SiriusPoint reports $130.9m profit
SiriusPoint Ltd, the Bermudian-headquartered global speciality re/insurer, has reported net income of $130.9 million, or $1.05 per diluted common share, for the first quarter.
The company reported tangible diluted book value per share of $13.97 as of March 31.
Sirius Point reported net underwriting income of $8.7 million, and a combined ratio of 96.6 per cent. Its net investment income was $186.5 million for the quarter.
On a reported basis, catastrophe losses were $5.7 million or 2.2 percentage points on the company's combined ratio.
The annualised return on average common equity was 26.4 per cent.
SiriusPoint said the company’s A- ratings were confirmed by agencies AM Best, S&P and Fitch during the first quarter.
In February, the company completed the acquisition of Sirius International Insurance Group Ltd and changed its name from Third Point Reinsurance Ltd to SiriusPoint Ltd.
The financial condition and results of operations presented by the company for the first quarter are those of TPRe and its subsidiaries, and do not include the financial conditions and results of operations of legacy Sirius Group and its subsidiaries prior to the acquisition date. The results of operations of Sirius Group are included from the acquisition date forward.
The total deal consideration was $1,077.2 million, the company said, which was comprised of stock, cash, and other contingent value components. The associated bargain purchase gain from the Sirius Group acquisition was $8.6 million, which represents the excess of the fair value of the underlying net assets acquired and liabilities assumed over the total deal consideration.
During the first quarter, the company recorded $40.4 million of corporate expenses associated with the acquisition of Sirius Group, comprised of $29.7 million of professional and advisory fees and $10.7 million of compensation-related expenses.
Sid Sankaran, chairman and chief executive officer of SiriusPoint, said: "I am delighted in our launch of SiriusPoint in the first quarter. We believe our combined company has the platform, capabilities and expertise to take advantage of changing market conditions and compete in a differentiated and effective fashion in the global re/insurance marketplace.
“I am extremely proud that by the closing of our transaction we added world-class talent to our team, strengthened the quality of our balance sheet and refocused our underwriting strategy allowing us to benefit from a strong 1/1 renewal season. We are creating an entrepreneurial and innovative company that is just at the beginning of its transformation.”