Sirius posts $67m loss as pandemic losses bite – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

Log In

Reset Password
BERMUDA | RSS

Sirius posts $67m loss as pandemic losses bite

Mail

Print

Tweet

Rate rises: Kip Oberting, CEO of Sirius Goup, says the market is headed for a sweet spot (File photograph)

Claims stemming from the Covid-19 pandemic and natural disasters drove Sirius International Group to a $67 million comprehensive loss in the third quarter.

The reinsurer, which has agreed to merge with fellow Bermudian firm Third Point Re, estimated $39 million of pre-tax losses associated with Covid-19, net of reinsurance and additional premiums due.

Catastrophe losses, net of reinsurance and reinstatement premiums, were $53 million in the quarter ended September 30. The main drivers were Hurricane Laura, ($29 million), an August Midwest derecho ($11 million) and California wildfires ($10 million).

Sirius Group recorded a combined ratio of 115 per cent for the third quarter, indicating an underwriting loss.

For the nine months ended September 30, the comprehensive loss was $202 million, compared to comprehensive income of $34 million for the corresponding period in 2019.

Kip Oberting, chief executive officer of Sirius Group, said: “It was an active quarter for catastrophes and Covid-19 continues to impact our world.

“We remain proactive in our support of our clients as they face, endure and surmount these challenges.

"We have taken actions over the past ten months to optimise our portfolio more aggressively than at any other time over the last decade. The benefits of these actions began to materialise in the third quarter with lighter catastrophe losses than Sirius Group would have experienced without such actions.

“Looking ahead, the full extent of these optimisations have yet to materialise. More significantly, market demand for our capacity is increasing, which is driving terms and conditions to become much more appropriate than they had been during the past few years."

Mr Oberting said the merger with Third Point Re was well timed.

"Equally important, the successful completion of our strategic review process preserved Sirius Group’s franchise,“ he said.

“Upon closing of the pending merger, our underwriting teams are poised to go on offence on behalf of a larger balance sheet — at just the right time in the market cycle. We are headed to a sweet spot. Finally.”

Sirus said its book value per common share was $12.66 as of September 30, compared to $13.18 as of June 30, a decrease of 3.9 per cent for the quarter.

Mail

Print

Tweet

You must be registered or signed-in to post comment or to vote.

Published November 06, 2020 at 12:21 am (Updated November 06, 2020 at 12:20 am)

Sirius posts $67m loss as pandemic losses bite

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon