SiriusPoint Ltd, the Bermudian-based re/insurer, has received a credit rating upgrade from AM Best after improvements to its balance sheet and risk profile.

The agency upgraded the financial strength rating of the group’s operating subsidiaries to A (Excellent) from A- and raised their long-term issuer credit ratings to “a” from “a-“. The long-term issuer credit rating of the parent company, SiriusPoint Ltd., was also lifted to “bbb” from “bbb-“. The outlook for all ratings has been revised to stable from positive.

AM Best said the upgrades are due to stronger balance sheet fundamentals and actions taken by management to reduce risk, including cutting catastrophe exposure, de-risking investments and simplifying the group’s structure.

The agency assessed SiriusPoint’s balance sheet strength as “very strong”, noting that capitalisation was at the highest level at the end of 2025. The company’s capital base grew to $2.5 billion last year from $1.9 billion in 2024, driven by retained earnings.

SiriusPoint’s investment portfolio is conservative, the agency said, with a focus on cash and high-quality fixed income securities. However, AM Best noted that capital flexibility is somewhat limited by funds held as a safety reserve in a Swedish subsidiary.

Operating performance has also improved, with the group reporting a pre-tax profit of $541 million in 2025, up from $233 million the previous year. Combined ratios have remained between 93 per cent and 96 per cent since 2023, marking a turnaround from earlier periods when underwriting performance was above 100 per cent.

AM Best expects underwriting results to remain profitable, with lower volatility as the company shifts away from catastrophe-exposed property lines towards accident and health and speciality business.