Global insurer and reinsurer SiriusPoint has published its financial results for the quarter and year ended December 31, 2022.
According to the company’s financial report, the net loss available to SiriusPoint common shareholders in the fourth quarter stood at US$26.6 million – an improvement from 2021’s US$140.3 million loss in Q4.
For the full year, the net loss available to SiriusPoint common shareholders amounted to US$402.8 million, which represents a nosedive from the US$44.6 million net income available to SiriusPoint common shareholders in 2021.
Meanwhile SiriusPoint’s consolidated underwriting income in the quarter grew from US$24 million to US$57.9 million due to lower catastrophe losses. For the 12-month span, SiriusPoint bounced back from a previous underwriting loss of US$156.1 million to 2022’s consolidated underwriting income of US$83.3 million.
“The improvement in underwriting results was driven by lower catastrophe losses compared to the prior year period, premium growth in insurance & services that resulted in higher underwriting income, and a net corporate charge of US$23 million in the fourth quarter of 2021 related to the Compre LPT (loss portfolio transfer),” noted SiriusPoint in its announcement.
In its earnings release, SiriusPoint said 2023 will be a transitional year.
“We are pleased with the progress shown in our underwriting results in the second half of 2022,” commented chief executive Scott Egan. “It gives us a strong platform and momentum to build on for 2023 as we look to reinforce our credentials as an underwriter.
“Added to this is the strong contribution from our MGAs (managing general agents) on both an underwriting and fee basis, which we will look to enhance and leverage further where it complements our underwriting strategy.”
Egan went on to describe SiriusPoint’s 2023 journey as “well underway”.
The CEO declared: “We will continue to reduce volatility and improve quality in our underwriting results as we rebuild stakeholder confidence in the company. In addition to our underwriting improvements, we have also materially repositioned our investment portfolio, reducing volatility, capital intensity and locking in higher yield.
“Our owned and part-owned MGAs continue to produce stable capital-light earnings on the back of a growing top line. Finally, we aim to improve the effectiveness and efficiency of our operating model with targeted cost reductions during 2023 and 2024.”
Late last year, SiriusPoint announced a restructuring of its underwriting platform featuring a decrease in the locations from which the company underwrites catastrophe reinsurance. At the time, Egan called the rescaling “an important step” in positioning the business for underwriting profitability.