SiriusPoint welcomed news that AM Best has upgraded the insurer’s outlook from stable to positive, only a month after Fitch Ratings did the same.

Am Best cited the firm’s “very strong balance sheet”.

The firm’s chief executive, Scott Egan, said the improved outlook was a reflection of the journey the insurer had been on towards stability, underwriting profitability, and becoming a best-in-class insurer and reinsurer.

“This is further recognition of SiriusPoint’s achievements and the work we have done to reshape our future,” Mr Egan said. “I am proud of the team at SiriusPoint who have worked with dedication and commitment to improve our company profile, balance sheet strength, and underwriting performance.”

Am Best affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit ratings of “a-” (Excellent) of SiriusPoint’s rated operating subsidiaries.

Additionally, the rating agency gave SiriusPoint’s long-term ICR, a grade of “bbb-” (Good).

The insurer’s improved balance sheet strength followed actions taken by management, including the derisking of the investment portfolio, reduction in catastrophe exposure, the recent buyback of shares and warrants previously held by CM Bermuda.

AM Best said the ratings also reflected SiriusPoint’s consolidated balance sheet strength, which the agency assessed as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The financial organisation expected the SiriusPoint group to maintain its risk-adjusted capitalisation comfortably at the strongest level, as measured by Best’s capital adequacy ratio, supported by prudent capital management, effective underwriting exposure management and positive operating results.