SiriusPoint reported net income attributable to common shareholders of US$57.6 million for the first quarter ended March 31, 2025, or US$0.49 per diluted common share.
The company delivered an annualized return on average common equity of 12.9%, aligning with its stated 12% to 15% "across the cycle" ROE target.
The core business reported underwriting income of US$28.5 million and a combined ratio of 95.4% for the quarter. Net premiums written in the core business rose by 20%, surpassing gross premiums written growth of 12%, with insurance & services showing strong contributions. Core net services fee income reached US$19 million, producing a service margin of 30.6%.
Book value per diluted common share excluding accumulated other comprehensive income (AOCI) was US$15.15, reflecting a 3.5% increase for the quarter. Including AOCI, book value per diluted share rose US$0.77, or 5.3%, from Dec. 31, 2024, to US$15.37.
The company noted that its Q1 2025 Bermuda Solvency Capital Requirement (BSCR) estimate remained strong at 227%. SiriusPoint’s total investment result for the quarter was US$70.9 million, with net investment income reported at US$71.2 million.
In the previous quarter, the company reported a Q4 2024 combined ratio of 90.2% for its core business, a 3.2-point improvement from the previous year. The full-year core combined ratio stood at 91.0%, contributing to US$200 million in core underwriting income.
“2025 has got off to a strong start,” CEO Scott Egan (pictured above) said. “Our aim to deliver stable and consistent earnings can be seen with our first quarter return on equity of 12.9%, well within our 12-15% target range as our diverse portfolio performed well against the backdrop of elevated natural catastrophe losses.”
During the quarter, the company recorded a net impact of US$59 million from California wildfires, which it said was below its previously guided range from the fourth quarter. Consolidated underwriting income was US$54.1 million for Q1 2025, down from US$89.6 million in the prior-year period.
The decline was attributed to higher catastrophe losses, partially offset by favorable development in property from reserve releases related to prior-year catastrophes, and in accident & health (A&H), which experienced lower-than-expected attritional losses.
In reinsurance, gross premiums written totaled US$354.8 million for the quarter, a decrease of US$1.6 million or 0.4% year over year. The decline was primarily due to reduced premiums in the casualty line following underwriting actions aimed at profitability, which was partly offset by US$8.9 million in reinstatement premiums in the property catastrophe segment.
Reinsurance underwriting income for the quarter was US$8.4 million, representing a combined ratio of 97.1%, down from US$39.9 million and a combined ratio of 84.2% for Q1 2024. The drop in underwriting performance was largely due to US$63.1 million in catastrophe losses from the California wildfires, which added 21.8 percentage points to the combined ratio.
This was partially offset by US$31.8 million in favorable prior-year reserve development, primarily from property, compared to US$10.3 million a year earlier, when the development was mainly attributed to decreased ultimate losses in the Credit reinsurance portfolio.
AM Best and Fitch also both affirmed SiriusPoint’s ratings during the quarter and revised their outlooks from Stable to Positive.
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