SiriusPoint (SPNT) Q3 2024 earnings summary

Executive summary

• Achieved eighth consecutive quarter of underwriting profit, with a core combined ratio of 88.5% in Q3 2024, a four-point year-over-year improvement, and underlying net income of $89 million, up 69% year-over-year.

• Net income for Q3 2024 was impacted by a one-off CMIG transaction, resulting in $4.5–$8.7 million reported, while underlying net income remained strong.

• Book value per diluted common share increased to $14.73, up 10.3% since year-end 2023.

• Completed $125 million share repurchase and settlement of Series A Preference Shares under the CMIG Agreement.

• Strategic partnerships expanded with six new MGA programs in Q3, driving 18% year-to-date growth in fee income from consolidated MGAs.

Financial highlights

• Gross premiums written for continuing lines grew 10% year-over-year in Q3 2024, while total Q3 net premiums earned were $568.9 million, down 7.2% year-over-year.

• Net investment income for Q3 2024 was $77.7–$78 million, with a total investment result of $92.5–$93 million.

• Underlying net income for nine months was $258 million, up 33% year-over-year.

• Favorable prior year development of $27 million in Q3, including $20 million from COVID-19 reserve releases.

• Total shareholders' equity increased to $2.7 billion as of September 30, 2024, up from $2.53 billion at year-end 2023.

Outlook and guidance

• FY24 net investment income guidance raised to $295–$300 million, trending ahead of previous guidance.

• Annualized underlying ROE for nine months 2024 is 14.4%, within the 12–15% medium-term target range.

• Workers' Compensation Loss Portfolio Transfer closed October 1, 2024, expected to result in a $22 million loss in Q4 2024.

• Bermuda operations will be subject to a 15% corporate income tax starting in 2025, expected to increase tax expense.

• Runoff business impact expected to be insignificant in 2025.