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Dec 31, 2022

SiriusPoint Q4 2022 Earnings Report

SiriusPoint reported a net loss and an improved combined ratio for Q4 2022.

Key Takeaways

SiriusPoint Ltd. announced its Q4 2022 results, reporting a net loss of $27 million, or $0.17 per diluted common share. However, the company's combined ratio improved to 90.4%, with underwriting income of $58 million. The company is targeting cost reductions and a double-digit return on average common equity by 2024.

Net loss of $27 million, or $0.17 per diluted common share

Combined ratio of 90.4%, underwriting income of $58 million

Core income of $25 million, which includes Core underwriting income of $31 million and Core combined ratio of 94.8%

Net investment income of $52 million

Total Revenue
$674M
Previous year: $398M
+69.2%
EPS
-$0.17
Previous year: -$0.88
-80.7%
Combined Ratio
90.4%
Return on Equity
-5.7%
Gross Profit
$612M
Previous year: $426M
+43.9%
Cash and Equivalents
$705M
Previous year: $1B
-29.5%
Total Assets
$11B
Previous year: $10.6B
+3.9%

SiriusPoint

SiriusPoint

Forward Guidance

SiriusPoint is aiming to achieve double-digit return on average common equity by 2024 and is targeting cost reduction.

Positive Outlook

  • Progress made as accident year combined ratio improved during 2022
  • Investment portfolio de-risked
  • 1/1 renewals have been positive
  • Continue to operate with a healthy balance sheet
  • Strong contribution from MGAs

Challenges Ahead

  • 2023 will be a transitional year
  • Net services loss for both periods were a result of net investment losses from our strategic investments for the period
  • Increases in adverse prior year loss reserve development in the current year, due to losses in the Aviation and Property lines
  • Lower favorable prior year loss reserve development
  • Several non-catastrophe large losses