Fitch Ratings has upgraded Bermuda-based SiriusPoint Ltd. to 'BBB+' from 'BBB', lifting the insurer financial strength ratings of its operating subsidiaries to 'A' from 'A-' and its senior debt rating to 'BBB' from 'BBB-', in what the agency called a recognition of improved earnings and a reduced risk profile. The outlook is stable.
The move caps a multiyear turnaround at SiriusPoint, which was formed in February 2021 through the merger of specialty reinsurer Third Point Reinsurance and multi-line insurer Sirius International Insurance Group and posted a net loss of roughly US$400 million in 2022 - its first full year under the combined structure.
SiriusPoint reported net income of US$444 million for 2025, a return on average equity of 22.1%, though the headline figure was bolstered by a US$222 million gain from the sale of managing general agent ArmadaCorp Capital to a subsidiary of Ambac Financial Group for US$250 million in cash, a deal that closed in October 2025.
ArmadaCorp housed ArmadaCare, the company's supplemental health insurance program manager.
The company's 2024 net income stood at US$184 million, which included a US$96 million gain on the deconsolidation of MGA Arcadian Risk Capital, offset by US$117 million in nonrecurring costs tied to the buyout of former majority shareholder CM Bermuda Limited.
SiriusPoint completed the sale of its remaining 49% Arcadian stake to Lee Equity Partners for US$139 million in early February 2026, though it retains capacity partnerships with both Armada through 2030 and Arcadian through 2031.
Stripping out catastrophe impacts and reserve movements, underwriting results have shown steady improvement, with the combined ratio tightening to 91.6% in 2025 from 95.8% in 2023.
Shareholders' equity rebounded 27% to US$2.5 billion at the end of 2025, recovering from a decline the previous year driven by US$800 million in share repurchases connected to the CM Bermuda exit.
Financial leverage fell to 24.4% from 27.5%, and the company said a planned redemption of US$200 million in Series B preference shares would bring the ratio to 22.8% on a pro forma basis.
Fitch scored SiriusPoint "Very Strong" on its Prism capital model at year-end 2025, up from "Strong" the prior year, driven by a 31% increase in available capital. The agency assessed the company's business profile as "Moderate" relative to other US and Bermuda non-life reinsurance and insurance organizations, reflecting what it described as a still-limited competitive position.
The ratings upgrade also reflects a fundamental shift in SiriusPoint's business mix. Insurance and services accounted for 59% of core net premiums written in 2025, up from 37% in 2021, as the company pivoted toward accident and health, surety, and specialty lines while pulling back from international property catastrophe reinsurance.
"It also follows a strong full-year 2025 performance, which marked another important step forward for SiriusPoint," Egan said.
