SiriusPoint hit with losses, announces multiple office closures

New chief executive says rescaling not an easy call

SiriusPoint hit with losses, announces multiple office closures

Insurance News

By Terry Gangcuangco

SiriusPoint has published its financial results for the third quarter and first nine months of 2022, reporting losses in both periods.

According to its interim financials, the global insurer and reinsurer posted net losses of US$98 million and US$376 million, respectively, in the quarter and nine months ended September 30. Compared to previous numbers, this year’s quarterly loss was bigger, while the 9M figure was a dive from the net income recorded in 2021.    

In Q3, SiriusPoint suffered an underwriting loss worth US$47 million, while net investment loss in the quarter amounted to US$28 million. In the nine-month span, the company enjoyed a US$25 million underwriting income but took a blow with a US$375 million net investment loss.

Meanwhile, aside from the firm’s interim results, SiriusPoint also announced major changes including office closures.

“SiriusPoint is restructuring its underwriting platform to support the future shape of its business,” it stated. “As part of its ongoing strategy to strengthen underwriting results and align the company’s operating platform to its business portfolio, SiriusPoint will be making changes to the structure and composition of its international branch network.

“The company will reduce the locations from which it underwrites property catastrophe reinsurance. As a result, SiriusPoint will close its offices in Hamburg, Miami, and Singapore, and reduce its footprint in Liege and Toronto. Following the anticipated closures and scaling of its operating platform, SiriusPoint will continue to serve clients and underwrite North American property catastrophe business from Bermuda, and international property catastrophe business from Stockholm.”

New chief executive Scott Egan described the rescaling as a vital move.

“[The] announcement and the rescaling of our property catastrophe platform is an important step in stabilising SiriusPoint’s reinsurance business and positioning the company for underwriting profitability in this volatile market,” declared Egan.

“With these actions, we provide clarity on our future priorities, our risk appetite, and our strategy to win in a competitive market. As a result of this transformation, we believe that SiriusPoint will be a more disciplined company and better positioned to adapt to market developments more quickly and more effectively.”

The CEO went on to say: “The decision to reduce our global footprint and headcount was not an easy one. It was driven by the significant, increasing effects of climate change, including under-modelled perils, and the challenges faced by the catastrophe reinsurance market, which, for consecutive years, has seen poor historical performance and inadequate returns on capital.”

Egan, meanwhile, offered assurances that he and his executive management team are fully committed to enabling a smooth transition for those who will be impacted by the change.

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