SiriusPoint Profit Rises as Underwriting Margins Narrow
The core combined ratio worsened to 91.4% as acquisition costs increased.
SiriusPoint Ltd. (SPNT), the specialty insurer and reinsurer, reported a 15.9% increase in second-quarter net income available to common shareholders, while underwriting income declined as earned premiums and acquisition costs pressured margins.
The quarter marked a sequential slowdown after a stronger start to the year. Net income fell to $68.6 million from about $100 million in the first quarter, diluted earnings declined to $0.58 a share from $0.82, and operating earnings slipped to $0.67 a share from $0.70. Annualized operating return on equity fell to 13.8% from 15.3% sequentially and 17.0% a year earlier.
Total revenue edged down to $744.1 million from $748.2 million a year earlier as net earned premium and net investment income declined, partly offset by higher investment gains. Net income available to common shareholders rose from $59.2 million, while diluted earnings increased from $0.50 a share.
Premium growth shifted toward Insurance & Services. Core gross written premium rose 5.5% to $981.5 million, slowing from 18% growth in the fourth quarter of 2024, while net earned premium declined 1.1%. Insurance & Services gross written premium growth accelerated to 15.0% from 8% in the first quarter, while Reinsurance premium contracted 8.9% after a roughly 10% decline in the preceding period.
Insurance & Services gross written premium increased $84.2 million to $644.6 million, driven by new General Liability programs and growth at the London managing general agent. Its underwriting income nevertheless fell to $35.4 million and its combined ratio deteriorated to 90.7%. Reinsurance gross written premium declined $32.8 million to $336.9 million after deliberate Casualty reductions and lower Property Catastrophe rates and exposure; underwriting income fell to $19.6 million.
Across the core business, the acquisition-cost ratio rose to 28.2% from 26.1%, more than offsetting an improvement in the loss ratio. Core underwriting income fell to $55.0 million from $70.9 million sequentially and $67.6 million a year earlier, even as favorable prior-year reserve development increased to $16.7 million.
The weaker quarter followed improved first-half underwriting results, with core underwriting income rising to $125.9 million from $96.1 million as catastrophe losses fell to $6.7 million from $67.4 million. Book value per diluted common share excluding accumulated other comprehensive income increased 3% sequentially to $19.48, and SiriusPoint executed $95 million of share repurchases and $295 million of total capital returned during 2024.