SiriusPoint (SPNT) Q4 2024 earnings summary

Executive summary

• Completed major strategic reshaping, including CMIG share repurchase, loss portfolio transfer, de-risking of legacy MGA investments, and simplification of shareholder structure.

• Achieved ninth consecutive quarter of underwriting profits, with FY24 Core combined ratio at 91.0% and underlying net income up 14% year-over-year to $304 million.

• Book value per diluted common share (ex. AOCI) rose 9.8% to $14.64; underlying ROE reached 14.6%, at the top end of the 12%-15% target range.

• Retired over $1 billion to investors and permanently retired 45.7 million shares, resulting in over 20% EPS accretion.

• Maintained strong capital position with 15 consecutive quarters of favorable prior year development and robust balance sheet metrics.

Financial highlights

• FY24 net income was $184 million; underlying net income up 14% to $304 million.

• Core combined ratio for 2024 was 91%, a 2.4 point improvement year-over-year; Q4 core combined ratio was 90.2%, a 3.2 point improvement.

• Net investment income for 2024 was $304 million, exceeding guidance.

• Gross premiums written for continuing lines grew 10% for the year and 21% in Q4.

• Book value per diluted common share increased 9.8% year-over-year to $14.64.

Outlook and guidance

• Focus shifting to growth and performance enhancement in 2025, with continued disciplined underwriting and capital reallocation.

• Expect to deliver a 12%-15% return on average common equity through the cycle.

• FY25 net investment income guidance of $265m–$275m, reflecting reduced investment assets post-CMIG repurchase.

• Headline premium in 2025 expected to grow at rates similar to 2024 continuing lines premium.

• Effective tax rate to rise from 13% in 2024 to 19% in 2025 due to Bermuda tax changes.