S&P Global Ratings has raised SiriusPoint's core operating subsidiaries to 'A' from 'A-', pointing to stronger capital and cleaner underwriting at the Bermuda-based reinsurance group.
The holding company, SiriusPoint Ltd., moved up to 'BBB+' from 'BBB'. Senior notes were lifted to 'BBB' from 'BBB-', and subordinated notes to 'BBB-' from 'BB+'. The outlook is stable across the board.
S&P said the upgrade reflects a deliberate de-risking of SiriusPoint's underwriting book and investment portfolio, along with steady results. The agency expects combined ratios to stay below 95% over the next two years, with capital held above its 99.99% confidence level.
The cushion remains intact even after the retirement of $200 million in preference shares and a planned $100 million buyback.
Net earnings hit $444 million in 2025 on a combined ratio of 91.2%, helped by a $222 million gain from the sale of Armada.
The sale of Arcadian, announced in 2025 and booked in 2026, delivered a further lift. S&P expects earnings through 2026 and 2027 to support a return to dividend payments without denting the capital base.
The S&P action is the third upgrade SiriusPoint has secured this year.
AM Best earlier raised the group's financial strength rating to A (Excellent) from A- and assigned a "Very Strong" Prism capital score, citing a 31% rise in available capital.
Fitch Ratings also lifted the insurer financial strength rating to 'A' and the issuer default rating to 'BBB+', flagging a business mix shift in which insurance and services made up 59% of core net premiums written in 2025, up from 37% in 2021.
Management has been paring back natural catastrophe exposure since 2022, trimming line sizes and leaning more on reinsurance to cut one-in-200-year probable maximum losses. Secondary peril exposure has been reduced through higher attachment points and smaller aggregate covers.
Financial leverage, at 28% at year-end 2025, is projected to fall to around 23% in 2026, with fixed-charge coverage near 6x.
ArmadaCare, a Maryland supplemental health program manager, went to Ambac Financial Group for $250 million in late 2025, valued at around 14x EBITDA. Arcadian Risk Capital, a Bermuda specialty MGA, was sold to Lee Equity Partners for $139 million, closing in January 2026. Capacity agreements run through 2030 and 2031 respectively.
CEO Scott Egan said the company was "very proud to have achieved our third ratings upgrade this year." The action, he added, reflects progress in building a more resilient business.
