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Sep 30, 2021

SiriusPoint Q3 2021 Earnings Report

SiriusPoint experienced a net loss due to significant catastrophe losses, which were partially offset by strong investment returns.

Key Takeaways

SiriusPoint reported a net loss of $48 million for the third quarter of 2021, driven by catastrophe losses of $287 million. This was partially offset by net investment income of $200 million, including a 16.3% return from the TP Enhanced Fund. The company is focused on managing volatility in its Property business and reallocating capital to its MGA platform within Insurance & Services.

Net loss of $48 million, or $0.34 per diluted common share.

Combined ratio of 152% and net underwriting loss of $266 million.

Catastrophe losses were $287 million, including $132 million for the European floods and $100 million for Hurricane Ida.

Net investment income of $200 million, including 16.3% return from our investment in the TP Enhanced Fund.

Total Revenue
$733M
Previous year: $264M
+177.8%
EPS
-$0.34
Previous year: $0.75
-145.3%
Combined Ratio
151.9%
Previous year: 119.9%
+26.7%
Return on Equity
-7.8%
Previous year: 5.1%
-252.9%
Gross Profit
$749M
Previous year: $258M
+190.4%
Cash and Equivalents
$701M
Previous year: $514M
+36.5%
Total Assets
$10.7B
Previous year: $3.53B
+203.2%

SiriusPoint

SiriusPoint

Forward Guidance

The company is focused on optimizing capital allocation, rebalancing towards insurance, and reducing their risk profile to create a sustainable long-term franchise and profitability.

Positive Outlook

  • Optimizing capital allocation
  • Rebalancing towards insurance
  • Reducing risk profile
  • Creating a sustainable long-term franchise
  • Profitability

Challenges Ahead

  • Costs of integrating operations of Sirius Group
  • Impact of COVID-19 pandemic
  • Fluctuations in results of operations
  • Downgrade or withdrawal of financial ratings
  • Inadequacy of loss and loss adjustment expense reserves