6.4 million and a combined ratio of 102.6% [37] - The Property segment accounted for 28% of gross premiums written in the quarter, producing an underwriting loss of $264.7 million and a combined ratio of 276% [42] Market Data and Key Metrics Changes - The company experienced significant catastrophe losses primarily from Hurricane Ida and European floods, with estimated insured market losses of $40 billion and $14 billion respectively [8][26] - The company anticipates upwards pressure globally in property cat reinsurance rates of 5% to 8% due to increased price momentum as reinsurers assess global property exposures [43] - The casualty market has seen rate adequacy shift from 98% to over 105% currently, with expectations of slight hardening continuing into 2022 [38] Company Strategy and Development Direction - The company is focused on reducing volatility and delivering sustainable underwriting profitability by rebalancing its portfolio and rigorous risk management [54] - Strategic partnerships with MGAs and tech companies are being pursued to access unique specialty primary insurance business [16][18] - The company aims to shift its business mix from reinsurance to insurance and services, particularly in non-cat-exposed business [22] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need to manage volatility in the Property business and the importance of rebalancing the investment portfolio [9][10] - The company expects to see better terms and conditions in the property market due to heavy industry losses, while maintaining a focus on balancing the portfolio to reduce risk [12][13] - Management expressed excitement about the prospects for 2022, anticipating improvements from portfolio review and actions taken to address the mix of business [55] Other Important Information - The company completed the sale of its Runoff business to Compre, which materially reduces its Runoff segment and provides further certainty on reserve positions [21][47] - The company reported net investment income of $199.8 million for Q3 2021, driven by gains from the Third Point Enhanced Fund [48] - The balance sheet remains strong with $2.6 billion of shareholders' equity, and total capital including debt was $3.5 billion [51] Q&A Session Summary - The Q&A session concluded without specific questions or answers being documented, indicating a wrap-up of the conference call [57]