SiriusPoint bounces off Q4 loss to post 2021 profit
SiriusPoint Ltd, the global insurer and reinsurer based in Bermuda, has reported net income of $44.6 million in fiscal year 2021.
That result is despite a net loss of $140.3 million in the fourth quarter of the year.
The company reported net income of $134.4 million in the fourth quarter of 2020, and full year net income of $143.5 million.
Fourth quarter highlights include:
•Tangible diluted book value per share decreased $0.80, or 5.7 per cent, from the third quarter of 2021 to $13.27.
•Core loss of $7 million, which includes underwriting income of $35 million and core combined ratio of 93.6 per cent, offset by a core net services loss of $41 million.
•Core catastrophe losses were $24 million or five percentage points on the core combined ratio.
•Net investment loss of $151 million, including a minus 7.5 per cent return from the company’s investment in the TP Enhanced Fund.
Full year highlights include:
•Tangible diluted book value per share decreased $3.44, or 20.6 per cent, from December 31, 2020 to $13.27.
•Core loss of $163 million, which includes an underwriting loss of $174 million and core combined ratio of 110 per cent, partially offset by core net services income of $11 million.
•Core catastrophe losses were $326 million or 19 percentage points on the core combined ratio.
•Net investment income of $313 million, including a 27.9 per cent return from the company’s investment in the TP Enhanced Fund.
Sid Sankaran, chairman and chief executive officer, said: “In 2021 we made significant progress in dramatically reshaping our company.
“Our strategy is focused on a comprehensive re-underwriting of the property and casualty reinsurance portfolio, building value in a newly formed insurance & services segment, including our robust and growing MGA platform, and repositioning our capital allocation within our investment portfolio.
“We believe these actions will reduce our volatility profile and build long-term, differentiated, and sustainable value.
“Our underwriting results for the year reflect a historical overexposure to cat risk and legacy hedge fund re equity exposure. They are not in line with our expectations, but I am pleased with the significant progress we have made towards re-engineering our business.
“We have cut our cat exposure dramatically, reallocated capital to more attractive opportunities, and reduced our risk profile. As a result of these changes, we now have a smaller global property book, an improving and differentiated global specialty and casualty business, and a continuing mix shift from reinsurance to insurance.”
He added: “We enjoyed superior returns from our investment portfolio in the first three quarters of the year. The fourth quarter results reflected poor performance in the broader equity markets, during which we completed a planned reallocation of $450 million from hedge fund exposure to cash and fixed income investments, with an additional $100 million reallocation in Q1 2022.
“We have amended the investment management agreement with Third Point LLC to facilitate the transformation of our investment portfolio from equity to fixed income that is in line with our risk appetite and the strategic direction of the company.
“Our plan is to reduce capital intensity and volatility on the asset side. This frees up capital to support the growth of our insurance & services business.
“Going into 2022, our focus remains on pursuing profitable and sustainable growth, and continuing to shift our business mix as we execute our insurance & services strategy.
“We have financial strength, a flexible underwriting and operating platform, a strong entrepreneurial culture, and a disciplined growth mindset. I am full of enthusiasm for the year ahead.”