Q3 catastrophe losses pile up for SiriusPoint
SiriusPoint Ltd, the Bermuda-headquartered global specialty re/insurer, has reported a net loss of $48 million for the third quarter of 2021.
The company reported a combined ratio of 152 per cent and a net underwriting loss of $266 million.
SiriusPoint said catastrophe losses were $287 million or 56 percentage points on the company’s combined ratio, including $132 million for the European floods and $100 million for Hurricane Ida.
Net investment income was $200 million, including a 16.3 per cent return from its investment in the TP Enhanced Fund.
Tangible diluted book value per share decreased 23 cents, or 1.6 per cent, from the second quarter of 2021 to $14.07.
The company said that a $369-million loss portfolio transfer transaction with the Compre Group executed on October 29 will be reflected in fourth quarter financials.
Sid Sankaran, SiriusPoint chairman and chief executive officer said: “The losses the industry has reported – not just this quarter but in the past few years – serve to validate our focus on managing the volatility of our property business, as we continue to implement the changes identified by our line-by-line business review.
“We are making strong progress exiting risks that no longer fit our risk profile or where we do not see attractive risk adjusted returns – the full impact of our efforts will materialise next year due to the heavy January renewal nature of the business. Our losses are offset this quarter by strong returns from our investment portfolio.”
He added: “Our focus remains on delivering sustainable underwriting profitability to create value for our shareholders. This will be achieved by reallocating capital away from property cat and investment risk into our MGA platform within insurance & services, combined with rigorous risk management and disciplined underwriting.
“We expect our actions and improvements each quarter to deliver progress towards the transformational and profitable company we are seeking to become.”