8-K
SiriusPoint Ltd (SPNT)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): November 3, 2021 (November 3, 2021)
SIRIUSPOINT LTD.
(Exact name of registrant as specified in its charter)
| Bermuda | 001-36052 | 98-1599372 |
|---|---|---|
| (State or other jurisdiction<br>of incorporation) | (Commission<br>File Number) | (I.R.S. Employer<br>Identification No.) |
Point House
3 Waterloo Lane
Pembroke HM 08 Bermuda
(Address of principal executive offices and Zip Code)
Registrant’s telephone number, including area code: +1 441 542-3300
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | | --- | --- || ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | | --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Shares, $0.10 par value | SPNT | New York Stock Exchange |
| 8.00% Resettable Fixed Rate Preference Shares,<br> Series B, $0.10 par value, <br>$25.00 liquidation preference per share | SPNT PRB | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
| Item 2.02 | Results of Operations and Financial Condition. |
|---|
On November 3, 2021, SiriusPoint Ltd. issued a press release reporting its financial results for the third quarter ended September 30, 2021 and announcing the availability of its third quarter financial supplement. A copy of the press release and the financial supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively.
The information contained in this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2 attached hereto, are being furnished pursuant to this Item 2.02. This information shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section, or incorporated by reference into any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
| Item 7.01 | Regulation FD Disclosure. |
|---|
On November 3, 2021, SiriusPoint Ltd. made available to investors the slide presentation attached hereto as Exhibit 99.3, which may be used from time to time by SiriusPoint Ltd. in presentations to investors.
The information contained in this Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.3 attached hereto, are being furnished pursuant to this Item 7.01. This information shall not deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that Section, or incorporated by reference into any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
| Item 8.01 | Other Events. |
|---|
The Board of Directors of SiriusPoint Ltd. approved a quarterly cash dividend of $0.50 per share on its 8.00% Resettable Fixed Rate Preference Shares, Series B, $0.10 par value, $25.00 liquidation preference per share payable on November 30, 2021 to Series B shareholders of record as of November 15, 2021. A copy of the press release is attached hereto as Exhibit 99.4.
| Item 9.01 | Financial Statements and Exhibits. |
|---|
(d) Exhibits
| Exhibit<br>No. | Description |
|---|---|
| 99.1 | Press Release dated November 3, 2021, announcing the earnings of SiriusPoint Ltd. for the Third Quarter Ended September 30, 2021. |
| 99.2 | Third Quarter Ended September 30, 2021 Financial Supplement. |
| 99.3 | SiriusPoint Ltd. Presentation to Investors, dated November 3, 2021. |
| 99.4 | Press Release dated November 3, 2021, announcing the quarterly dividend on the 8.00% Resettable Fixed Rate Preference Shares, Series B, $0.10 par value. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: November 3, 2021 | /s/ David W. Junius | |
|---|---|---|
| Name: | David W. Junius | |
| Title: | Chief Financial Officer |
Document
SiriusPoint Announces Third Quarter 2021 Earnings Results
HAMILTON, Bermuda, November 3, 2021 - SiriusPoint Ltd. (“SiriusPoint” or the “Company”) (NYSE:SPNT) today announced results for its third quarter ended September 30, 2021.
Third Quarter 2021 Highlights and Recent Developments
•Net loss of $48 million, or $0.34 per diluted common share
•Tangible diluted book value per share decreased $0.23, or 1.6%, from the second quarter of 2021 to $14.07
•Combined ratio of 152% and net underwriting loss of $266 million
•Catastrophe losses were $287 million or 56 percentage points on the Company’s combined ratio, including $132 million for the European floods and $100 million for Hurricane Ida
•Annualized return on average common equity of (7.8)%
•Net investment income of $200 million, including 16.3% return from our investment in the TP Enhanced Fund
•$369 million loss portfolio transfer transaction with the Compre Group executed on October 29 will be reflected in 4Q financials
Sid Sankaran, Chairman and Chief Executive Officer, SiriusPoint, said: “The losses the industry has reported - not just this quarter but in the past few years - serve to validate our focus on managing the volatility of our Property business, as we continue to implement the changes identified by our line-by-line business review. We are making strong progress exiting risks that no longer fit our risk profile or where we do not see attractive risk adjusted returns - the full impact of our efforts will materialize next year due to the heavy January renewal nature of the business. Our losses are offset this quarter by strong returns from our investment portfolio.
“Our focus remains on delivering sustainable underwriting profitability to create value for our shareholders. This will be achieved by reallocating capital away from property cat and investment risk into our MGA platform within Insurance & Services, combined with rigorous risk management and disciplined underwriting. We expect our actions and improvements each quarter to deliver progress towards the transformational and profitable company we are seeking to become.”
Key Financial Metrics
The following table shows certain key financial metrics for the three and nine months ended September 30, 2021 and 2020:
| Three months ended | Nine months ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||
| ( in millions, except for per share data and ratios) | |||||||||||
| Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders | (7.8) | % | 19.7 | % | 9.8 | % | 0.9 | % | |||
| Net underwriting loss (1) | $ | (29.7) | $ | (223.8) | $ | (27.3) | |||||
| Combined ratio (1) | 151.9 | % | 121.0 | % | 118.1 | % | 106.3 | % | |||
| Basic book value per share (2) (4) | $ | 16.88 | $ | 15.31 | $ | 16.88 | |||||
| Tangible basic book value per share (2) (4) | $ | 16.88 | $ | 14.22 | $ | 16.88 | |||||
| Diluted book value per share (2) (3) (4) | $ | 16.71 | $ | 15.14 | $ | 16.71 | |||||
| Tangible diluted book value per share (2) (4) | $ | 16.71 | $ | 14.07 | $ | 16.71 |
All values are in US Dollars.
(1)See the accompanying Segment Reporting for a calculation of net underwriting loss and combined ratio.
(2)Basic book value per share, tangible basic book value per share, diluted book value per share and tangible diluted book value per share are non-GAAP financial measures.
(3)In the first quarter of 2021, we changed the method for calculating the dilutive effect of restricted shares, restricted share units and options to calculate the dilutive impact in a manner consistent with how dilution is calculated using the treasury stock method for earnings per share. See the accompanying reconciliations in “Non-GAAP Measures and Reconciliations & Key Performance Indicators”.
(4)Prior year comparatives represent amounts as of December 31, 2020.
Third Quarter 2021 Summary
Underwriting Results
The acquisition of Sirius Group, which occurred on February 26, 2021, has created a highly diversified portfolio with expanded underwriting capabilities, geographic footprint and product offerings. Effective January 1, 2021, the Company reports four operating segments: Accident & Health (“A&H”), Specialty, Property and Runoff & Other.
In addition, effective January 1, 2021, the Company changed its accounting policy for assumed written premium recognition. Previously, the Company estimated ultimate premium written for the entire contract period and recorded this estimate at inception of the contract. The Company changed its accounting policy to recognize premiums written ratably over the term of the related policy or reinsurance treaty. The change in accounting policy had no impact on the previously reported net income (loss) or shareholders’ equity attributable to SiriusPoint common shareholders. Prior period segment results have been adjusted to conform to the current period presentation.
Net premiums earned increased by $370.4 million, or 261.4%, to $512.1 million for the three months ended September 30, 2021 from $141.7 million for the three months ended September 30, 2020, primarily driven by an increase in net premiums earned of $390.6 million as a result of new premiums from the legacy Sirius Group companies.
Net premiums earned increased by $805.5 million, or 187.8%, to $1,234.4 million for the nine months ended September 30, 2021 from $428.9 million for the nine months ended September 30, 2020, primarily driven by an increase in net premiums earned of $866.4 million as a result of new premiums from the legacy Sirius Group companies from the date of acquisition.
We generated a net underwriting loss of $265.8 million and a combined ratio of 151.9% for the three months ended September 30, 2021, compared to a net underwriting loss of $29.7 million and a combined ratio of 121.0% for the three months ended September 30, 2020. The change in net underwriting results was primarily driven by catastrophe losses from the European floods and Hurricane Ida.
We generated a net underwriting loss of $223.8 million and a combined ratio of 118.1% for the nine months ended September 30, 2021, compared to a net underwriting loss of $27.3 million and a combined ratio of 106.3% for the nine months ended September 30, 2020. The adverse effect on underwriting results again was primarily driven by catastrophe losses from the European floods and Hurricane Ida.
Catastrophe losses, net of reinsurance and reinstatement premiums, for the three months ended September 30, 2021 were $286.5 million, or 55.9 percentage points on the combined ratio, including $132 million for the European floods and $100 million for Hurricane Ida, based on our ground-up assessment of client exposed business to each event and a top-down estimate, based on industry loss for each event, which are consistent with our view of industry loss estimates of $14 billion and $40 billion, respectively, and an estimate of our market share. Catastrophe losses, net of reinsurance and reinstatement premiums, for the three months ended September 30, 2020 were $29.6 million, or 20.9 percentage points on the combined ratio, related to Hurricane Laura and other third quarter catastrophes.
Catastrophe losses, net of reinsurance and reinstatement premiums, for the nine months ended September 30, 2021 were $304.9 million, or 24.7 percentage points on the combined ratio, including $132 million for the European floods, $100 million for Hurricane Ida, and other catastrophes. Catastrophe losses, net of reinsurance and reinstatement premiums, for the nine months ended September 30, 2020 were $29.6 million, or 6.9 percentage points on the combined ratio, related to Hurricane Laura and other third quarter catastrophes.
A&H Segment
Gross premiums written in the A&H segment were $118.1 million for the three months ended September 30, 2021, an increase of $117.9 million compared to the three months ended September 30, 2020, primarily driven by an increase in premiums of $118.1 million as a result of new premiums from the legacy Sirius Group companies.
For the three months ended September 30, 2021, the A&H segment generated net underwriting income of $15.2 million and a combined ratio of 86.4%, compared to net underwriting income of $0.1 million for the three months ended September 30, 2020. The change in net underwriting results for the three months ended September 30, 2021, compared to the three months ended September 30, 2020, was primarily driven by favorable loss ratio trends in its healthcare products due to the recognition of lower healthcare utilization rates that we attribute to the COVID-19 global pandemic.
Specialty Segment
Gross premiums written in the Specialty segment were $350.9 million for the three months ended September 30, 2021, an increase of $271.9 million, or 344.2%, compared to the three months ended September 30, 2020, primarily driven by an increase in premiums of $181.5 million as a result of new premiums from the legacy Sirius Group companies and due to an increase in premium written from our new MGA partnerships, in which we invest capital and expertise.
The Specialty segment generated a net underwriting loss of $6.4 million and a combined ratio of 102.6% for the three months ended September 30, 2021, compared to a net underwriting loss of $1.3 million and a combined ratio of 101.4% for the three months ended September 30, 2020.
Property Segment
Gross premiums written in the Property segment were $182.0 million for the three months ended September 30, 2021, an increase of $139.4 million, or 327.2%, compared to the three months ended September 30, 2020, primarily driven by an increase in premiums of $173.2 million as a result of new premiums from the legacy Sirius Group companies.
The Property segment generated a net underwriting loss of $264.7 million and a combined ratio of 275.6% for the three months ended September 30, 2021, compared to a net underwriting loss of $27.0 million and a combined ratio of 154.2% for the three months ended September 30, 2020. The change in underwriting results for the three months ended September 30, 2021, compared to the three months ended September 30, 2020, was primarily driven by increased catastrophe losses from the European floods and Hurricane Ida.
Runoff & Other Segment
Gross premiums written in the Runoff & Other segment were $2.7 million for the three months ended September 30, 2021, a decrease of $0.2 million compared to the three months ended September 30, 2020.
The Runoff & Other segment generated a net underwriting loss of $9.9 million for the three months ended September 30, 2021, compared to a net underwriting loss of $1.5 million for the three months ended September 30, 2020. For the three months ended September 30, 2021, other underwriting expenses include $9.8 million of expenses, of which $7.1 million was accelerated during the third quarter of 2021, relating to interest crediting features in certain reinsurance and deposit contracts, compared to $1.3 million for the three months ended September 30, 2020. We will reassess capacity to underwrite these risks in the future as a result of the loss portfolio transfer.
Investments
Net investment income was $199.8 million for the three months ended September 30, 2021, compared to net investment income of $122.0 million for the three months ended September 30, 2020. Net investment income for the three months ended September 30, 2021 was primarily attributable to net investment income of $201.0 million. from our investment in the TP Enhanced Fund, corresponding to a 16.3% return. For the nine months ended September 30, 2021, net investment income from the TP Enhanced Fund totaled $398.8 million, corresponding to a 38.3% return. The returns were primarily attributable to long event/fundamental and activist equities, in particular strong performance from the fund’s largest positions.
Net investment income for the three months ended September 30, 2020 was primarily attributable to net investment income of $110.6 million from our investment in the TP Enhanced Fund, corresponding to a 14.6% return. Equity markets continued to rebound with technology-oriented stocks leading out-performance globally.
Loss Portfolio Transfer with the Compre Group
On July 30, 2021, we agreed, subject to applicable regulatory approvals and other closing conditions, to enter into a loss portfolio transfer transaction with Pallas Reinsurance Company Ltd., a subsidiary of the Compre Group, an insurance and reinsurance legacy specialist, and on October 29, 2021, we executed definitive agreements in respect of the loss portfolio transfer and the services to be provided in connection therewith (collectively, the “LPT”). The LPT covers $369 million of the Company’s loss reserves for the subject business, including much of the legacy Sirius Group runoff portfolio, including asbestos and environmental lines, for a premium of $388 million. We will recognize an estimated net charge of $23 million, including approximately $4 million of federal excise tax expense, in the fourth quarter of 2021, subject to post-closing adjustments.
Our transaction with the Compre Group underscores the ongoing transformation of SiriusPoint, our focus on optimizing capital allocation and rebalancing towards insurance and higher margin and growth lines, and provides further certainty on SiriusPoint’s reserve position. Following the completion of the LPT, our net loss reserves from Runoff business were reduced by 46%.
Conference Call Details
The Company will hold a conference call to discuss its third quarter 2021 results at 8:30 a.m. Eastern Time on November 4, 2021. The call will be webcast live over the Internet from the Company’s website at www.siriuspt.com under the “Investor Relations” section. Participants should follow the instructions provided on the website to download and install any necessary audio applications. The conference call will also be available by dialing 1-855-327-6838 (domestic) or 1-604-235-2082 (international). Participants should ask for the SiriusPoint Ltd. third quarter 2021 earnings call.
A replay of the live conference call will be available approximately two hours after the call. The replay will be available on the Company’s website at www.siriuspt.com under the “Investor Relations” section.
Safe Harbor Statement Regarding Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding optimizing capital allocation, rebalancing towards insurance and reducing our risk profile, creating a sustainable long-term franchise and profitability. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the Company’s control. The Company cautions you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “comfortable with,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Actual events, results and outcomes may differ materially from the Company’s expectations due to a variety of known and unknown risks, uncertainties and other factors. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements are the following: the costs, expenses and difficulties of the integration of the operations of Sirius Group; the impact of the novel coronavirus (COVID-19) pandemic or other unpredictable catastrophic events including uncertainties with respect to current and future COVID-19 losses across many classes of insurance business and the amount of insurance losses that may ultimately be ceded to the reinsurance market, supply chain issues, labor shortages and related increased costs, continued low interest rates, equity market volatility and ongoing business and financial market impacts of COVID-19 associated economic downturn; fluctuations in our results of operations; a downgrade or withdrawal of our financial ratings; inadequacy of loss and loss adjustment expense reserves; the effects of global climate change; periods characterized by excess underwriting capacity and unfavorable premium rates and/or reduced returns or losses in SiriusPoint’s investment portfolio; legal restrictions on certain of SiriusPoint’s insurance and reinsurance subsidiaries’ ability to pay dividends and other distributions to SiriusPoint; SiriusPoint’s significant deferred tax assets, which could become devalued if either SiriusPoint does not generate future taxable income or applicable corporate tax rates are reduced; the lack of availability of capital; future strategic transactions such as acquisitions, dispositions, investments, mergers or joint ventures; technology breaches; our concentrated exposure in Third Point Enhanced LP (the “TP Enhanced Fund”) whose investment strategy may bear substantial investment risks; our lack of control of the TP Enhanced Fund and Third Point LLC, who invest and manage our capital accounts, and we have limited ability to withdraw our capital accounts; conflicts of interest among various members of Third Point Advisors LLC, TP Enhanced Fund, Third Point LLC and SiriusPoint; and other risks and uncertainties listed in the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021, and any subsequent reports filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the date made and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures and Other Financial Metrics
In presenting SiriusPoint’s results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (“GAAP”). SiriusPoint’s management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of SiriusPoint’s financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. Book value per share metrics are non-GAAP financial measures. We believe that long-term growth in book value per share is an important measure of our financial performance because it allows our management and investors to track over time the value created by the retention of earnings. In addition, we believe this metric is used by investors because it provides a basis for comparison with other companies in our industry that also report a similar measure. Reconciliations of such measures to the most comparable GAAP figures are included in the attached financial information in accordance with Regulation G.
About the Company
SiriusPoint is a global insurer and reinsurer providing solutions to clients and brokers in almost 150 countries. Bermuda-headquartered with offices around the world, we are listed on the New York Stock Exchange (SPNT). We write a global portfolio of Accident & Health, Specialty, Property and Runoff & Other business, combining data and creative thinking to underwrite risks with skill and discipline. With over $3 billion total capital as of September 30, 2021, SiriusPoint’s operating companies have a financial strength rating of A- (Excellent) from AM Best, S&P and Fitch. For more information please visit www.siriuspt.com.
Contacts
Investor Relations
Clare Kerrigan - Corporate Communications and Investor Relations
clare.kerrigan@siriuspt.com
+1 441 542-3333
SIRIUSPOINT LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of September 30, 2021 and December 31, 2020
(expressed in millions of U.S. dollars, except per share and share amounts)
| September 30,<br>2021 | December 31, 2020 | |||
|---|---|---|---|---|
| Assets | ||||
| Investments in related party investment funds, at fair value (cost - $891.9; 2020 - $891.9) | $ | 1,456.8 | $ | 1,055.6 |
| Debt securities, trading, at fair value (cost - $2,111.3; 2020 - $91.4) | 2,100.9 | 101.3 | ||
| Short-term investments, at fair value (cost - $1,057.9; 2020 - N/A) | 1,057.9 | — | ||
| Equity securities, trading, at fair value (cost - $4.9; 2020 - N/A) | 3.4 | — | ||
| Other long-term investments, at fair value (cost - $400.7; 2020 - $4.0) | 454.5 | 4.0 | ||
| Total investments | 5,073.5 | 1,160.9 | ||
| Cash and cash equivalents | 701.2 | 526.0 | ||
| Restricted cash and cash equivalents | 1,482.3 | 1,187.9 | ||
| Due from brokers | 51.4 | 94.9 | ||
| Interest and dividends receivable | 8.6 | 0.9 | ||
| Insurance and reinsurance balances receivable, net | 1,621.4 | 441.9 | ||
| Deferred acquisition costs, net and value of business acquired | 220.2 | 68.6 | ||
| Unearned premiums ceded | 248.3 | 20.5 | ||
| Loss and loss adjustment expenses recoverable, net | 843.5 | 14.4 | ||
| Deferred tax asset | 194.2 | 0.4 | ||
| Intangible assets | 173.7 | — | ||
| Other assets | 97.0 | 18.8 | ||
| Total assets | $ | 10,715.3 | $ | 3,535.2 |
| Liabilities | ||||
| Loss and loss adjustment expense reserves | $ | 4,862.3 | $ | 1,310.1 |
| Unearned premium reserves | 1,215.4 | 284.8 | ||
| Reinsurance balances payable | 596.4 | 78.1 | ||
| Deposit liabilities | 154.0 | 153.0 | ||
| Securities sold, not yet purchased, at fair value | 2.9 | 12.0 | ||
| Due to brokers | 9.6 | — | ||
| Accounts payable, accrued expenses and other liabilities | 154.1 | 17.6 | ||
| Deferred tax liability | 152.2 | — | ||
| Liability-classified capital instruments | 103.4 | — | ||
| Debt | 827.0 | 114.3 | ||
| Total liabilities | 8,077.3 | 1,969.9 | ||
| Commitments and contingent liabilities | ||||
| Shareholders’ equity | ||||
| Series B preference shares (par value $0.10; authorized and issued: 8,000,000) | 200.0 | — | ||
| Common shares (issued and outstanding: 161,949,037; 2020 - 95,582,733) | 16.2 | 9.6 | ||
| Additional paid-in capital | 1,654.3 | 933.9 | ||
| Retained earnings | 767.8 | 620.4 | ||
| Accumulated other comprehensive loss | (0.3) | — | ||
| Shareholders’ equity attributable to SiriusPoint shareholders | 2,638.0 | 1,563.9 | ||
| Noncontrolling interests | — | 1.4 | ||
| Total shareholders’ equity | 2,638.0 | 1,565.3 | ||
| Total liabilities, noncontrolling interests and shareholders’ equity | $ | 10,715.3 | $ | 3,535.2 |
SIRIUSPOINT LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)
For the three and nine months ended September 30, 2021 and 2020
(expressed in millions of U.S. dollars, except per share and share amounts)
| Three months ended | Nine months ended | |||||||
|---|---|---|---|---|---|---|---|---|
| September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||
| Revenues | ||||||||
| Net premiums earned | $ | 512.1 | $ | 141.7 | $ | 1,234.4 | $ | 428.9 |
| Net realized and unrealized investment gains (losses) | (11.7) | 7.0 | 43.7 | 54.6 | ||||
| Net investment income from investments in related party investment funds | 202.4 | 110.6 | 401.2 | 8.3 | ||||
| Other net investment income | 9.1 | 4.4 | 18.8 | 11.2 | ||||
| Net investment income | 199.8 | 122.0 | 463.7 | 74.1 | ||||
| Other revenues | 20.7 | — | 47.1 | — | ||||
| Total revenues | 732.6 | 263.7 | 1,745.2 | 503.0 | ||||
| Expenses | ||||||||
| Loss and loss adjustment expenses incurred, net | 581.7 | 110.5 | 984.9 | 287.4 | ||||
| Acquisition costs, net | 106.9 | 54.8 | 281.5 | 147.7 | ||||
| Other underwriting expenses | 89.3 | 6.1 | 191.8 | 21.1 | ||||
| Net corporate and other expenses | 19.5 | 14.9 | 113.5 | 30.2 | ||||
| Intangible asset amortization | 2.0 | — | 4.1 | — | ||||
| Interest expense | 9.7 | 2.1 | 24.4 | 6.2 | ||||
| Foreign exchange (gains) losses | (16.1) | 5.9 | (16.5) | (3.1) | ||||
| Total expenses | 793.0 | 194.3 | 1,583.7 | 489.5 | ||||
| Income (loss) before income tax (expense) benefit | (60.4) | 69.4 | 161.5 | 13.5 | ||||
| Income tax (expense) benefit | 13.0 | (0.7) | (6.4) | (4.4) | ||||
| Net income (loss) | (47.4) | 68.7 | 155.1 | 9.1 | ||||
| Net loss attributable to noncontrolling interests | 3.4 | — | 1.8 | — | ||||
| Net income (loss) available to SiriusPoint | (44.0) | 68.7 | 156.9 | 9.1 | ||||
| Dividends on Series B preference shares | (4.0) | — | (9.5) | — | ||||
| Net income (loss) available to SiriusPoint common shareholders | $ | (48.0) | $ | 68.7 | $ | 147.4 | $ | 9.1 |
| Earnings (loss) per share available to SiriusPoint common shareholders | ||||||||
| Basic earnings (loss) per share available to SiriusPoint common shareholders | $ | (0.30) | $ | 0.74 | $ | 0.94 | $ | 0.10 |
| Diluted earnings (loss) per share available to SiriusPoint common shareholders | $ | (0.34) | $ | 0.73 | $ | 0.92 | $ | 0.10 |
| Weighted average number of common shares used in the determination of earnings (loss) per share | ||||||||
| Basic | 159,225,772 | 92,613,393 | 145,095,270 | 92,466,813 | ||||
| Diluted | 160,240,888 | 92,969,646 | 147,597,964 | 92,877,674 |
SIRIUSPOINT LTD.
SEGMENT REPORTING
| Three months ended September 30, 2021 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| A&H | Specialty | Property | Runoff &<br>Other | Total | ||||||||||
| Gross premiums written (1) | $ | 118.1 | $ | 350.9 | $ | 182.0 | $ | 2.7 | $ | 653.7 | ||||
| Net premiums written (1) | 88.4 | 306.8 | 91.0 | 5.1 | 491.3 | |||||||||
| Net premiums earned (1) | 111.7 | 240.6 | 150.8 | 9.0 | 512.1 | |||||||||
| Loss and loss adjustment expenses incurred, net (2) | 55.8 | 155.6 | 362.5 | 7.8 | 581.7 | |||||||||
| Acquisition costs, net | 10.5 | 65.8 | 30.9 | (0.3) | 106.9 | |||||||||
| Other underwriting expenses (2) | 30.2 | 25.6 | 22.1 | 11.4 | 89.3 | |||||||||
| Net underwriting income (loss) | $ | 15.2 | $ | (6.4) | $ | (264.7) | $ | (9.9) | (265.8) | |||||
| Other revenues | 20.7 | |||||||||||||
| Net investment income | 199.8 | |||||||||||||
| Net corporate and other expenses | (19.5) | |||||||||||||
| Intangible asset amortization | (2.0) | |||||||||||||
| Interest expense | (9.7) | |||||||||||||
| Foreign exchange gains | 16.1 | |||||||||||||
| Loss before income tax benefit | $ | (60.4) | ||||||||||||
| Underwriting Ratios: (3) | ||||||||||||||
| Loss ratio | 50.0 | % | 64.7 | % | 240.4 | % | NM | 113.6 | % | |||||
| Acquisition cost ratio | 9.4 | % | 27.3 | % | 20.5 | % | NM | 20.9 | % | |||||
| Other underwriting expenses ratio | 27.0 | % | 10.6 | % | 14.7 | % | NM | 17.4 | % | |||||
| Combined ratio (4) | 86.4 | % | 102.6 | % | 275.6 | % | NM | 151.9 | % | |||||
| Three months ended September 30, 2020 | ||||||||||||||
| A&H | Specialty | Property | Runoff &<br>Other | Total | ||||||||||
| Gross premiums written (1) | $ | 0.2 | $ | 79.0 | $ | 42.6 | $ | 2.9 | $ | 124.7 | ||||
| Net premiums written (1) | 0.2 | 76.7 | 36.6 | 2.9 | 116.4 | |||||||||
| Net premiums earned (1) | 0.6 | 87.7 | 49.8 | 3.6 | 141.7 | |||||||||
| Loss and loss adjustment expenses incurred, net (2) | 0.4 | 67.9 | 62.2 | (20.0) | 110.5 | |||||||||
| Acquisition costs, net | 0.1 | 18.0 | 13.0 | 23.7 | 54.8 | |||||||||
| Other underwriting expenses (2) | — | 3.1 | 1.6 | 1.4 | 6.1 | |||||||||
| Net underwriting income (loss) | $ | 0.1 | $ | (1.3) | $ | (27.0) | $ | (1.5) | (29.7) | |||||
| Net investment income | 122.0 | |||||||||||||
| Net corporate and other expenses | (14.9) | |||||||||||||
| Interest expense | (2.1) | |||||||||||||
| Foreign exchange losses | (5.9) | |||||||||||||
| Income before income tax expense | $ | 69.4 | ||||||||||||
| Underwriting Ratios: (3) | ||||||||||||||
| Loss ratio | 66.7 | % | 77.4 | % | 124.9 | % | NM | 78.0 | % | |||||
| Acquisition cost ratio | 16.7 | % | 20.5 | % | 26.1 | % | NM | 38.7 | % | |||||
| Other underwriting expenses ratio | — | % | 3.5 | % | 3.2 | % | NM | 4.3 | % | |||||
| Combined ratio (4) | 83.4 | % | 101.4 | % | 154.2 | % | NM | 121.0 | % |
(1)Includes service fee revenue from the Company’s MGUs of $12.5 million for the three months ended September 30, 2021 (2020 - $nil).
(2)Loss and loss adjustment expenses incurred, net and other underwriting expenses include expenses associated with the Company’s MGUs of $3.6 million and $24.5 million, respectively, for the three months ended September 30, 2021 (2020 - $nil and $nil, respectively).
(3)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
(4)Ratios considered not meaningful ("NM") to Runoff & Other.
(5)The Company modified the presentation of its operating segments in the first quarter of 2021 to better align with the manner in which management monitors the performance of its operations. This change was primarily due to the Company’s acquisition of Sirius Group. Prior period segment results have been adjusted to conform to the current period presentation.
| Nine months ended September 30, 2021 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| A&H | Specialty | Property | Runoff &<br>Other | Total | ||||||||||
| Gross premiums written (1) | $ | 343.5 | $ | 807.9 | $ | 457.3 | $ | (25.7) | $ | 1,583.0 | ||||
| Net premiums written (1) | 267.8 | 692.4 | 324.6 | (24.2) | 1,260.6 | |||||||||
| Net premiums earned (1) | 250.4 | 610.7 | 385.4 | (12.1) | 1,234.4 | |||||||||
| Loss and loss adjustment expenses incurred, net (2) | 121.9 | 393.9 | 482.2 | (13.1) | 984.9 | |||||||||
| Acquisition costs, net | 35.4 | 168.9 | 79.7 | (2.5) | 281.5 | |||||||||
| Other underwriting expenses (2) | 69.5 | 54.7 | 52.6 | 15.0 | 191.8 | |||||||||
| Net underwriting income (loss) | $ | 23.6 | $ | (6.8) | $ | (229.1) | $ | (11.5) | (223.8) | |||||
| Other revenues | 47.1 | |||||||||||||
| Net investment income | 463.7 | |||||||||||||
| Net corporate and other expenses | (113.5) | |||||||||||||
| Intangible asset amortization | (4.1) | |||||||||||||
| Interest expense | (24.4) | |||||||||||||
| Foreign exchange gains | 16.5 | |||||||||||||
| Income before income tax expense | $ | 161.5 | ||||||||||||
| Underwriting Ratios: (3) | ||||||||||||||
| Loss ratio | 48.7 | % | 64.5 | % | 125.1 | % | NM | 79.8 | % | |||||
| Acquisition cost ratio | 14.1 | % | 27.7 | % | 20.7 | % | NM | 22.8 | % | |||||
| Other underwriting expenses ratio | 27.8 | % | 9.0 | % | 13.6 | % | NM | 15.5 | % | |||||
| Combined ratio (4) | 90.6 | % | 101.2 | % | 159.4 | % | NM | 118.1 | % | |||||
| Nine months ended September 30, 2020 | ||||||||||||||
| A&H | Specialty | Property | Runoff &<br>Other | Total | ||||||||||
| Gross premiums written (1) | $ | 2.8 | $ | 232.2 | $ | 160.2 | $ | 3.0 | $ | 398.2 | ||||
| Net premiums written (1) | 2.8 | 224.3 | 138.9 | 3.0 | 369.0 | |||||||||
| Net premiums earned (1) | 2.5 | 285.6 | 135.9 | 4.9 | 428.9 | |||||||||
| Loss and loss adjustment expenses incurred, net (2) | 3.7 | 203.1 | 99.5 | (18.9) | 287.4 | |||||||||
| Acquisition costs, net | 0.3 | 85.3 | 38.8 | 23.3 | 147.7 | |||||||||
| Other underwriting expenses (2) | 0.1 | 12.4 | 4.7 | 3.9 | 21.1 | |||||||||
| Net underwriting loss | $ | (1.6) | $ | (15.2) | $ | (7.1) | $ | (3.4) | (27.3) | |||||
| Net investment income | 74.1 | |||||||||||||
| Net corporate and other expenses | (30.2) | |||||||||||||
| Interest expense | (6.2) | |||||||||||||
| Foreign exchange gains | 3.1 | |||||||||||||
| Income before income tax expense | $ | 13.5 | ||||||||||||
| Underwriting Ratios: (3) | ||||||||||||||
| Loss ratio | 148.0 | % | 71.1 | % | 73.2 | % | NM | 67.0 | % | |||||
| Acquisition cost ratio | 12.0 | % | 29.9 | % | 28.6 | % | NM | 34.4 | % | |||||
| Other underwriting expenses ratio | 4.0 | % | 4.3 | % | 3.5 | % | NM | 4.9 | % | |||||
| Combined ratio (4) | 164.0 | % | 105.3 | % | 105.3 | % | NM | 106.3 | % |
(1)Includes service fee revenue from the Company’s MGUs of $37.3 million for the nine months ended September 30, 2021 (2020 - $nil).
(2)Loss and loss adjustment expenses incurred, net and other underwriting expenses include expenses associated with the Company’s MGUs of $8.0 million and $55.4 million, respectively, for the nine months ended September 30, 2021 (2020 - $nil and $nil, respectively).
(3)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
(4)Ratios considered not meaningful ("NM") to Runoff & Other.
(5)The Company modified the presentation of its operating segments in the first quarter of 2021 to better align with the manner in which management monitors the performance of its operations. This change was primarily due to the Company’s acquisition of Sirius Group. Prior period segment results have been adjusted to conform to the current period presentation.
SIRIUSPOINT LTD.
NON-GAAP MEASURES AND RECONCILIATIONS & KEY PERFORMANCE INDICATORS
Key Performance Indicator
Annualized Return on Average Common Shareholders’ Equity Attributable to SiriusPoint Common Shareholders
Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders is calculated by dividing annualized net income (loss) available to SiriusPoint common shareholders for the period by the average common shareholders’ equity determined using the common shareholders' equity balances at the beginning and end of the period.
Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders for the three and nine months ended September 30, 2021 and 2020 was calculated as follows:
| Three months ended | Nine months ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||
| ( in millions) | |||||||||||
| Net income (loss) available to SiriusPoint common shareholders | $ | 68.7 | $ | 147.4 | $ | 9.1 | |||||
| Common shareholders’ equity attributable to SiriusPoint common shareholders - beginning of period | $ | 1,357.3 | $ | 1,563.9 | $ | 1,414.1 | |||||
| Common shareholders’ equity attributable to SiriusPoint common shareholders - end of period | 2,438.0 | 1,427.6 | 2,438.0 | 1,427.6 | |||||||
| Average common shareholders’ equity attributable to SiriusPoint common shareholders | $ | 1,392.5 | $ | 2,001.0 | $ | 1,420.9 | |||||
| Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders | (7.8) | % | 19.7 | % | 9.8 | % | 0.9 | % |
All values are in US Dollars.
Net Underwriting Income (Loss)
We measure segment performance for our underwriting segments based on net underwriting income or loss. Net underwriting income is a pre-tax measure of underwriting profitability that takes into account net premiums earned as revenues, including service fee revenue from the Company’s managing general underwriting subsidiaries, and loss and loss adjustment expenses incurred, net, acquisition costs, net, and other underwriting expenses as expenses. Other underwriting expenses include those operating expenses that are incremental and/or directly attributable to our individual underwriting operations. See the accompanying Segment Reporting above for a calculation of net underwriting income (loss).
Combined Ratio
Combined ratio is calculated by dividing the sum of loss and loss adjustment expenses incurred, net, acquisition costs, net and other underwriting expenses by net premiums earned. This ratio is a key indicator of a company’s underwriting profitability. See the accompanying Segment Reporting above for a calculation of the combined ratio.
Basic Book Value Per Share, Tangible Basic Book Value Per Share, Diluted Book Value Per Share, Tangible Diluted Book Value Per Share
Basic book value per share, as presented, is a non-GAAP financial measure and is calculated by dividing common shareholders’ equity attributable to SiriusPoint common shareholders by the number of common shares outstanding, excluding the total number of issued unvested restricted shares, at period end.
Tangible basic book value per share, as presented, is a non-GAAP financial measure and is calculated by dividing tangible common shareholders’ equity attributable to SiriusPoint common shareholders by the number of common shares outstanding, excluding the total number of unvested restricted shares, at period end. Tangible book value per share is useful to investors because it measures the realizable value of shareholder returns, excluding the impact of intangible assets.
Diluted book value per share and tangible diluted book value per share, as presented, are non-GAAP financial measures and are calculated using the treasury stock method. Under the treasury stock method, we assume that proceeds received from in-the-money options and/or warrants exercised are used to repurchase common shares in the market. The dilutive effect of restricted shares, restricted share units and options are calculated in a manner consistent with how dilution is calculated using the treasury stock method for earnings per share. We have also followed a similar approach for calculating dilution for warrants, Series A preference shares, Upside Rights and other potentially dilutive securities issued as part of our acquisition of Sirius Group.
The following table sets forth the of basic book value per share, tangible basic book value per share, diluted book value per share and tangible diluted book value per share as of September 30, 2021 and December 31, 2020:
| September 30,2021 | December 31, 2020 | ||
|---|---|---|---|
| Basic and diluted book value per share numerator: | ( in millions, except share and per share amounts) | ||
| Shareholders' equity attributable to SiriusPoint shareholders | $ | 1,563.9 | |
| Less: Series B preference shares | (200.0) | — | |
| Common shareholders’ equity attributable to SiriusPoint common shareholders - basic | 2,438.0 | 1,563.9 | |
| Plus: carrying value of Series A preference shares issued in merger | 31.2 | — | |
| Common shareholders’ equity attributable to SiriusPoint common shareholders - diluted | 2,469.2 | 1,563.9 | |
| Less: intangible assets | (173.7) | — | |
| Tangible common shareholders' equity attributable to SiriusPoint common shareholders - basic | 2,264.3 | 1,563.9 | |
| Tangible common shareholders' equity attributable to SiriusPoint common shareholders - diluted | $ | 1,563.9 | |
| Basic and diluted book value per share denominator: | |||
| Common shares outstanding | 161,949,037 | 95,582,733 | |
| Unvested restricted shares | (2,687,612) | (2,933,993) | |
| Basic book value per share denominator | 159,261,425 | 92,648,740 | |
| Effect of dilutive Series A preference shares issued in merger | 1,015,116 | — | |
| Effect of dilutive warrants | — | — | |
| Effect of dilutive stock options, restricted shares and restricted share units issued to directors and employees | 2,825,401 | 969,386 | |
| Diluted book value per share denominator | 163,101,942 | 93,618,126 | |
| Basic book value per share | $ | 16.88 | |
| Tangible basic book value per share | $ | 16.88 | |
| Diluted book value per share | $ | 16.71 | |
| Tangible diluted book value per share | $ | 16.71 |
All values are in US Dollars.
Document
SiriusPoint Ltd.
Financial Supplement
September 30, 2021
(UNAUDITED)
This financial supplement is for informational purposes only. It should be read in conjunction with documents filed with the Securities and Exchange Commission by SiriusPoint Ltd., including the Company’s Quarterly Report on Form 10-Q.
| Point House | Clare Kerrigan - Corporate Communications and Investor Relations |
|---|---|
| 3 Waterloo Lane | Tel: (441) 542-3333 |
| Pembroke HM 08 | Email: investor.relations@siriuspt.com |
| Bermuda | Website: www.siriuspt.com |
SiriusPoint Ltd.
Basis of Presentation and Non-GAAP Financial Measures:
Unless the context otherwise indicates or requires, as used in this financial supplement references to “we,” “our,” “us,” the “Company,” and "SiriusPoint" refer to SiriusPoint Ltd. and its directly and indirectly owned subsidiaries, as a combined entity, except where otherwise stated or where it is clear that the terms mean only SiriusPoint Ltd. exclusive of its subsidiaries. We have made rounding adjustments to reach some of the figures included in this financial supplement and, unless otherwise indicated, percentages presented in this financial supplement are approximate.
In presenting SiriusPoint’s results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP). SiriusPoint’s management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of SiriusPoint’s financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. Book value per share metrics are non-GAAP financial measures. We believe that long-term growth in book value per share is an important measure of our financial performance because it allows our management and investors to track over time the value created by the retention of earnings. In addition, we believe this metric is used by investors because it provides a basis for comparison with other companies in our industry that also report a similar measure. Reconciliations of such measures to the most comparable GAAP figures are included in the attached financial information in accordance with Regulation G.
Safe Harbor Statement Regarding Forward-Looking Statements:
This Financial Supplement includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the Company’s control. The Company cautions you that the forward-looking information presented in this Financial Supplement is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this Financial Supplement. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “comfortable with,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Actual events, results and outcomes may differ materially from the Company’s expectations due to a variety of known and unknown risks, uncertainties and other factors. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements are the following: the costs, expenses and difficulties of the integration of the operations of Sirius Group; the impact of the novel coronavirus (COVID-19) pandemic or other unpredictable catastrophic events including uncertainties with respect to current and future COVID-19 losses across many classes of insurance business and the amount of insurance losses that may ultimately be ceded to the reinsurance market, supply chain issues, labor shortages and related increased costs, continued low interest rates, equity market volatility and ongoing business and financial market impacts of COVID-19 associated economic downturn; fluctuations in our results of operations; a downgrade or withdrawal of our financial ratings; inadequacy of loss and loss adjustment expense reserves; the effects of global climate change; periods characterized by excess underwriting capacity and unfavorable premium rates and/or reduced returns or losses in SiriusPoint’s investment portfolio; legal restrictions on certain of SiriusPoint’s insurance and reinsurance subsidiaries’ ability to pay dividends and other distributions to SiriusPoint; SiriusPoint’s significant deferred tax assets, which could become devalued if either SiriusPoint does not generate future taxable income or applicable corporate tax rates are reduced; the lack of availability of capital; future strategic transactions such as acquisitions, dispositions, investments, mergers or joint ventures; technology breaches; our concentrated exposure in Third Point Enhanced LP (the “TP Enhanced Fund”) whose investment strategy may bear substantial investment risks; our lack of control of the TP Enhanced Fund and Third Point LLC, who invest and manage our capital accounts, and we have limited ability to withdraw our capital accounts; conflicts of interest among various members of Third Point Advisors LLC, TP Enhanced Fund, Third Point LLC and SiriusPoint; and other risks and uncertainties listed in the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021, and any subsequent reports filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the date made and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Page 2 of 19
SiriusPoint Ltd.
Table of Contents
| Key Performance Indicators | |
|---|---|
| Key Performance Indicators | 4 |
| Consolidated Financial Statements | |
| Condensed Consolidated Balance Sheets - by Quarter | 5 |
| Condensed Consolidated Statements of Income (Loss) | 6 |
| Condensed Consolidated Statements of Income (Loss) - by Quarter | 7 |
| Operating Segment Information | |
| Segment Reporting - Three months ended September 30, 2021 | 8 |
| Segment Reporting - Three months ended September 30, 2020 | 9 |
| Segment Reporting - Nine months ended September 30, 2021 | 10 |
| Segment Reporting - Nine months ended September 30, 2020 | 11 |
| A&H Segment - by Quarter | 12 |
| SpecialtySegment - by Quarter | 13 |
| Property Segment - by Quarter | 14 |
| Runoff & OtherSegment - by Quarter | 15 |
| Investments | |
| Investments - by Quarter | 16 |
| Other | |
| Basic and Diluted Book Value per Share - by Quarter | 17 |
| Earnings (loss) per Share - by Quarter | 18 |
| Annualized Return on Average Common Shareholders’ Equity - by Quarter | 19 |
Page 3 of 19
SiriusPoint Ltd.
Key Performance Indicators
September 30, 2021 and 2020
(expressed in millions of U.S. dollars, except per share data and ratios)
| Three months ended | Nine months ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||
| Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders | (7.8) | % | 19.7 | % | 9.8 | % | 0.9 | % | ||||
| Net underwriting loss (1) | $ | (265.8) | $ | (29.7) | $ | (223.8) | $ | (27.3) | ||||
| Combined ratio (1) | 151.9 | % | 121.0 | % | 118.1 | % | 106.3 | % | ||||
| Basic book value per share (2) (4) | $ | 15.31 | $ | 16.88 | $ | 15.31 | $ | 16.88 | ||||
| Tangible basic book value per share (2) (4) | $ | 14.22 | $ | 16.88 | $ | 14.22 | $ | 16.88 | ||||
| Diluted book value per share (2) (3) (4) | $ | 15.14 | $ | 16.71 | $ | 15.14 | $ | 16.71 | ||||
| Tangible diluted book value per share (2) (4) | $ | 14.07 | $ | 16.71 | $ | 14.07 | $ | 16.71 |
(1)Refer to accompanying “Segment Reporting - Three and nine months ended September 30, 2021 and 2020” for a calculation of net underwriting loss and combined ratio.
(2)Basic book value per share, tangible basic book value per share, diluted book value per share and tangible diluted book value per share are non-GAAP financial measures.
(3)In the first quarter of 2021, we changed the method for calculating the dilutive effect of restricted shares, restricted share units and options to calculate the dilutive impact in a manner consistent with how dilution is calculated using the treasury stock method for earnings per share.
(4)Prior year comparatives represent amounts as of December 31, 2020.
Page 4 of 19
SiriusPoint Ltd.
Condensed Consolidated Balance Sheets - by Quarter
(expressed in millions of U.S. dollars)
| September 30,<br>2021 | June 30,<br>2021 | March 31,<br>2021 | December 31,<br>2020 | September 30,<br>2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Assets | ||||||||||
| Investments in related party investment funds, at fair value | $ | 1,456.8 | $ | 1,254.4 | $ | 1,208.8 | $ | 1,055.6 | $ | 869.0 |
| Debt securities, trading, at fair value | 2,100.9 | 2,009.3 | 2,940.3 | 101.3 | 186.3 | |||||
| Short-term investments, at fair value | 1,057.9 | 766.7 | — | — | — | |||||
| Equity securities, trading, at fair value | 3.4 | 5.0 | 5.9 | — | — | |||||
| Other long-term investments, at fair value | 454.5 | 463.7 | 473.1 | 4.0 | 4.0 | |||||
| Total investments | 5,073.5 | 4,499.1 | 4,628.1 | 1,160.9 | 1,059.3 | |||||
| Cash and cash equivalents | 701.2 | 1,032.6 | 932.4 | 526.0 | 513.8 | |||||
| Restricted cash and cash equivalents | 1,482.3 | 1,554.4 | 1,411.3 | 1,187.9 | 1,101.7 | |||||
| Due from brokers | 51.4 | 55.7 | 37.8 | 94.9 | 81.1 | |||||
| Interest and dividends receivable | 8.6 | 11.1 | 10.3 | 0.9 | 1.8 | |||||
| Insurance and reinsurance balances receivable, net | 1,621.4 | 1,515.3 | 1,613.8 | 441.9 | 440.5 | |||||
| Deferred acquisition costs, net and value of business acquired | 220.2 | 212.1 | 218.8 | 68.6 | 69.3 | |||||
| Unearned premiums ceded | 248.3 | 247.0 | 247.7 | 20.5 | 12.9 | |||||
| Loss and loss adjustment expenses recoverable, net | 843.5 | 516.6 | 492.6 | 14.4 | 13.6 | |||||
| Deferred tax asset | 194.2 | 216.3 | 256.5 | 0.4 | 4.0 | |||||
| Intangible assets | 173.7 | 176.7 | 174.2 | — | — | |||||
| Other assets | 97.0 | 153.7 | 146.2 | 18.8 | 16.2 | |||||
| Total assets | $ | 10,715.3 | $ | 10,190.6 | $ | 10,169.7 | $ | 3,535.2 | $ | 3,314.2 |
| Liabilities | ||||||||||
| Loss and loss adjustment expense reserves | $ | 4,862.3 | $ | 4,232.3 | $ | 4,259.3 | $ | 1,310.1 | $ | 1,186.1 |
| Unearned premium reserves | 1,215.4 | 1,238.1 | 1,244.8 | 284.8 | 286.0 | |||||
| Reinsurance balances payable | 596.4 | 526.3 | 528.8 | 78.1 | 113.1 | |||||
| Deposit liabilities | 154.0 | 148.6 | 150.7 | 153.0 | 155.7 | |||||
| Securities sold, not yet purchased, at fair value | 2.9 | 10.0 | 9.2 | 12.0 | 15.4 | |||||
| Due to brokers | 9.6 | 38.9 | 26.2 | — | — | |||||
| Accounts payable, accrued expenses and other liabilities | 154.1 | 164.1 | 154.4 | 17.6 | 15.1 | |||||
| Deferred tax liability | 152.2 | 190.2 | 223.0 | — | — | |||||
| Liability-classified capital instruments | 103.4 | 122.2 | 135.0 | — | — | |||||
| Debt | 827.0 | 836.5 | 829.0 | 114.3 | 114.2 | |||||
| Total liabilities | 8,077.3 | 7,507.2 | 7,560.4 | 1,969.9 | 1,885.6 | |||||
| Shareholders’ equity | ||||||||||
| Series B preference shares | 200.0 | 200.0 | 200.0 | — | — | |||||
| Common shares | 16.2 | 16.2 | 16.2 | 9.6 | 9.5 | |||||
| Additional paid-in capital | 1,654.3 | 1,646.6 | 1,639.6 | 933.9 | 932.0 | |||||
| Retained earnings | 767.8 | 815.8 | 751.3 | 620.4 | 486.1 | |||||
| Accumulated other comprehensive loss | (0.3) | 1.5 | 0.4 | — | — | |||||
| Shareholders’ equity attributable to SiriusPoint shareholders | 2,638.0 | 2,680.1 | 2,607.5 | 1,563.9 | 1,427.6 | |||||
| Noncontrolling interests | — | 3.3 | 1.8 | 1.4 | 1.0 | |||||
| Total shareholders’ equity | 2,638.0 | 2,683.4 | 2,609.3 | 1,565.3 | 1,428.6 | |||||
| Total liabilities, noncontrolling interests and shareholders’ equity | $ | 10,715.3 | $ | 10,190.6 | $ | 10,169.7 | $ | 3,535.2 | $ | 3,314.2 |
Page 5 of 19
SiriusPoint Ltd.
Condensed Consolidated Statements of Income (Loss)
(expressed in millions of U.S. dollars, except share and per share data)
| Three months ended | Nine months ended | |||||||
|---|---|---|---|---|---|---|---|---|
| September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||
| Revenues | ||||||||
| Net premiums earned | $ | 512.1 | $ | 141.7 | $ | 1,234.4 | $ | 428.9 |
| Net realized and unrealized investment gains (losses) | (11.7) | 7.0 | 43.7 | 54.6 | ||||
| Net investment income from investments in related party investment funds | 202.4 | 110.6 | 401.2 | 8.3 | ||||
| Other net investment income | 9.1 | 4.4 | 18.8 | 11.2 | ||||
| Net investment income | 199.8 | 122.0 | 463.7 | 74.1 | ||||
| Other revenues | 20.7 | — | 47.1 | — | ||||
| Total revenues | 732.6 | 263.7 | 1,745.2 | 503.0 | ||||
| Expenses | ||||||||
| Loss and loss adjustment expenses incurred, net | 581.7 | 110.5 | 984.9 | 287.4 | ||||
| Acquisition costs, net | 106.9 | 54.8 | 281.5 | 147.7 | ||||
| Other underwriting expenses | 89.3 | 6.1 | 191.8 | 21.1 | ||||
| Net corporate and other expenses | 19.5 | 14.9 | 113.5 | 30.2 | ||||
| Intangible asset amortization | 2.0 | — | 4.1 | — | ||||
| Interest expense | 9.7 | 2.1 | 24.4 | 6.2 | ||||
| Foreign exchange (gains) losses | (16.1) | 5.9 | (16.5) | (3.1) | ||||
| Total expenses | 793.0 | 194.3 | 1,583.7 | 489.5 | ||||
| Income (loss) before income tax (expense) benefit | (60.4) | 69.4 | 161.5 | 13.5 | ||||
| Income tax (expense) benefit | 13.0 | (0.7) | (6.4) | (4.4) | ||||
| Net income (loss) | (47.4) | 68.7 | 155.1 | 9.1 | ||||
| Net loss attributable to noncontrolling interests | 3.4 | — | 1.8 | — | ||||
| Net income (loss) available to SiriusPoint | (44.0) | 68.7 | 156.9 | 9.1 | ||||
| Dividends on Series B preference shares | (4.0) | — | (9.5) | — | ||||
| Net income (loss) available to SiriusPoint common shareholders | $ | (48.0) | $ | 68.7 | $ | 147.4 | $ | 9.1 |
| Earnings (loss) per share available to SiriusPoint common shareholders | ||||||||
| Basic earnings (loss) per share available to SiriusPoint common shareholders (1) | $ | (0.30) | $ | 0.74 | $ | 0.94 | $ | 0.10 |
| Diluted earnings (loss) per share available to SiriusPoint common shareholders (1) | $ | (0.34) | $ | 0.73 | $ | 0.92 | $ | 0.10 |
| Weighted average number of common shares used in the determination of earnings (loss) per share | ||||||||
| Basic | 159,225,772 | 92,613,393 | 145,095,270 | 92,466,813 | ||||
| Diluted | 160,240,888 | 92,969,646 | 147,597,964 | 92,877,674 |
(1) Basic earnings (loss) per share is based on the weighted average number of common shares and participating securities outstanding during the period. The weighted average number of common shares excludes any dilutive effect of outstanding warrants, options and unvested restricted shares. Diluted earnings (loss) per share is based on the weighted average number of common shares and participating securities outstanding and includes any dilutive effects of warrants, options and unvested restricted shares under share plans and are determined using the treasury stock method. U.S. GAAP requires that participating securities, be treated in the same manner as outstanding shares for earnings per share calculations. The Company treats certain of its unvested restricted shares as participating securities. In the event of a net loss, all participating securities, outstanding warrants, options and restricted shares are excluded from both basic and diluted loss per share since their inclusion would be anti-dilutive.
Page 6 of 19
SiriusPoint Ltd.
Condensed Consolidated Statements of Income (Loss) - by Quarter
(expressed in millions of U.S. dollars, except share and per share data)
| September 30,<br>2021 | June 30,<br>2021 | March 31,<br>2021 | December 31,<br>2020 | September 30,<br>2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Revenues | ||||||||||
| Net premiums earned | $ | 512.1 | $ | 466.3 | $ | 256.0 | $ | 182.0 | $ | 141.7 |
| Net realized and unrealized investment gains (losses) | (11.7) | 23.9 | 31.5 | 14.7 | 7.0 | |||||
| Net investment income from investment in related party investment fund | 202.4 | 45.6 | 153.2 | 186.6 | 110.6 | |||||
| Other net investment income | 9.1 | 7.9 | 1.8 | 3.5 | 4.4 | |||||
| Net investment income | 199.8 | 77.4 | 186.5 | 204.8 | 122.0 | |||||
| Other revenues | 20.7 | 17.8 | 8.6 | — | — | |||||
| Total revenues | 732.6 | 561.5 | 451.1 | 386.8 | 263.7 | |||||
| Expenses | ||||||||||
| Loss and loss adjustment expenses incurred, net | 581.7 | 255.1 | 148.1 | 177.9 | 110.5 | |||||
| Acquisition costs, net | 106.9 | 105.6 | 69.0 | 39.3 | 54.8 | |||||
| Other underwriting expenses | 89.3 | 72.3 | 30.2 | 9.7 | 6.1 | |||||
| Net corporate and other expenses | 19.5 | 25.7 | 68.3 | 11.0 | 14.9 | |||||
| Intangible asset amortization | 2.0 | 1.3 | 0.8 | — | — | |||||
| Interest expense | 9.7 | 9.8 | 4.9 | 2.1 | 2.1 | |||||
| Foreign exchange (gains) losses | (16.1) | 12.0 | (12.4) | 8.3 | 5.9 | |||||
| Total expenses | 793.0 | 481.8 | 308.9 | 248.3 | 194.3 | |||||
| Income (loss) before income tax (expense) benefit | (60.4) | 79.7 | 142.2 | 138.5 | 69.4 | |||||
| Income tax (expense) benefit | 13.0 | (9.6) | (9.8) | (3.7) | (0.7) | |||||
| Net income (loss) | (47.4) | 70.1 | 132.4 | 134.8 | 68.7 | |||||
| Net (income) loss attributable to noncontrolling interests | 3.4 | (1.6) | — | (0.4) | — | |||||
| Net income (loss) available to SiriusPoint | (44.0) | 68.5 | 132.4 | 134.4 | 68.7 | |||||
| Dividends on Series B preference shares | (4.0) | (4.0) | (1.5) | — | — | |||||
| Net income (loss) available to SiriusPoint common shareholders | $ | (48.0) | $ | 64.5 | $ | 130.9 | $ | 134.4 | $ | 68.7 |
| Earnings (loss) per share available to SiriusPoint common shareholders | ||||||||||
| Basic earnings (loss) per share available to SiriusPoint common shareholders (1) | $ | (0.30) | $ | 0.37 | $ | 1.07 | $ | 1.43 | $ | 0.74 |
| Diluted earnings (loss) per share available to SiriusPoint common shareholders (1) | $ | (0.34) | $ | 0.37 | $ | 1.05 | $ | 1.43 | $ | 0.73 |
| Weighted average number of common shares used in the determination of earnings (loss) per share | ||||||||||
| Basic | 159,225,772 | 158,832,629 | 116,760,760 | 92,638,978 | 92,613,393 | |||||
| Diluted | 160,240,888 | 160,894,216 | 118,146,341 | 93,165,559 | 92,969,646 |
(1) Basic earnings (loss) per share is based on the weighted average number of common shares and participating securities outstanding during the period. The weighted average number of common shares excludes any dilutive effect of outstanding warrants, options and unvested restricted shares. Diluted earnings (loss) per share is based on the weighted average number of common shares and participating securities outstanding and includes any dilutive effects of warrants, options and unvested restricted shares under share plans and are determined using the treasury stock method. U.S. GAAP requires that participating securities, be treated in the same manner as outstanding shares for earnings per share calculations. The Company treats certain of its unvested restricted shares as participating securities. In the event of a net loss, all participating securities, outstanding warrants, options and restricted shares are excluded from both basic and diluted loss per share since their inclusion would be anti-dilutive.
Page 7 of 19
SiriusPoint Ltd.
Segment Reporting - Three months ended September 30, 2021
(expressed in millions of U.S. dollars, except ratios)
| A&H | Specialty | Property | Runoff &<br>Other | Total | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross premiums written (1) | $ | 118.1 | $ | 350.9 | $ | 182.0 | $ | 2.7 | $ | 653.7 | ||||
| Net premiums written (1) | 88.4 | 306.8 | 91.0 | 5.1 | 491.3 | |||||||||
| Net premiums earned (1) | 111.7 | 240.6 | 150.8 | 9.0 | 512.1 | |||||||||
| Loss and loss adjustment expenses incurred, net (2) | 55.8 | 155.6 | 362.5 | 7.8 | 581.7 | |||||||||
| Acquisition costs, net | 10.5 | 65.8 | 30.9 | (0.3) | 106.9 | |||||||||
| Other underwriting expenses (2) | 30.2 | 25.6 | 22.1 | 11.4 | 89.3 | |||||||||
| Net underwriting income (loss) | $ | 15.2 | $ | (6.4) | $ | (264.7) | $ | (9.9) | (265.8) | |||||
| Other revenues | 20.7 | |||||||||||||
| Net investment income | 199.8 | |||||||||||||
| Net corporate and other expenses | (19.5) | |||||||||||||
| Intangible asset amortization | (2.0) | |||||||||||||
| Interest expense | (9.7) | |||||||||||||
| Foreign exchange gains | 16.1 | |||||||||||||
| Loss before income tax benefit | $ | (60.4) | ||||||||||||
| Underwriting Ratios (3): | ||||||||||||||
| Loss ratio | 50.0 | % | 64.7 | % | 240.4 | % | NM | 113.6 | % | |||||
| Acquisition cost ratio | 9.4 | % | 27.3 | % | 20.5 | % | NM | 20.9 | % | |||||
| Other underwriting expenses ratio | 27.0 | % | 10.6 | % | 14.7 | % | NM | 17.4 | % | |||||
| Combined ratio (4) | 86.4 | % | 102.6 | % | 275.6 | % | NM | 151.9 | % |
(1)Includes service fee revenue from the Company’s MGUs of $12.5 million in the three months ended September 30, 2021.
(2)Loss and loss adjustment expenses incurred, net and other underwriting expenses include expenses associated with the Company’s MGUs of $3.6 million and $24.5 million for the three months ended September 30, 2021, respectively.
(3)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
(4)Ratios considered not meaningful ("NM") to Runoff & Other.
(5)The Company modified the presentation of its operating segments in the first quarter of 2021 to better align with the manner in which management monitors the performance of its operations. This change was primarily due to the Company’s acquisition of Sirius Group. Prior period segment results have been adjusted to conform to the current period presentation.
Page 8 of 19
SiriusPoint Ltd.
Segment Reporting - Three months ended September 30, 2020
(expressed in millions of U.S. dollars, except ratios)
| A&H | Specialty | Property | Runoff &<br>Other | Total | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross premiums written (1) | $ | 0.2 | $ | 79.0 | $ | 42.6 | $ | 2.9 | $ | 124.7 | ||||
| Net premiums written (1) | 0.2 | 76.7 | 36.6 | 2.9 | 116.4 | |||||||||
| Net premiums earned (1) | 0.6 | 87.7 | 49.8 | 3.6 | 141.7 | |||||||||
| Loss and loss adjustment expenses incurred, net (1) | 0.4 | 67.9 | 62.2 | (20.0) | 110.5 | |||||||||
| Acquisition costs, net | 0.1 | 18.0 | 13.0 | 23.7 | 54.8 | |||||||||
| Other underwriting expenses (1) | — | 3.1 | 1.6 | 1.4 | 6.1 | |||||||||
| Net underwriting income (loss) | $ | 0.1 | $ | (1.3) | $ | (27.0) | $ | (1.5) | (29.7) | |||||
| Net investment income | 122.0 | |||||||||||||
| Net corporate and other expenses | (14.9) | |||||||||||||
| Interest expense | (2.1) | |||||||||||||
| Foreign exchange losses | (5.9) | |||||||||||||
| Income before income tax expense | $ | 69.4 | ||||||||||||
| Underwriting Ratios (2): | ||||||||||||||
| Loss ratio | 66.7 | % | 77.4 | % | 124.9 | % | NM | 78.0 | % | |||||
| Acquisition cost ratio | 16.7 | % | 20.5 | % | 26.1 | % | NM | 38.7 | % | |||||
| Other underwriting expenses ratio | — | % | 3.5 | % | 3.2 | % | NM | 4.3 | % | |||||
| Combined ratio (3) | 83.4 | % | 101.4 | % | 154.2 | % | NM | 121.0 | % |
(1)No MGUs existed in the three months ended September 30, 2020, therefore no service fee revenue or fees are included.
(2)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
(3)Ratios considered not meaningful ("NM") to Runoff & Other.
(4)The Company modified the presentation of its operating segments in the first quarter of 2021 to better align with the manner in which management monitors the performance of its operations. This change was primarily due to the Company’s acquisition of Sirius Group. Prior period segment results have been adjusted to conform to the current period presentation.
Page 9 of 19
SiriusPoint Ltd.
Segment Reporting - Nine months ended September 30, 2021
(expressed in millions of U.S. dollars, except ratios)
| A&H | Specialty | Property | Runoff &<br>Other | Total | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross premiums written (1) | $ | 343.5 | $ | 807.9 | $ | 457.3 | $ | (25.7) | $ | 1,583.0 | ||||
| Net premiums written (1) | 267.8 | 692.4 | 324.6 | (24.2) | 1,260.6 | |||||||||
| Net premiums earned (1) | 250.4 | 610.7 | 385.4 | (12.1) | 1,234.4 | |||||||||
| Loss and loss adjustment expenses incurred, net (2) | 121.9 | 393.9 | 482.2 | (13.1) | 984.9 | |||||||||
| Acquisition costs, net | 35.4 | 168.9 | 79.7 | (2.5) | 281.5 | |||||||||
| Other underwriting expenses (2) | 69.5 | 54.7 | 52.6 | 15.0 | 191.8 | |||||||||
| Net underwriting income (loss) | $ | 23.6 | $ | (6.8) | $ | (229.1) | $ | (11.5) | (223.8) | |||||
| Other revenues | 47.1 | |||||||||||||
| Net investment income | 463.7 | |||||||||||||
| Net corporate and other expenses | (113.5) | |||||||||||||
| Intangible asset amortization | (4.1) | |||||||||||||
| Interest expense | (24.4) | |||||||||||||
| Foreign exchange gains | 16.5 | |||||||||||||
| Income before income tax expense | $ | 161.5 | ||||||||||||
| Underwriting Ratios (3): | ||||||||||||||
| Loss ratio | 48.7 | % | 64.5 | % | 125.1 | % | NM | 79.8 | % | |||||
| Acquisition cost ratio | 14.1 | % | 27.7 | % | 20.7 | % | NM | 22.8 | % | |||||
| Other underwriting expenses ratio | 27.8 | % | 9.0 | % | 13.6 | % | NM | 15.5 | % | |||||
| Combined ratio (4) | 90.6 | % | 101.2 | % | 159.4 | % | NM | 118.1 | % |
(1)Includes service fee revenue from the Company’s MGUs of $37.3 million in the nine months ended September 30, 2021.
(2)Loss and loss adjustment expenses incurred, net and other underwriting expenses include expenses associated with the Company’s MGUs of $8.0 million and $55.4 million for the nine months ended September 30, 2021, respectively.
(3)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
(4)Ratios considered not meaningful ("NM") to Runoff & Other.
(5)The Company modified the presentation of its operating segments in the first quarter of 2021 to better align with the manner in which management monitors the performance of its operations. This change was primarily due to the Company’s acquisition of Sirius Group. Prior period segment results have been adjusted to conform to the current period presentation.
Page 10 of 19
SiriusPoint Ltd.
Segment Reporting - Nine months ended September 30, 2020
(expressed in millions of U.S. dollars, except ratios)
| A&H | Specialty | Property | Runoff &<br>Other | Total | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross premiums written (1) | $ | 2.8 | $ | 232.2 | $ | 160.2 | $ | 3.0 | $ | 398.2 | ||||||||||
| Net premiums written (1) | 2.8 | 224.3 | 138.9 | 3.0 | 369.0 | |||||||||||||||
| Net premiums earned (1) | 2.5 | 285.6 | 135.9 | 4.9 | 428.9 | |||||||||||||||
| Loss and loss adjustment expenses incurred, net (1) | 3.7 | 203.1 | 99.5 | (18.9) | 287.4 | |||||||||||||||
| Acquisition costs, net | 0.3 | 85.3 | 38.8 | 23.3 | 147.7 | |||||||||||||||
| Other underwriting expenses (1) | 0.1 | 12.4 | 4.7 | 3.9 | 21.1 | |||||||||||||||
| Net underwriting loss | $ | (1.6) | $ | (15.2) | $ | (7.1) | $ | (3.4) | (27.3) | |||||||||||
| Net investment income | 74.1 | |||||||||||||||||||
| Net corporate and other expenses | (30.2) | |||||||||||||||||||
| Interest expense | (6.2) | |||||||||||||||||||
| Foreign exchange gains | 3.1 | |||||||||||||||||||
| Income before income tax expense | $ | 13.5 | ||||||||||||||||||
| Underwriting Ratios (2): | ||||||||||||||||||||
| Loss ratio | 148.0 | % | — | % | 71.1 | % | — | % | 73.2 | % | — | % | NM | 67.0 | % | |||||
| Acquisition cost ratio | 12.0 | % | — | % | 29.9 | % | — | % | 28.6 | % | — | % | NM | 34.4 | % | |||||
| Other underwriting expenses ratio | 4.0 | % | — | % | 4.3 | % | — | % | 3.5 | % | — | % | NM | 4.9 | % | |||||
| Combined ratio (3) | 164.0 | % | 105.3 | % | 105.3 | % | NM | 106.3 | % |
(1)No MGUs existed in the nine months ended September 30, 2020, therefore no service fee revenue or fees are included.
(2)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
(3)Ratios considered not meaningful ("NM") to Runoff & Other.
(4)The Company modified the presentation of its operating segments in the first quarter of 2021 to better align with the manner in which management monitors the performance of its operations. This change was primarily due to the Company’s acquisition of Sirius Group. Prior period segment results have been adjusted to conform to the current period presentation.
Page 11 of 19
SiriusPoint Ltd.
A&H Segment - by Quarter (1)
(expressed in millions of U.S. dollars, except ratios)
| September 30,<br>2021 | June 30,<br>2021 | March 31,<br>2021 | December 31,<br>2020 | September 30,<br>2020 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross premiums written | $ | 118.1 | $ | 90.6 | $ | 134.8 | $ | 0.6 | $ | 0.2 | |||||
| Net premiums written | 88.4 | 75.8 | 103.6 | 0.6 | 0.2 | ||||||||||
| Net premiums earned | 111.7 | 103.7 | 35.0 | 0.7 | 0.6 | ||||||||||
| Loss and loss adjustment expenses incurred, net | 55.8 | 52.1 | 14.0 | (0.4) | 0.4 | ||||||||||
| Acquisition costs, net | 10.5 | 19.8 | 5.1 | — | 0.1 | ||||||||||
| Other underwriting expenses | 30.2 | 28.7 | 10.6 | — | — | ||||||||||
| Net underwriting income | $ | 15.2 | $ | 3.1 | $ | 5.3 | $ | 1.1 | $ | 0.1 | |||||
| Underwriting Ratios (2): | |||||||||||||||
| Loss ratio | 50.0 | % | 50.2 | % | 40.0 | % | (57.1) | % | 66.7 | % | |||||
| Acquisition cost ratio | 9.4 | % | 19.1 | % | 14.6 | % | — | % | 16.7 | % | |||||
| Other underwriting expense ratio | 27.0 | % | 27.7 | % | 30.3 | % | — | % | — | % | |||||
| Combined ratio | 86.4 | % | 97.0 | % | 84.9 | % | (57.1) | % | 83.4 | % |
(1)The Company modified the presentation of its operating segments in the first quarter of 2021 to better align with the manner in which management monitors the performance of its operations. This change was primarily due to the Company’s acquisition of Sirius Group. Prior period segment results have been adjusted to conform to the current period presentation.
(2)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
Page 12 of 19
SiriusPoint Ltd.
Specialty Segment - by Quarter (1)
(expressed in millions of U.S. dollars, except ratios)
| September 30,<br>2021 | June 30,<br>2021 | March 31,<br>2021 | December 31,<br>2020 | September 30,<br>2020 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross premiums written | $ | 350.9 | $ | 289.3 | $ | 167.7 | $ | 136.5 | $ | 79.0 | |||||
| Net premiums written | 306.8 | 241.1 | 144.5 | 125.5 | 76.7 | ||||||||||
| Net premiums earned | 240.6 | 231.1 | 139.0 | 122.4 | 87.7 | ||||||||||
| Loss and loss adjustment expenses incurred, net | 155.6 | 151.2 | 87.1 | 139.5 | 67.9 | ||||||||||
| Acquisition costs, net | 65.8 | 60.8 | 42.3 | 27.2 | 18.0 | ||||||||||
| Other underwriting expenses | 25.6 | 19.2 | 9.9 | 6.3 | 3.1 | ||||||||||
| Net underwriting loss | $ | (6.4) | $ | (0.1) | $ | (0.3) | $ | (50.6) | $ | (1.3) | |||||
| Underwriting Ratios (2): | |||||||||||||||
| Loss ratio | 64.7 | % | 65.4 | % | 62.7 | % | 114.0 | % | 77.4 | % | |||||
| Acquisition cost ratio | 27.3 | % | 26.3 | % | 30.4 | % | 22.2 | % | 20.5 | % | |||||
| Other underwriting expense ratio | 10.6 | % | 8.3 | % | 7.1 | % | 5.1 | % | 3.5 | % | |||||
| Combined ratio | 102.6 | % | 100.0 | % | 100.2 | % | 141.3 | % | 101.4 | % |
(1)The Company modified the presentation of its operating segments in the first quarter of 2021 to better align with the manner in which management monitors the performance of its operations. This change was primarily due to the Company’s acquisition of Sirius Group. Prior period segment results have been adjusted to conform to the current period presentation.
(2)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
Page 13 of 19
SiriusPoint Ltd.
Property Segment - by Quarter (1)
(expressed in millions of U.S. dollars, except ratios)
| September 30,<br>2021 | June 30,<br>2021 | March 31,<br>2021 | December 31,<br>2020 | September 30,<br>2020 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross premiums written | $ | 182.0 | $ | 213.2 | $ | 62.1 | $ | 27.3 | $ | 42.6 | |||||
| Net premiums written | 91.0 | 173.3 | 60.3 | 21.2 | 36.6 | ||||||||||
| Net premiums earned | 150.8 | 154.4 | 80.2 | 35.7 | 49.8 | ||||||||||
| Loss and loss adjustment expenses incurred, net | 362.5 | 74.3 | 45.4 | 20.1 | 62.2 | ||||||||||
| Acquisition costs, net | 30.9 | 27.6 | 21.2 | 9.9 | 13.0 | ||||||||||
| Other underwriting expenses | 22.1 | 22.3 | 8.2 | 1.3 | 1.6 | ||||||||||
| Net underwriting income (loss) | $ | (264.7) | $ | 30.2 | $ | 5.4 | $ | 4.4 | $ | (27.0) | |||||
| Underwriting Ratios (2): | |||||||||||||||
| Loss ratio | 240.4 | % | 48.1 | % | 56.6 | % | 56.3 | % | 124.9 | % | |||||
| Acquisition cost ratio | 20.5 | % | 17.9 | % | 26.4 | % | 27.7 | % | 26.1 | % | |||||
| Other underwriting expense ratio | 14.7 | % | 14.4 | % | 10.2 | % | 3.6 | % | 3.2 | % | |||||
| Combined ratio | 275.6 | % | 80.4 | % | 93.2 | % | 87.6 | % | 154.2 | % |
(1)The Company modified the presentation of its operating segments in the first quarter of 2021 to better align with the manner in which management monitors the performance of its operations. This change was primarily due to the Company’s acquisition of Sirius Group. Prior period segment results have been adjusted to conform to the current period presentation.
(2)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
Page 14 of 19
SiriusPoint Ltd.
Runoff & Other Segment - by Quarter (1)
(expressed in millions of U.S. dollars)
| September 30,<br>2021 | June 30,<br>2021 | March 31,<br>2021 | December 31,<br>2020 | September 30,<br>2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Gross premiums written | $ | 2.7 | $ | (30.4) | $ | 2.0 | $ | 26.0 | $ | 2.9 |
| Net premiums written | 5.1 | (31.2) | 1.9 | 26.0 | 2.9 | |||||
| Net premiums earned | 9.0 | (22.9) | 1.8 | 23.3 | 3.6 | |||||
| Loss and loss adjustment expenses incurred, net | 7.8 | (22.5) | 1.6 | 18.8 | (20.0) | |||||
| Acquisition costs, net | (0.3) | (2.6) | 0.4 | 2.1 | 23.7 | |||||
| Other underwriting expenses | 11.4 | 2.1 | 1.5 | 2.0 | 1.4 | |||||
| Net underwriting income (loss) | $ | (9.9) | $ | 0.1 | $ | (1.7) | $ | 0.4 | $ | (1.5) |
(1)The Company modified the presentation of its operating segments in the the first quarter of 2021 to better align with the manner in which management monitors the performance of its operations. This change was primarily due to the Company’s acquisition of Sirius Group. Prior period segment results have been adjusted to conform to the current period presentation.
(2)Underwriting ratios are not considered not meaningful to Runoff & Other
Page 15 of 19
SiriusPoint Ltd.
Investments - by Quarter
(expressed in millions of U.S. dollars)
| September 30,<br>2021 | June 30,<br>2021 | March 31,<br>2021 | December 31,<br>2020 | September 30,<br>2020 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fair Value | % | Fair Value | % | Fair Value | % | Fair Value | % | Fair Value | % | |||||||||||
| Asset-backed securities | $ | 494.6 | 9.7 | % | $ | 543.6 | 12.1 | % | $ | 594.6 | 12.8 | % | $ | 1.3 | 0.1 | % | $ | 20.6 | 2.0 | % |
| Residential mortgage-backed securities | 349.2 | 6.9 | % | 367.8 | 8.2 | % | 392.2 | 8.5 | % | 8.7 | 0.7 | % | 8.7 | 0.8 | % | |||||
| Commercial mortgage-backed securities | 121.9 | 2.4 | % | 123.6 | 2.7 | % | 123.0 | 2.6 | % | — | — | % | — | — | % | |||||
| Bank debt | — | — | % | — | — | % | — | — | % | 0.4 | — | % | 0.7 | 0.1 | % | |||||
| Corporate debt securities | 608.2 | 12.0 | % | 595.0 | 13.2 | % | 564.6 | 12.2 | % | 37.7 | 3.3 | % | 56.8 | 5.4 | % | |||||
| U.S. government and government agency | 368.9 | 7.3 | % | 264.3 | 5.9 | % | 1,140.9 | 24.7 | % | 53.2 | 4.6 | % | 99.5 | 9.3 | % | |||||
| Non-U.S. government and government agency | 134.8 | 2.7 | % | 101.5 | 2.3 | % | 121.3 | 2.6 | % | — | — | % | — | — | % | |||||
| U.S. states, municipalities and political subdivision | 0.5 | — | % | 0.7 | — | % | 0.9 | — | % | — | — | % | — | — | % | |||||
| Preferred stocks | 22.8 | 0.4 | % | 12.8 | 0.3 | % | 2.8 | 0.1 | % | — | — | % | — | — | % | |||||
| Total debt securities | 2,100.9 | 41.4 | % | 2,009.3 | 44.7 | % | 2,940.3 | 63.5 | % | 101.3 | 8.7 | % | 186.3 | 17.6 | % | |||||
| Fixed income mutual funds | 1.9 | — | % | 1.9 | — | % | 1.8 | — | % | — | — | % | — | — | % | |||||
| Common stocks | 1.5 | — | % | 3.1 | 0.1 | % | 4.1 | 0.1 | % | — | — | % | — | — | % | |||||
| Total equity securities | 3.4 | — | % | 5.0 | 0.1 | % | 5.9 | 0.1 | % | — | — | % | — | — | % | |||||
| Short-term investments | 1,057.9 | 20.9 | % | 766.7 | 17.0 | % | — | — | % | — | — | % | — | — | % | |||||
| Other long-term investments | 328.3 | 6.5 | % | 322.5 | 7.2 | % | 311.2 | 6.8 | % | 4.0 | 0.3 | % | 4.0 | 0.4 | % | |||||
| Investments in funds valued at net asset value | 1,583.0 | 31.2 | % | 1,395.6 | 31.0 | % | 1,370.7 | 29.6 | % | 1,055.6 | 91.0 | % | 869.0 | 82.0 | % | |||||
| Total investments | $ | 5,073.5 | 100.0 | % | $ | 4,499.1 | 100.0 | % | $ | 4,628.1 | 100.0 | % | $ | 1,160.9 | 100.0 | % | $ | 1,059.3 | 100.0 | % |
Page 16 of 19
SiriusPoint Ltd.
Basic and Diluted Book Value per Share - by Quarter
(expressed in millions of U.S. dollars, except share and per share data)
| September 30,<br>2021 | June 30,<br>2021 | March 31,<br>2021 | December 31,<br>2020 | September 30,<br>2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Basic and diluted book value per share numerator: | ||||||||||
| Shareholders' equity attributable to SiriusPoint shareholders | $ | 2,638.0 | $ | 2,680.1 | $ | 2,607.5 | $ | 1,563.9 | $ | 1,427.6 |
| Less: Series B preference shares | (200.0) | (200.0) | (200.0) | — | — | |||||
| Common shareholders’ equity attributable to SiriusPoint common shareholders - basic | 2,438.0 | 2,480.1 | 2,407.5 | 1,563.9 | 1,427.6 | |||||
| Plus: carrying value of Series A preference shares issued in merger | 31.2 | 38.4 | 40.8 | — | — | |||||
| Common shareholders’ equity attributable to SiriusPoint common shareholders - diluted | 2,469.2 | 2,518.5 | 2,448.3 | 1,563.9 | 1,427.6 | |||||
| Less: intangible assets | (173.7) | (176.7) | (174.2) | — | — | |||||
| Tangible common shareholders' equity attributable to SiriusPoint common shareholders - basic | 2,264.3 | 2,303.4 | 2,233.3 | 1,563.9 | 1,427.6 | |||||
| Tangible common shareholders' equity attributable to SiriusPoint common shareholders - diluted | $ | 2,295.5 | $ | 2,341.8 | $ | 2,274.1 | $ | 1,563.9 | $ | 1,427.6 |
| Basic and diluted book value per share denominator: | ||||||||||
| Common shares outstanding | 161,949,037 | 161,945,750 | 161,891,354 | 95,582,733 | 95,314,893 | |||||
| Unvested restricted shares | (2,687,612) | (2,879,187) | (3,450,338) | (2,933,993) | (2,695,127) | |||||
| Basic book value per share denominator | 159,261,425 | 159,066,563 | 158,441,016 | 92,648,740 | 92,619,766 | |||||
| Effect of dilutive Series A preference shares issued in merger | 1,015,116 | 2,088,464 | 1,888,145 | — | — | |||||
| Effect of dilutive warrants (1) | — | 24,295 | 58,421 | — | — | |||||
| Effect of dilutive stock options, restricted shares and restricted share units issued to directors and employees (2) | 2,825,401 | 2,629,954 | 2,426,816 | 969,386 | 284,486 | |||||
| Diluted book value per share denominator | 163,101,942 | 163,809,276 | 162,814,398 | 93,618,126 | 92,904,252 | |||||
| Basic book value per share (2) | $ | 15.31 | $ | 15.59 | $ | 15.19 | $ | 16.88 | $ | 15.41 |
| Tangible basic book value per share (2) | $ | 14.22 | $ | 14.48 | $ | 14.10 | $ | 16.88 | $ | 15.41 |
| Diluted book value per share (2) (3) | $ | 15.14 | $ | 15.37 | $ | 15.04 | $ | 16.71 | $ | 15.37 |
| Tangible diluted book value per share (2) | $ | 14.07 | $ | 14.30 | $ | 13.97 | $ | 16.71 | $ | 15.37 |
(1)As of September 30, 2021, December 31, 2020 and September 30, 2020, there was no dilution as a result of the Company’s share price being under the lowest exercise price for warrants.
(2)Basic book value per share, tangible basic book value per share, diluted book value per share and tangible diluted book value per share are non-GAAP financial measures. Basic book value per share, as presented, is a non-GAAP financial measure and is calculated by dividing common shareholders’ equity attributable to SiriusPoint common shareholders by the number of common shares outstanding, excluding the total number of issued unvested restricted shares, at period end. Tangible basic book value per share, as presented, is a non-GAAP financial measure and is calculated by dividing tangible common shareholders’ equity attributable to SiriusPoint common shareholders by the number of common shares outstanding, excluding the total number of unvested restricted shares, at period end. Tangible book value per share is useful to investors because it measures the realizable value of shareholder returns, excluding the impact of intangible assets. Diluted book value per share and tangible diluted book value per share, as presented, are non-GAAP financial measures and are calculated using the treasury stock method. Under the treasury stock method, we assume that proceeds received from in-the-money options and/or warrants exercised are used to repurchase common shares in the market. The dilutive effect of restricted shares, restricted share units and options are calculated in a manner consistent with how dilution is calculated using the treasury stock method for earnings per share. We have also followed a similar approach for calculating dilution for warrants, Series A preference shares, Upside Rights and other potentially dilutive securities issued as part of our acquisition of Sirius Group.
(3)In the first quarter of 2021, we changed the method for calculating the dilutive effect of restricted shares, restricted share units and options to calculate the dilutive impact in a manner consistent with how dilution is calculated using the treasury stock method for earnings per share. This change had no impact on previously presented basic book value per share.
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SiriusPoint Ltd.
Earnings (loss) per Share - by Quarter
(expressed in millions of U.S. dollars, except share and per share data)
| September 30,<br>2021 | June 30,<br>2021 | March 31,<br>2021 | December 31,<br>2020 | September 30,<br>2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Weighted-average number of common shares outstanding: | ||||||||||
| Basic number of common shares outstanding | 159,225,772 | 158,832,629 | 116,760,760 | 92,638,978 | 92,613,393 | |||||
| Dilutive effect of options (1) | — | 313,758 | 184,470 | — | — | |||||
| Dilutive effect of warrants (1) | — | 160,075 | 51,650 | — | — | |||||
| Dilutive effect of restricted share units (1) | — | 1,587,754 | 1,149,461 | 526,581 | 356,253 | |||||
| Dilutive effect of Series A preference shares | 1,015,116 | — | — | — | — | |||||
| Diluted number of common shares outstanding | 160,240,888 | 160,894,216 | 118,146,341 | 93,165,559 | 92,969,646 | |||||
| Basic earnings per common share: | ||||||||||
| Net income (loss) available to SiriusPoint common shareholders | $ | (48.0) | $ | 64.5 | $ | 130.9 | $ | 134.4 | $ | 68.7 |
| Net income allocated to SiriusPoint participating common shareholders | — | (5.4) | (6.5) | (1.6) | (0.5) | |||||
| Net income (loss) allocated to SiriusPoint common shareholders | $ | (48.0) | $ | 59.1 | $ | 124.4 | $ | 132.8 | $ | 68.2 |
| Basic earnings (loss) per share available to SiriusPoint common shareholders | $ | (0.30) | $ | 0.37 | $ | 1.07 | $ | 1.43 | $ | 0.74 |
| Diluted earnings (loss) per common share: | ||||||||||
| Net income (loss) available to SiriusPoint common shareholders | $ | (48.0) | $ | 64.5 | $ | 130.9 | $ | 134.4 | $ | 68.7 |
| Net income allocated to SiriusPoint participating common shareholders | — | (5.4) | (6.5) | (1.6) | (0.5) | |||||
| Change in carrying value of Series A preference shares | (7.2) | — | — | — | — | |||||
| Net income (loss) allocated to SiriusPoint common shareholders | $ | (55.2) | $ | 59.1 | $ | 124.4 | $ | 132.8 | $ | 68.2 |
| Diluted earnings (loss) per share available to SiriusPoint common shareholders (2) | $ | (0.34) | $ | 0.37 | $ | 1.05 | $ | 1.43 | $ | 0.73 |
(1)As of September 30, 2021, there was no dilution as a result of the net loss allocated to SiriusPoint common shareholders in the quarter. As of September 30, 2021, December 31, 2020 and September 30, 2020, there was no dilution as a result of the Company’s average share price for the quarter being under the lowest exercise price or reference price for the respective security for warrants and options.
(2)Basic earnings (loss) per share is based on the weighted average number of common shares and participating securities outstanding during the period. The weighted average number of common shares excludes any dilutive effect of outstanding warrants, options and unvested restricted shares. Diluted earnings (loss) per share is based on the weighted average number of common shares and participating securities outstanding and includes any dilutive effects of warrants, options and unvested restricted shares under share plans and are determined using the treasury stock method. U.S. GAAP requires that participating securities, be treated in the same manner as outstanding shares for earnings per share calculations. The Company treats certain of its unvested restricted shares as participating securities. In the event of a net loss, all participating securities, outstanding warrants, options and restricted shares are excluded from both basic and diluted loss per share since their inclusion would be anti-dilutive.
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SiriusPoint Ltd.
Annualized Return on Average Common Shareholders’ Equity - by Quarter
(expressed in millions of U.S. dollars, except share and per share data and ratios)
| September 30,<br>2021 | June 30,<br>2021 | March 31,<br>2021 | December 31,<br>2020 | September 30,<br>2020 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (loss) available to SiriusPoint common shareholders | $ | (48.0) | $ | 64.5 | $ | 130.9 | $ | 134.4 | $ | 68.7 | |||||
| Shareholders’ equity attributable to SiriusPoint common shareholders - beginning of period | 2,480.1 | 2,407.5 | 1,563.9 | 1,427.6 | 1,357.3 | ||||||||||
| Shareholders’ equity attributable to SiriusPoint common shareholders - end of period | 2,438.0 | 2,480.1 | 2,407.5 | 1,563.9 | 1,427.6 | ||||||||||
| Average shareholders’ equity attributable to SiriusPoint common shareholders | $ | 2,459.1 | $ | 2,443.8 | $ | 1,985.7 | $ | 1,495.7 | $ | 1,392.5 | |||||
| Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders (1) | (7.8) | % | 10.6 | % | 26.4 | % | 35.9 | % | 19.7 | % |
(1)Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders is calculated by dividing annualized net income (loss) available to SiriusPoint common shareholders for the period by the average common shareholders’ equity determined using the common shareholders' equity balances at the beginning and end of the period.
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siriuspointinvestorprese
September 30 2021 siriuspt.com Q3: INVESTOR PRESENTATION 1
2 DISCLAIMER Forward‐ Looking Statements We make statements in this presentation that are “forward‐looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The Company cautions you that the forward‐looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward‐looking information contained in this press release. In addition, forward‐looking statements generally can be identified by the use of forward‐looking terminology such as “may,” “plan,” “seek,” “comfortable with,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Actual events, results and outcomes may differ materially from the Company’s expectations due to a variety of known and unknown risks, uncertainties and other factors. Among the risks and uncertainties that could cause actual results to differ from those described in the forward‐looking statements are the following: the costs, expense and difficulties of the integration of the operations of Sirius International Insurance Group, Ltd.; the impact of the novel coronavirus (COVID‐19) pandemic or other unpredictable catastrophic events; fluctuations in our results of operations; a downgrade or withdrawal of our financial ratings; inadequacy of loss and loss adjustment expenses reserves; the effects of global climate change; periods characterized by excess underwriting capacity and unfavorable premium rates; reduced returns or losses in SiriusPoint’s investment portfolio; adverse changes in interest rates, foreign currency exchange rates, equity markets, debt markets or market volatility; legal restrictions on certain of SiriusPoint’s insurance and reinsurance subsidiaries’ ability to pay dividends and other distributions to SiriusPoint; SiriusPoint’s significant deferred tax assets, which could become devalued if either SiriusPoint does not generate sufficient future taxable income or applicable corporate tax rates are reduced; the lack of availability of capital; future strategic transactions such as acquisitions, dispositions, mergers, investments or joint ventures; technology breaches; our concentrated exposure in Third Point Enhanced LP (the “TP Enhanced Fund”) whose investment strategy may bear substantial investment risks; conflicts of interest among various members of TP Enhanced Fund, Third Point LLC and SiriusPoint; and other risks and uncertainties listed in the Company's Quarterly Report on Form 10‐Q for the quarters ended March 31, 2021, June 30, 2021, and September 30, 2021, and any subsequent reports filed with the Securities and Exchange Commission. All forward‐looking statements speak only as of the date made and the Company undertakes no obligation to update or revise publicly any forward‐ looking statements, whether as a result of new information, future events or otherwise.. Non‐GAAP Financial Measures This presentation may also contain non‐ GAAP financial information. SiriusPoint’s management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of SiriusPoint’s financial performance, identifying trends in our results and providing meaningful period‐to‐period comparisons. Book value per share metrics are non‐GAAP financial measures, and there are no comparable GAAP measures. We believe that long‐term growth in book value per share is an important measure of our financial performance because it allows our management and investors to track over time the value created by the retention of earnings. In addition, we believe this metric is used by investors because it provides a basis for comparison with other companies in our industry that also report a similar measure.
CONTENTS 3 4 SIRIUSPOINT: A STRONG GLOBAL REINSURER 5 SIRIUSPOINT CREATION : THE MERGER OF THIRD POINT RE AND SIRIUS INTERNATIONAL INSURANCE GROUP 6-7 EXECUTIVE LEADERSHIP TEAM AND UNDERWRITING SEGMENT LEADERS 15 INSURANCE AND SERVICES 9-10 OUR MISSION, PURPOSE AND VALUES 11 OVERVIEW OF SIRIUSPOINT: KEY HIGHLIGHTS 12 THREE PILLAR STRATEGY 8 PROVEN BOARD WITH A FOCUS ON SOUND GOVERNANCE 13 BUSINESS SEGMENTS 16 Q3 INVESTMENT PORTFOLIO 17 GROWING OUR BUSINESS AND CREATING VALUE 18 -19 APPENDIX: SIRIUSPOINT LTD. ISSUED CAPITAL INSTRUMENTS
With more than $3 billion total capital, we are a fast‐moving, responsive partner, that combines best‐in‐class underwriting and risk management with pioneering ideas. Our proven management team brings diversity of thought and experience to our business, with a focus on underwriting profitability. We write a global portfolio of Accident & Health, Specialty, and Property across our reinsurance franchise, combining data and creative thinking to underwrite risks with skill and discipline. SiriusPoint underwrites primary insurance in a growing number of sectors including A&H and Environment . We also work with high quality MGUs and MGAs globally to access specialty insurance business. We have a global platform, local talent and long‐standing relationships. We are committed to seeking out new ways to create value for the people and businesses we serve, leveraging technology to improve the way we manage risk, use data, and develop new strategic opportunities. SIRIUSPOINT: A STRONG GLOBAL (RE)INSURER 4
PROVEN BOARD WITH A FOCUS ON SOUND GOVERNANCE 5 The SiriusPoint Board is comprised of individuals with deep industry and business experience, including two new appointments which were announced upon the closing of the merger. More than a majority of the SiriusPoint directors are "independent" under New York Stock Exchange rules, and key committees of the Board, including the Audit, Compensation and Governance & Nomina ng commi ees, are comprised exclusively of independent directors. Since the merger, SiriusPoint leadership has focused on enhancing its corporate governance policies, developing a robust group compliance program and aligning its business and operations with ESG principles.
EXECUTIVE LEADERSHIP TEAM Monica Cramér Manhem President, International Reinsurance Vievette Henry Chief People Officer Prashanth Gangu Chief Operating Officer and President, Insurance and Services 6
UNDERWRITING LEADERS 7
SIRIUSPOINT APPROACH Third Point Reinsurance Ltd.’s (“TPRe”) merger with Sirius International Insurance Group, Ltd. (“Sirius”) in February 2021, created a diversified company with an attractive business profile backed by a strong balance sheet Transformational transaction which has created a global, diversified (re) insurance franchise with presence across A&H, property, liability and specialty lines Enhanced scale and underwriting capabilities, well‐positioned for profitable growth Reconstituted strategic partnership with Third Point LLC, with the continuation of strong investment returns Strong capitalization with further ability to reposition risk profile Proven management team with focus on underwriting profitability CMIH, previously Sirius’ majority shareholder, owns 34% of SiriusPoint, with a 9.9% voting cap1 8 I I P INT CREATION - MERGER Note: (1) Does not include potential impact of dilutive instruments
SIRIUSPOINT MISSION, PURPOSE… 9 Mission It is our mission to be an exceptionally innovative partner, combining data and creative thinking to underwrite risks with skill and discipline, building a sustainable business for all. Purpose Our purpose is to help our customers and communities grow and thrive. To support them when they need it the most.
SIRIUSPOINT VALUES Be Yourself We celebrate the diversity of our people and foster an environment that is supportive and fun, to encourage everyone to bring their whole selves to work every day, to enjoy what they do and take pride in themselves, their role, and the company. Be Entrepreneurial We encourage each other to seek out innovative ways to create value for the people and businesses that we support. In a culture where ideas and opinions are openly shared, we apply our skill and passion to make a positive impact, helping us all to move forward, grow, and succeed. Be Open We always speak our minds and do the right thing. Bravery, collaboration, and honesty are at the core of everything we do, ensuring we build open, trusted, and valuable relationships. Be Pioneering We challenge convention, and explore new and better solutions for our customers, partners, and communities. It is our responsibility to discover, learn and adapt, to support others in the ever‐changing global environment. 10
Financial Strength Ratings >$3 Billion Total GAAP capital1 >$7 Billion Total investments & cash 2 $2.3 Billion Gross premiums written 3 Clients in nearly 150 countries >8,000 Treaties & Accounts >75 Years of history >12 Insurtech & MGA Partnerships ~1,000 Employees (including MGUs) 4 OVERVIEW OF SIRIUSPOINT: KEY HIGHLIGHTS 11 Note: Information is accurate as at September 30 2021 unless otherwise indicated. (1) Total GAAP capital includes common and preferred equity, and debt; (2) Including restricted cash, (3) Proforma data as of December 31 2020, (4) International Medical Group and ArmadaCorp Capital A- AM Best A- Fitch A- S&P
THREE PILLAR STRATEGY SiriusPoint’s three pillar strategy is designed to unlock the potential that exists within SiriusPoint as we strive to improve the Company’s profitability by being best‐in‐class capital allocators, better managing our risk, growing higher margin, differentiating businesses and investing in technology. 1. FOCUS AND STABILIZE Focus and stabilize the company's core insurance and reinsurance business through profitable underwriting Be disciplined in managing our balance sheet and optimizing our capital allocation Re‐assess our portfolio and boost profitability while lowering the volatility of the book 2. REVITALIZE AND GROW Revitalize and grow our core insurance and reinsurance books Continuously allocate our capital to the best opportunities and react quickly as market conditions change by product and region Be nimble and react to changing market conditions to take advantage of dislocations 3. MODERNIZE AND BREAKOUT Leverage technology and build alternative business models to respond to how the world and risk are changing, optimizing our Global platform by partnering with and investing in innovative businesses and teams in the insurance industry Assess and re‐work our platform so that it is more efficient and ready for higher growth Build a strong technology foundation to grow productive for our client partners and our investors 12
BUSINESS SEGMENTS 13 Accident & Health Insurance and Reinsurance Underwriting A&H insurance, as well as medical, travel and personal accident reinsurance International Medical Group, Inc. (“IMG”) full‐service global health and travel insurance, and assistance ArmadaCorp Capital, LLC (“Armada”) U.S. supplemental medical insurance Specialty Aviation & Space aviation operations and satellite insurance Marine & Energy marine reinsurance and yacht insurance Credit short‐term commercial credit and bond reinsurance Contingency event cancellation and non‐appearance Casualty cross section of all casualty lines including general liability, umbrella, auto, workers compensation, professional liability and others Environmental insurance for pollution coverage Mortgage mortgage reinsurance & retrocession Property Property Catastrophe Excess Reinsurance covers losses from catastrophic events Agriculture Reinsurance reinsurance coverage includes coverage for Gov’t‐sponsored multi‐peril crop insurance Property Risk and Pro Rata Runoff & Other
Global Platform SiriusPoint is a leading global reinsurer. We offer treaty and facultative reinsurance through our network of international branch offices, our Lloyd's Syndicate and our platforms in the U.S. and Bermuda. We access profitable business by leveraging our relationships with local and international insurers and brokers. Managing Risk We have conducted a line‐by‐line portfolio review to ensure the strength of our reinsurance book. We are making strong progress managing our book and exiting risks that no longer fit our risk profile or where we do not see attractive risk adjusted returns. Profitable Underwriting Our focus is on profitable and sustainable underwriting, to be a partner of choice for clients and brokers and to add value for our investors. REINSURANCE 14
Grow capital‐light, well positioned A&H business (incl. Employer Stop Loss, Life Re, voluntary benefits, and wholly owned MGA/MGU IMG and Armada etc.) Grow via partnerships Our playbook involves structuring multi‐year partnerships that include taking an investment stake and offering the use of paper, balance sheet capacity, product expertise, actuarial support and MGA operations support. Launch new products Form strategic partnerships with innovative fast‐growing tech‐native companies with a competitive moat – they are coming up with creative solutions to address customer needs. Examples INSURANCE AND SERVICES Focus Areas We aspire to grow Insurance and Services by investing in our A&H segment, partnering with exceptional MGAs, and supporting the launch of new businesses and products. 15
SIRIUSPOINT INVESTMENT PORTFOLIO 3Q 2021 16Note (1) . Risk Assets includes TP Enhanced, TP Venture, Strategic Investments and SG Legacy Alternatives. (2) Fixed Income and Cash & Cash Equivalent includes debt securities and unrestricted cash and cash equivalents. (3) Collateral Assets includes restricted securities and restricted cash and cash equivalents Investment strategy to achieve long‐term total return with prudent risk management Investment portfolio heavily weighted towards traditional fixed income, cash, and cash equivalents to support policyholder liabilities with regulatory and collateral requirements Strong partnership with Third Point LLC with positions in their long/short equity, credit and venture funds Incubation of and partnership with MGA and Insurtech companies 27% 40% 33% Risk Assets Fixed Income and Cash & Cash Equivalents Collateral Assets 1 2 3
Transitioning to a Specialty (Re)insurer Attracting experienced talent Expanding into higher margin business lines Improving profitability Capital markets expertise to drive value via strategic partnerships Best‐in‐class investment manager Designed to deliver attractive risk adjusted returns VISION: TO GROW OUR BUSINESS, CREATE VALUE AND POSITIVELY IMPACT A CHANGING WORLD BY BEING THE MOST ADAPTIVE (RE)INSURER IN THE MARKET GROWING OUR BUSINESS AND CREATING VALUE 17
PRESENTATION TITLE OES HERE 18 18 APPENDIX: SIRIUSPOINT LTD. ISSUED CAPITAL INSTRUMENTS
SIRIUSPOINT LTD. ISSUED CAPITAL INSTRUMENTS as of September 30, 2021 19 Instrument Number Outstanding (millions) Face Amount ($, millions) 3Q Ending FV ($, millions) 3Q FV Change ($, millions) Maturity Rating Listing Notes Basic common shares 1581 ‐ ‐ ‐ ‐ ‐ NYSE ‐ ticker SPNT CM Bermuda currently holds 34% of common shares with 9.9% voting cap. Lock ups expire: 1/3rd October 9, 2021, 1/3rd February 26, 2022, and 1/3rd May 22, 2022 Contingent value rights 5 ‐ $26.1 $3.2 2/26/2023 ‐ OTCQX ‐ ticker SSPCF $13.73 minus VWAP*0.743 per share to be paid out in cash at 2nd anniversary of transaction 3Q FV change ‐ trading price of $5.70 vs. 2Q of $5.00 Upside rights ‐ Shares equal to $100 $0.0 ($1.6) 2/26/2022 ‐ ‐ $100m if SPNT trades >$20 for any 30 trading day period before February 26, 2022 3Q FV change – over 1/3rd of period has expired and stock price has decreased (must hit $20 to have value) Warrants 21 ‐ $40.1 ($10.3) 2/26/2026 ‐ Pink Sheet ‐ ticker SSPFF $11 strike price2 3Q FV change – due to share price decrease and period to exercise eroding Preference shares ‐ Series A 12 ‐ $31.2 ($7.2) 2/26/2024 ‐ ‐ Current estimated Covid adjustment 3Q FV Change – More shares are surrendered when share price is lower Preference shares ‐ Series B 8 $200 ‐ ‐ Perpetual NC5 BB+ (S&P, Fitch) NYSE ‐ ticker SPNT‐PB 8% dividend per annum SEK‐denominated sub debt ‐ SEK 2,750 ‐ ‐ 2047 BB+ (S&P, Fitch) Irish Stock Exchange STIBOR + 4% coupon Sirius senior debt ‐ $400 ‐ ‐ 2026 BBB (S&P), BBB‐ (Fitch) Bermuda Stock Exchange 4.6% coupon TPRe senior debt ‐ $115 ‐ ‐ 2025 BBB‐ (AMB) 7% coupon Subtotal $97.4 ($15.9) TPRe private warrants 4 ‐ $4.4 ($1.9) 11/5/2023 ‐ ‐ $13 strike price Sirius public warrants 4 ‐ $1.6 ($1.0) 10/27/2023 ‐ ‐ $18.89 strike price Total $103.4 ($18.8) Fair value reflects total liability classified financial instruments Notes: [1] Excludes unvested restricted shares. [2] In relation only to the warrants issued as consideration. Summary terms only presented here. For the full terms and conditions of each of the above securities, please see SiriusPoint’s final joint proxy statement / prospectus, filed on October 23, 2020, and our other SEC filings, which can be found in the Investor Relations section of www.siriuspt.com. For the full terms and conditions of Sirius Group’s sub‐debt and senior‐debt, please see Sirius Group’s historical SEC filings.
THANK YOU 20
Document
SiriusPoint Announces Dividend on Series B Preference Shares
HAMILTON, Bermuda. November 3, 2021 -- SiriusPoint Ltd. (“SiriusPoint” or the “Company”) (NYSE: SPNT), a global specialty insurer and reinsurer, has announced that the Board of Directors of SiriusPoint Ltd. approved a quarterly cash dividend of $0.50 per share on its 8.00% Resettable Fixed Rate Preference Shares, Series B, $0.10 par value, $25.00 liquidation preference per share payable on November 30, 2021 to Series B shareholders of record as of November 15, 2021.
About SiriusPoint
SiriusPoint Ltd. (SiriusPoint) is a global insurer and reinsurer providing solutions to clients and brokers in almost 150 countries. Bermuda-headquartered with offices around the world, we are listed on the New York Stock Exchange (SPNT). We write a global portfolio of Accident and Health, Specialty, Property and Runoff, combining data and creative thinking to underwrite risks with skill and discipline. With over $3 billion total capital, SiriusPoint’s operating companies have a financial strength rating of A- (Excellent) from AM Best, S&P and Fitch. For more information, please visit www.siriuspt.com.
SiriusPoint Contacts
Investor Relations
Clare Kerrigan clare.kerrigan@siriuspt.com
+1 441 542-3333
Media
Sarah Hills
sarah.hills@rein4ce.co.uk
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Forward-Looking Statements
We make statements in this report that are forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. Federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements made on behalf of SiriusPoint. These risks and uncertainties include the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, fluctuation in the results of operations; pandemic or other catastrophic event, such as the ongoing COVID-19 outbreak; the costs, expense and difficulties of the integration of the operations of Third Point Reinsurance Ltd. and Sirius International Insurance Group, Ltd.; our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market and investment income fluctuations, trends in insured and paid losses, regulatory and legal uncertainties and other risk factors described in SiriusPoint’s Quarterly Reports on Form 10-Q for the periods. Except as required by applicable law or regulation, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, or new information, data or methods, future events or other circumstances after the date of this report.