HAMILTON, Bermuda, May 10, 2021 /PRNewswire/ -- SiriusPoint Ltd.
("SiriusPoint" or the "Company") (NYSE:SPNT) today announced
results for its first quarter ended March
31, 2021.
First Quarter 2021 Highlights
- Net income of $130.9 million, or
$1.05 per diluted common share
- Tangible diluted book value per share of $13.97 as of March 31,
2021
- Combined ratio of 96.6%
- On a reported basis, catastrophe losses were $5.7 million or 2.2 percentage points on the
Company's combined ratio
- Annualized return on average common equity of 26.4%
- Net investment income of $186.5
million
- A- ratings confirmed from AM Best, S&P and Fitch during the
first quarter 2021
Sid Sankaran, Chairman and Chief
Executive Officer of SiriusPoint said: "I am delighted in our
launch of SiriusPoint in the first quarter. We believe our combined
company has the platform, capabilities and expertise to take
advantage of changing market conditions and compete in a
differentiated and effective fashion in the global (re)insurance
marketplace. I am extremely proud that by the closing of our
transaction we added world-class talent to our team, strengthened
the quality of our balance sheet and refocused our underwriting
strategy allowing us to benefit from a strong 1/1 renewal season.
We are creating an entrepreneurial and innovative company that is
just at the beginning of its transformation.
"SiriusPoint produced an underwriting profit of $9 million and a combined ratio of 96.6% this
quarter, reflecting our focus on writing a profitable and more
balanced book of business. We benefited from a focus on
underwriting discipline and positive rate improvement across
classes of business at January 1. We
made great strides in refining our property cat portfolio, reducing
catastrophe volatility through modest additional retro reinsurance
purchases and rebalancing the overall portfolio to non-cat lines,
including Accident and Health, Credit, Aviation, and niche U.S.
Casualty lines. Through the rest of 2021, we plan to continue to
execute on our underwriting strategy and be disciplined in our
approach to managing risk. We are focused on better managing our
catastrophe exposure and return on capital. We also plan to be
disciplined in reducing classes which have been unprofitable. We
believe our global platform and entrepreneurial culture will give
us flexibility and culture to adapt to market conditions and be
responsive to opportunities. While there is much work ahead we are
confident we are making progress in our execution.
"We intend to remain nimble and optimize our global platform by
partnering with and investing in innovative businesses and teams in
the (re)insurance industry. We see these strategic partnerships as
a key differentiator and a means by which we can add value and
drive disruptive change in the industry. We aspire to be great
allocators of capital to the best underwriting risks to drive
returns.
"Investment results in the quarter were strong and above trend
with notable contributions from the Third Point Enhanced Fund and
legacy Sirius Group strategic investments. In rebalancing our
portfolio, we increased the allocation to fixed income and cash
from TPRe's position at year end. Third Point LLP also reduced
leverage in the TP Enhanced fund.
"We expect the steps we have taken this quarter towards refining
our business to achieve underwriting excellence and establishing a
high quality balance sheet will result in less volatility going
forward. We are confident the path of sustained higher underwriting
returns, less volatile investment results and growth in book value
will translate into long-term value creation for our
shareholders."
Earnings Summary
- Net income available to SiriusPoint common shareholders of
$130.9 million, or $1.05 per diluted common share, for the three
months ended March 31, 2021, compared
to a net loss attributable to SiriusPoint common shareholders of
$183.6 million, or $1.99 per diluted common share, for the three
months ended March 31, 2020.
- Annualized return on average common shareholders' equity
attributable to SiriusPoint common shareholders of 26.4% for the
three months ended March 31,
2021.
- Tangible diluted book value per share decreased $2.74, or 16.4%, from year end 2020 to
$13.97. The decrease was primarily
due to the dilutive impact of shares and other securities issued in
conjunction with the acquisition of Sirius Group, partially offset
by net income in the current year period.
Acquisition of Sirius International Insurance Group,
Ltd.
On February 26, 2021,
the Company completed the acquisition of Sirius International
Insurance Group, Ltd. ("Sirius Group") and changed its name from
Third Point Reinsurance Ltd. ("TPRe") to SiriusPoint Ltd.
("SiriusPoint"). The financial condition and results of operations
presented herein for SiriusPoint are those of TPRe and its
subsidiaries and do not include the financial conditions and
results of operations of legacy Sirius Group and its subsidiaries
prior to the acquisition date. The results of operations of Sirius
Group are included from the acquisition date forward.
The total deal consideration was $1,077.2
million, which was comprised of stock, cash, and other
contingent value components. The associated bargain purchase gain
from the Sirius Group acquisition was $8.6
million, which represents the excess of the fair value of
the underlying net assets acquired and liabilities assumed over the
total deal consideration. The gain from bargain purchase is
included in other revenues in the condensed consolidated statements
of income (loss). The bargain purchase determination is consistent
with the fact that Sirius Group's shares traded at a discount to
book value and the need for Sirius Group to quickly diversify its
ownership base.
During the first quarter of 2021, the Company recorded
$40.4 million of corporate
expenses associated with the acquisition of Sirius Group, comprised
of $29.7 million of professional
and advisory fees and $10.7 million of compensation-related
expenses.
Key Financial Metrics
The following table shows certain key financial metrics for the
three months ended March 31, 2021 and
2020:
|
|
2021
|
|
2020
|
|
|
($ in millions,
except for per share
data and ratios)
|
|
Annualized return on
average common shareholders' equity attributable to SiriusPoint
common shareholders
|
26.4
|
%
|
|
(55.5)
|
%
|
|
Net underwriting
income (1)
|
$
|
8.7
|
|
|
$
|
2.0
|
|
|
Combined ratio
(1)
|
96.6
|
%
|
|
98.6
|
%
|
|
Basic book value per
share (2) (4)
|
$
|
15.19
|
|
|
$
|
16.88
|
|
|
Tangible basic book
value per share (2) (4)
|
$
|
14.10
|
|
|
$
|
16.88
|
|
|
Diluted book value
per share (2) (3) (4)
|
$
|
15.04
|
|
|
$
|
16.71
|
|
|
Tangible diluted book
value per share (2) (4)
|
$
|
13.97
|
|
|
$
|
16.71
|
|
|
|
|
|
|
(1)
|
See the accompanying
Segment Reporting for a calculation of net underwriting income 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.
|
|
First Quarter 2021 Summary
Underwriting Results
The acquisition of Sirius Group 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.
Net premiums earned increased by $109.7
million, or 75.0%, to $256.0
million for the three months ended March 31, 2021 from $146.3
million for the three months ended March 31, 2020, primarily driven by an increase
in net premiums earned of $115.9 million as a result of new premiums
from the legacy Sirius Group companies from the date of
acquisition.
We generated net underwriting income of $8.7 million and a combined ratio of 96.6% for
the three months ended March 31,
2021, compared to net underwriting income of $2.0 million and a combined ratio of 98.6% for
the three months ended March 31,
2020. The improvement in net underwriting income was
primarily driven by net underwriting income of $8.1 million from the legacy Sirius Group
companies from the date of acquisition.
Catastrophe losses, net of reinsurance and reinstatement
premiums, for the three months ended March
31, 2021 were $5.7 million, or 2.2 percentage points on
the combined ratio, from winter storm Uri compared to no
catastrophe losses recorded for the three months ended March 31, 2020. Sirius Group's Uri losses fell
into the pre-acquisition period which, when included Q1 results
total catastrophe losses, were $39.5 million.
Prior period segment results have been adjusted to conform to
the current period presentation.
A&H Segment
Gross premiums written in the A&H segment were $134.8 million for the three months ended
March 31, 2021, an increase of
$133.5 million compared to the three
months ended March 31, 2020,
primarily driven by an increase in premiums of $135.0 million as a result of new premiums
from the legacy Sirius Group companies from the date of
acquisition.
The A&H segment generated net underwriting income of
$5.3 million and a combined ratio of
84.9% for the three months ended March 31,
2021, compared to a minimal net underwriting loss for the
three months ended March 31, 2020.
The change in net underwriting results for the three months ended
March 31, 2021, compared to the three
months ended March 31, 2020, was
primarily driven by net underwriting income from the legacy Sirius
Group companies from the date of acquisition.
Specialty Segment
Gross premiums written in the Specialty segment were
$167.7 million for the three months
ended March 31, 2021, an increase of
$88.3 million, or 111.2%, compared to
the three months ended March 31,
2020, primarily driven by an increase in premiums of
$49.5 million as a result of new
premiums from the legacy Sirius Group companies from the date of
acquisition, and due to new casualty premium of $28.7 million in the period written by our
Bermuda incorporated MGU, Arcadian
Risk, in which we invest capital and expertise.
The Specialty segment generated a net underwriting loss of
$0.3 million and a combined ratio of
100.2% for the three months ended March 31,
2021, compared to a net underwriting loss of $6.0 million and a combined ratio of 106.0% for
the three months ended March 31,
2020. The change in underwriting results for the three
months ended March 31, 2021, compared
to the three months ended March 31,
2020, was primarily driven by lower COVID-19 losses and a
net underwriting loss of $0.7 million as result of the legacy
Sirius Group companies from the date of acquisition.
Property Segment
Gross premiums written in the Property segment were $62.1 million for the three months ended
March 31, 2021, an increase of
$17.1 million, or 38.0%, compared to
the three months ended March 31,
2020, primarily driven by an increase in premiums of
$33.5 million as a result of new
premiums from the legacy Sirius Group companies from the date of
acquisition.
The Property segment generated net underwriting income of
$5.4 million and a combined ratio of
93.3% for the three months ended March 31,
2021, compared to net underwriting income of $9.5 million and a combined ratio of 78.9% for
the three months ended March 31,
2020. The change in underwriting results for the three
months ended March 31, 2021, compared
to the three months ended March 31,
2020, was primarily driven by higher catastrophe
losses, partially offset by net underwriting income of $3.9 million as a result of the legacy
Sirius Group companies from the date of acquisition.
Investments
Net investment income was $186.5
million for the three months ended March 31, 2021, compared to a net investment loss
of $185.0 million for the three
months ended March 31, 2020.
Net investment income for the three months ended March 31, 2021 was primarily attributable to
net investment income of $153.2
million from our investment in the TP Enhanced Fund,
corresponding to a 14.6% return in the quarter. The return was
primarily attributable to long event/fundamental equities, in
particular exposure to recently listed public equities and private
companies that are preparing to list in public markets later in
2021. In addition, the Company recognized a $35.4 million gain from our investment in
Pie Insurance for the three months ended March 31, 2021, partially offset by unrealized
losses in debt securities of $16.9 million.
The net investment loss for the three months ended March 31, 2020 was primarily attributable to
financial market volatility from the COVID-19 pandemic.
The Third Point Enhanced Fund plus other invested assets were
one-quarter of total invested assets and cash as of March 31, 2021, down from more than one-third as
of December 31, 2020 due to the
additional assets acquired in the merger with Sirius Group.
Conference Call Details
The Company will hold a conference call to discuss its first
quarter 2021 results at 8:30 a.m. Eastern
Time on May 11, 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 1-877-451-6152
(domestic) or 1-201-389-0879 (international). Participants should
ask for the SiriusPoint Ltd. first 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 the expected benefits of the
acquisition of Sirius Group and the prospects of the combined
company. 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, expense
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; 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 Fund")
whose investment strategy may bear substantial investment risks;
conflicts of interest among various members of TP Fund, Third Point
LLC and SiriusPoint; and other risks and uncertainties listed in
the Company's most recent Quarterly Report on Form 10-Q 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 top 20 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 March 31, 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 March 31,
2021 and December 31, 2020
(expressed
in millions of U.S. dollars, except per share and share
amounts)
|
|
|
March
31, 2021
|
|
December 31,
2020
|
Assets
|
|
|
|
Investments in
related party investment funds, at fair value (cost - $891.9; 2020
- $891.9)
|
$
|
1,208.8
|
|
|
$
|
1,055.6
|
|
Debt securities,
trading, at fair value (cost - $2,903.5; 2020 - $91.4)
|
2,940.3
|
|
|
101.3
|
|
Equity securities,
trading, at fair value (cost - $5.8; 2020 - N/A)
|
5.9
|
|
|
—
|
|
Other long-term
investments, at fair value (cost - $432.8; 2020 - $4.0)
|
473.1
|
|
|
4.0
|
|
Total
investments
|
4,628.1
|
|
|
1,160.9
|
|
Cash and cash
equivalents
|
932.4
|
|
|
526.0
|
|
Restricted cash and
cash equivalents
|
1,411.3
|
|
|
1,187.9
|
|
Due from
brokers
|
37.8
|
|
|
94.9
|
|
Interest and
dividends receivable
|
10.3
|
|
|
0.9
|
|
Insurance and
reinsurance balances receivable, net
|
1,613.8
|
|
|
441.9
|
|
Deferred acquisition
costs, net and value of business acquired
|
218.8
|
|
|
68.6
|
|
Unearned premiums
ceded
|
247.7
|
|
|
20.5
|
|
Loss and loss
adjustment expenses recoverable, net
|
492.6
|
|
|
14.4
|
|
Deferred tax
asset
|
256.5
|
|
|
0.4
|
|
Intangible
assets
|
174.2
|
|
|
—
|
|
Other
assets
|
146.2
|
|
|
18.8
|
|
Total
assets
|
$
|
10,169.7
|
|
|
$
|
3,535.2
|
|
Liabilities
|
|
|
|
Loss and loss
adjustment expense reserves
|
$
|
4,259.3
|
|
|
$
|
1,310.1
|
|
Unearned premium
reserves
|
1,244.8
|
|
|
284.8
|
|
Reinsurance balances
payable
|
528.8
|
|
|
78.1
|
|
Deposit
liabilities
|
150.7
|
|
|
153.0
|
|
Securities sold, not
yet purchased, at fair value
|
9.2
|
|
|
12.0
|
|
Due to
brokers
|
26.2
|
|
|
—
|
|
Accounts payable,
accrued expenses and other liabilities
|
154.4
|
|
|
17.6
|
|
Deferred tax
liability
|
223.0
|
|
|
—
|
|
Liability-classified
capital instruments
|
135.0
|
|
|
—
|
|
Debt
|
829.0
|
|
|
114.3
|
|
Total
liabilities
|
7,560.4
|
|
|
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: 161,891,354; 2020 - 95,582,733)
|
16.2
|
|
|
9.6
|
|
Additional paid-in
capital
|
1,639.6
|
|
|
933.9
|
|
Retained
earnings
|
751.3
|
|
|
620.4
|
|
Accumulated other
comprehensive income
|
0.4
|
|
|
—
|
|
Shareholders'
equity attributable to SiriusPoint shareholders
|
2,607.5
|
|
|
1,563.9
|
|
Noncontrolling
interests
|
1.8
|
|
|
1.4
|
|
Total
shareholders' equity
|
2,609.3
|
|
|
1,565.3
|
|
Total liabilities,
noncontrolling interests and shareholders' equity
|
$
|
10,169.7
|
|
|
$
|
3,535.2
|
|
|
|
|
|
SIRIUSPOINT
LTD.
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)
For the three
months ended March 31, 2021 and 2020
(expressed in
millions of U.S. dollars, except per share and share
amounts)
|
|
|
2021
|
|
2020
|
Revenues
|
|
|
|
Net premiums
earned
|
$
|
256.0
|
|
|
$
|
146.3
|
|
Net realized and
unrealized investment gains
|
31.5
|
|
|
11.6
|
|
Net investment income
(loss) from investments in related party investment
funds
|
153.2
|
|
|
(200.8)
|
|
Other net investment
income
|
1.8
|
|
|
4.2
|
|
Net investment income
(loss)
|
186.5
|
|
|
(185.0)
|
|
Other
revenues
|
8.6
|
|
|
—
|
|
Total
revenues
|
451.1
|
|
|
(38.7)
|
|
Expenses
|
|
|
|
Loss and loss
adjustment expenses incurred, net
|
148.1
|
|
|
87.8
|
|
Acquisition costs,
net
|
69.0
|
|
|
49.3
|
|
Other underwriting
expenses
|
30.2
|
|
|
7.2
|
|
Net corporate and
other expenses
|
68.3
|
|
|
6.4
|
|
Intangible asset
amortization
|
0.8
|
|
|
—
|
|
Interest
expense
|
4.9
|
|
|
2.0
|
|
Foreign exchange
gains
|
(12.4)
|
|
|
(8.2)
|
|
Total
expenses
|
308.9
|
|
|
144.5
|
|
Income (loss) before
income tax expense
|
142.2
|
|
|
(183.2)
|
|
Income tax
expense
|
(9.8)
|
|
|
(0.4)
|
|
Net income
(loss)
|
132.4
|
|
|
(183.6)
|
|
Net (income) loss
attributable to noncontrolling interests
|
—
|
|
|
—
|
|
Net income (loss)
available to SiriusPoint
|
132.4
|
|
|
(183.6)
|
|
Dividends on Series B
preference shares
|
(1.5)
|
|
|
—
|
|
Net income (loss)
available to SiriusPoint common shareholders
|
$
|
130.9
|
|
|
$
|
(183.6)
|
|
Earnings (loss)
per share available to SiriusPoint common
shareholders
|
|
|
|
Basic earnings (loss)
per share available to SiriusPoint common shareholders
|
$
|
1.07
|
|
|
$
|
(1.99)
|
|
Diluted earnings
(loss) per share available to SiriusPoint common
shareholders
|
$
|
1.05
|
|
|
$
|
(1.99)
|
|
Weighted average
number of common shares used in the determination of earnings
(loss) per share
|
|
|
|
Basic
|
116,760,760
|
|
|
92,191,837
|
|
Diluted
|
118,146,341
|
|
|
92,191,837
|
|
SIRIUSPOINT
LTD.
SEGMENT
REPORTING
|
|
|
Three months ended
March 31, 2021
|
|
A&H
|
|
Specialty
|
|
Property
|
|
Runoff
& Other
|
|
Total
|
Gross premiums
written (1)
|
$
|
134.8
|
|
|
$
|
167.7
|
|
|
$
|
62.1
|
|
|
$
|
2.0
|
|
|
$
|
366.6
|
|
Net premiums written
(1)
|
103.6
|
|
|
144.5
|
|
|
60.3
|
|
|
1.9
|
|
|
310.3
|
|
Net premiums
earned (1)
|
35.0
|
|
|
139.0
|
|
|
80.2
|
|
|
1.8
|
|
|
256.0
|
|
Loss and loss
adjustment expenses incurred, net (2)
|
14.0
|
|
|
87.1
|
|
|
45.4
|
|
|
1.6
|
|
|
148.1
|
|
Acquisition costs,
net
|
5.1
|
|
|
42.3
|
|
|
21.2
|
|
|
0.4
|
|
|
69.0
|
|
Other underwriting
expenses (2)
|
10.6
|
|
|
9.9
|
|
|
8.2
|
|
|
1.5
|
|
|
30.2
|
|
Net underwriting
income (loss)
|
$
|
5.3
|
|
|
$
|
(0.3)
|
|
|
$
|
5.4
|
|
|
$
|
(1.7)
|
|
|
8.7
|
|
Other
revenues
|
|
|
|
|
|
|
|
|
8.6
|
|
Net investment
income
|
|
|
|
|
|
|
|
|
186.5
|
|
Net corporate and
other expenses
|
|
|
|
|
|
|
|
|
(68.3)
|
|
Intangible asset
amortization
|
|
|
|
|
|
|
|
|
(0.8)
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
(4.9)
|
|
Foreign exchange
gains
|
|
|
|
|
|
|
|
|
12.4
|
|
Income before
income tax expense
|
|
|
|
|
|
|
|
|
$
|
142.2
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting
Ratios: (3)
|
|
|
|
|
|
|
|
|
|
Loss ratio
|
40.0
|
%
|
|
62.7
|
%
|
|
56.6
|
%
|
|
NM
|
|
|
57.8
|
%
|
Acquisition cost
ratio
|
14.6
|
%
|
|
30.4
|
%
|
|
26.5
|
%
|
|
NM
|
|
|
27.0
|
%
|
Other underwriting
expenses ratio
|
30.3
|
%
|
|
7.1
|
%
|
|
10.2
|
%
|
|
NM
|
|
|
11.8
|
%
|
Combined ratio
(4)
|
84.9
|
%
|
|
100.2
|
%
|
|
93.3
|
%
|
|
NM
|
|
|
96.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2020
|
|
A&H
|
|
Specialty
|
|
Property
|
|
Runoff
&
Other
|
|
Total
|
Gross premiums
written (1)
|
$
|
1.3
|
|
|
$
|
79.4
|
|
|
$
|
45.0
|
|
|
$
|
—
|
|
|
$
|
125.7
|
|
Net premiums written
(1)
|
1.3
|
|
|
76.9
|
|
|
45.0
|
|
|
—
|
|
|
123.2
|
|
Net premiums
earned (1)
|
1.2
|
|
|
99.4
|
|
|
45.1
|
|
|
0.6
|
|
|
146.3
|
|
Loss and loss
adjustment expenses incurred, net (2)
|
1.0
|
|
|
67.4
|
|
|
18.1
|
|
|
1.3
|
|
|
87.8
|
|
Acquisition costs,
net
|
0.2
|
|
|
33.5
|
|
|
16.0
|
|
|
(0.4)
|
|
|
49.3
|
|
Other underwriting
expenses (2)
|
—
|
|
|
4.5
|
|
|
1.5
|
|
|
1.2
|
|
|
7.2
|
|
Net underwriting
income (loss)
|
$
|
—
|
|
|
$
|
(6.0)
|
|
|
$
|
9.5
|
|
|
$
|
(1.5)
|
|
|
2.0
|
|
Net investment
loss
|
|
|
|
|
|
|
|
|
(185.0)
|
|
Net corporate and
other expenses
|
|
|
|
|
|
|
|
|
(6.4)
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
(2.0)
|
|
Foreign exchange
gains
|
|
|
|
|
|
|
|
|
8.2
|
|
Loss before income
tax expense
|
|
|
|
|
|
|
|
|
$
|
(183.2)
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting
Ratios: (3)
|
|
|
|
|
|
|
|
|
|
Loss ratio
|
83.3
|
%
|
|
67.8
|
%
|
|
40.1
|
%
|
|
NM
|
|
|
60.0
|
%
|
Acquisition cost
ratio
|
16.7
|
%
|
|
33.7
|
%
|
|
35.5
|
%
|
|
NM
|
|
|
33.7
|
%
|
Other underwriting
expenses ratio
|
—
|
%
|
|
4.5
|
%
|
|
3.3
|
%
|
|
NM
|
|
|
4.9
|
%
|
Combined ratio
(4)
|
100.0
|
%
|
|
106.0
|
%
|
|
78.9
|
%
|
|
NM
|
|
|
98.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes service fee
revenue from the Company's MGUs of $10.8 million for the three
months ended March 31, 2021 (2020 - $nil).
|
|
|
|
|
(2)
|
Loss and loss
adjustment expenses incurred, net and other underwriting expenses
include expenses associated with the Company's MGUs of
$1.0 million and $7.3 million, respectively, for the
three months ended March 31, 2021 (2020 - $nil).
|
|
|
|
|
(3)
|
Underwriting ratios
are calculated by dividing the related expense by net premiums
earned.
|
|
|
|
|
(4)
|
Ratios considered not
meaningful ("NM") to Runoff & Other.
|
|
|
|
|
(5)
|
The Company modified
the presentation of its operating segments in the three months
ended March 31, 2021 to better align with the manner in which
management monitors the performance of its operations. This change
was primarily due to the Company's acquisition of Sirius Group.
Prior period segment results have been adjusted to conform to the
current period presentation.
|
|
SIRIUSPOINT LTD.
NON-GAAP MEASURES AND
RECONCILIATIONS & KEY PERFORMANCE INDICATORS
Key Performance Indicator
Annualized Return on Average Common Shareholders' Equity
Attributable to SiriusPoint Common Shareholders
Annualized return on average common shareholders' equity
attributable to SiriusPoint common shareholders is calculated by
dividing annualized net income (loss) available to SiriusPoint
common shareholders for the period by the average common
shareholders' equity determined using the common shareholders'
equity balances at the beginning and end of the period.
Annualized return on average common shareholders' equity
attributable to SiriusPoint common shareholders for the three
months ended March 31, 2021 and 2020
was calculated as follows:
|
2021
|
|
2020
|
|
($ in
millions)
|
Net income (loss)
available to SiriusPoint common shareholders
|
$
|
130.9
|
|
|
$
|
(183.6)
|
|
Common shareholders'
equity attributable to SiriusPoint common shareholders - beginning
of period
|
$
|
1,563.9
|
|
|
$
|
1,414.1
|
|
Common shareholders'
equity attributable to SiriusPoint common shareholders - end of
period
|
2,407.5
|
|
|
1,231.7
|
|
Average common
shareholders' equity attributable to SiriusPoint common
shareholders
|
$
|
1,985.7
|
|
|
$
|
1,322.9
|
|
Annualized return on
average common shareholders' equity attributable to SiriusPoint
common shareholders
|
26.4
|
%
|
|
(55.5)
|
%
|
Net Underwriting Income
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.
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
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. The
following table shows the revised diluted book value per share
compared to the diluted book value per share as previously
presented:
|
|
December 31,
2020
|
|
September 30,
2020
|
|
June
30, 2020
|
|
March
31, 2020
|
|
December 31,
2019
|
Diluted book value
per share
|
|
$
|
16.71
|
|
|
$
|
15.37
|
|
|
$
|
14.62
|
|
|
$
|
13.30
|
|
|
$
|
15.19
|
|
Diluted book value
per share, as previously presented
|
|
16.42
|
|
|
15.06
|
|
|
14.37
|
|
|
13.05
|
|
|
15.04
|
|
Difference
|
|
$
|
0.29
|
|
|
$
|
0.31
|
|
|
$
|
0.25
|
|
|
$
|
0.25
|
|
|
$
|
0.15
|
|
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 computation 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
March 31, 2021 and December 31, 2020:
|
March
31, 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
|
$
|
2,607.5
|
|
|
$
|
1,563.9
|
|
Less: Series B
preference shares
|
(200.0)
|
|
|
—
|
|
Common shareholders'
equity attributable to SiriusPoint common shareholders -
basic
|
2,407.5
|
|
|
1,563.9
|
|
Plus: carrying value
of series A preference share issued in merger
|
40.8
|
|
|
—
|
|
Common shareholders'
equity attributable to SiriusPoint common shareholders -
diluted
|
2,448.3
|
|
|
1,563.9
|
|
Less: intangible
assets
|
(174.2)
|
|
|
—
|
|
Tangible common
shareholders' equity attributable to SiriusPoint common
shareholders - basic
|
2,233.3
|
|
|
1,563.9
|
|
Tangible common
shareholders' equity attributable to SiriusPoint common
shareholders - diluted
|
$
|
2,274.1
|
|
|
$
|
1,563.9
|
|
Basic and diluted
book value per share denominator:
|
|
|
|
Common shares
outstanding
|
161,891,354
|
|
|
95,582,733
|
|
Unvested restricted
shares
|
(3,450,338)
|
|
|
(2,933,993)
|
|
Basic book value per
share denominator
|
158,441,016
|
|
|
92,648,740
|
|
Effect of dilutive
Series A preference shares issued in merger
|
1,888,145
|
|
|
—
|
|
Effect of dilutive
warrants
|
58,421
|
|
|
—
|
|
Effect of dilutive
stock options, restricted shares and restricted share units issued
to directors and employees
|
2,426,816
|
|
|
969,386
|
|
Diluted book value
per share denominator
|
162,814,398
|
|
|
93,618,126
|
|
|
|
|
|
Basic book value
per share
|
$
|
15.19
|
|
|
$
|
16.88
|
|
Tangible basic
book value per share
|
$
|
14.10
|
|
|
$
|
16.88
|
|
Diluted book value
per share
|
$
|
15.04
|
|
|
$
|
16.71
|
|
Tangible diluted
book value per share
|
$
|
13.97
|
|
|
$
|
16.71
|
|
View original
content:http://www.prnewswire.com/news-releases/siriuspoint-announces-first-quarter-2021-earnings-results-301287823.html
SOURCE SiriusPoint Ltd.