SiriusPoint Ltd (SPNT) Q3 2026 Earnings Call Transcript

Good morning, ladies and gentlemen, and welcome to the Serious Point third quarter 2026 earnings conference call. During today's presentation, all parties will be in a listen-only mode. Following the conclusion of prepared remarks, management will host a question-and-answer session and instructions will be given at that time. As a reminder, this conference call is being recorded and a replay is available through 11.59 p.m. Eastern Time on November 20, 2026. With that, I would like to turn the call over to Liam Blackledge, Investor Relations and Strategy Manager. Please go ahead.

Good morning, and thank you for joining us for Sirius Point's third quarter and nine-month 2026 earnings call. Last night, we released our earnings press release, Form 10Q, and financial supplement, all of which are available on our website at investors.siriuspt.com, along with the slides that will accompany today's discussion. Joining me on the call are Scott Egan, our Chief Executive Officer, and Jim McKinney, our Chief Financial Officer. Before we begin, I'd like to remind you that today's remarks contain forward-looking statements based on current expectations, and actual results may differ materially. We will also reference certain non-GAAP financial measures, which we believe are useful in evaluating the performance of the business. Reconciliations can be found in the presentation and our SEC filings. Please refer to our earnings release and accompanying materials for a more complete discussion of forward-looking statements and non-GAAP measures. With that, I'll turn this call over to Scott.

Thanks, Liam, and welcome, everyone, to a third-quarter and nine-month results call. Before I come to the results, I want to welcome John Sauerland to our board of directors. John brings more than 35 years of insurance industry experience, and I'm sure many of you will know him from his time at Progressive, where he most recently served as Chief Financial Officer. John will be a strong addition to the board, and his appointment speaks to the quality of the business we're building and their ambitions for the future, and I'm really looking forward to welcoming John to Sirius Point. Starting to the results now, the third quarter saw Sirius Point deliver another strong performance with attractive underwriting margins, disciplined growth, and returns above a 12% to 15% ROE target range. We continue to demonstrate the strength of our diversified specialty underwriting portfolio, which is increasingly important as pricing becomes more competitive in multiple lines of business. Our business model and approach to the market is delivering strong premium growth in the places we want it, and where we see attractive underwriting margins. The performance this quarter is further evidence of our portfolio mix and deliberate low volatility strategy delivering for our shareholders. Our stated aim is to deliver a 12-15% return across the cycle, and this is another quarter where we have exceeded that target and created strong shareholder value. Throughout the nine-month mark, our key takeaways are unambiguous. The business is performing strongly. We are committed to underwriting discipline. We actively and carefully manage our portfolio mix and volatility. We are growing and have a healthy pipeline of business opportunities. And we have a strong balance sheet and can be agile in our deployment of capital. Jim, we'll take you through the full financials later in the call as usual, but as a brief overview, the third quarter saw us deliver 20% growth in insurance and services and a core combined ratio of 90.1%. Our operating return on equity was 17.6%. Year-to-date, insurance and services had grown by 14%, while overall core growth of 7% reflects our disciplined approach to reinsurance, where we have shrunk premiums by 6%. On a year-to-date basis, our core combined ratio was also 90.1%, and our operating return on equity is 15.8%, above a 12% to 15% target range. Book value continues to compound at a strong rate, excluding AOCI. Our diluted book value per share increased by 4% in the quarter, and is now up 12% through the first nine months. Core operating the tonne and equity, which excludes the runoff portfolio result, was 18.1% for the quarter and 17% for the first nine months. This metric becomes increasingly important given today's announcement that we have entered into a lost portfolio transfer agreement with Riverstone that will substantially cover our remaining runoff exposures. The transaction is subject to customary regulatory approvals, and following completion, our run-off exposures will be at de minimis levels. Put simply, this transaction allows us to effectively close the chapter on the legacy book once and for all. The transaction is supported by a significant limit and strong collateral, while Sirius Point will retain some responsibility for claims administration. As I have previously discussed on these calls, the runoff reserves relate to business written before 2023, prior to when the organisation pivoted to its new underwriting strategy. They have been running off and reducing over the past few years, but carry the potential to cause reserve volatility along the way. Since 2024, pure underwriting losses, excluding claims administration expenses, have totaled approximately $60 million for the runoff portfolio. Therefore, we see the mitigation of this uncertainty as a further positive step and one we hope reinforces the earning strength of our go forward core portfolio, which, as I said earlier, is operating well above our 12 to 15% return on equity target. We feel that our reserve position was strong prior to the LPT, reflecting our approach to initially reserving NGAs above pricing projections and our track record of 22 consecutive quarters of favourable prior year releases. Following the transaction, we feel we are in an even stronger reserving position as we have removed what we believe is the greatest element of uncertainty. Jim will discuss the expected accounting impact, but importantly, it also frees up capital tied to these legacy reserves of over $200 million on completion, and will increase our BSCR ratio by around 20 points. I'm sure I will get asked what we plan to do with this capital, and our prioritisation remains unchanged. We want to deploy it to support our organic growth, where it meets our strict underwriting targets. Beyond that, we will continue to be thoughtful and dynamic in our approach to capital management, returning excess capital to shareholders when appropriate. This can be seen by our track record where we have returned $300 million of capital in 2026 alone, on top of the $1 billion of capital returned from strategic capital actions between 2024 and 2025. In line with the established practice we have set out, we expect to provide an update on our capitalisation levels and capital return programme in the fourth quarter earnings call following the closeout of 2026 and the completion of our 2027 planning process. In the meantime, we will continue with our current buyback programme, which we set out earlier in the year. What is clear is that our balance sheet, capital strength, and agility have never been higher or stronger, and that's a good thing for all stakeholders. Looking at slide 11, where we show our core operating ROE metric, as I noted earlier, this becomes a more important metric as we think about the business performance going forward post the LPT, and one that we introduced at the beginning of this year with this evolution in mind. By reducing the earnings drag associated with the legacy book, the LPT should drive greater alignment between our core operating ROE and operating ROE on a go-forward basis. There will still be claims administration and related expenses for a period while it runs off. Our core operating ROE has exceeded our 12% to 15% target for the past two years and is above again for the first nine months of this year. The LPT transaction reinforces the company's ability and confidence to meet or outperform that range going forward. Looking briefly at slide 7, our track record for both earnings and value creation is strong and consistent. Operating earnings per share continue to grow And are up 19% in the third quarter and 17% year-to-date versus the prior year. On the back of this, our book value per share continues to compound at a healthy rate, with a compound annual growth rate of 19% over the last three years. We have grown book value per share by 12% just in the first nine months, reinforcing that trajectory. These numbers demonstrate a momentum and a consistency which I believe validates our strategy and approach to building a diversified portfolio that targets discipline and sustainable growth. Slide 12 talks to this portfolio and illustrates the scale and breadth of our specialty platform, the meaningful positions we have across multiple lines, and our active management of the various pricing cycles. Importantly, where we are growing and where we are reducing exposure is consistent with the market conditions we have been describing to you and those evident across the broader market. We do not need to maintain positions in lines where returns do not adequately compensate for the risk-taking. We have other opportunities to deploy our capital more attractively. You can see this in action with solid growth in accident and health, surety, and pockets of T&C insurance lines, while we are reducing premiums in aviation and property cap reinsurance. We are not afraid to either lean in or lean out in specific markets, and Jim will provide more colour in each of the specialties later in the call. We also want to outline our plans today to update our segment reporting beginning in the fourth quarter. Since 2022, we have changed significantly and have evolved from our roots as a Bermudian reinsurer into a specialty underwriter with a strong insurance focus anchored around key specialty lines of business. Increasingly, these specialties reflect how we discuss and manage the portfolio today, dynamically balancing market conditions and mix to deliver low volatility outcomes for the total portfolio, which we are clear drives the best value creation for shareholders. We think our financial reporting should reflect that evolution, so beginning in the fourth quarter, we expect to update our financial reporting segments to better reflect the evolution of the business and how we manage the company. Accident and Health, our largest specialty line, writing over $1 billion of premium, becomes a standalone segment. A&H is strategically important to SeriousPoint, given its track record of profitability, Low correlation with P&C market cycles and relatively low capital intensity. These are attributes we regularly highlight to investors and that generate significant interest. Reporting A&H separately will make its importance and performance more transparent beyond just words. The remaining nine specialties form a new segment called Specialty P&C. For clarity, our core result remains unchanged. and is comprised of the combination of these two proposed segments. Both segments currently operate at combined ratios in the low 90s, and we plan to publish unaudited recast financials prior to the issuance of the Form 10k. We will continue to provide supplementary premium growth trends on an insurance and reinsurance basis for continuity. We believe this change will demonstrate more clearly to all stakeholders how our business has changed as it is more congruent with how we manage the business internally and aligns with how we talk and describe ourselves externally. It will also help investors evaluate our performance against our US specialty peers who report in a similar manner as we continue our market education on the evolution of our business. It will position us more appropriately alongside tiers that better reflect our business mix, performance profile, and valuation potential. Before I hand over to Jim, let me close with some key takeaways as we reflect on our performance through the first nine months and look to close out another strong performance year. The third quarter is yet another strong, low volatility quarter operating above our return on equity guidance. Our track record continues to demonstrate the consistency and predictability between what we say and what we deliver. This matters. The continued discipline growth of our insurance business is creating real shareholder value, and our pipeline remains strong. Our capital position, balance sheet, and ratings are strong, coupled with an ability to deploy capital quickly where we see opportunity. Our LPT announcement today, with respect to our runoff reserves, removed the last part of our legacy portfolio and highlights unambiguously the strong performance of our core business. And finally, we are not standing still. We are not a team who are complacent in any way. Our ambition runs deep, and we are determined to continue to improve the business, providing attractive underwriting returns across the cycle. And continue to compound shareholder value. A track record on all of these points is there to be seen. And with that, I'll pass over to Jim.

Thank you, Scott, and good morning or good afternoon, everyone. I'll provide a bit of additional detail to our third quarter and nine months financial results, then cover underwriting, investments, capital, and the balance sheet. Turning to our financial results. The quality and diversification of the portfolio Scott described are reflected in another quarter of solid operating performance. Gross written premium growth accelerated in the third quarter, driven by continued strong growth in insurance and a return to modest growth in reinsurance. Core gross written premium increased 14% to $991 million, while net written premium increased 2%, reflecting growth in lower retention lines, such as surety, as well as changes in business mix. EARM premiums increased 19%, including the impact of changes in premium earning estimates recognized in the quarter. The core combined ratio was 90.1%, resulting in underwriting income of 76 million, a 9% increase from a prior year period. The results reflect the combination of current period underwriting performance and favorable prior year development, which I'll discuss in more detail shortly. Our diversified earnings engines also contributed to the quarter. Net services fee income increased 21% year-over-year to $12 million. Growth was 44% on the adjusted go-forward MGA basis. Total investment income was $69 million, including $66 million of net investment income. Operating net income was $103 million for the third quarter. Operating earnings per diluted share were $0.88, up 19% year-over-year. As Scott noted, diluted book value per share, excluding AOCI, increased by $0.73 during the quarter to $20.21. Together, our operating performance and disciplined capital management continue to support growth in per share value. The quarter's key takeaway is that diversified underwriting, services, and investment earnings translated into consistent operating performance, attractive returns, and growth in shareholder value. Turning to slide 19. The first nine-month results reinforced the broader themes evident in the third quarter, strong underwriting profitability, growing fee-based earnings, and a meaningful contribution from investments. Core gross written premium grew 7% to nearly $3 billion, with net earned premiums also growing at 7%. Our growth remaining subject to attractive underwriting conditions and our continued focus on profitability. For underwriting income increased 22% to 202 million, with the combined ratio improving 1.3 points to 90.1%. The improvement was led by reinsurance, where the combined ratio improved 4.3 points to 87.4%, benefiting from lower attritional loss experience and significantly lower catastrophe losses. Insurance and services underwriting income remain broadly stable, while favorable prior-year development across both segments continue to support the overall result. We continue to see strong contributions from both our fee-based and investment-earning engines. As a result, operating earnings per share increased 17% year-over-year to $2.29, and diluted book value per share, excluding AOCI, increased by $2.11 to 2021. Overall, the first nine months demonstrate the quality of our franchise, reflected in strong underwriting profitability, increasing diversified earnings streams, and continued growth per share value. Our strong performance and robust balance sheet provide us with substantial flexibility in how we deploy capital and maximize shareholder value. Turning to segment performance on slide 20. The results continue to reinforce the themes Scott and I have discussed today, growth driven by our insurance and services business and continued discipline in reinsurance. Gross written premium in insurance and services grew 20% in the third quarter, driven by credit, surety, and increases in premium estimates for FINPRO. This was partly offset by lower A&H premiums following the non-renewal of a specific large program. We expect A&H premiums to return to low single-digit growth in the fourth quarter, while the pipeline entering 2027 remains encouraging. The segment produced a strong combined ratio of 92.8% for the quarter and 92% year-to-date. The higher acquisition costs include profit commissions associated with favorable underwriting performance across multiple accident years. Those commissions should, therefore, be considered together with the corresponding improvement and loss experience when assessing the overall underwriting result. The combination of strong growth and underwriting performance reflects both the quality of opportunities we are pursuing and the discipline with which we are deploying capital. Reinsurance gross written premium returned to growth, increasing 3% in the quarter, while year-to-date premiums declined 6% as we maintained our focus on profitability over volume. The combined ratio improved 1.9 percentage points in the quarter and 4.3 points year-to-date, primarily due to lower catastrophe losses. The acquisition ratio increased its favorable loss experience, drove higher variable commissions, and business mix shifted toward more stable, structured business, partly offset by lower attritional losses. Across both segments, losses recognized to date in relation to the Middle East conflict remain limited. Overall, these results reflect the quality of the portfolio we have built, with strong growth in attractive areas of the market, active portfolio management, and continued discipline where risk-adjusted returns are becoming less compelling. Circling back and double-clicking into our core specialty lines shown on page 12. Accident and Health, our largest line at 26% of premium mix, combines attractive profitability with relatively low capital intensity. Employer Stop Loss continues to show signs of firming, and we remain well-positioned to capitalize on improving market conditions. Within U.S. medical excess of loss, we are seeing rate expectations in excess of 20%. As Scott mentioned earlier, we plan to update our underwriting segments in the fourth quarter. Under the contemplated structure, Accident Health will become a standalone segment with our remaining nine specialties comprising a new specialty P&C segment. General liability continues to benefit from discipline pricing, with rate broadly keeping pace with loss trends, despite some moderation in the pace of increases. We remain selective, focusing on areas where our underwriting expertise and market positions support attractive risk-adjusted returns. Financial and professional lines remain competitive, particularly in D&O and professional liability. While market conditions are showing signs of stabilization, we continue to prioritize margin over growth. Other property remains mixed. We have reduced participation where reinsurance pricing has softened, while selectively pursuing insurance opportunities where returns remain attractive. Surety pricing remains stable and continues to provide attractive diversification. While we are monitoring emerging loss trends, our portfolio remains differentiated with an emphasis on commercial surety and limited exposure to larger project-related risks. In aviation, we continue to expect double-digit rate increases for major airlines during the fourth quarter renewal season. Despite the improving rate environment, we remain disciplined in our deployment of capacity. Credit remains well-priced and delivered strong growth in the quarter, supported by favorable market conditions. Within other casualty, we continue to reduce auto exposure in response to unfavorable lost cost trends, while environmental continues to deliver strong growth and performance. Marine and energy remains mixed. We continue to see attractive opportunities in selected energy and specialty niches, while competitive pressure persists in ports and terminals and upstream energy. Marine war pricing remains elevated amid continued regional geopolitical uncertainty. Finally, and property catastrophe reinsurance, which now represents approximately 4% of the portfolio. We expect continued pricing pressure consistent with our strategy. We have reduced participation and reallocated capital towards more attractive opportunities across the portfolio. Overall, market conditions vary across our specialties, but our approach remains consistent, maintain underwriting discipline, prioritize the opportunities offering the strongest risk adjusted returns, and continue improving the quality and resilience of our earnings.

Looking specifically to the fourth quarter,

the non-renewal of a FINPRO program, together with certain one-off premium in the prior year comparison, is expected to result in specialty P&C premiums being modestly lower year-over-year. We expect growth to resume in 2027 as these comparison effects normalize. Turning to slide 21. We recorded our 22nd consecutive quarter of favorable prior year development. We believe that track record is consistent with the discipline reserving approach we have maintained, while recognizing the inherent uncertainty and reserve estimates. Favorable development in the third quarter came from multiple lines of business, including accident and health, energy, credit, and property. The consistency of our reserving approach supports confidence in the quality of our balance sheet and our ability to manage capital through the cycle. Turning to slide 22, our investment portfolio continues to perform as intended, providing a stable and predictable contribution to earnings alongside our underwriting and fee income. For the first nine months, net investment income was $198 million, and total investment income was $220 million. Portfolio credit quality remains unchanged. Avid credit quality is AA-. Approximately 99% of the portfolio's investment grade, private credit exposure remains limited, and there were no fixed income defaults during the period. A reinvestment rate exceeded 5% during the quarter, as interest rates have risen globally. Together, with strong liquidity and a short-duration profile, the investment portfolio remains well-positioned to support durable earnings. Focusing on slides 23 and 24, a strong performance and balance sheet provide flexibility to allocate capital across attractive growth opportunities and shareholder returns. Our estimated BFCR ratio was 232%, providing a meaningful buffer against severe stress scenarios. The LPT transaction Scott mentioned earlier further strengthens our well-capitalized balance sheet. We estimate that the LPT will increase the BFCR ratio by approximately 20 points on a pro forma basis upon close. Touching briefly on the LPT, on a go-forward basis, we expect runoff losses to have a negligible impact. That expectation should be distinguished from the retained claims administration responsibilities. The expected day one cost of the LPT is approximately $60 million, and the structure of the transaction provides serious point with potential future upsides. We view that upfront cost in the context of the transaction's broader benefits, including reduced legacy volatility and the expected improvement in our capital position. Following $27 million of common share repurchases in the quarter, 74 million remains under our authorization. With the announcement of the LPT, we plan to resume share repurchases while continuing to prioritize capital required to support profitable growth and maintain our strong balance sheet. We will continue to return excess capital to shareholders when appropriate. Our debt to capital ratio remains historically low at 23%. With a billion in liquidity, we have significant flexibility to fund the business, pursue market opportunities, and deliver on our strategic priorities. Importantly, we continue to believe our current valuation does not fully reflect the value of our consolidated MGA platform, particularly IMG, nor the quality and earnings power of the broader franchise. Our focus remains on demonstrating that value through consistent execution

and disciplined capital allocation.

To conclude, Underwriting excellence, volatility reduction, and balanced capital management continue to drive strong results. We are proud of what we have delivered in the third quarter and across the first nine months. This quarter, we once again delivered disciplined yet attractive premium growth, strong underwriting profits at healthy margins with a continued focus on sustaining profitability, net investment income well supported by portfolio yields, returns comfortably meeting across the cycle targets, And continued capital strength and balance sheet flexibility. Subject to the customary regulatory approvals and completion, the announced LPT transaction is expected to unlock capital and further improve the group's capital flexibility. We enter the fourth quarter with a strong balance sheet and a well-positioned underwriting and investment portfolios. Building on the quality of our franchise and our track record, our priorities are to maintain underwriting discipline, complete the legacy portfolio transfer, and allocate capital to compound shareholder value, supporting profitable growth, and returning excess capital to shareholders when appropriate. With that, I'll turn the call back to the operator, and we'll open the lines for questions.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Our first question is from Michael Phillips with Oppenheimer & Co. Please proceed with your question.

Yeah, thanks. Good morning, everybody. I guess first question on the top line on the insurance segment, the international A&H, can you talk about that a bit? Why was it exited? The size of it? Was there any prior year development in that? You mentioned PYD as A&H. Was there any in the international? Was it a profitability issue that you exited that business, and how big was it?

Hi, Mike. Thanks for the question. Good to hear from you. Look, I wouldn't over-index, Mike, if I'm honest, in any one specific thing. I mean, look, we're always going to have accounts and relationships that we exit, etc. I think the overall message in A&H is it had positive PYD again, and that's a long track record of PYD that it's had. You know, we exit relationships because for a multitude of reasons, sometimes it's performance, sometimes that, you know, they choose to exit and go other places. For us, this was a performance reason. We weren't getting the traction that we wanted on the underwriting actions. I think the thing you should take from it is the A&H segment has performed again really strongly in the quarter, really strongly year to date. So, you know, we've been very transparent in calling it out, but it's not really a huge deal.

Okay, thank you. A couple questions around the LPT. The claims administration that you'll do, it looks like a mid teens, I guess, millions of claims administrative calls. Does that feel about right for that?

Jim, do you want to give the guidance on the claims handling?

Yeah, sure. In terms of, I guess, when you say mid-teens, can you help me clarify? Are you thinking from, can you just help me clarify what you're looking at?

Yeah, Jim, I'm just looking in your corporate section. If you look at the other underwriting costs, it's, you know, around 15, 16 million here. Is that the right number that's paid? Okay.

Yeah. Sorry. Yeah, that's relatively the right number to consider.

That is correct. And can you talk about the tail of that? Like, how long does this, you know, it's business written before 2023? I don't know what's in that. How long? Yeah. So.

I would generally expect that Mike to amortize over roughly a 3 year period, or when I say amortize, it'll come down. You know, somewhat, I wouldn't say exactly linear because it follows obviously the settlement of claims, but it basically has about a 3 year, 2 and a half to 3 year tail with it. And you'll see on a year of a year basis. I would expect that number to come down correspondingly with claims and settlements as they occur.

Okay. Thanks. Thanks, Jim. I mean, the last one, just a little more higher level, I guess, with the with the retest of your segments. Scott, you've talked about. The strategic value of continuing with reinsurance. And you said you'll continue to provide reinsurance. But does this recast anything about the strategic rationale, the way you view reinsurance with your MGA business?

No, definitely not, Mike, and I'll reinforce a few really important messages. Look, we are leaning out in parts of reinsurance, which we've trailed really clearly in the first half of the year, but that shouldn't be seen as strategic. That is normal cycle management for segments within reinsurance. I think we're happy to deploy capital in reinsurance where we see attractive returns, and we are, and you saw that in Q3. And for us, and I've mentioned this before, we actually see the way that we approach clients and customers. For example, NGAs is often a blend of both reinsurance and insurance solutions. And so you should see the important strategic importance of reinsurance in that regard as well. So I would not read. That reinsurance in any way is not strategically important to the business. Hopefully that answers your question.

Yeah, it sure does. Yeah, thank you. Thanks both, and congrats again.

Okay, thanks, Mike. Appreciate the questions.

Our next question is from Roland Mayer with RBC Capital Markets. Please proceed with your question.

Hi, good morning. Scott, this LPT transaction sounds like it's the culmination of the underwriting turnaround, but you've also been active in cleaning up your various financing vehicles. Is there any further balance sheet optimization going forward, or should we think about the capital decisions now as largely purely forward-looking options?

Yes, I'll pass across to Jim in a second, Roland. There's definitely a little bit more work that we probably do in the debt stack, but Jim can explain that. But look, I think you absolutely should see the LPT. As the sort of closure of the past, and as I said, you know, for me, when I came in, we re-pivoted the business from an underwriting perspective. Doing an LPT on that sort of three years ago, Roland wasn't really an option. We think this is an optimal time to do it. It's one of the reasons why we've been sort of trailing the information and some of the metrics like the core operating ROE, and hopefully you can see the earnings power and potential of that business. And so for us, this allows us to close off the past from an underwriting perspective and you should definitely see it as the closure of that. I think it also allows us to redirect capital backing, what I would call historical strategy, and repoint it towards future strategy and other capital actions. So we're really pleased. To get it done, Roland, we think it's optimal at this point in our journey. And Jim, why don't I pass it across to you for just some balance sheet. But there's nothing, I would say, Roland, at a high level for Jim, there's nothing significant. All the big work, you know, obviously we did things like China Minsheng in our past and other bits and pieces. There's nothing of that type of significance anymore. And, you know, 99% of our efforts are in the go forward potential of the business. But Jim, do you want to give a bit of colour?

Yeah, happy to. So I would, I think I'd break it down into a couple of components. I think when you look at our balance sheet, you're going to see that there are still some strategic minority interests. MGA elements that we hold and that those are anticipated to kind of monetize at what would be their normal portfolio events. And so that will give us an opportunity as we work through there to have additional components of our funds deployed to, you know, NII, consistent NII as we go forward. Again, relatively immaterial in terms of where we started this. So think about a balance sheet that has less than kind of 100 million of it deployed relative to those activities.

As Scott indicated,

the second piece that I think will be more meaningful through time is we do have the ability and we'll take that ability as we go forward to further optimize the debt stack of the company. It was put on with credit spreads and that, you know, prior to reaching kind of the financial status and the strength that we have today. And I think with the natural. You know, components, as you see elements come to their natural maturity, we'll be able to take advantage of that and further optimize our balance sheet and the cost of capital that's coming through to essentially maintain more of the earnings that we generate for effectively the equity holders versus where we're paying out a higher percentage of those today from a debt perspective and an interest cost perspective.

Thank you. That's very helpful. And then, Jim, I believe you said you plan to resume repurchases. So was the $27 million in the quarter impacted by the LPT, and do you still expect to complete the authorization this year?

The answer to both of those questions is yes. Whenever you have material, non-public information, and as we got to a level of kind of certainty on kind of where we're headed, that obviously plays an impact in terms of what we're able to do from a market perspective. And so that did impact, you know, our ability to execute the program in the quarter to the extended run. In terms of the end of the year and where we're at, we intend. You know, to effectively restart the program and would expect to, at least, whether it's a meaningful component or all of it to execute that component between now and the end of the year, if there's a component of it that trickles over into one queue, that's more about market conditions and other limitations that we would have versus what do we think is an attractive place for us to be in the market from an economic perspective.

Thank you. That's very helpful. And then this might just be a housekeeping item, and I might have missed it, but I didn't see an expected close on the LPT. I assume it's fairly quick in the 400 million of assets transfer at close.

Yeah, no. Yeah, look, we never try and forecast regulatory approval, Roland. We're not trying to be evasive in an ideal world. We would get it done in Q4. Could it slip into Q1? Maybe. We'll obviously keep you posted on that. I promise you. I don't control that part of it, but we'll do our absolute best. to get it done in in this year.

Thank you and congrats again.

Okay, thank you, Roland. Appreciate the questions.

Our next question is from Andrew Anderson with Jefferies, LLC. Please proceed with your question.

Hey, good morning. You had described the 27 pipeline as encouraging. Maybe you could just talk a bit more about which businesses are contributing most to that pipeline, how you think about, you know, level of organic premium growth into next year. And I suppose I'm particularly looking at just the nine-month core GPW of about 7%, but net was down about 1%, I think, because of some new reinsurance. So maybe just some thoughts on net premium opportunities into next year.

Yeah, so it's a good question, Andrew, and thank you. Look, I think one of the things I'd say is we're right in the midst of our 27 planning. In fact, we were going through it with the board this week. I would probably highlight our MGA Global Programmes business. It's having a very strong and healthy pipeline. As you know, we're very selective about who we work with and what that looks like, but we've got plenty of opportunities to work through, so we do feel encouraged by that pipeline. We don't obsess about that on a quarter by quarter basis. I know we have to stand in front of you guys in the market and talk about it, but we actually look at growth over a year, and we think that sort of irons out any anomalies. I think our A&H business, we're feeling quite upbeat going into 2027. We think we've got good opportunities driven by many of the portfolios there. IMG, we're seeing things like employer stock loss where capacity has reduced in the marketplace. I wouldn't say the market's hard or hardening, but we're starting to see green shoots in that regard. So actually, we're seeing A&H as encouraging as well. I think that the market that's probably harder for us is reinsurance. We were definitely seeing the trends that you guys are seeing across right across the marketplace. We think Property Cat, which obviously is not as material for us as it was, roughly 4%, we think that will be another tough set of renewals at 1-1. But we are seeing opportunities in the structured markets, which we like. We're very selective. And obviously, David Gover and the team work them through very selectively. So we might see some opportunities. But I would highlight reinsurance as probably the area that is tougher in terms of market conditions. And look, in terms of our London market business, we had our stamp capacity increased for, I think, either the fifth or the sixth time by Lloyd. And so that's a continuation of a journey that we've been on for several years. The early part of that was very much remediation, Andrew, but I think we're really getting into a stride now with our Lloyds syndicate. And obviously, we're actually attracting, as I think we touched on the last call, we're attracting individuals to serious point that we believe over time will bring good quality business to the organisation. So that would be my pen picture at the moment. I'm afraid we're still in the midst of our plans and we'll give a bit more colour. Andrew, when we stand up at a full year result at the beginning of the year.

And, Andrew, what I would highlight in terms or add to what Scott's indicated, the mixed shift that has come across this year has led to essentially kind of that difference, or it's kind of more accentuated in terms of the difference as it relates to, would you expect generally the gross written premium growth to then, you know, come in on the same element from the net written premium? So I'd say this year there was a little bit of a normalization kind of with the changes at the earlier component of the year relative to renewal cycles, the reinsurance market, and other components as we essentially pivoted more of the business towards the insurance side and what we saw were attractive opportunities within that space. So an example of that would be surety. Surety is a line that we tend to hold a little bit less of in terms of the total amount from a when you're looking at just kind of what the average ratios are coming across. And so I would just say that that normalization has largely played out this year based on what I would expect. And then as we go into 2027, there's an opportunity there such that you'll see more of our gross premium written essentially work its way into the net written premium on a go forward basis. Again, kind of assuming that we don't see the same type of mixed change that we saw this year.

Andrew, I would say that's an important principle for us that I think we've talked about in a few of our investor meetings, which is we take our time when we bring on relationships and we mature into them. And so we're always asking ourselves the question as to whether we can take more net risk. And certainly the answer is we can. And it's a question of. Timing, and that's some of the evaluation that's going on at the moment, as Jim alluded to, as we walk through and finalize and sign off our 27 plans. So, look, I feel some answer, but I hope that gives you some additional color, Andrew.

Yep, thank you. And just on employer stop loss, it sounded like you're seeing rate around 20%. How does that compare with your view of underlying medical or pharmacy trends, and how could that impact kind of the combined ratio profile on employer stop loss, but A&H more broadly?

Yeah, look, I think we're not getting ahead of ourselves with employer stock loss. I think I would pause and say, look, I think the time to give you a further update will be our results when we give you them, full year results. So we'll know a bit more by then. As I say, I'm... I'm a bit reticent to say too much because I think it's early days, but we probably feel more hopeful given some of the capacity changes in the market. And as a reminder, we've outperformed the market on a profitability perspective in employer stop loss by about 10 points. It's there for people to sort of read and see. And we've done that because we actually didn't grow, unlike others. So that was a very deliberate cycle management by us and employer stock loss. So we feel pretty primed if the market starts to harden. In terms of the wider A&H portfolio, I would say, Andrew, we are broadly carrying rate in line with claims inflation and we're happy to lean in. There's been moments in our past where we've had to carry more rate and we've seen examples of that, I would say particularly post-COVID, etc. But I would say we're carrying rate at least in line, and in some cases, slightly more than claims inflation. And obviously, the starting point of the overall A&H portfolio is one of high profitability. So those are some of the dynamics that we've seen across our A&H book, which is also well diversified. Thank you. Super. Thank you, Andrew. Appreciate the questions.

Our next question is from Timothy D'Agostino with B. Riley Securities. Please proceed with your question.

Hi, good morning. Thanks for taking the questions and all the color today. I guess just on my end, stepping back, the business today looks more like a specialty insurer than maybe a Bermuda reinsurer. So, as we think about the recast, How do you think about corporate structure going forward? And I guess one area there that I would be interested to hear about is, you know, your Bermuda domicile. Do you, like, is there benefits to potentially redomiciling or, you know, does that, does it make sense to continue to be domiciled in Bermuda? Kind of think, you know, how you position Series Point with investors over the next few years as, again, the business just continues to look more like a specialty insurer. Thank you.

Yeah, Tim, listen, very good and very fair question. And I'm not going to get drawn on details and specifics. But what I would say is, obviously, we very deliberately pivoted our underwriting strategy, which is really what I'm focusing on when I say we're moving away from being a traditional Bermuda reinsurer to a specialty underwriter. And we've been doing that both in action within the company and obviously some of the data and information that we give and present to you guys hopefully gives you, you know, the tangible evidence that we're doing that. And we think the segmental change that we're announcing today, which I should also say, Jim, the team will be as helpful as we possibly can be in Q4 and giving you as much help. We appreciate these things can be an annoyance sometimes, so I promise you the team will do everything they can to help. But look, in terms of our legal entity structure, that's something that we'll continue to evaluate and look at over time, and obviously all of our legal entities are really important to us, and they all work incredibly hard for us, so I think if anything changes, we would obviously talk to the market, but we're happy with our structure as it stands at the moment, and it's enabling us to perform strongly as a business and grow the business, Tim.

Yeah, no, that's super helpful. I appreciate you taking the question today.

Tim, I think the key takeaway that I would have is, and I think you're highlighting it, is the composite of the business and where we're focused is aligned with a specialty insurer, and that is what we are. Relative to the legal entity structure that supports that, I would not overly focus on whether that is U.S. or Bermuda or another. I think the key element is what is the mix of the business going on or what are the specialty underwriting capabilities that we bring to the forefoot and what's the competitive advantages that we have to delivering that. And I think when you look at that across and in comparison to other specialty insurers that we're going to compare in a favorable way.

Once again, if you would like to ask a question, please press star 1 on your telephone keypad. Our next question is from Gregory Peters with Raymond James. Please proceed with your question.

Well, good morning or afternoon, depending on where you are. Most of my questions have been asked. I guess, you know, you put a lot of effort into slide 21 on your prior development. Obviously, you're doing a lot of work with LPT. Can you speak to what pockets your favorable development, what lines of business you're getting favorable development from? It just feels like with accelerating price competition in the marketplace that the opportunities to continue to book favorable development are going to be diminishing, but maybe you have some different perspectives.

No, Greg, listen, good question. Thank you. Appreciate it. Look, I'll say a few overarching remarks and happy, Jim, if you didn't want to come in. So let me make a couple of points here, Greg, which I think are really important. One is we manage our reserves and balance sheet prudently, and we're very deliberate about that. And I think we've talked about it on these calls before. I want to give you a very clear example. So, you know, in some of our NGAs, particularly our newer relationships, we actually reserve above. I'm also going to be looking at the PYD track record as being linked to some of those actions. So that's the first thing I'd say. Second thing, I'd like to say, is that we're going to get to the PYD track record as being linked to some of those actions. I'd highlight, and both Jim and I touched on it, which is the LPT transaction and the removal of those reserves and the uncertainty associated with them actually improves the strength of our reserves. So we see that as additive in a tailwind as opposed to a headwind. And so nothing is going to change in terms of our reserving approach. Even with tougher market conditions. And as I say, I think a 22 quarter track record is something that we can point to and say isn't an accident. It's a fundamental way that we manage the company and the way that we manage the balance sheet. But Jim, anything you want to add to that?

Yeah, so just a couple of things that I would highlight. One, I 100% agree with you and would double down. We have a very prudent approach, we think, in terms of how we establish our reserve position, which starts with a prudent pricing position. And then, depending on risk, time, other components, it either gets basically one additional kind of reserve load or two. And that is a meaningful element, and it's an amount that we hold until and up through the points that we kind of hit the top end of the confidence intervals that we see from a U.S. accounting and other perspective that's appropriate. The second element to answer your question more directly in terms of the areas of that, I would say in general, we're seeing it favorable development across. The portfolio. And so I think that's as much about kind of the reserving philosophy that we have and that we try to be prudent and thoughtful, not just in terms of what the total number is, but, you know, at a reserving class level, we try to be very thoughtful there as well. And that is really playing out, you know, across the portfolio and, and, you know, gives us a really strong balance sheet.

Thank you for the additional detail. Super, thanks for the question.

We have reached the end of the question and answer session. I would like to turn the floor back over to Scott Egan for closing comments.

Super, thank you very much, operator. Just really a quick wrap up from me. Look, thank you, as always, for your questions. Thank you for joining the call. I'd probably end with four key takeaways. One, we believe Q3 is, again, strong evidence of a low volatility, high performing approach to our underwriting discipline, and I think the numbers and the evidence, I hope, speaks for itself. The second thing today is the LPT, which we've touched on throughout the questions. It really does, for us, close off the past, and I hope emphasises the strong performance of our Go Forward book and a particular core operating ROE. Our balance sheet, which we've touched on with some of the questions, is strong, and I believe after the LPT, even stronger and really well positioned, both in terms of strength and agility, to take advantage of the opportunities. And we look forward as a team to ending the year strongly and updating you at our full year results. And with that, I'd like to thank you very much for joining and appreciate all your questions and support. Thank you.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.