SiriusPoint scales back catastrophe business
SiriusPoint Ltd, the global specialty re/insurer based in Bermuda, is scaling back its property catastrophe reinsurance platform by closing three offices and reducing its footprint in two more.
The company said it is closing underwriting offices in Hamburg, Miami and Singapore — and reducing its footprint in Liege and Toronto.
After the anticipated closures and scaling of its operating platform, SiriusPoint will continue to serve clients and underwrite North American property catastrophe business from Bermuda, and international property catastrophe business from Stockholm.
The news comes as the company reported a net loss of $98 million in the third quarter of the year.
The combined ratio was 107.7 per cent.
Consolidated underwriting loss for the third quarter was $46.9 million compared with $237.9 million in the third quarter of 2021.
In the third quarter, catastrophe losses, net of reinsurance and reinstatement premiums, were $114.6 million, or 18.8 percentage points on the combined ratio, including $80.1 million for Hurricane Ian and $34.5 million for other third-quarter catastrophe events.
This compares with $283.5 million, or 58.2 percentage points on the combined ratio, including $132 million for the European floods and $100 million for Hurricane Ida, for the three months ended September 30, 2021.
Third-quarter gross premiums written were $844 million with a split of 62 per cent insurance and 38 per cent reinsurance reflecting the execution of a strategic shift towards Insurance & Services, the company said.
SiriusPoint had a net investment loss of $28 million.
The annualised return on average common equity was negative 20.1 per cent.
SiriusPoint reported a net loss of $376 million for the nine months ended September 30.
Scott Egan, the chief executive officer, said: “Our third-quarter results show demonstrable progress year-over-year, despite catastrophes in the quarter, including the significant impact of Hurricane Ian.
“We are seeing improvements as a result of underwriting actions taken over the last 18 months, which are gaining momentum. Our focus is on making SiriusPoint a more efficient, more profitable, underwriting first business. Our 2022 performance to date shows that we are not standing still in this regard, and we anticipate further progress as we continue to develop and execute our plans.”
Mr Egan said the rescaling of the company’s property catastrophe platform “is an important step in stabilising SiriusPoint’s reinsurance business and positioning the company for underwriting profitability in this volatile market”.
He added: “With these actions, we provide clarity on our future priorities, our risk appetite and our strategy to win in a competitive market. As a result of this transformation, we believe that SiriusPoint will be a more disciplined company and better positioned to adapt to market developments more quickly and more effectively.
“The decision to reduce our global footprint and headcount was not an easy one. It was driven by the significant, increasing effects of climate change, including under-modelled perils, and the challenges faced by the catastrophe reinsurance market, which, for consecutive years, has seen poor historical performance and inadequate returns on capital.”
SiriusPoint also announced changes to its executive leadership team.
Monica Cramér Manhem, president, international reinsurance and CEO, SiriusPoint International, is to retire. She will remain in her role and continue to lead the company’s international business as she works with Mr Egan to appoint a successor.
David Govrin has been promoted to the expanded role of global president of SiriusPoint and chief underwriting officer.
Additionally, Dhruv Gahlaut is joining the company and the executive leadership team as head of investor relations and chief strategy officer.