UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________________
FORM 10-Q
x
☒		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2017
OR
¨
For the quarterly period ended June 30, 2023
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 001-35039001-36052
THIRD POINT REINSURANCESIRIUSPOINT LTD.
(Exact name of registrant as specified in its charter)
Bermuda98-103999498-1599372
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
Point HouseBuilding
3 Waterloo Lane
Pembroke HM 08, Bermuda
+1 441 542-3300
(Address including Zip Code andof Principal Executive Offices) (Registrant’s Telephone Number, includingIncluding Area CodeCode)
Securities registered pursuant to Section 12(b) of Registrant’s Principal Executive Office)the Act:

Title of each classTrading symbol(s)Name of each exchange on which registered
Common Shares, $0.10 par valueSPNTNew York Stock Exchange
8.00% Resettable Fixed Rate Preference Shares,
 Series B, $0.10 par value,
$25.00 liquidation preference per share		SPNT PBNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes    x☒    No    ¨☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).Yes    x☒    No    ¨☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerx☐Accelerated filer¨☒
Non-accelerated filer¨☐Smaller reporting company¨☐
Emerging growth company¨☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Yes    ¨    No    x☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes    ¨    No    x
The registrant’s common shares began trading on the New York Stock Exchange on August 15, 2013.☐
As of November 7, 2017, there were 107,383,405 common shares ofJuly 28, 2023, the registrant’sregistrant had 164,501,084 common shares issued and outstanding, including 2,029,646 restricted shares.

outstanding.
Third Point Reinsurance


SiriusPoint Ltd.
INDEX
Page
PART I. FINANCIAL INFORMATION
1
Item 1. Financial Statements
1
Consolidated Balance Sheets as of June 30, 2023 (unaudited) and December 31, 2022
1
Consolidated Statements of Income (Loss) for the three and six months ended June 30, 2023 and 2022 (unaudited)
2
Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2023 and 2022 (unaudited)
3
Consolidated Statements of Shareholders' Equity for the three and six months ended June 30, 2023 and 2022 (unaudited)
4
Consolidated Statements of Cash Flows for the three and six months ended June 30, 2023 and 2022 (unaudited)
5
Notes to the Consolidated Financial Statements
Note 1. Organization
6
Note 2. Significant accounting policies
6
Note 3. Significant transactions
6
Note 4. Segment reporting
7
Note 5. Cash, cash equivalents, restricted cash and restricted investments
13
Note 6. Fair value measurements
13
Note 7. Investments
19
Note 8. Total realized and unrealized investment gains (losses) and net investment income
26
Note 9. Derivatives
27
Note 10. Variable and voting interest entities
28
Note 11. Loss and loss adjustment expense reserves
31
Note 12. Allowance for expected credit losses
31
Note 13. Debt and letter of credit facilities
32
Note 14. Income taxes
33
Note 15. Shareholders' equity
34
Note 16. Earnings (loss) per share available to SiriusPoint common shareholders
35
Note 17. Related party transactions
35
Note 18. Commitments and contingencies
37
Page
PART I. FINANCIAL INFORMATION
1
Item 1. Financial Statements
1
  Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
5140
  Item 3. Quantitative and Qualitative Disclosures About Market Risk
7265
  Item 4. Controls and Procedures
7767
PART II. OTHER INFORMATION
67
PART IIItem . OTHER INFORMATION1. Legal Proceedings
7767
  Item 1. Legal Proceedings1A. Risk Factors
7768
  Item 1A. Risk Factors
77
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
8068
  Item 3. Defaults Upon Senior Securities
8068
  Item 4. Mine Safety Disclosures
8068
  Item 5. Other Information
8068
  Item 6. Exhibits
8169



PART I - Financial Information
ITEM 1. Financial Statements

THIRD POINT REINSURANCESIRIUSPOINT LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of SeptemberJune 30, 20172023 and December 31, 20162022
(expressed in thousandsmillions of U.S. dollars, except per share and share amounts)
 September 30,
2017		 December 31,
2016		June 30,
2023		December 31, 2022
Assets    Assets
Equity securities, trading, at fair value (cost - $1,676,001; 2016 - $1,385,866) $2,017,463
 $1,506,854
Debt securities, trading, at fair value (cost - $676,972; 2016 - $1,036,716) 656,118
 1,057,957
Other investments, at fair value 30,932
 82,701
Total investments in securities 2,704,513
 2,647,512
Debt securities, available for sale, at fair value, net of allowance for credit losses of $0.0 (2022 - $0.0) (cost - $4,241.3; 2022 - $2,678.1)Debt securities, available for sale, at fair value, net of allowance for credit losses of $0.0 (2022 - $0.0) (cost - $4,241.3; 2022 - $2,678.1)$4,172.1 $2,635.5 
Debt securities, trading, at fair value (cost - $802.3; 2022 - $1,630.1)Debt securities, trading, at fair value (cost - $802.3; 2022 - $1,630.1)753.2 1,526.0 
Short-term investments, at fair value (cost - $555.1; 2022 - $984.5)Short-term investments, at fair value (cost - $555.1; 2022 - $984.5)559.2 984.6 
Investments in related party investment funds, at fair valueInvestments in related party investment funds, at fair value111.3 128.8 
Other long-term investments, at fair value (cost - $377.6; 2022 - $392.0) (includes related party investments at fair value of $199.4 (2022 - $201.2))Other long-term investments, at fair value (cost - $377.6; 2022 - $392.0) (includes related party investments at fair value of $199.4 (2022 - $201.2))355.4 377.2 
Equity securities, trading, at fair value (cost - $1.8; 2022 - $1.8)Equity securities, trading, at fair value (cost - $1.8; 2022 - $1.8)1.6 1.6 
Total investmentsTotal investments5,952.8 5,653.7 
Cash and cash equivalents 6,434
 9,951
Cash and cash equivalents676.2 705.3 
Restricted cash and cash equivalents 477,362
 298,940
Restricted cash and cash equivalents95.2 208.4 
Redemption receivable from related party investment fundRedemption receivable from related party investment fund5.0 18.5 
Due from brokers 387,786
 284,591
Due from brokers18.2 4.9 
Derivative assets, at fair value 75,781
 27,432
Interest and dividends receivable 4,210
 6,505
Interest and dividends receivable36.8 26.7 
Reinsurance balances receivable 478,206
 381,951
Insurance and reinsurance balances receivable, netInsurance and reinsurance balances receivable, net2,252.1 1,876.9 
Deferred acquisition costs, net 223,091
 221,618
Deferred acquisition costs, net340.3 294.9 
Unearned premiums cededUnearned premiums ceded481.3 348.8 
Loss and loss adjustment expenses recoverable, netLoss and loss adjustment expenses recoverable, net2,276.7 1,376.2 
Deferred tax assetDeferred tax asset164.3 200.3 
Intangible assetsIntangible assets158.5 163.8 
Other assets 11,464
 17,144
Other assets165.4 157.9 
Total assets $4,368,847
 $3,895,644
Total assets$12,622.8 $11,036.3 
Liabilities    Liabilities
Accounts payable and accrued expenses $24,580
 $10,321
Loss and loss adjustment expense reservesLoss and loss adjustment expense reserves$5,338.8 $5,268.7 
Unearned premium reservesUnearned premium reserves1,819.2 1,521.1 
Reinsurance balances payable 54,654
 43,171
Reinsurance balances payable1,845.4 813.6 
Deposit liabilities 126,491
 104,905
Deposit liabilities137.8 140.5 
Unearned premium reserves 615,375
 557,076
Loss and loss adjustment expense reserves 699,369
 605,129
Deferred gain on retroactive reinsuranceDeferred gain on retroactive reinsurance21.2 — 
DebtDebt765.9 778.0 
Securities sold, not yet purchased, at fair value 405,845
 92,668
Securities sold, not yet purchased, at fair value— 27.0 
Securities sold under an agreement to repurchaseSecurities sold under an agreement to repurchase11.0 18.0 
Due to brokers 602,230
 899,601
Due to brokers28.1 — 
Derivative liabilities, at fair value 17,280
 16,050
Performance fee payable to related party 73,210
 —
Interest and dividends payable 1,917
 3,443
Senior notes payable, net of deferred costs 113,688
 113,555
Deferred tax liabilityDeferred tax liability61.0 59.8 
Liability-classified capital instrumentsLiability-classified capital instruments65.4 60.4 
Accounts payable, accrued expenses and other liabilitiesAccounts payable, accrued expenses and other liabilities261.3 266.6 
Total liabilities 2,734,639
 2,445,919
Total liabilities10,355.1 8,953.7 
Commitments and contingent liabilities 
 
Commitments and contingent liabilities
Redeemable noncontrolling interests in related party 16,813
 —
Shareholders’ equity    Shareholders’ equity
Preference shares (par value $0.10; authorized, 30,000,000; none issued) —
 —
Common shares (par value $0.10; authorized, 300,000,000; issued and outstanding, 107,383,405 (2016 - 106,501,299)) 10,738
 10,650
Treasury shares (3,944,920 shares (2016 - 644,768 shares)) (48,253) (7,389)
Series B preference shares (par value $0.10; authorized and issued: 8,000,000)Series B preference shares (par value $0.10; authorized and issued: 8,000,000)200.0 200.0 
Common shares (issued and outstanding: 163,200,630; 2022 - 162,177,653)Common shares (issued and outstanding: 163,200,630; 2022 - 162,177,653)16.3 16.2 
Additional paid-in capital 1,099,998
 1,094,568
Additional paid-in capital1,645.6 1,641.3 
Retained earnings 549,671
 316,222
Retained earnings467.1 262.2 
Shareholders’ equity attributable to Third Point Re common shareholders 1,612,154
 1,414,051
Noncontrolling interests in related party 5,241
 35,674
Accumulated other comprehensive loss, net of taxAccumulated other comprehensive loss, net of tax(74.2)(45.0)
Shareholders’ equity attributable to SiriusPoint shareholdersShareholders’ equity attributable to SiriusPoint shareholders2,254.8 2,074.7 
Noncontrolling interestsNoncontrolling interests12.9 7.9 
Total shareholders’ equity 1,617,395
 1,449,725
Total shareholders’ equity2,267.7 2,082.6 
Total liabilities, noncontrolling interests and shareholders' equity $4,368,847
 $3,895,644
Total liabilities, noncontrolling interests and shareholders’ equityTotal liabilities, noncontrolling interests and shareholders’ equity$12,622.8 $11,036.3 
    
The accompanying Notes to the Condensed Consolidated Financial Statements are
an integral part of the Condensed Consolidated Financial Statements.
The accompanying Notes to the Consolidated Financial Statements are
an integral part of the Consolidated Financial Statements.		The accompanying Notes to the Consolidated Financial Statements are
an integral part of the Consolidated Financial Statements.

1


THIRD POINT REINSURANCESIRIUSPOINT LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)
For the three and ninesix months ended SeptemberJune 30, 20172023 and 20162022
(expressed in thousandsmillions of U.S. dollars, except per share and share amounts)
Three months endedSix months ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
Revenues
Net premiums earned$703.8 $568.8 $1,299.3 $1,098.1 
Net realized and unrealized investment gains (losses)(1.8)(98.4)9.5 (180.3)
Net realized and unrealized investment losses from related party investment funds(0.9)(60.5)(0.1)(191.5)
Net investment income68.5 17.4 130.2 25.2 
Net realized and unrealized investment gains (losses) and net investment income65.8 (141.5)139.6 (346.6)
Other revenues(1.7)45.8 14.1 83.0 
Total revenues767.9 473.1 1,453.0 834.5 
Expenses
Loss and loss adjustment expenses incurred, net407.0 360.3 674.1 700.4 
Acquisition costs, net126.2 123.6 245.9 232.1 
Other underwriting expenses43.3 46.1 95.5 93.3 
Net corporate and other expenses70.3 72.0 130.3 149.4 
Intangible asset amortization2.9 2.0 5.3 3.9 
Interest expense11.7 9.4 24.5 18.7 
Foreign exchange (gains) losses17.4 (56.5)17.5 (75.9)
Total expenses678.8 556.9 1,193.1 1,121.9 
Income (loss) before income tax (expense) benefit89.1 (83.8)259.9 (287.4)
Income tax (expense) benefit(16.8)27.7 (42.6)18.0 
Net income (loss)72.3 (56.1)217.3 (269.4)
Net income attributable to noncontrolling interests(2.0)(0.7)(4.4)(0.4)
Net income (loss) available to SiriusPoint70.3 (56.8)212.9 (269.8)
Dividends on Series B preference shares(4.0)(4.0)(8.0)(8.0)
Net income (loss) available to SiriusPoint common shareholders$66.3 $(60.8)$204.9 $(277.8)
Earnings (loss) per share available to SiriusPoint common shareholders
Basic earnings (loss) per share available to SiriusPoint common shareholders$0.38 $(0.38)$1.18 $(1.74)
Diluted earnings (loss) per share available to SiriusPoint common shareholders$0.37 $(0.38)$1.14 $(1.74)
Weighted average number of common shares used in the determination of earnings (loss) per share
Basic162,027,831 160,258,883 161,473,011 160,064,319 
Diluted166,708,932 160,258,883 165,997,198 160,064,319 
The accompanying Notes to the Consolidated Financial Statements are
an integral part of the Consolidated Financial Statements.

2
 Three months ended Nine months ended
 September 30,
2017		 September 30,
2016		 September 30,
2017		 September 30,
2016
Revenues       
Gross premiums written$174,539
 $142,573
 $477,457
 $536,595
Gross premiums ceded—
 (927) (2,550) (2,352)
Net premiums written174,539
 141,646
 474,907
 534,243
Change in net unearned premium reserves(68,564) (13,463) (57,365) (136,136)
Net premiums earned105,975
 128,183
 417,542
 398,107
Net investment income before management and performance fees to related parties119,516
 121,208
 427,982
 191,084
Management and performance fees to related parties(30,548) (32,852) (103,179) (56,492)
Net investment income88,968
 88,356
 324,803
 134,592
Total revenues194,943
 216,539
 742,345
 532,699
Expenses       
Loss and loss adjustment expenses incurred, net77,275
 85,015
 270,549
 273,822
Acquisition costs, net33,974
 45,127
 157,067
 145,296
General and administrative expenses13,218
 12,354
 38,804
 33,885
Other expenses3,846
 347
 8,852
 6,226
Interest expense2,074
 2,069
 6,151
 6,163
Foreign exchange (gains) losses5,437
 (3,905) 10,233
 (14,359)
Total expenses135,824
 141,007
 491,656
 451,033
Income before income tax expense59,119
 75,532
 250,689
 81,666
Income tax expense(3,475) (2,484) (14,080) (5,865)
Net income55,644
 73,048
 236,609
 75,801
Net income attributable to noncontrolling interests in related party(959) (967) (3,160) (1,473)
Net income available to Third Point Re common shareholders$54,685
 $72,081
 $233,449
 $74,328
Earnings per share available to Third Point Re common shareholders       
Basic earnings per share available to Third Point Re common shareholders$0.54
 $0.69
 $2.27
 $0.71
Diluted earnings per share available to Third Point Re common shareholders$0.52
 $0.68
 $2.22
 $0.70
Weighted average number of common shares used in the determination of earnings per common share       
Basic101,391,145
 103,780,196
 102,553,346
 104,055,946
Diluted104,679,574
 105,795,313
 105,040,251
 105,590,668
        
The accompanying Notes to the Condensed Consolidated Financial Statements are
an integral part of the Condensed Consolidated Financial Statements.


SIRIUSPOINT LTD.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

For the three and six months ended June 30, 2023 and 2022
(expressed in millions of U.S. dollars)

Three months endedSix months ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
Comprehensive income (loss)
Net income (loss)$72.3 $(56.1)$217.3 $(269.4)
Other comprehensive loss, net of tax
Change in foreign currency translation1.5 (1.2)1.2 (0.4)
Unrealized losses from debt securities held as available for sale investments(54.9)(9.8)(32.0)(9.8)
Reclassifications from accumulated other comprehensive income2.2 — 1.6 — 
Total other comprehensive loss(51.2)(11.0)(29.2)(10.2)
Comprehensive income (loss)21.1 (67.1)188.1 (279.6)
Net income attributable to noncontrolling interests(2.0)(0.7)(4.4)(0.4)
Comprehensive income (loss) available to SiriusPoint$19.1 $(67.8)$183.7 $(280.0)
The accompanying Notes to the Consolidated Financial Statements are
an integral part of the Consolidated Financial Statements.
THIRD POINT REINSURANCE
3

SIRIUSPOINT LTD.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED)
For the ninethree and six months ended SeptemberJune 30, 20172023 and 20162022
(expressed in thousandsmillions of U.S. dollars)
Three months endedSix months ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
Series B preference shares
Balance, beginning of period$200.0 $200.0 $200.0 $200.0 
Issuance of preference shares, net— — — — 
Balance, end of period200.0 200.0 200.0 200.0 
Common shares
Balance, beginning of period16.2 16.2 16.2 16.2 
Issuance of common shares, net0.1 — 0.1 0.1 
Common shares repurchased and retired— — — (0.1)
Balance, end of period16.3 16.2 16.3 16.2 
Additional paid-in capital
Balance, beginning of period1,642.6 1,623.4 1,641.3 1,622.7 
Issuance of common shares, net0.1 — 0.1 — 
Share compensation0.9 7.2 3.4 12.5 
Common shares repurchased and retired— (0.3)— (4.9)
Exercise of Warrants2.0 — 2.0 — 
Change in ownership interest in subsidiary— — (1.2)— 
Balance, end of period1,645.6 1,630.3 1,645.6 1,630.3 
Retained earnings
Balance, beginning of period400.8 448.0 262.2 665.0 
Net income (loss)72.3 (56.1)217.3 (269.4)
Net income attributable to noncontrolling interests(2.0)(0.7)(4.4)(0.4)
Dividends on preference shares(4.0)(4.0)(8.0)(8.0)
Balance, end of period467.1 387.2 467.1 387.2 
Accumulated other comprehensive loss, net of tax
Balance, beginning of period(23.0)0.6 (45.0)(0.2)
Net change in foreign currency translation adjustment
Balance, beginning of period(5.5)0.6 (5.2)(0.2)
Net change in foreign currency translation adjustment1.5 (1.2)1.2 (0.4)
Balance, end of period(4.0)(0.6)(4.0)(0.6)
Unrealized losses from debt securities held as available for sale investments
Balance, beginning of period(17.5)— (39.8)— 
Unrealized losses from debt securities held as available for sale investments(54.9)(9.8)(32.0)(9.8)
Reclassifications from accumulated other comprehensive income2.2 — 1.6 — 
Balance, end of period(70.2)(9.8)(70.2)(9.8)
Balance, end of period(74.2)(10.4)(74.2)(10.4)
Shareholders’ equity attributable to SiriusPoint shareholders2,254.8 2,223.3 2,254.8 2,223.3 
Noncontrolling interests12.9 0.8 12.9 0.8 
Total shareholders’ equity$2,267.7 $2,224.1 $2,267.7 $2,224.1 
The accompanying Notes to the Consolidated Financial Statements are
an integral part of the Consolidated Financial Statements.
4
 2017 2016
Common shares   
Balance, beginning of period$10,650
 $10,548
Issuance of common shares88
 90
Balance, end of period10,738
 10,638
Treasury shares   
Balance, beginning of period(7,389) —
Repurchase of common shares(40,864) (7,389)
Balance, end of period(48,253) (7,389)
Additional paid-in capital   
Balance, beginning of period1,094,568
 1,080,591
Issuance of common shares, net1,416
 3,788
Share compensation expense4,014
 6,596
Balance, end of period1,099,998
 1,090,975
Retained earnings   
Balance, beginning of period316,222
 288,587
Net income236,609
 75,801
Net income attributable to noncontrolling interests in related party(3,160) (1,473)
Balance, end of period549,671
 362,915
Shareholders’ equity attributable to Third Point Re common shareholders1,612,154
 1,457,139
Noncontrolling interests in related party5,241
 18,630
Total shareholders’ equity$1,617,395
 $1,475,769
    
The accompanying Notes to the Condensed Consolidated Financial Statements are
an integral part of the Condensed Consolidated Financial Statements.



THIRD POINT REINSURANCESIRIUSPOINT LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For the ninesix months ended SeptemberJune 30, 20172023 and 20162022
(expressed in thousandsmillions of U.S. dollars)
 2017 2016
Operating activities   
Net income$236,609
 $75,801
Adjustments to reconcile net income to net cash provided by operating activities:   
Share compensation expense4,014
 6,596
Net interest (income) expense on deposit liabilities1,472
 (507)
Net unrealized gain on investments and derivatives(203,299) (90,675)
Net realized gain on investments and derivatives(180,382) (62,316)
Net foreign exchange (gains) losses10,233
 (14,359)
Amortization of premium and accretion of discount, net(452) 4,954
Changes in assets and liabilities:   
Reinsurance balances receivable(77,444) (145,593)
Deferred acquisition costs, net(1,473) (58,286)
Other assets5,698
 (4,960)
Interest and dividends receivable, net769
 (3,697)
Unearned premium reserves58,299
 137,270
Loss and loss adjustment expense reserves78,931
 111,014
Accounts payable and accrued expenses14,173
 1,518
Reinsurance balances payable11,462
 24,013
Performance fee payable to related party73,210
 24,846
Net cash provided by operating activities31,820
 5,619
Investing activities   
Purchases of investments(2,238,167) (2,803,862)
Proceeds from sales of investments2,536,688
 2,533,656
Purchases of investments to cover short sales(440,242) (978,039)
Proceeds from short sales of investments735,132
 854,689
Change in due to/from brokers, net(400,566) 362,695
Increase in securities sold under an agreement to repurchase—
 46,936
Change in restricted cash and cash equivalents(178,422) (34,536)
Net cash provided by (used in) investing activities14,423
 (18,461)
Financing activities   
Proceeds from issuance of Third Point Re common shares, net of costs1,504
 3,878
Purchases of Third Point Re common shares under share repurchase program(40,864) (7,389)
Increase in deposit liabilities, net6,380
 15,928
Change in total noncontrolling interests in related party, net(16,780) 1,000
Net cash provided by (used in) financing activities(49,760) 13,417
Net increase (decrease) in cash and cash equivalents(3,517) 575
Cash and cash equivalents at beginning of period9,951
 20,407
Cash and cash equivalents at end of period$6,434
 $20,982
Supplementary information   
Interest paid in cash$17,551
 $19,605
Income taxes paid in cash$5,996
 $3,775
    
 The accompanying Notes to the Condensed Consolidated Financial Statements are
 an integral part of the Condensed Consolidated Financial Statements.
20232022
Operating activities
Net income (loss)$217.3 $(269.4)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Share compensation10.8 18.9 
Net realized and unrealized (gain) loss on investments and derivatives(12.6)163.2 
Net realized and unrealized loss on investment in related party investment funds0.1 191.5 
Other revenues44.1 (37.2)
Amortization of premium and accretion of discount, net(36.3)8.6 
Amortization of intangible assets5.3 3.9 
Other items, net(4.2)(42.3)
Changes in assets and liabilities:
Insurance and reinsurance balances receivable, net(370.4)(224.5)
Deferred acquisition costs, net(45.4)(52.5)
Unearned premiums ceded(132.5)(132.8)
Loss and loss adjustment expenses recoverable, net(900.5)(42.2)
Deferred tax asset/liability37.2 (34.3)
Other assets(12.4)(5.0)
Interest and dividends receivable(10.1)(6.3)
Loss and loss adjustment expense reserves70.1 99.4 
Unearned premium reserves298.1 358.8 
Deferred gain on retroactive reinsurance21.2 — 
Reinsurance balances payable1,031.8 70.7 
Accounts payable, accrued expenses and other liabilities(5.3)(23.3)
Net cash provided by operating activities206.3 45.2 
Investing activities
Proceeds from redemptions from related party investment funds30.9 654.0 
Contributions to related party investment funds— (4.0)
Purchases of investments(3,092.3)(2,915.7)
Proceeds from sales and maturities of investments2,749.1 1,705.7 
Change in due to/from brokers, net14.8 (45.4)
Net cash used in investing activities(297.5)(605.4)
Financing activities
Taxes paid on withholding shares(7.5)(6.5)
Purchases of SiriusPoint common shares under share repurchase program— (5.0)
Proceeds from loans under an agreement to repurchase9.3 17.5 
Cash dividends paid to preference shareholders(8.0)(8.0)
Settlement of Contingent Value Rights(38.5)— 
Net proceeds from exercise of Warrants1.5 — 
Net payments on deposit liability contracts(7.3)(9.8)
Change in total noncontrolling interests, net(0.6)0.8 
Net cash used in financing activities(51.1)(11.0)
Net decrease in cash, cash equivalents and restricted cash(142.3)(571.2)
Cash, cash equivalents and restricted cash at beginning of period913.7 1,948.4 
Cash, cash equivalents and restricted cash at end of period$771.4 $1,377.2 
 The accompanying Notes to the Consolidated Financial Statements are
 an integral part of the Consolidated Financial Statements.
5


Third Point ReinsuranceSiriusPoint Ltd.
Notes to the Condensed Consolidated Financial Statements (UNAUDITED)
(Expressed in United StatesU.S. Dollars)
1. Organization
Third Point ReinsuranceSiriusPoint Ltd. (together with its wholly and majority ownedconsolidated subsidiaries, “Third Point Re”“SiriusPoint” or the “Company”) was incorporated under the laws of Bermuda on October 6, 2011. Through its reinsurance subsidiaries, the Company is a provider of global specialty property multi-line reinsurance and casualty reinsurance products.  The Company operates through two licensed reinsurance subsidiaries, Third Point Reinsurance Company Ltd. (“Third Point Re BDA”), a Bermuda reinsurance company that commenced operations in January 2012,insurance products and Third Point Reinsurance (USA) Ltd. (“Third Point Re USA”). 
Third Point Re USA is a Bermuda reinsurance company that was incorporated on November 21, 2014 and commenced operations in February 2015.  Third Point Re USA made an election under Section 953(d) of the U.S. Internal Revenue Code of 1986, as amended, to be taxed as a U.S. entity.  Third Point Re USA prices and underwrites U.S. domiciled reinsurance business from an office in the United States.  Third Point Re USA is a wholly owned subsidiary of Third Point Re (USA) Holdings, Inc. (“TPRUSA”), an intermediate holding company based in the U.S., which is a wholly owned subsidiary of Third Point Re (UK) Holdings Ltd. (“Third Point Re UK”), an intermediate holding company based in the United Kingdom. Third Point Re UK is a wholly owned subsidiary of Third Point Re.
In August 2012, the Company established a wholly-owned subsidiary in the United Kingdom, Third Point Re Marketing (UK) Limited (“TPRUK”). In May 2013, TPRUK was licensed as an insurance intermediary by the UK Financial Conduct Authority.services. 
These unaudited condensed consolidated financial statements include the results of Third Point Re and its wholly and majority owned subsidiaries (together, the “Company”) and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 in Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete annual financial statements. In addition, the year-end consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. This Quarterly Report on Form 10-Q (“Form 10-Q”) should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 20162022 (the “2016“2022 Form 10-K”), as filed with the U.S. Securities and Exchange Commission on February 24, 2017.2023.
In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentationstatement of the Company’s financial position and results of operations as at the end of and for the periods presented. All significant intercompany accounts and transactions have been eliminated.
The results for the ninesix months ended SeptemberJune 30, 20172023 are not necessarily indicative of the results expected for the full calendar year.
Tabular amounts are in U.S. Dollars in millions, except share amounts, unless otherwise noted.
2. Significant accounting policies
ThereOther than described below, there have been no material changes to the Company’s significant accounting policies as described in its 20162022 Form 10-K.
ChangesRetroactive Reinsurance
A loss portfolio transfer is a retroactive reinsurance contract. If the cumulative loss and loss adjustment expenses ceded under a loss portfolio transfer exceed the consideration paid, the resulting gain from such excess is deferred and amortized into earnings in future periods in proportion to actual recoveries under the loss portfolio transfer. In any period in which there is a revised estimate of loss and loss adjustment expenses and the loss portfolio transfer is in a gain position, the deferred gain is recalculated as if the revised estimate was available at the inception date of the loss portfolio transfer and the change in the presentation of noncontrolling interests
During the quarter ended September 30, 2017, the Company identified thatdeferred gain is recognized in earnings. The deferred gain is disclosed as a portion of its noncontrolling interests were redeemable. See additional information regarding noncontrolling interests in Note 16. This portion of the noncontrolling interests had previously been presented in noncontrolling interests to related party within shareholders’ equity when it should have been presentedseparate line item in the mezzanine section of theCompany’s consolidated balance sheet as redeemable noncontrolling interests in related party.  As of December 31, 2016, $31.2 million of the noncontrolling interests in related party should have been presentedsheets and changes in the mezzanine section ofdeferred gain are recognized within losses incurred in the consolidated balance sheet as redeemable noncontrolling interests in related party. As of September 30, 2016, $14.1 million should have been presented as part of redeemable noncontrolling interests in related party and excluded from noncontrolling interests in related party in

5


shareholders’ equity. Although this impacted total shareholders’ equity, it did not impact shareholders’ equity attributable to Third Point Re common shareholders or retained earnings.  In addition, this change did not impact the condensed consolidated statements ofCompany’s income earnings per share or condensed consolidated statement of cash flows.  The Company has evaluated the effect of the incorrect presentation, both qualitatively and quantitatively, and concluded that it did not have a material impact on, nor require amendment of, any previously filed annual or quarterly consolidated financial statements.statement.
Recently issued accounting standards
IssuedAccounting pronouncements issued during the three and effectivesix months ended June 30, 2023 were either not relevant to the Company or did not impact the Company’s consolidated financial statements.
Reclassifications
Certain comparative figures have been reclassified to conform to the current year presentation.
3. Significant transactions
SiriusPoint International Loss Portfolio Transfer
On March 2, 2023, the Company agreed, subject to applicable regulatory approvals and other closing conditions, to enter into a loss portfolio transfer transaction (“2023 LPT”), on a funds withheld basis, with Pallas Reinsurance Company Ltd., a subsidiary of the Compre Group, an insurance and reinsurance legacy specialist. The transaction covered loss reserves ceded initially estimated at $1.3 billion as of the valuation date of September 30, 2017
In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-09, Improvements2022, which were reduced to Employee Share-Based Payment Accounting (ASU 2016-09). ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. This new accounting standard did not have a material impact on the Company’s condensed consolidated financial statements.
In October 2016, the FASB issued Accounting Standards Update 2016-17, Consolidation (Topic 810): Interests held through Related Parties that are under Common Control (ASU 2016-17). ASU 2016-17 alters how the Company needs to consider indirect interests in a variable interest entity held through an entity under common control. The new guidance amended ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, issued in February 2015. ASU 2016-17 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company made the election to account for forfeitures when they occur, which results in no material impact on the Company’s condensed consolidated financial statements.
Issued but not yet effective$905.6 million as of SeptemberJune 30, 2017

In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842): Section A - Leases, Section B - Conforming Amendments Related to Leases and Section C - Background Information and Basis for Conclusions (ASU 2016-02). ASU 2016-02 intends to improve financial reporting related to leasing transactions.  The new standard affects all entities that lease assets such as real estate, airplanes and manufacturing equipment. ASU 2016-01 will require entities that lease assets, referred to as “lessees”, to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. ASU 2016-02 is effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s condensed consolidated financial statements2023, as a result of paid losses and favorable prior accident year reserve development recognized during the limited number of leasesinterim

6

period, and included in Loss and loss adjustment expenses recoverable in the Company’s consolidated balance sheets. Upon closing, the Company currently hasrecorded an initial estimate of a deferred gain of $21.2 million, which is disclosed as Deferred gain on retroactive reinsurance in place.the Company’s consolidated balance sheets, and will be amortized over the claim payout period of the subject business. Funds held payable of $884.4 million are included in Reinsurance balances payable in the Company’s consolidated balance sheets. The 2023 LPT comprises several classes of business from 2021 and prior underwriting years. The aggregate limit under the 2023 LPT is 130% of the booked reserves as of the inception of the contract.
In June 2016,
4. Segment reporting
The determination of the FASB issued Accounting Standards Update 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 amends the guidanceCompany’s business segments is based on the impairmentmanner in which management monitors the performance of financial instruments. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years.operations. The Company is currently evaluatingreports two operating segments: Reinsurance and Insurance & Services. The Company’s segments each have managers who are responsible for the impactoverall profitability of this guidance ontheir segments and who are directly accountable to the Company’s condensed consolidated financial statements.
In March 2017,chief operating decision maker, the FASB issued Accounting Standards Update 2017-08, Premium AmortizationChief Executive Officer ("CEO"). The CEO assesses segment operating performance, allocates capital, and makes resource allocation decisions based on Purchased Callable Debt Securities (ASU 2017-08)Segment income (loss). ASU 2017-08 is intended to enhance the accounting for the amortization of premiums for purchased callable debt securities.The amendments are effective for interim and annual periods beginning after December 15, 2018. The Company is currently evaluating the impact of this guidance on the Company’s condensed consolidated financial statements.
In May 2017, the FASB issued Accounting Standards Update 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting (ASU 2017-09). ASU 2017-09 is intended to reduce diversity in practice and subsequent to its adoption, an entity will not apply modification accounting as a result of changes to terms and conditions

6


of a share-based payment award if certain conditions are met. The amendments in this Update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. This new accounting standard is not expected to have a material impact on the Company’s condensed consolidated financial statements when it becomes effective.
In July 2017, the FASB issued Accounting Standards Update 2017-11, (Part I) Accounting for Certain Financial Instruments With Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests With a Scope Exception (ASU 2017-11). ASU 2017-11 is intended to reduce the complexity associated with accounting for certain financial instruments with characteristics of liabilities and equity. Specifically, a down round feature would no longer cause a freestanding equity-linked financial instrument (or an embedded conversion option) to be accounted for as a derivative liability at fair value with changes in fair value recognized in current earnings. In addition, ASU 2017-11 re-characterizes the indefinite deferral of certain provisions of Topic 480 to a scope exception. The recharacterization has no accounting effect. The amendments are effective for interim and annual periods beginning after December 15, 2018. The Company does not currentlymanage its assets by segment; accordingly, total assets are not allocated to the segments.
Reinsurance
The Company is a leading global (re)insurer, which offers both treaty and facultative reinsurance worldwide through its network of local branches. The Company participates in the broker market for reinsurance treaties written in the United States and Bermuda primarily on a proportional and excess of loss basis. For the Company’s international business, the book consists of treaty, written on both a proportional and excess of loss basis, facultative, and primary business, primarily in Europe, Asia and Latin America.
The Reinsurance segment provides coverage in the following product lines:
Aviation & Space – Aviation covers loss of or damage to an aircraft and the aircraft operations' liability to passengers, cargo and hull as well as to third parties, and Space covers damage to a satellite during launch and in orbit.
Casualty – covers a cross section of all casualty lines, including general liability, umbrella, auto, workers’ compensation, professional liability, and other specialty classes.
Contingency – covers event cancellation and non-appearance.
Credit & Bond – covers traditional short-term commercial credit insurance, including pre-agreed domestic and export sales of goods and services with typical coverage periods of 60 to 120 days.
Marine & Energy – Marine covers damage to ships and goods in transit, marine liability lines as well as yacht-owner perils. Energy covers offshore energy industry insurance.
Mortgage – covers credit risks that compensates insureds for losses arising from mortgage loan defaults.
Property – consists of the Company’s underwriting lines of business that offer property catastrophe excess of loss, proportional property reinsurance, per risk property reinsurance, and agriculture reinsurance and property risk and pro rata on a worldwide basis. Property catastrophe excess of loss reinsurance treaties cover losses to a pool of risks from catastrophic events. Proportional property covers both attritional and catastrophic risks, per risk property covers loss to individual risk, and agriculture provides stop-loss reinsurance coverage, including to companies writing U.S. government-sponsored multi-peril crop insurance.
Insurance & Services
The Company provides insurance products to individuals and corporations directly, through agents/brokers or through delegated underwriting agreements with managing general agents (“MGAs”). The Company seeks to work with MGAs that have financial instruments with down round features, therefore,strong underwriting expertise, deep understanding of the customer/product niches and/or technology-driven approaches, and a sustainable competitive moat.
Insurance & Services offers a comprehensive set of services for startup MGAs and insurance services companies including risk capital and equity and debt financing. Furthermore, the Company offers expertise in underwriting, pricing and product development to businesses it partners with. The Company’s process to identify and approve partner companies includes alignment of interests, disciplined management and strong oversight, which are believed to be critical for success. The

7

Insurance & Services segment predominantly provides insurance coverage in addition to receiving fees for services provided within Insurance & Services and to third parties.
The Company makes both controlling and non-controlling equity investments and debt investments in MGAs and other insurance-related business (collectively, “Strategic Investments”).
The Insurance & Services segment provides coverage in the following product lines:
Accident and Health (“A&H”) – consists of life, accident and health coverage, and MGA units (which include ArmadaCorp Capital, LLC (“Armada”) and International Medical Group, Inc. (“IMG”)). Armada’s products are offered in the United States while IMG offers accident, health and travel products on a worldwide basis.
Environmental – consists of an environmental insurance book in the U.S. comprised of four core products that revolve around pollution coverage, which are premises pollution liability, contractor's pollution/pollution liability and professional liability.
Workers’ Compensation – consists of state-mandated insurance coverage that provides medical, disability, survivor, burial, and rehabilitation benefits to employees who are injured or killed due to a work-related injury or illness.
Other – consists of a cross section of property and casualty lines, including but not limited to property, general liability, excess liability, commercial auto, professional liability, directors and officers, cyber and other specialty classes.
Management uses segment income (loss) as the primary basis for assessing segment performance. Segment income (loss) is comprised of two components, underwriting income (loss) and net services income (loss). The Company calculates underwriting income (loss) by subtracting loss and loss adjustment expenses incurred, net, acquisition costs, net, and other underwriting expenses from net premiums earned. Net services income (loss) consists of services revenues (fee for service revenue), services expenses, services non-controlling (income) loss and net investment gains (losses) from Strategic Investments. This definition of segment income (loss) aligns with how business performance is managed and monitored. We continue to evaluate our segments as our business evolves and may further refine our segments and segment income (loss) measures. Certain items are presented in a different manner for segment reporting purposes than in the consolidated statements of income (loss). These items are reconciled to the consolidated presentation in the segment measure reclass column below and include net investment gains (losses) from Strategic Investments where Insurance & Services holds private equity investments. Also included in Insurance & Services segment income (loss) are services noncontrolling loss (income) attributable to minority shareholders on non-wholly-owned subsidiaries. In addition, services revenues and services expenses are reconciled to other revenues and net corporate and other expenses, respectively.
Segment results are shown prior to corporate eliminations. Corporate eliminations are included in the elimination column below as necessary to reconcile to underwriting income (loss), net services income (loss), and segment income (loss) to the consolidated statements of income (loss).
Corporate includes the results of all runoff business, which represent certain classes of business that the Company no longer actively underwrites, including those that have asbestos and environmental and other latent liability exposures and certain reinsurance contracts that have interest crediting features. In addition, revenue and expenses managed at the corporate level, including realized gains and losses (excluding net investment gains (losses) from Strategic Investments, which are allocated to the segment results), net realized and unrealized investment gains (losses) from related party investment funds, other investment income, non-services related other revenues, non-services related net corporate and other expenses, intangible asset amortization, interest expense, foreign exchange (gains) losses and income tax (expense) benefit are reported within Corporate. The CEO does not expect any impactmanage segment results or allocate resources to the Company’s condensed consolidated financial statements.
3. Restricted cashsegments when considering these items and cash equivalents and restricted investments
Restricted cash and cash equivalents and restricted investments asthey are therefore excluded from our definition of September 30, 2017 and December 31, 2016 consisted of the following:segment income (loss).

 September 30,
2017		 December 31,
2016
 ($ in thousands)
Restricted cash securing letter of credit facilities (1)$209,494
 $231,822
Restricted cash securing other reinsurance contracts (2)267,868
 67,118
Total restricted cash and cash equivalents477,362
 298,940
Restricted investments securing other reinsurance contracts (2)328,033
 427,308
Total restricted cash and cash equivalents and restricted investments$805,395
 $726,248
8
(1)Restricted cash securing letter of credit facilities primarily pertains to letters of credit issued to clients and cash securing these obligations that the Company will not be released until the underlying reserves have been settled. The time period for which the Company expects these letters of credit to be in place varies from contract to contract, but can last several years.
(2)Restricted cash and restricted investments securing other reinsurance contracts pertain to trust accounts securing the Company’s contractual obligations under certain reinsurance contracts that the Company will not be released from until all underlying risks have expired or have been settled. Restricted investments include certain investments in debt securities including U.S. Treasury securities and sovereign debt. The time period for which the Company expects these trust accounts to be in place varies from contract to contract, but can last several years.

7



4. Investments
The Company’s investments are managed by its investment manager, Third Point LLC (“Third Point LLC” or the “Investment Manager”), under long-term investment management contracts. The Company directly owns the investments that are held in separate accounts and managed by Third Point LLC. The following is a summary of the separate accounts managedCompany’s operating segment results for the three and six months ended June 30, 2023 and 2022:
Three months ended June 30, 2023
ReinsuranceInsurance & ServicesCore
Eliminations (2)
CorporateSegment Measure ReclassTotal
Gross premiums written
$387.1 $462.7 $849.8 $— $37.3 $— $887.1 
Net premiums written341.3 291.6 632.9 — 37.3 — 670.2 
Net premiums earned320.7 339.6 660.3 — 43.5 — 703.8 
Loss and loss adjustment expenses incurred, net167.0 227.7 394.7 (1.5)13.8 — 407.0 
Acquisition costs, net62.4 84.0 146.4 (35.9)15.7 — 126.2 
Other underwriting expenses12.0 25.5 37.5 — 5.8 — 43.3 
Underwriting income79.3 2.4 81.7 37.4 8.2 — 127.3 
Services revenues(2.8)62.2 59.4 (37.0)— (22.4)— 
Services expenses— 50.0 50.0 — — (50.0)— 
Net services fee income (loss)(2.8)12.2 9.4 (37.0)— 27.6 — 
Services noncontrolling income— (1.7)(1.7)— — 1.7 — 
Net investment losses from Strategic Investments— (4.1)(4.1)— — 4.1 — 
Net services income (loss)(2.8)6.4 3.6 (37.0)— 33.4 — 
Segment income76.5 8.8 85.3 0.4 8.2 33.4 127.3 
Net realized and unrealized investment gains (losses)2.3 (4.1)(1.8)
Net realized and unrealized investment losses from related party investment funds(0.9)— (0.9)
Net investment income68.5 — 68.5 
Other revenues(24.1)22.4 (1.7)
Net corporate and other expenses(20.3)(50.0)(70.3)
Intangible asset amortization(2.9)— (2.9)
Interest expense(11.7)— (11.7)
Foreign exchange losses(17.4)— (17.4)
Income before income tax expense$76.5 $8.8 85.3 0.4 1.7 1.7 89.1 
Income tax expense— — (16.8)— (16.8)
Net income (loss)85.3 0.4 (15.1)1.7 72.3 
Net income attributable to noncontrolling interest— — (0.3)(1.7)(2.0)
Net income (loss) available to SiriusPoint$85.3 $0.4 $(15.4)$— $70.3 
Underwriting Ratios: (1)
Loss ratio52.1 %67.0 %59.8 %57.8 %
Acquisition cost ratio19.5 %24.7 %22.2 %17.9 %
Other underwriting expenses ratio3.7 %7.5 %5.7 %6.2 %
Combined ratio
75.3 %99.2 %87.7 %81.9 %
(1)Underwriting ratios are calculated by Third Point LLC:dividing the related expense by net premiums earned.
 September 30,
2017		 December 31,
2016
Assets($ in thousands)
Total investments in securities$2,703,605
 $2,619,839
Cash and cash equivalents449
 5
Restricted cash and cash equivalents477,362
 298,940
Due from brokers387,786
 284,591
Derivative assets75,781
 27,432
Interest and dividends receivable4,210
 6,505
Total assets3,649,193
 3,237,312
Liabilities and noncontrolling interests in related party   
Accounts payable and accrued expenses2,674
 1,374
Securities sold, not yet purchased405,845
 92,668
Due to brokers602,230
 899,601
Derivative liabilities17,280
 16,050
Performance fee payable to related party73,210
 —
Interest and dividends payable891
 386
Total noncontrolling interests in related party (1)
22,054
 35,674
Total liabilities and noncontrolling interests in related party1,124,184
 1,045,753
Total net investments managed by Third Point LLC$2,525,009
 $2,191,559
(1)See Note 16 for additional information.
Investments are carried at fair value. The fair values of investments are estimated(2)Insurance & Services MGAs recognize fees for service using prices obtainedrevenue from third-party pricing services, when available. However, situations may arise where the Company believes that the fair value provided by the third-party pricing service does not represent current market conditions. In those situations, Third Point LLC may use dealer quotes to value the investments. The methodology for valuation is generally determinedcontracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the investment’s asset class per the Company’s Investment Manager’s valuation policy. For investments where fair values from pricing services or brokers are unavailable, fair values are estimated using information obtained by the Company’s Investment Manager.
Securities listed on a national securities exchange or quoted on NASDAQ are valued at their last sales price as of the last business day of the period. Listed securities with no reported sales on such date and over-the-counter (“OTC”) securities are valued at their last closing bid price if held long by the Company, and last closing ask price if held short by the Company. As of September 30, 2017, securities valued at $194.7 million (December 31, 2016 - $315.3 million), representing 7.0% (December 31, 2016 - 11.9%) of investments in securities and derivative assets, and $2.2 million (December 31, 2016 - $2.0 million), representing 0.5% (December 31, 2016 - 1.8%) of securities sold, not yet purchased and derivative liabilities, are valued based on broker quotes.
Private securities, real estate and related debt investments are those not registered for public sale and are carried at an estimated fair value at the end of the period, as determined by Third Point LLC. Valuation techniques used by Third Point LLC may include market approach, last transaction analysis, liquidation analysis and/or using discounted cash flow models where the significant inputs could include but are not limited to additional rounds of equity financing, financial metrics such as revenue multiples or price-earnings ratio, discount rates and other factors. In addition, third party valuation firms may be employed to conduct investment valuations of such private securities. The third party

different accounting standards.
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9


Three months ended June 30, 2022
ReinsuranceInsurance & ServicesCore
Eliminations (2)
CorporateSegment Measure ReclassTotal
Gross premiums written
$378.3 $433.9 $812.2 $— $0.4 $— $812.6 
Net premiums written321.5 301.4 622.9 — 0.1 — 623.0 
Net premiums earned319.5 244.3 563.8 — 5.0 — 568.8 
Loss and loss adjustment expenses incurred, net204.7 154.8 359.5 (1.1)1.9 — 360.3 
Acquisition costs, net86.3 63.9 150.2 (26.8)0.2 — 123.6 
Other underwriting expenses28.7 15.8 44.5 — 1.6 — 46.1 
Underwriting income (loss)(0.2)9.8 9.6 27.9 1.3 — 38.8 
Services revenues— 56.6 56.6 (36.7)— (19.9)— 
Services expenses— 44.8 44.8 — — (44.8)— 
Net services fee income— 11.8 11.8 (36.7)— 24.9 — 
Services noncontrolling income— (0.7)(0.7)— — 0.7 — 
Net investment losses from Strategic Investments— (0.5)(0.5)— — 0.5 — 
Net services income— 10.6 10.6 (36.7)— 26.1 — 
Segment income (loss)(0.2)20.4 20.2 (8.8)1.3 26.1 38.8 
Net realized and unrealized investment losses(97.9)(0.5)(98.4)
Net realized and unrealized investment losses from related party investment funds(60.5)— (60.5)
Net investment income17.4 — 17.4 
Other revenues25.9 19.9 45.8 
Net corporate and other expenses(27.2)(44.8)(72.0)
Intangible asset amortization(2.0)— (2.0)
Interest expense(9.4)— (9.4)
Foreign exchange gains56.5 — 56.5 
Income (loss) before income tax benefit$(0.2)$20.4 20.2 (8.8)(95.9)0.7 (83.8)
Income tax benefit— — 27.7 — 27.7 
Net income (loss)20.2 (8.8)(68.2)0.7 (56.1)
Net income attributable to noncontrolling interest— — — (0.7)(0.7)
Net income (loss) available to SiriusPoint$20.2 $(8.8)$(68.2)$— $(56.8)
Underwriting Ratios: (1)
Loss ratio64.1 %63.4 %63.8 %63.3 %
Acquisition cost ratio27.0 %26.2 %26.6 %21.7 %
Other underwriting expenses ratio9.0 %6.5 %7.9 %8.1 %
Combined ratio100.1 %96.1 %98.3 %93.1 %
valuation firms provide written reports documenting their recommended valuation as of(1)Underwriting ratios are calculated by dividing the determination daterelated expense by net premiums earned.
(2)Insurance & Services MGAs recognize fees for the specified investments.
As of September 30, 2017, the Company had $95.9 million (December 31, 2016 - $63.2 million) of investments fair valued by the Company’s Investment Manager representing approximately 3.5% (December 31, 2016 - 2.4%) of total investments in securitiesservice using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and derivative assets of which 98.3% were also separately valued by third party valuation firms using information obtained from the Company’s Investment Manager. As a result of the inherent uncertainty of valuation for private securities, the estimated fair value may differ materially from the value that would have been used had a ready market existed for these investments. The actual value at which these securities couldexpenses recognized will match, there will be sold or settled with a willing buyer or seller may differ from the Company’s estimated fair values depending on a number of factors including, but not limited to, current and future economic conditions, the quantity sold or settled, the presence of an active market and the availability of a willing buyer or seller.
The Company’s free standing derivatives are recorded at fair value, and are included in the condensed consolidated balance sheets in derivative assets and derivative liabilities. Third Point LLC values exchange-traded derivatives at their last sales price on the exchange where they are primarily traded. OTC derivatives, which include swap, option, swaption, forward, future and contract forrecognition timing differences are valued by an industry recognized third party valuation vendor when available; otherwise, fair values are obtained from broker quotes that are based on pricing models that consider the time value of money, volatility, and the current market and contractual prices of the underlying financial instruments.
The Company also has derivatives embedded in non-derivative host contracts that are required to be separated from the host contracts and accounted for at fair value with changes in fair value of the embedded derivative reported in other expenses. The Company’s embedded derivatives relate to interest crediting features in certain reinsurance and deposit contracts that vary based on the returns ondifferent accounting standards.

10

Six months ended June 30, 2023
ReinsuranceInsurance & ServicesCore
Eliminations (2)
CorporateSegment Measure ReclassTotal
Gross premiums written
$783.3 $1,126.7 $1,910.0 $— $87.6 $— $1,997.6 
Net premiums written652.3 744.2 1,396.5 — 65.4 — 1,461.9 
Net premiums earned580.2 630.8 1,211.0 — 88.3 — 1,299.3 
Loss and loss adjustment expenses incurred, net252.6 400.2 652.8 (2.8)24.1 — 674.1 
Acquisition costs, net128.4 155.7 284.1 (68.4)30.2 — 245.9 
Other underwriting expenses40.2 44.8 85.0 — 10.5 — 95.5 
Underwriting income159.0 30.1 189.1 71.2 23.5 — 283.8 
Services revenues(2.6)125.8 123.2 (71.3)— (51.9)— 
Services expenses— 95.5 95.5 — — (95.5)— 
Net services fee income (loss)(2.6)30.3 27.7 (71.3)— 43.6 — 
Services noncontrolling income— (3.3)(3.3)— — 3.3 — 
Net investment losses from Strategic Investments— (8.0)(8.0)— — 8.0 — 
Net services income (loss)(2.6)19.0 16.4 (71.3)— 54.9 — 
Segment income156.4 49.1 205.5 (0.1)23.5 54.9 283.8 
Net realized and unrealized investment gains (losses)17.5 (8.0)9.5 
Net realized and unrealized investment losses from related party investment funds(0.1)— (0.1)
Net investment income130.2 — 130.2 
Other revenues(37.8)51.9 14.1 
Net corporate and other expenses(34.8)(95.5)(130.3)
Intangible asset amortization(5.3)— (5.3)
Interest expense(24.5)— (24.5)
Foreign exchange losses(17.5)— (17.5)
Income before income tax expense$156.4 $49.1 205.5 (0.1)51.2 3.3 259.9 
Income tax expense— — (42.6)— (42.6)
Net income205.5 (0.1)8.6 3.3 217.3 
Net income attributable to noncontrolling interests— — (1.1)(3.3)(4.4)
Net income available to SiriusPoint$205.5 $(0.1)$7.5 $— $212.9 
Underwriting Ratios: (1)
Loss ratio43.5 %63.4 %53.9 %51.9 %
Acquisition cost ratio22.1 %24.7 %23.5 %18.9 %
Other underwriting expenses ratio6.9 %7.1 %7.0 %7.4 %
Combined ratio
72.5 %95.2 %84.4 %78.2 %
(1)Underwriting ratios are calculated by dividing the Company’s investments managedrelated expense by Third Point LLC. The Company determines the fair value of the embedded derivativesnet premiums earned.
(2)Insurance & Services MGAs recognize fees for service using models developed by the Company.
The Company values its investments in limited partnerships at fair value, which is estimatedrevenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards.

11

Six months ended June 30, 2022
ReinsuranceInsurance & ServicesCore
Eliminations (2)
CorporateSegment Measure ReclassTotal
Gross premiums written
$902.5 $917.4 $1,819.9 $— $2.4 $— $1,822.3 
Net premiums written696.4 638.9 1,335.3 — 1.6 — 1,336.9 
Net premiums earned627.1 457.1 1,084.2 — 13.9 — 1,098.1 
Loss and loss adjustment expenses incurred, net399.2 288.8 688.0 (2.3)14.7 — 700.4 
Acquisition costs, net166.2 117.4 283.6 (52.4)0.9 — 232.1 
Other underwriting expenses58.8 31.5 90.3 — 3.0 — 93.3 
Underwriting income (loss)2.9 19.4 22.3 54.7 (4.7)— 72.3 
Services revenues— 113.4 113.4 (67.5)— (45.9)— 
Services expenses— 88.1 88.1 — — (88.1)— 
Net services fee income— 25.3 25.3 (67.5)— 42.2 — 
Services noncontrolling loss— 0.1 0.1 — — (0.1)— 
Net investment losses from Strategic Investments— (0.8)(0.8)— — 0.8 — 
Net services income— 24.6 24.6 (67.5)— 42.9 — 
Segment income (loss)2.9 44.0 46.9 (12.8)(4.7)42.9 72.3 
Net realized and unrealized investment losses(179.5)(0.8)(180.3)
Net realized and unrealized investment losses from related party investment funds(191.5)— (191.5)
Net investment income25.2 — 25.2 
Other revenues37.1 45.9 83.0 
Net corporate and other expenses(61.3)(88.1)(149.4)
Intangible asset amortization(3.9)— (3.9)
Interest expense(18.7)— (18.7)
Foreign exchange gains75.9 — 75.9 
Income (loss) before income tax expense$2.9 $44.0 46.9 (12.8)(321.4)(0.1)(287.4)
Income tax expense— — 18.0 — 18.0 
Net income (loss)46.9 (12.8)(303.4)(0.1)(269.4)
Net income attributable to noncontrolling interests— — (0.5)0.1 (0.4)
Net income (loss) available to SiriusPoint$46.9 $(12.8)$(303.9)$— $(269.8)
Underwriting Ratios: (1)
Loss ratio63.7 %63.2 %63.5 %63.8 %
Acquisition cost ratio26.5 %25.7 %26.2 %21.1 %
Other underwriting expenses ratio9.4 %6.9 %8.3 %8.5 %
Combined ratio99.6 %95.8 %98.0 %93.4 %
(1)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
(2)Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards.

12

5. Cash, cash equivalents, restricted cash and restricted investments
The following table provides a summary of cash and cash equivalents, restricted cash and restricted investments as of June 30, 2023 and December 31, 2022:
June 30,
2023		December 31, 2022
Cash and cash equivalents$676.2 $705.3 
Restricted cash securing letter of credit facilities (1)31.9 34.3 
Restricted cash securing reinsurance contracts (2)38.1 148.9 
Restricted cash held by managing general underwriters25.2 25.2 
Total cash, cash equivalents and restricted cash (3)771.4 913.7 
Restricted investments securing reinsurance contracts and letter of credit facilities (1) (2) (4)2,517.5 2,202.2 
Total cash, cash equivalents, restricted cash and restricted investments$3,288.9 $3,115.9 
(1)Restricted cash and restricted investments securing letter of credit facilities primarily pertains to letters of credit that have been issued to the Company’s shareclients in support of our obligations under reinsurance contracts. The Company will not be released from the net asset value (“NAV”)obligation to provide these letters of credit until the limited partnerships as provided byreserves underlying the investment managersreinsurance contracts have been settled. The time period for which the Company expects each letter of credit to be in place varies from contract to contract, but can last several years.
(2)Restricted cash and restricted investments securing reinsurance contracts pertain to trust accounts securing the Company’s contractual obligations under certain reinsurance contracts that the Company will not be released from until the underlying investment funds.risks have expired or have been settled. Restricted investments include certain investments in debt securities, short-term investments and limited partnership interests in Third Point Enhanced LP. The resulting net gains or net losses are reflectedtime period for which the Company expects these trust accounts to be in place varies from contract to contract, but can last several years.
(3)Cash, cash equivalents and restricted cash as reported in the condensedCompany’s consolidated statements of income. Thesecash flows.
(4)Restricted investments are includedinclude required deposits with certain insurance state regulatory agencies in investment in funds valued at NAV and excluded from the presentation of investments categorized by the level of the fairorder to maintain insurance licenses.
6. Fair value hierarchy. These investments are non-redeemable and distributions are made by the investment funds as underlying investments are monetized.
As of September 30, 2017 and December 31, 2016, the Company’s asset-backed securities (“ABS”) holdings were as follows:
 September 30, 2017 December 31, 2016
 ($ in thousands)
Reperforming loans$123,813
 63.0% $44,359
 17.4%
Subprime RMBS—
 —% 117,152
 46.0%
Market place loans54,403
 27.7% 44,143
 17.3%
Other (1)18,189
 9.3% 49,198
 19.3%
 $196,405
 100.0% $254,852
 100.0%
(1)Other includes: U.S. Alt-A positions, collateralized debt obligations, commercial mortgage-backed securities, non-U.S. RMBS and student loans ABS.
As of September 30, 2017, all of the Company’s ABS holdings were private-label issued, non-investment grade securities, and none of these securities were guaranteed by a government sponsored entity. These investments are valued using broker quotes or a recognized third-party pricing vendor. All of these classes of ABS are sensitive to changes in interest rates and any resulting change in the rate at which borrowers sell their properties, refinance, or otherwise pre-pay their loans. As an investor in these classes of ABS, the Company may be exposed to the credit risk of underlying borrowers not being able to make timely payments on loans or the likelihood of borrowers defaulting on their loans. In addition, the Company may be exposed to significant market and liquidity risks.

9


In 2015, the Company made a $25.0 million investment in the Kiskadee Diversified Fund Ltd. (the “Kiskadee Fund”), a fund vehicle managed by Hiscox Insurance Company (Bermuda) Limited. The Kiskadee Fund invests in property catastrophe exposures through collateralized reinsurance transactions and other insurance-linked investments. For the nine months ended September 30, 2017, the Company redeemed $26.7 million (2016 - $0.3 million). The Company has elected the fair value option for this investment. This investment is included in investment in funds valued at NAV and is excluded from the presentation of investments categorized by the level of the fair value hierarchy. The fair value is estimated based on the Company’s share of the net asset value in the Kiskadee Fund, as provided by the investment manager, and was $0.9 million as of September 30, 2017 (December 31, 2016 - $27.7 million). The resulting net gains or losses are reflected in the condensed consolidated statements of income.measurements
U.S. GAAP disclosure requirements establish a framework for measuring fair value, including a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. The three-level hierarchy of inputs is summarized below:
•Level 1 – Quoted prices available in active markets/exchanges for identical investments as of the reporting date.
•Level 2 – Observable inputs to the valuation methodology other than unadjusted quoted market prices for identical assets or liabilities in active markets. Level 2 inputs include, but are not limited to, prices quoted for similar assets or liabilities in active markets/exchanges, prices quoted for identical or similar assets or liabilities in markets that are not active and fair values determined through the use of models or other valuation methodologies.
•Level 3 – PricingInputs are based all or in part on significant unobservable inputs unobservable for the investment, and include activitiessituations where there is little, if any, market activity for the investment. The inputs applied in the determination of fair value require significant management judgment and estimation.
Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. For example, the risk inherent in a particular valuation technique used to measure fair value including such a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable.
Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources other than those of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and considers factors specific to the investment.
The key inputs for corporate, government and sovereign bond valuation are coupon frequency, coupon rate and underlying bond spreads. The key inputs for ABS are yield, probability of default, loss severity and prepayment.

Key inputs for OTC valuations vary based on the type of underlying security on which the contract was written:13
The key inputs for most OTC option contracts include notional, strike price, maturity, payout structure, current foreign exchange forward and spot rates, current market price of the underlying security and volatility of the underlying security.
The key inputs for most forward contracts include notional, maturity, forward rate, spot rate, various interest rate curves and discount factor.
The key inputs for swap valuation will vary based on the type of underlying on which the contract was written. Generally, the key inputs for most swap contracts include notional, swap period, fixed rate, credit or interest rate curves, current market or spot price of the underlying security and the volatility of the underlying security.

10



The following tables present the Company’s investments, categorized by the level of the fair value hierarchy as of SeptemberJune 30, 20172023 and December 31, 2016:2022:
June 30, 2023
 Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Total
 (Level 1) (Level 2) (Level 3)
Assets
Asset-backed securities$— $704.8 $— $704.8 
Residential mortgage-backed securities— 684.4 — 684.4 
Commercial mortgage-backed securities— 133.7 — 133.7 
Corporate debt securities— 1,483.5 — 1,483.5 
U.S. government and government agency1,079.3 4.2 — 1,083.5 
Non-U.S. government and government agency3.2 79.0 — 82.2 
Total debt securities, available for sale1,082.5 3,089.6 — 4,172.1 
Asset-backed securities— 358.8 — 358.8 
Residential mortgage-backed securities— 80.5 — 80.5 
Commercial mortgage-backed securities— 72.7 — 72.7 
Corporate debt securities— 101.4 — 101.4 
U.S. government and government agency108.9 — — 108.9 
Non-U.S. government and government agency1.7 29.2 — 30.9 
Total debt securities, trading110.6 642.6 — 753.2 
Total equity securities1.6 — — 1.6 
Short-term investments540.4 18.8 — 559.2 
Other long-term investments— — 235.0 235.0 
Derivative assets— — 4.1 4.1 
$1,735.1 $3,751.0 $239.1 5,725.2 
Cost and equity method investments88.2 
Investments in funds valued at NAV143.5 
Total assets$5,956.9 
Liabilities
Securities sold under an agreement to repurchase$— $11.0 $— $11.0 
Liability-classified capital instruments— — 65.4 65.4 
Derivative liabilities— — 26.6 26.6 
Total liabilities$— $11.0 $92.0 $103.0 

 September 30, 2017
  Quoted prices in active markets  Significant other observable inputs  Significant unobservable inputs  Total
  (Level 1)  (Level 2)  (Level 3) 
Assets ($ in thousands)
Equity securities$1,942,935
 $17,068
 $—
 $1,960,003
Private common equity securities—
 —
 4,774
 4,774
Private preferred equity securities—
 —
 52,686
 52,686
Total equities1,942,935

17,068

57,460
 2,017,463
Asset-backed securities—
 174,613
 21,792
 196,405
Bank debt—
 9,558
 10,721
 20,279
Corporate bonds—
 42,163
 9,685
 51,848
U.S. Treasury securities—
 251,861
 —
 251,861
Sovereign debt—
 123,843
 —
 123,843
Other debt securities—
 4,614
 7,268
 11,882
Total debt securities—
 606,652
 49,466
 656,118
Options997
 2,975
 —
 3,972
Rights and warrants—
 20
 2
 22
Real estate—
 —
 2,755
 2,755
Trade claims—
 7,246
 —
 7,246
Total other investments997
 10,241
 2,757
 13,995
Derivative assets (free standing)1,295
 74,486
 —
 75,781

$1,945,227
 $708,447
 $109,683
 2,763,357
Investments in funds valued at NAV      16,937
Total assets      $2,780,294
Liabilities       
Equity securities$386,102
 $—
 $—
 $386,102
Corporate bonds—
 11,269
 —
 11,269
Options1,894
 6,580
 —
 8,474
Total securities sold, not yet purchased387,996
 17,849
 —
 405,845
Derivative liabilities (free standing)—
 15,115
 2,165
 17,280
Derivative liabilities (embedded)—
 —
 180
 180
Total liabilities$387,996
 $32,964
 $2,345
 $423,305
14



11


 December 31, 2016
  Quoted prices in active markets  Significant other observable inputs  Significant unobservable inputs  Total
  (Level 1)  (Level 2)  (Level 3) 
Assets ($ in thousands)
Equity securities$1,450,966
 $2,255
 $—
 $1,453,221
Private common equity securities—
 —
 4,799
 4,799
Private preferred equity securities—
 —
 48,834
 48,834
Total equities1,450,966
 2,255
 53,633
 1,506,854
Asset-backed securities—
 237,224
 17,628
 254,852
Bank debt—
 48,546
 8,350
 56,896
Corporate bonds—
 209,025
 9,255
 218,280
U.S. Treasury securities—
 327,016
 —
 327,016
Sovereign debt—
 200,913
 —
 200,913
Total debt securities—
 1,022,724
 35,233
 1,057,957
Options343
 681
 —
 1,024
Trade claims—
 9,022
 —
 9,022
Total other investments343
 9,703
 —
 10,046
Derivative assets (free standing)961
 26,471
 —
 27,432
 $1,452,270
 $1,061,153
 $88,866
 2,602,289
Investments in funds valued at NAV      72,655
Total assets      $2,674,944
Liabilities       
Equity securities$71,457
 $—
 $—
 $71,457
Corporate bonds—
 17,683
 —
 17,683
Options—
 3,528
 —
 3,528
Total securities sold, not yet purchased71,457
 21,211
 —
 92,668
Derivative liabilities (free standing)1,608
 13,116
 1,326
 16,050
Derivative liabilities (embedded)—
 —
 92
 92
Total liabilities$73,065
 $34,327
 $1,418
 $108,810

December 31, 2022
 Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Total
 (Level 1) (Level 2) (Level 3)
Assets
Asset-backed securities$— $230.7 $— $230.7 
Residential mortgage-backed securities— 340.7 — 340.7 
Commercial mortgage-backed securities— 61.2 — 61.2 
Corporate debt securities— 415.7 — 415.7 
U.S. government and government agency1,546.2 4.4 — 1,550.6 
Non-U.S. government and government agency5.0 31.6 — 36.6 
Total debt securities, available for sale1,551.2 1,084.3 — 2,635.5 
Asset-backed securities— 553.7 — 553.7 
Residential mortgage-backed securities— 133.6 — 133.6 
Commercial mortgage-backed securities— 113.4 — 113.4 
Corporate debt securities— 363.5 — 363.5 
U.S. Government and government agency264.1 6.3 — 270.4 
Non-U.S. government and government agency8.7 79.5 — 88.2 
Preferred stocks— — 3.2 3.2 
Total debt securities, trading272.8 1,250.0 3.2 1,526.0 
Total equity securities1.6 — — 1.6 
Short-term investments972.8 11.8 — 984.6 
Other long-term investments— — 227.3 227.3 
Derivative assets— — 9.5 9.5 
$2,798.4 $2,346.1 $240.0 5,384.5 
Cost and equity method investments104.8 
Investments in funds valued at NAV173.9 
Total assets$5,663.2 
Liabilities
Total securities sold, not yet purchased$27.0 $— $— $27.0 
Securities sold under an agreement to repurchase— 18.0 — 18.0 
Liability-classified capital instruments— 39.0 21.4 60.4 
Derivative liabilities— — 8.6 8.6 
Total liabilities$27.0 $57.0 $30.0 $114.0 
During the ninesix months ended SeptemberJune 30, 2017,2023, the Company made $nil (December 31, 2016 - $nil) of reclassifications ofdid not reclassify its assets or liabilities between Levels 12 and 2.
3 (December 31, 2022 - no reclassifications).

Valuation techniques
The Company uses outside pricing services to assist in determining fair values for its investments. For investments in active markets, the Company uses the quoted market prices provided by outside pricing services to determine fair value. In circumstances where quoted market prices are unavailable or are not considered reasonable, the Company estimates the fair value using industry standard pricing models and observable inputs such as benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers, prepayment speeds, reference data including research publications, and other relevant inputs. Given that many debt securities do not trade on a daily basis, the outside pricing services evaluate a wide range of fixed maturity investments by regularly drawing parallels from recent trades and quotes of comparable securities with similar features. The characteristics used to identify comparable debt securities vary by asset type and take into account market convention.
12


15


The techniques and inputs specific to asset classes within the Company’s debt securities and short-term investments for Level 2 securities that use observable inputs are as follows:
Asset-backed and mortgage-backed securities
The fair value of mortgage and asset-backed securities is primarily priced by pricing services using a pricing model that uses information from market sources and leveraging similar securities. Key inputs include benchmark yields, reported trades, underlying tranche cash flow data, collateral performance, plus new issue data, as well as broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including issuer, vintage, loan type, collateral attributes, prepayment speeds, default rates, recovery rates, cash flow stress testing, credit quality ratings and market research publications.
Corporate debt securities
Corporate debt securities consist primarily of investment-grade debt of a wide variety of U.S. and non-U.S. corporate issuers and industries. The corporate fixed maturity investments are primarily priced by pricing services. When evaluating these securities, the pricing services gather information from market sources regarding the issuer of the security and obtain credit data, as well as other observations, from markets and sector news. Evaluations are updated by obtaining broker dealer quotes and other market information including actual trade volumes, when available. The pricing services also consider the specific terms and conditions of the securities, including any specific features which may influence risk.
U.S. government and government agency
U.S. government and government agency securities consist primarily of debt securities issued by the U.S. Treasury and mortgage pass-through agencies such as the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the Government National Mortgage Association. Fixed maturity investments included in U.S. government and government agency securities are primarily priced by pricing services. When evaluating these securities, the pricing services gather information from market sources and integrate other observations from markets and sector news. Evaluations are updated by obtaining broker dealer quotes and other market information including actual trade volumes, when available. The fair value of each security is individually computed using analytical models which incorporate option adjusted spreads and other daily interest rate data.
Non-U.S. government and government agency
Non-U.S. government and government agency securities consist of debt securities issued by non-U.S. governments and their agencies along with supranational organizations (also known as sovereign debt securities). Securities held in these sectors are primarily priced by pricing services who employ proprietary discounted cash flow models to value the securities. Key quantitative inputs for these models are daily observed benchmark curves for treasury, swap and high issuance credits. The pricing services then apply a credit spread for each security which is developed by in-depth and real time market analysis. For securities in which trade volume is low, the pricing services utilize data from more frequently traded securities with similar attributes. These models may also be supplemented by daily market and credit research for international markets.
U.S. states, municipalities, and political subdivisions
The U.S. states, municipalities and political subdivisions portfolio contains debt securities issued by U.S. domiciled state and municipal entities. These securities are generally priced by independent pricing services using the techniques for U.S. government and government agency securities.
Preferred stocks
The fair value of preferred stocks is generally priced by independent pricing services using an evaluated pricing model that calculates the appropriate spread over a comparable security for each issue. Key inputs include exchange prices (underlying and common stock of same issuer), benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including sector, coupon, credit quality ratings, duration, credit enhancements, early redemption features and market research publications.
Short-term investments
Short-term investments consist of U.S. treasury bills, certificates of deposit and other securities, which, at the time of purchase, mature within a period of greater than three months but less than one year. These investments are generally priced

16

by independent pricing services using the techniques described for U.S. government and government agency securities and Corporate debt securities described above.
Investments measured using Net Asset Value
The Company values its investments in limited partnerships, including its investments in related party investment funds, at fair value. The Company has elected the practical expedient for fair value for these investments which is estimated based on the Company’s share of the net asset value (“NAV”) of the limited partnerships, as provided by the independent fund administrator, as the Company believes it represents the most meaningful measurement basis for the investment assets and liabilities. The NAV represents the Company’s proportionate interest in the members’ equity of the limited partnerships.
The fair value of the Company's investments in certain hedge funds and certain private equity funds are also determined using NAV. The hedge fund's administrator provides quarterly updates of fair value in the form of the Company's proportional interest in the underlying fund's NAV, which is deemed to approximate fair value, generally with a three month delay in valuation. The private equity funds provide monthly, quarterly, or semi-annual partnership capital statements primarily with a one or three month delay which are used as a basis for valuation. These private equity investments vary in investment strategies and are not actively traded in any open markets. Due to a lag in reporting, some of the fund managers, fund administrators, or both, are unable to provide final fund valuations as of the Company's reporting date. This includes utilizing preliminary estimates reported by its fund managers and using other information that is available to the Company with respect to the underlying investments, as necessary.
In order to assess the reasonableness of the NAVs, the Company performs a number of monitoring procedures on a monthly, quarterly and annual basis, to assess the quality of the information provided by the investment manager and fund administrator underlying the preparation of the NAV. These procedures include, but are not limited to, regular review and discussion of the fund’s performance with the investment manager.
These investments are included in investment in funds valued at NAV and excluded from the presentation of investments categorized by the level of the fair value hierarchy.
Level 3 Investments
Level 3 valuations are generated from techniques that use assumptions not observable in the market. These unobservable assumptions reflect the Company's assumptions, that market participants would use in valuing the investment. Generally, certain securities may start out as Level 3 when they are originally issued but as observable inputs become available in the market, they may be reclassified to Level 2.
The Company employs a number of procedures to assess the reasonableness of the fair value measurements for its other long-term investments, including obtaining and reviewing the audited annual financial statements of hedge funds and private equity funds and periodically discussing each fund's pricing with the fund manager. However, since the fund managers do not provide sufficient information to evaluate the pricing inputs and methods for each underlying investment, the inputs are considered to be unobservable.
The fair values of the Company's investments in private equity securities, private debt instruments, certain private equity funds, and certain hedge funds have been classified as Level 3 measurements. Private equity securities and private debt instruments are initially valued based on transaction price and their valuation is subsequently estimated based on available evidence such as a market transaction in similar instruments and other financial information for the issuer.
For Strategic Investments carried at fair value, management either engages a third-party valuation specialist to assist in determination of the fair value based on commonly accepted valuation methods (i.e., income approach, market approach) as of the valuation date or performs valuation internally. In addition, investors fair value analyses prepared by third party valuation specialists working with Strategic Investment operating management are referenced where available.
See Note 9 for additional information on the fair values of derivative financial instruments used for both risk management and investment purposes.
Underwriting-related derivatives
Underwriting-related derivatives include reinsurance contracts that are accounted for as derivatives. These derivative contracts are initially valued at cost which approximates fair value. In subsequent measurement periods, the fair values of

17

these derivatives are determined using internally developed discounted cash flow models. As the significant inputs used to price these derivatives are unobservable, the fair values of these contracts are classified as Level 3.
The following table presents the reconciliation of all investments measured at fair value using Level 3 inputs for the three and ninesix months ended SeptemberJune 30, 2017 and 2016:2023:
 July 1,
2017		 Transfers in to (out of) Level 3 Purchases Sales 
Realized and Unrealized Gains (Losses) (1)
 September 30,
2017
 ($ in thousands)
Assets           
Private common equity securities$4,775
 $—
 $—
 $—
 $(1) $4,774
Private preferred equity securities50,759
 —
 2,095
 (1,607) 1,439
 52,686
Asset-backed securities35,711
 (8,759) 23,320
 (24,581) (3,899) 21,792
Bank debt10,246
 —
 —
 —
 475
 10,721
Corporate bonds9,095
 (236) 1,183
 (198) (159) 9,685
Other debt securities3,312
 —
 5,120
 (3,307) 2,143
 7,268
Rights and warrants—
 2
 —
 —
 —
 2
Real estate—
 —
 2,357
 —
 398
 2,755
Total assets$113,898
 $(8,993) $34,075
 $(29,693) $396
 $109,683
Liabilities           
Derivative liabilities (free standing)$(1,367) $—
 $—
 $—
 $(798) $(2,165)
Derivative liabilities (embedded)(180) —
 —
 —
 —
 (180)
Total liabilities$(1,547) $—
 $—
 $—
 $(798) $(2,345)
            
            
 January 1,
2017		 Transfers in to (out of) Level 3 Purchases Sales 
Realized and Unrealized Gains (Losses) (1)
 September 30,
2017
 ($ in thousands)
Assets           
Private common equity securities$4,799
 $—
 $—
 $—
 $(25) $4,774
Private preferred equity securities48,834
 —
 3,034
 (2,102) 2,920
 52,686
Asset-backed securities17,628
 16,437
 57,346
 (56,947) (12,672) 21,792
Bank debt8,350
 —
 4
 (310) 2,677
 10,721
Corporate bonds9,255
 (262) 1,211
 (719) 200
 9,685
Other debt securities
—
 —
 5,120
 —
 2,148
 7,268
Rights and warrants—
 2
 —
 —
 —
 2
Real estate—
 —
 2,357
 —
 398
 2,755
Total assets$88,866
 $16,177
 $69,072
 $(60,078) $(4,354) $109,683
Liabilities           
Derivative liabilities (free standing)$(1,326) $—
 $—
 $(38) $(801) $(2,165)
Derivative liabilities (embedded)(92) —
 —
 —
 (88) (180)
Total liabilities$(1,418) $—
 $—
 $(38) $(889) $(2,345)
            
            
April 1, 2023Transfers in to (out of) Level 3PurchasesSales & Settlements
Realized and Unrealized Gains (Losses) (1)
June 30, 2023
Assets
Preferred stocks$3.2 $— $— $(2.3)$(0.9)$— 
Other long-term investments227.4 — 6.3 (0.3)1.6 235.0 
Derivative assets11.3 — 0.3 (10.5)3.0 4.1 
Total assets$241.9 $— $6.6 $(13.1)$3.7 $239.1 
Liabilities
Liability-classified capital instruments$(47.0)$— $0.6 $— $(19.0)$(65.4)
Derivative liabilities(8.4)— 16.8 (7.6)(27.4)(26.6)
Total liabilities$(55.4)$— $17.4 $(7.6)$(46.4)$(92.0)
January 1,
2023		Transfers in to (out of) Level 3PurchasesSales & Settlements
Realized and Unrealized Gains (Losses) (1)
June 30,
2023
Assets
Preferred stocks$3.2 $— $— $(2.3)$(0.9)$— 
Other long-term investments227.3 — 6.6 (0.3)1.4 235.0 
Derivative assets9.5 — 2.8 (12.6)4.4 4.1 
Total assets$240.0 $— $9.4 $(15.2)$4.9 $239.1 
Liabilities
Liability-classified capital instruments$(21.4)$— $0.6 $— $(44.6)$(65.4)
Derivative liabilities(8.6)— 13.5 (6.2)(25.3)(26.6)
Total liabilities$(30.0)$— $14.1 $(6.2)$(69.9)$(92.0)

13


 July 1,
2016		 Transfers in to (out of) Level 3 Purchases Sales 
Realized and Unrealized Gains (Losses) (1)
 September 30,
2016
 ($ in thousands)
Assets           
Private common equity securities$3,170
 $—
 $60
 $—
 $203
 $3,433
Private preferred equity securities31,079
 —
 2,646
 (60) 2,951
 36,616
Asset-backed securities2,814
 (213) 225
 (334) 303
 2,795
Corporate bonds3,110
 —
 4,967
 —
 256
 8,333
Sovereign debt2
 —
 —
 (2) —
 —
Total assets$40,175
 $(213) $7,898
 $(396) $3,713
 $51,177
Liabilities           
Derivative liabilities (free standing)$(1,220) $—
 $—
 $(106) $—
 $(1,326)
Derivative liabilities (embedded)(6,335) —
 —
 —
 39
 (6,296)
Total liabilities$(7,555) $—
 $—
 $(106) $39
 $(7,622)
            
 January 1,
2016		 Transfers in to (out of) Level 3 Purchases Sales 
Realized and Unrealized Gains (Losses) (1)
 September 30,
2016
 ($ in thousands)
Assets           
Private common equity securities$4,357
 $—
 $60
 $—
 $(984) $3,433
Private preferred equity securities24,178
 —
 14,900
 (60) (2,402) 36,616
Asset-backed securities2,617
 1,967
 1,001
 (1,941) (849) 2,795
Bank debt7,660
 (7,660) —
 —
 —
 —
Corporate bonds3,252
 —
 5,166
 (80) (5) 8,333
Sovereign debt21
 —
 —
 (20) (1) —
Total assets$42,085
 $(5,693) $21,127
 $(2,101) $(4,241) $51,177
Liabilities           
Derivative liabilities (free standing)$(1,020) $—
 $—
 $(306) $—
 $(1,326)
Derivative liabilities (embedded)(5,563) —
 —
 (861) 128
 (6,296)
Total liabilities$(6,583) $—
 $—
 $(1,167) $128
 $(7,622)
(1)Total change in realized and unrealized gains (losses) recorded on Level 3 financial instruments is included in net investment income in the condensed consolidated statements of income.
(1)Total change in realized and unrealized gains (losses) recorded on Level 3 financial instruments is included in total realized and unrealized investment gains (losses) and net investment income in the consolidated statements of income (loss). Realized and unrealized gains (losses) related to underwriting-related derivative assets and liabilities are included in other revenue net of foreign exchange (gains) losses, in the consolidated statements of income (loss).

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The following table presents the reconciliation of all investments measured at fair value of assets using significant unobservableLevel 3 inputs (Level 3) for the three and ninesix months ended SeptemberJune 30, 2017 was $0.1 million2022:
April 1, 2022Transfers in to (out of) Level 3PurchasesSales & Settlements
Realized and Unrealized Gains (Losses) (1)
June 30, 2022
Assets
Preferred stocks$3.3 $— $— $— $(0.1)$3.2 
Other long-term investments242.4 — — (0.7)— 241.7 
Derivative assets(2.4)— 0.6 (0.9)0.3 (2.4)
Total assets$243.3 $— $0.6 $(1.6)$0.2 $242.5 
Liabilities
Liability-classified capital instruments$(42.1)$— $— $— $31.4 $(10.7)
Derivative liabilities(4.8)— 5.0 — (5.2)(5.0)
Total liabilities$(46.9)$— $5.0 $— $26.2 $(15.7)
January 1,
2022		Transfers in to (out of) Level 3PurchasesSales
Realized and Unrealized Gains (Losses) (1)
June 30,
2022
Assets
Preferred stocks$2.8 $— $— $— $0.4 $3.2 
Other long-term investments262.1 — 1.6 (19.6)(2.4)241.7 
Derivative assets0.4 — 0.6 (2.6)(0.8)(2.4)
Total assets$265.3 $— $2.2 $(22.2)$(2.8)$242.5 
Liabilities
Liability-classified capital instruments$(57.2)$— $— $— $46.5 $(10.7)
Derivative liabilities(3.2)— 3.1 — (4.9)(5.0)
Total liabilities$(60.4)$— $3.1 $— $41.6 $(15.7)
(1)Total change in realized and $(3.2) million respectively (2016 - $3.4 millionunrealized gains (losses) recorded on Level 3 financial instruments is included in total realized and $(4.1) million, respectively)unrealized investment gains (losses) and net investment income in the consolidated statements of income (loss). Realized and unrealized gains (losses) related to underwriting-related derivative assets and liabilities are included in other underwriting expenses, net of foreign exchange (gains) losses, in the consolidated statements of income (loss).
For assets and liabilities that were transferred into Level 3 during the period, gains (losses) are presented as if the assets or liabilities had been transferred into Level 3 at the beginning of the period; similarly, for assets and liabilities that were transferred out of Level 3 during the period, gains (losses) are presented as if the assets or liabilities had been transferred out of Level 3 at the beginning of the period.

14


The following table summarizes information aboutincludes financial instruments for which the carrying value differs from the estimated fair values at June 30, 2023 and December 31, 2022. The fair values of the below financial instruments are based on observable inputs and are considered Level 2 measurements.
June 30, 2023December 31, 2022
Fair ValueCarrying ValueFair ValueCarrying Value
2017 SEK Subordinated Notes$250.0 $247.1 $259.0 $258.6 
2016 Senior Notes332.3 404.2 343.7 404.8 
2015 Senior Notes107.1 114.6 112.6 114.6 
Series B preference shares$202.4 $200.0 $186.0 $200.0 
7. Investments
The Company’s invested assets consist of investment securities and other long-term investments held for general investment purposes. The portfolio of investment securities includes debt securities held for trading, debt securities available for sale, short-term investments, equity securities, and other long-term investments which are classified as trading securities with the exception of debt securities held as available for sale. Realized investment gains and losses on debt securities are reported in

19

pre-tax revenues. Unrealized investment gains and losses on debt securities are reported based on classification. Trading securities flow through pre-tax revenues, whereas securities classified as available for sale (“AFS”) flow through other comprehensive income (loss).
For debt securities classified as AFS for which a decline in the fair value between the amortized cost is due to credit-related factors, an allowance is established for the difference between the estimated recoverable value and amortized cost with a corresponding impact to the consolidated statements of income (loss). The allowance is limited to the difference between amortized cost and fair value. A credit losses impairment assessment is performed on securities using both quantitative and qualitative factors. Qualitative factors include significant unobservable inputs useddeclines in determiningfair value below amortized cost. Additionally, a qualitative assessment is also performed over debt securities to evaluate potential credit losses. Examples of qualitative indicators include issuer credit downgrades as well as changes to credit spreads.
Declines in fair value related to a debt security that do not relate to a credit loss are recorded as a component of accumulated other comprehensive income (loss).
Debt securities
The following tables provide the cost or amortized cost, gross unrealized investment gains (losses), net foreign currency gains (losses), and fair value of the Level 3 investments held by the Company.  Level 3 investments not presented in the table below are insignificant or do not have any unobservable inputs to disclose, as they are valued primarily using dealer quotes or at cost.
September 30, 2017
Assets Fair value ($ in thousands) Valuation technique Unobservable input Range
Private equity investments $45,991
 Market approach Volatility 29.0% - 55.0%
      Time to exit 0.8 - 3.0 years
Bank debt 10,284
 Discounted cash flow Credit spread 1024 - 1144 bps
      Duration 1.0 - 4.0 years
Other debt securities 7,268
 Discounted cash flow Discount rate 9.5%
      Capitalization rate 6.5% - 10.0%
Real estate 2,755
 Discounted cash flow Discount rate 8.5%
      Capitalization rate 7.0%
         
December 31, 2016
Assets Fair value ($ in thousands) Valuation technique Unobservable input Range
Private equity investments $47,608
 Market approach Discount 5.0% - 25.0%
      Volatility 40.0% - 60.0%
      Time to exit 0.4 - 2.8 years
      Multiple 2.0 - 3.8x
Private equity investments
The Company’s private equity investments include investments in four privately held companies with a total fair value of $46.0 millionCompany's debt securities as of SeptemberJune 30, 2017. The2023 and December 31, 2022:
June 30, 2023
Cost or
amortized
cost		Gross
unrealized
gains
Gross
unrealized
losses (2)
Net foreign
currency
gains (losses)		Fair value
Debt securities, available for sale
Asset-backed securities$712.0 $2.7 $(9.9)$— $704.8 
Residential mortgage-backed securities700.8 2.0 (18.4)— 684.4 
Commercial mortgage-backed securities136.5 0.1 (2.9)— 133.7 
Corporate debt securities1,507.8 1.0 (25.6)0.4 1,483.6 
U.S. government and government agency(1)
1,101.3 0.2 (18.0)— 1,083.5 
Non-U.S. government and government agency82.9 — (1.4)0.6 82.1 
Total debt securities, available for sale (2)
$4,241.3 $6.0 $(76.2)$1.0 $4,172.1 
Debt securities, trading
Asset-backed securities$371.1 $0.1 $(12.5)$— $358.7 
Residential mortgage-backed securities93.8 — (13.2)— 80.6 
Commercial mortgage-backed securities82.4 — (9.7)— 72.7 
Corporate debt securities110.0 — (8.4)(0.3)101.3 
U.S. government and government agency (1)
112.5 — (3.5)— 109.0 
Non-U.S. government and government agency32.5 — (1.6)— 30.9 
Total debt securities, trading$802.3 $0.1 $(48.9)$(0.3)$753.2 

20

December 31, 2022
Cost or
amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Net foreign
currency
losses		Fair value
Debt securities, available for sale
Asset-backed securities$234.1 $0.9 $(4.3)$— $230.7 
Residential mortgage-backed securities354.3 0.3 (13.9)— 340.7 
Commercial mortgage-backed securities62.1 — (0.9)— 61.2 
Corporate debt securities428.5 0.5 (13.1)(0.2)415.7 
U.S. government and government agency (1)
1,561.9 3.2 (14.5)— 1,550.6 
Non-U.S. government and government agency37.2 — (0.7)0.1 36.6 
Total debt securities, available for sale (2)
$2,678.1 $4.9 $(47.4)$(0.1)$2,635.5 
Debt securities, trading
Asset-backed securities$575.5 $0.1 $(21.9)$— $553.7 
Residential mortgage-backed securities155.9 — (22.3)— 133.6 
Commercial mortgage-backed securities130.5 — (17.1)— 113.4 
Corporate debt securities391.4 — (27.2)(0.7)363.5 
U.S. government and government agency (1)
278.6 — (8.2)— 270.4 
Non-U.S. government and government agency95.8 — (4.0)(3.6)88.2 
Preferred stocks2.4 0.8 — — 3.2 
Total debt securities, trading$1,630.1 $0.9 $(100.7)$(4.3)$1,526.0 
(1)The Company measures the fair value of these investments using a market approach which typically utilizes guideline comparable company trading multiples and/or a discounted cash flow analysis. Under the guideline comparable company multiples approach, the Company determines comparable public companies based on industry, size, developmental stage, strategy, etc., and then calculates a trading multiple for each comparable company. The trading multiple may then be discounted for various considerations as appropriate. The concluded multiple is then applied to the subject company to calculate the value of the subject company. The discounted cash flow model involves using the financial information of the portfolio companies to develop revenue and income projections for the subject company for future years based on information on growth rates relative to the company’s development stage. The enterprise value of the subject company is calculated by discounting the projected cash flows and the terminal value to net present value. The fair value of the company’s debt is reduced from the enterprise value to determine the equity value.
Bank debt
Includedhad no short positions in the Company’s bank debt investments is an investment with a fair value of $10.3 millionlong duration U.S. Treasuries as of SeptemberJune 30, 2017. Corporate debt and selected index spreads are used as benchmarks to estimate market rates of return within the discounted cash flow model. The Company also considers relevant market and company transactions as part of their valuation approach.
Other debt securities and real estate
The values of the investments are based upon available information concerning the market for real estate property investments and the underlying assets of the other debt investments. The valuation methods include, but are not limited

15


to the following: (1) forecasts of future net cash flows based on the Investment Manager’s analysis of future earnings from the investment plus anticipated net proceeds from the sale, disposition or resolution of the investment; (2) discounted earnings multiples applied to stabilized income or adjusted earnings from the investment; (3) recent sales of comparable investments.
For the nine months ended September 30, 2017 and 2016, there were no changes in the valuation techniques as they relate to the above.
5. Due from/to brokers
The Company holds substantially all of its investments through prime brokers pursuant to agreements between the Company and each prime broker. The brokerage arrangements differ from broker to broker, but generally cash and investments in securities are available as collateral against investments2023 (December 31, 2022 - $27.0 million). This amount was included in securities sold, not yet purchased in the consolidated balance sheets.
(2)As of June 30, 2023 and derivative positions, if required.December 31, 2022, the Company did not record an allowance for credit losses on the AFS portfolio.
As of SeptemberJune 30, 20172023, the market value of debt securities classified as AFS which have remained in a gross unrealized loss position for greater than 12 months is $4.3 million with an unrealized loss of $0.1 million (December 31, 2022 - no securities in an unrealized loss position for greater than 12 months).
The weighted average duration of the Company's debt securities, net of short positions in U.S. treasuries, as of June 30, 2023 was approximately 2.5 years, including short-term investments (December 31, 2022 - approximately 1.8 years).
The following table provides the cost or amortized cost and fair value of the Company's debt securities bifurcated into debt securities held for trading (“trading”) and AFS as of June 30, 2023 and December 31, 2016,2022 by contractual maturity. Actual maturities could differ from contractual maturities because borrowers may have the right to call or prepay certain obligations with or without call or prepayment penalties.

21

Debt securities, tradingDebt securities, AFS
Cost or
amortized cost		Fair valueCost or
amortized cost		Fair value
June 30, 2023
Due in one year or less$141.6 $141.2 $205.5 $204.1 
Due after one year through five years57.9 52.9 2,313.3 2,275.7 
Due after five years through ten years20.6 18.4 170.5 167.0 
Due after ten years34.9 28.7 2.7 2.4 
Mortgage-backed and asset-backed securities547.3 512.0 1,549.3 1,522.9 
Total debt securities$802.3 $753.2 $4,241.3 $4,172.1 
December 31, 2022
Due in one year or less$240.4 $230.9 $104.2 $104.0 
Due after one year through five years426.5 407.0 1,822.7 1,802.0 
Due after five years through ten years63.4 55.7 95.8 92.3 
Due after ten years35.5 28.5 4.9 4.6 
Mortgage-backed and asset-backed securities861.9 800.7 650.5 632.6 
Preferred stocks2.4 3.2 — — 
Total debt securities$1,630.1 $1,526.0 $2,678.1 $2,635.5 

The following table summarizes the ratings and fair value of debt securities held in the Company's investment portfolio as of June 30, 2023 and December 31, 2022. Credit ratings are assigned based on Standard & Poor’s Rating Services (“S&P”). In the absence of an S&P rating, Moody’s Investors Service (“Moody’s”) ratings are used.
June 30, 2023December 31, 2022
Debt securities, tradingDebt securities, AFSDebt securities, tradingDebt securities, AFS
AAA$351.0 $618.1 $564.4 $172.8 
AA238.4 1,945.2 523.2 1,907.6 
A47.6 911.9 181.1 188.9 
BBB54.0 380.4 158.1 149.9 
Other62.2 316.5 99.2 216.3 
Total debt securities$753.2 $4,172.1 $1,526.0 $2,635.5 
As of June 30, 2023, the above totals included $146.6 million of sub-prime securities. Of this total, $85.9 million was rated AAA, $28.9 million rated AA, $7.4 million rated BBB and $24.4 million were unrated. As of December 31, 2022, the above totals included $95.3 million of sub-prime securities. Of this total, $56.1 million were rated AAA, $20.0 million rated AA and $19.2 million were unrated.
Equity securities and other long-term investments
The cost or amortized cost, gross unrealized investment gains and losses, net foreign currency gains (losses), and fair values of the Company’s due from/equity securities and other long-term investments as of June 30, 2023 and December 31, 2022 were as follows:
Cost or
amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Net foreign
currency
gains (losses)		Fair value
June 30, 2023
Equity securities$1.8 $— $(0.4)$0.2 $1.6 
Other long-term investments$377.6 $28.8 $(50.8)$(0.2)$355.4 
December 31, 2022
Equity securities$1.8 $— $(0.2)$— $1.6 
Other long-term investments$392.0 $27.5 $(41.8)$(0.5)$377.2 

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The Company holds investments in hedge funds and private equity funds, which are included in other long-term investments. The carrying value of other long-term investments as of June 30, 2023 and December 31, 2022:
June 30,
2023		December 31,
2022
Hedge funds and private equity funds (1)
$73.1 $84.9 
Strategic Investments (2)
252.1 262.0 
Other investments (2)
30.2 30.3 
Total other long-term investments$355.4 $377.2 
(1)Includes $47.6 million of investments carried at NAV (December 31, 2022 - $45.1 million) and $25.4 million of investments classified as Level 3 (December 31, 2022 - $25.1 million) within the fair value hierarchy.
(2)As of June 30, 2023, the Company had $14.7 million of unfunded commitments relating to brokersthese investments (December 31, 2022 - $16.0 million).
Investments in unconsolidated entities
The Company’s investments in unconsolidated entities are included within other long-term investments and consist of investments in common equity securities or similar instruments, which give the Company the ability to exert significant influence over the investee's operating and financial policies. Such investments may be accounted for under either the equity method (“equity method investments”) or, alternatively, the Company may elect to account for them under the fair value option (“equity method eligible unconsolidated entities”).
The following table presents the components of other long-term investments as of June 30, 2023 and December 31, 2022:
June 30,
2023		December 31,
2022
Equity method eligible unconsolidated entities, using the fair value option$153.5 $147.9 
Equity method investments41.5 41.8 
Other unconsolidated investments, at fair value (1)
113.7 124.5 
Other unconsolidated investments, at cost (2)
46.7 63.0 
Total other long-term investments$355.4 $377.2 
(1)Includes other long-term investments that are not equity method eligible and are measured at fair value.
(2)The Company has elected to apply the cost adjusted for market observable events impairment measurement alternative to investments that do not meet the criteria to be accounted for under the equity method, in which the investment is measured at cost and remeasured to fair value when impaired or upon observable transaction prices.
Equity method eligible unconsolidated entities, using the fair value option, exclude the Company’s investment in Third Point Enhanced LP (“TP Enhanced Fund”), Third Point Venture Offshore Fund I LP (“TP Venture Fund”), Third Point Venture Offshore Fund II LP (“TP Venture Fund II”), collectively, the “Related Party Investment Funds.” Refer to “Investments in related party investment funds” discussed below.
Investments in related party investment funds
The following table provides the fair value of the Company's investments in related party investment funds as of June 30, 2023 and December 31, 2022:
June 30,
2023		December 31,
2022
Third Point Enhanced LP$83.9 $100.3 
Third Point Venture Offshore Fund I LP25.1 26.0 
Third Point Venture Offshore Fund II LP2.3 2.5 
Investments in related party investment funds, at fair value$111.3 $128.8 
Investment in Third Point Enhanced LP
On February 23, 2022, the Company entered into the Fourth Amended and Restated Exempted Limited Partnership Agreement of Third Point Enhanced LP with Third Point Advisors LLC (“TP GP”) and the other parties thereto (the “2022 LPA”), which amended and restated the Third Amended and Restated Exempted Limited Partnership Agreement dated August 6, 2020 (the “2020 LPA”).

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The TP Enhanced Fund investment strategy, as implemented by Third Point LLC, is intended to achieve superior risk-adjusted returns by deploying capital in both long and short investments with favorable risk/reward characteristics across select asset classes, sectors and geographies. Third Point LLC identifies investment opportunities via a bottom-up, value-oriented approach to single security analysis supplemented by a top-down view of portfolio and risk management. Third Point LLC seeks dislocations in certain areas of the capital markets or in the pricing of particular securities and supplements single security analysis with an approach to portfolio construction that includes sizing each investment based on upside/downside calculations, all with a view towards appropriately positioning and managing overall exposures.
The 2020 LPA was amended and restated to, among other things:
•add the right to withdraw the Company’s capital accounts in TP Enhanced Fund as of any month-end in accordance with an agreed withdrawal schedule to be reinvested in, or contractually committed to, the Third Point Optimized Credit portfolio (the “TPOC Portfolio”), or other Third Point strategies (“TPE Withdrawn Amounts”);
•remove restrictions on the Company’s withdrawal rights following a change of control with respect to the Company;
•authorize the Company’s Chief Investment Officer to exercise all decisions under the 2022 LPA, without the need for separate approval from the Investment Committee of the Company’s Board of Directors;
•provide that the Company may amend the investment guidelines of the 2022 LPA from time to time for risk management purposes in consultation with TP GP;
•provide that the Company and TP GP may discuss the adoption of new risk parameters for TP Enhanced Fund from time to time, and TP GP will work with the Company to create additional risk management guidelines responsive to the Company’s needs that do not fundamentally alter the general investment strategy or investment approach of TP Enhanced Fund;
•provide that the Company may increase or decrease TP Enhanced Fund’s leverage targets upon reasonable prior notice to meet the business needs of the Company; and
•revise the “cause event” materiality qualifier with respect to violations of law related to Third Point LLC’s investment-related business and Third Point LLC being subject to regulatory proceedings to include events that will likely have a material adverse effect on Third Point LLC’s ability to provide investment management services to TP Enhanced Fund and/or the TPOC Portfolio.
All other material terms of the 2022 LPA remain consistent with the 2020 LPA.
Amended and Restated Investment Management Agreement
On February 23, 2022, the Company entered into an Amended and Restated Investment Management Agreement (the “2022 IMA”) with Third Point LLC and the other parties thereto, which amended and restated the Investment Management Agreement dated August 6, 2020.
Pursuant to the 2022 IMA, Third Point LLC provides discretionary investment management services with respect to a newly established TPOC Portfolio, subject to investment and risk management guidelines, and continues to provide certain non-discretionary investment advisory services to the Company. The Company agreed to contribute to the TPOC Portfolio amounts withdrawn from TP Enhanced Fund on January 31, 2022 that were comprisednot invested or committed for investment in other Third Point strategies. The 2022 IMA contains revised term and termination rights, withdrawal rights, incentive fees, management fees, investment guidelines and advisory fees.
For the investment management services provided in respect of the TPOC Portfolio, the Company will pay Third Point LLC, from the assets of each sub-account, an annual incentive fee equal to 15% of outperformance over a specified benchmark. The Company will also pay Third Point LLC a monthly management fee equal to one twelfth of 0.50% (0.50% per annum) of the TPOC Portfolio, net of any expenses, and a fixed advisory fee for the advisory services equal to 1/4 of $1,500,000 per quarter.
Under the 2022 IMA, the Company may withdraw any amount from the TPOC Portfolio as of any month-end up to (i) the full balance of any sub-account established in respect of any capital contribution not in respect of TPE Withdrawn Amounts and (ii) any net profits in respect of any other sub-account. The Company may withdraw the TPOC Portfolio in full on March 31, 2026, and each successive anniversary of such date. The Company will have the right to withdraw funds monthly from the TPOC Portfolio upon the occurrence of certain events specified in the 2022 IMA, including, within 120 days following the occurrence of a Cause Event (as defined in the 2022 LPA), to meet capital adequacy requirements, to prevent a negative

24

credit rating, for risk management purposes, underperformance of the TPOC Portfolio relative to investment funds managed by third-party managers and pursuing the same or substantially similar investment strategy as the TPOC Portfolio (i.e., which measure performance relative to the benchmark) for two or more consecutive calendar years or a Key Person Event (as defined in the 2022 LPA), subject to certain limitations on such withdrawals as specified in the 2022 IMA. The Company is also entitled to withdraw funds from the TPOC Portfolio in order to satisfy its risk management guidelines, upon prior written notice to Third Point LLC, in an amount not to exceed the Risk Management Withdrawable Amount (as defined in the 2022 LPA).
As of June 30, 2023, the Company had no unfunded commitments related to TP Enhanced Fund.
Investment in Third Point Venture Offshore Fund I LP
On March 1, 2021, SiriusPoint Bermuda entered into the Amended and Restated Exempted Limited Partnership Agreement (“2021 Venture LPA”) of TP Venture Fund which became effective on March 1, 2021. In accordance with the 2021 Venture LPA, Third Point Venture GP LLC (“TP Venture GP”) serves as the general partner of TP Venture Fund.
The TP Venture Fund investment strategy, as implemented by Third Point LLC, is to generate attractive risk-adjusted returns through a concentrated portfolio of investments in privately-held companies, primarily in the expansion through late/pre-IPO stage. The TP Venture Fund may also invest in early stage companies. Due to the nature of the fund, withdrawals are not permitted. Distributions prior to the expected termination date of the fund include, but are not limited to, dividends or proceeds arising from the liquidation of the fund's underlying investments.
As of June 30, 2023, the Company had $9.5 million of unfunded commitments related to TP Venture Fund. As of June 30, 2023, the Company holds interests of approximately 16.8% of the net asset value of TP Venture Fund.
Investment in Third Point Venture Offshore Fund II LP
On June 30, 2022, SiriusPoint Bermuda entered into the Amended and Restated Exempted Limited Partnership Agreement (“2022 Venture II LPA”) of TP Venture Fund II. In accordance with the 2022 Venture II LPA, Third Point Venture GP II LLC (“TP Venture GP II”) serves as the general partner of TP Venture Fund II.
The TP Venture Fund II investment strategy, as implemented by Third Point LLC, is to generate attractive risk-adjusted returns through a concentrated portfolio of investments in privately-held companies, primarily in the expansion through late/pre-IPO stage. The TP Venture Fund may also invest in early stage companies. Due the nature of the fund, withdrawals are not permitted. Distributions prior to the expected termination date of the fund include, but are not limited to, dividends or proceeds arising from the liquidation of the fund's underlying investments.
As of June 30, 2023, the Company had $22.5 million of unfunded commitments related to TP Venture Fund II. As of June 30, 2023, the Company holds interests of approximately 17.8% of the net asset value of TP Venture Fund II.

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8. Total realized and unrealized investment gains (losses) and net investment income
Net realized and unrealized investment gains (losses) and net investment income for the three and six months ended June 30, 2023 and 2022 consisted of the following:
Three months endedSix months ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
Debt securities, available for sale$48.5 $2.9 $83.6 $2.9 
Debt securities, trading10.5 (60.9)$39.6 $(120.2)
Short-term investments5.9 (0.9)14.3 (2.6)
Other long-term investments(3.8)(0.6)0.6 (1.6)
Derivative instruments3.5 — 3.5 — 
Equity securities— (0.3)— (0.4)
Net realized and unrealized investment losses from related party investment funds(0.9)(60.5)(0.1)(191.5)
Realized and unrealized investment gains (losses) and net investment income before other investment expenses and investment loss on cash and cash equivalents63.7 (120.3)141.5 (313.4)
Investment expenses(5.1)(3.4)(10.5)(7.4)
Net investment income (loss) on cash and cash equivalents7.2 (17.8)8.6 (25.8)
Total realized and unrealized investment gains (losses) and net investment income$65.8 $(141.5)$139.6 $(346.6)
Net realized and unrealized gains (losses) on investments
Net realized and unrealized investment gains (losses) for the three and six months ended June 30, 2023 and 2022 consisted of the following:
Three months endedSix months ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
Gross realized gains$19.1 $12.2 $24.9 $23.5 
Gross realized losses(45.7)(47.4)(61.3)(61.2)
Net realized (losses) on investments(26.6)(35.2)(36.4)(37.7)
Net unrealized gains (losses) on investments24.8 (63.2)45.9 (142.6)
Net realized and unrealized gains (losses) on investments (1)(2)$(1.8)$(98.4)$9.5 $(180.3)
(1)Excludes realized and unrealized gains (losses) on the Company’s investments in related party investment funds and unrealized losses from available for sale investments, net of tax.
(2)Includes net realized and unrealized (losses) of $(4.5) million and $(2.7) million from related party investments included in other-long term investments for the three and six months ended June 30, 2023, respectively (2022 - $0.3 million and $0.8 million, respectively).
Net realized investment (losses)
Net realized investment (losses) for the three and six months ended June 30, 2023 and 2022 consisted of the following:
Three months endedSix months ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
Debt securities, available for sale$2.2 $0.2 $1.6 $0.2 
Debt securities, trading(32.5)(18.0)(39.9)(22.2)
Short-term investments(1.2)0.1 (1.4)(0.1)
Equity securities— — — (2.3)
Other long-term investments(0.7)(2.1)(1.1)(1.8)
Net investment income (loss) on cash and cash equivalents5.6 (15.4)4.4 (11.5)
Net realized investment (losses)$(26.6)$(35.2)$(36.4)$(37.7)


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 September 30,
2017		 December 31,
2016
 ($ in thousands)
Due from brokers   
Cash held at brokers$373,476
 $240,205
Receivable from unsettled trades (1)14,310
 44,386
 $387,786
 $284,591
Due to brokers   
Borrowing from prime brokers (2)$580,081
 $855,576
Payable from unsettled trades22,149
 44,025
 $602,230
 $899,601
Net unrealized investment gains (losses)
(1) Receivables relatingNet unrealized investment gains (losses) for the three and six months ended June 30, 2023 and 2022 consisted of the following:
Three months endedSix months ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
Debt securities, trading$28.9 $(57.0)$51.9 $(121.1)
Short-term investments1.1 (2.6)0.7 (4.6)
Derivative instruments3.5 — 3.5 — 
Equity securities— (0.3)— 1.8 
Other long-term investments(4.8)0.4 (7.8)(2.8)
Net investment loss on cash and cash equivalents(3.9)(3.7)(2.4)(15.9)
Net unrealized investment gains (losses)$24.8 $(63.2)$45.9 $(142.6)
The following table summarizes the amount of total gains (losses) included in earnings attributable to securities sold byunrealized investment gains (losses) – Level 3 investments for the three and six months ended June 30, 2023 and 2022:
Three months endedSix months ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
Debt securities, trading$(0.9)$— $(0.8)$0.5 
Other long-term investments2.0 1.6 (2.8)(2.3)
Total unrealized investment gains (losses) – Level 3 investments$1.1 $1.6 $(3.6)$(1.8)
9. Derivatives
The Company holds derivative financial instruments for both risk management and investment purposes.
Foreign currency risk derivatives
The Company executes foreign currency forwards, call options, swaps, and futures to manage foreign currency exposure. The foreign currency risk derivatives are not designated or accounted for under hedge accounting. Changes in fair value are presented within foreign exchange (gains) losses. The fair value of the swaps and forwards are estimated using a single broker quote, and accordingly, are classified as a Level 3 measurement. The fair value of the futures is widely available and have quoted prices in active markets, and accordingly, were classified as a Level 1 measurement. As of June 30, 2023, the Company holds $36.4 million in collateral associated with the foreign currency derivatives (December 31, 2022 - $15.2 million).
Weather derivatives
The Company holds assets and assumes liabilities related to weather and weather contingent risk management products. Weather and weather contingent derivative contracts are recordedentered into with the objective of generating profits in normal climatic conditions. Accordingly, the Company’s weather and weather contingent derivatives are not designed to meet the criteria for hedge accounting under U.S. GAAP. The Company receives payment of premium at the contract inception in exchange for bearing the risk of variations in a quantifiable weather index. Changes in fair value are presented within other revenues. Management uses available market data and internal pricing models based upon consistent statistical methodologies to estimate the fair value. Because of the significance of the unobservable inputs used to estimate the fair value of the Company's weather risk contracts, the fair value measurements of the contracts are deemed to be Level 3 measurements in the fair value hierarchy as receivable from unsettled trades in due from brokersof June 30, 2023. The Company does not provide or hold any collateral associated with the weather derivatives.

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The following table summarizes information on the classification and amount of the fair value of derivatives not designated as hedging instruments within the Company's consolidated balance sheets as of June 30, 2023 and December 31, 2022:
June 30, 2023December 31, 2022
Derivatives not designated as hedging instruments
Derivative assets
at fair value(1)
Derivative liabilities
at fair value(2)
Notional
Value
Derivative assets
at fair value(1)
Derivative liabilities
at fair value(2)
Notional
Value
Foreign currency forwards$— $6.4 $311.8 $9.0 $— $425.1 
Foreign currency swaps— 10.6 254.9 — 1.5 264.6 
Weather derivatives— 5.4 30.6 — 4.9 30.6 
Interest rate swaps$4.1 $— $— $— $— $— 
(1)Derivative assets are classified within other assets in the Company’s condensedconsolidated balance sheets.
(2)Derivative liabilities are classified within accounts payable, accrued expenses and other liabilities in the Company’s consolidated balance sheets. During
The following table summarizes information on the classification and net impact on earnings, recognized in the Company’s consolidated statements of income (loss) relating to derivatives during the three and six months ended June 30, 2023 and 2022:
Three months endedSix months ended
Derivatives not designated as hedging instrumentsClassification of gains (losses) recognized in earningsJune 30, 2023June 30, 2022June 30, 2023June 30, 2022
Foreign currency forwardsForeign exchange gains$(13.3)$(5.8)$(14.9)$(6.8)
Foreign currency futures contractsForeign exchange gains— (24.9)— (30.8)
Weather derivativesOther revenues(0.3)0.2 3.2 (0.4)
Equity warrantsNet realized and unrealized investment gains (losses)— — — (0.1)
Foreign currency swapsForeign exchange gains(12.0)— (13.6)— 
Interest rate swapsNet realized and unrealized investment gains (losses)$3.5 $— $3.5 $— 
10. Variable and voting interest entities
The Company consolidates the results of operations and financial position of every voting interest entity ("VOE") in which it has a controlling financial interest and variable interest entities (“VIE”) in which it is considered to be the primary beneficiary in accordance with guidance in ASC 810, Consolidation. The consolidation assessment, including the determination as to whether an entity qualifies as a VOE or VIE, depends on the facts and circumstances surrounding each entity.
Consolidated variable interest entities
Alstead Re
Alstead Reinsurance Ltd. (“Alstead Re”) is considered a VIE and the Company has concluded that it is the primary beneficiary of Alstead Re because the Company can exercise control over the activities that most significantly impact the economic performance of Alstead Re. As a result, the Company has consolidated the results of Alstead Re in its consolidated financial statements. As of June 30, 2023, Alstead Re’s assets and liabilities included in the Company’s consolidated balance sheets were $18.4 million and $12.8 million, respectively (December 31, 2022 - $14.0 million and $9.0 million, respectively).
Arcadian
Arcadian Risk Capital Ltd. (“Arcadian”) is considered a VIE and the Company has concluded that it is the primary beneficiary of Arcadian because the Company can exercise control over the activities that most significantly impact the economic performance of Arcadian. As a result, the Company has consolidated the results of Arcadian in its consolidated financial statements. The Company’s ownership in Arcadian as of June 30, 2023 was 49%, and its financial exposure to Arcadian is limited to its investment in Arcadian’s common shares and other financial support up to $18.0 million through an unsecured promissory note. As of June 30, 2023, Arcadian’s assets and liabilities, after intercompany eliminations, included in the Company’s consolidated balance sheets were $50.0 million and $8.3 million, respectively (December 31, 2022 - $32.3 million and $9.7 million, respectively).

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Banyan
In January 2023, Banyan Risk Ltd. (“Banyan”) completed the recapitalization in which the Company’s ownership decreased from 100% to 49%. Banyan was consolidated through the year ended December 31, 2015,2022 as the Company was its sole owner. As a result of the recapitalization, new investors obtained equity ownership and the Company reevaluated the criteria for consolidation. Banyan is considered a VIE and the Company is the primary beneficiary of Banyan because the Company can exercise control over the activities that most significantly impact the economic performance of Banyan. As a result, the Company has continued to consolidate the results of Banyan in its consolidated financial statements. As of June 30, 2023, Banyan’s assets and liabilities, after intercompany eliminations, included in the Company’s investment manager, Third Point LLC, exercised appraisal rights relating to an underlying investment, whichconsolidated balance sheets were $4.7 million and $0.7 million, respectively (December 31, 2022 - $8.0 million and $1.1 million, respectively).
Joyn
Joyn Insurance Services Inc. (“Joyn”) was bought byconsidered a private equity firm. AsVIE through the third quarter of December 31, 2016, $37.6 million was included in receivable from unsettled trades in due from brokers while2022 and the Company awaitedconcluded that it was the court decision regarding the sale price. In the second quarterprimary beneficiary of 2017, the court decision resulted inJoyn because the Company receivingcould have exercised control over the total valueactivities that most significantly impacted the economic performance of $37.6 million as well as interest of $5.0 million for the trial period.
(2)As of September 30, 2017, the Company’s borrowing from prime brokers includes a total non-U.S. currency balance of $25.2 million (December 31, 2016 - $22.0 million).
The Company uses prime brokerage borrowing arrangements to provide collateral for its letter of credit facilities and to fund trust accounts securing certain reinsurance contracts.Joyn. As of September 30, 2017,a result, the Company had $805.4 million (December 31, 2016 - $726.2 million)consolidated the results of restricted cashJoyn in its consolidated financial statements. During the fourth quarter of 2022, an additional investment was made in Joyn by third parties, after which Joyn no longer met the criterion for consolidation. As of June 30, 2023, the investment in Joyn is recorded in other long-term investments in the Company’s consolidated balance sheets utilizing cost adjusted for market observable events less impairment method.
Consolidated voting interest entities
Alta Signa
On June 30, 2022, the Company entered into a strategic partnership with Alta Signa Holdings (“Alta Signa”), a European MGA specializing in financial and investments securing letterprofessional lines insurance. The Company’s ownership in Alta Signa as of credit facilitiesJune 30, 2023 was 75.1%. Alta Signa is considered a VOE and certain reinsurance contracts. Margin debt at the brokers primarily relates to borrowings to fund letter of credit facilities, trust accounts and investment activities which are collateralized by cash and certain securitiesCompany holds a majority of the Company. Amounts are borrowedvoting interests through committed facilities with termsits seats on Alta Signa’s board of up to 90 days, secured by assets ofdirectors. As a result, the Company held byhas consolidated the prime broker,results of Alta Signa in its consolidated financial statements.As of June 30, 2023, Alta Signa’s assets and incur interest based on the Company’s negotiated rates. This interest expense is reflected in net investment income in the condensed consolidated statements of income.

16


6. Derivatives
The following tables identify the listing currency, fair value and notional amounts of derivative instrumentsliabilities, after intercompany eliminations, included in the condensedCompany’s consolidated balance sheets categorized by primary underlying risk. Balances are presented on a gross basis.were $7.9 million and $1.6 million, respectively (December 31, 2022 - $8.0 million and $2.1 million, respectively).
Noncontrolling interests
 As of September 30, 2017
  Listing currency (1)  Fair Value  Notional Amounts (2)
Derivative Assets by Primary Underlying Risk ($ in thousands)
Credit     
Credit Default Swaps - Protection PurchasedUSD $9,336
 $51,827
Total Return Swaps - Long ContractsEGP 24,714
 24,714
Equity Price     
Contracts for Differences - Long ContractsBRL/CHF/DKK/EUR/GBP/USD 23,257
 178,049
Contracts for Differences - Short ContractsDKK/EUR/SEK/USD 1,252
 29,555
Total Return Swaps - Long ContractsBRL/USD 13,503
 148,591
Interest Rates     
Interest Rate SwaptionsJPY/USD 1,420
 93,834
Sovereign Debt Futures - Short ContractsEUR 1,295
 155,191
Foreign Currency Exchange Rates     
Foreign Currency Forward ContractsEUR/HKD 1,004
 194,851
Total Derivative Assets  $75,781
 $876,612
      
  Listing currency (1)  Fair Value  Notional Amounts (2)
Derivative Liabilities by Primary Underlying Risk ($ in thousands)
Credit     
Credit Default Swaps - Protection PurchasedEUR/USD $3,196
 $57,512
Credit Default Swaps - Protection SoldJPY/USD 2,828
 7,031
Equity Price     
Contracts for Differences - Long ContractsBRL/EUR/GBP/USD 857
 27,511
Contracts for Differences - Short ContractsEUR/NOK/SEK 632
 16,022
Total Return Swaps - Long ContractsBRL/USD 559
 27,433
Total Return Swaps - Short ContractsUSD 4,852
 72,645
Interest Rates     
Interest Rate SwaptionsJPY 120
 64,600
Foreign Currency Exchange Rates     
Foreign Currency Forward ContractsCHF/CNH/HKD/SAR 4,236
 503,808
Total Derivative Liabilities (free standing)  $17,280
 $776,562
      
Embedded derivative liabilities in reinsurance contracts (3)USD $180
 $20,000
Total Derivative Liabilities (embedded)  $180
 $20,000
(1)BRL = Brazilian Real, CHF = Swiss Franc, CNH = Chinese Yuan, DKK = Danish Krone, EGP = Egyptian Pound, EUR = Euro,  GBP = British Pound,  HKD = Hong Kong Dollar, JPY = Japanese Yen, NOK = Norwegian Krone, SAR = Saudi Arabian Riyal, SEK = Swedish Krona, USD = US Dollar
(2)The absolute notional exposure represents the Company’s derivative activity as of September 30, 2017, which is representative of the volume of derivatives held during the period.
(3)The fair value of embedded derivatives in reinsurance contracts is included in reinsurance balances payable in the condensed consolidated balance sheets.

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 As of December 31, 2016
  Listing currency (1)  Fair Value  Notional Amounts (2)
Derivative Assets by Primary Underlying Risk ($ in thousands)
Credit     
Credit Default Swaps - Protection PurchasedEUR/ USD $10,905
 $84,327
Equity Price     
Contracts for Differences - Long ContractsEUR/ GBP 1,765
 36,879
Total Return Swaps - Long ContractsBRL/ USD 617
 19,140
Total Return Swaps - Short ContractsJPY 183
 8,696
Interest Rates     
Interest Rate SwapsGBP/USD 2,462
 195,571
Interest Rate SwaptionsJPY / USD 5,354
 424,816
Sovereign Debt Futures - Short ContractsUSD 961
 107,591
Foreign Currency Exchange Rates     
Foreign Currency Forward ContractsCAD/ CNH/ GBP/ MXN 653
 47,754
Foreign Currency Options - PurchasedCNH/EUR/HKD/JPY/SAR 4,532
 501,465
Total Derivative Assets  $27,432
 $1,426,239
      
      
  Listing currency (1)  Fair Value  Notional Amounts (2)
Derivative Liabilities by Primary Underlying Risk ($ in thousands)
Credit     
Credit Default Swaps - Protection PurchasedUSD $3,286
 $43,184
Credit Default Swaps - Protection SoldUSD 1,952
 3,943
Equity Price     
Contracts for Differences - Long ContractsGBP —
 67
Contracts for Differences - Short ContractsEUR / ZAR 1,106
 11,424
Total Return Swaps - Long ContractsUSD 1,675
 26,800
Total Return Swaps - Short ContractsJPY / USD 1,302
 10,095
Interest Rates     
Interest Rate SwapsGBP 722
 59,115
Interest Rate SwaptionsJPY/USD 1,056
 417,052
Sovereign Debt Futures - Short ContractsEUR / GBP 1,608
 159,923
Foreign Currency Exchange Rates     
Foreign Currency Forward ContractsEUR /JPY /SAR 2,009
 214,854
Foreign Currency Options - SoldCNH/JPY 1,334
 363,840
Total Derivative Liabilities (free standing)  $16,050
 $1,310,297
      
Embedded derivative liabilities in reinsurance contracts (3)USD $92
 $20,000
Total Derivative Liabilities (embedded)  $92
 $20,000
(1)BRL = Brazilian Real, CAD = Canadian Dollar, CNH = Chinese Yuan, EUR = Euro,  GBP = British Pound,  HKD = Hong Kong Dollar, JPY = Japanese Yen, MXN = Mexican Peso, SAR = Saudi Arabian Riyal, USD = US Dollar, ZAR = South African Rand
(2)The absolute notional exposure represents the Company’s derivative activity as of December 31, 2016, which is representative of the volume of derivatives held during the period.
(3)The fair value of embedded derivatives in reinsurance contracts is included in reinsurance balances payable in the condensed consolidated balance sheets.
Noncontrolling interests represent the portion of equity in consolidated subsidiaries not attributable, directly or indirectly, to the Company. The following table sets forth, by major risk type,is a reconciliation of the Company’s realizedbeginning and unrealized gains (losses) relating to derivativesending carrying amount of noncontrolling interests for the three and ninesix months ended SeptemberJune 30, 20172023 and 2016. Realized2022:
Three months endedSix months ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
Balance, beginning of period$11.4 $(0.7)$7.9 $(0.4)
Business combinations— 0.8 — 0.8 
Net income attributable to noncontrolling interests2.0 0.7 4.4 0.4 
Contributions (Redemptions)(0.5)— 0.6 — 
Balance, end of period$12.9 $0.8 $12.9 $0.8 
Non-consolidated variable interest entities
The Company is a passive investor in certain third-party-managed hedge and unrealized gains (losses) relatedprivate equity funds, some of which are VIEs. The Company is not involved in the design or establishment of these VIEs, nor does it actively participate in the management of the VIEs. The exposure to free standing derivativesloss from these investments is limited to the carrying value of the investments at the balance sheet date.
The Company calculates maximum exposure to loss to be (i) the amount invested in the debt or equity of the VIE, (ii) the notional amount of VIE assets or liabilities where the Company has also provided credit protection to the VIE with the VIE as the referenced obligation, and (iii) other commitments and guarantees to the VIE. The Company does not have any VIEs that it sponsors nor any VIEs where it has recourse to it or has provided a guarantee to the VIE interest holders.

29

The following table presents total assets of unconsolidated VIEs in which the Company holds a variable interest, as well as the maximum exposure to loss associated with these VIEs as of June 30, 2023 and December 31, 2022:
Maximum Exposure to Loss
Total VIE AssetsOn-Balance SheetOff-Balance SheetTotal
June 30, 2023
Other long-term investments (1)
$215.1 $144.0 $2.0 $146.0 
December 31, 2022
Other long-term investments (1)
$211.5 $144.0 $2.0 $146.0 
(1)Excludes the Company’s investments in Related Party Investment Funds which are includedalso VIEs and are discussed separately below.
Third Point Enhanced LP
As of June 30, 2023, the Company and TP GP hold interests of approximately 89.4% and 10.6%, respectively, of the net asset value of TP Enhanced Fund. As a result, both entities hold significant financial interests in netTP Enhanced Fund. However, TP GP controls all of the investment decision-making authority and the Company does not have the power to direct the activities which most significantly impact the economic performance of TP Enhanced Fund. As a result, the Company is not considered the primary beneficiary and does not consolidate TP Enhanced Fund. The Company’s maximum exposure to loss corresponds to the value of its investments in TP Enhanced Fund.
The following is a summarized income statement of the TP Enhanced Fund for the three and six months ended June 30, 2023 and 2022, and summarized balance sheet as of June 30, 2023 and December 31, 2022.
This summarized income statement of TP Enhanced Fund reflects the main components of total investment income and expenses of TP Enhanced Fund. This summarized income statement is not a breakdown of the Company’s proportional investment income in TP Enhanced Fund as presented in the condensedCompany’s consolidated statements of income. Realizedincome (loss).
Three months endedSix months ended
TP Enhanced Fund summarized income statementJune 30, 2023June 30, 2022June 30, 2023June 30, 2022
Total investment income (loss)$— $(57.9)$2.1 $(195.6)
Total expenses0.5 4.6 1.4 10.0 
Net income (loss)$(0.5)$(62.5)$0.7 $(205.6)
The following table is a summarized balance sheet of TP Enhanced Fund as of June 30, 2023 and unrealized gains (losses) related to embedded derivatives are included in other expensesDecember 31, 2022 and reflects the underlying assets and liabilities of TP Enhanced Fund. This summarized balance sheet is not a breakdown of the Company’s proportional interests in the condensed consolidated statementsunderlying assets and liabilities of income.
TP Enhanced Fund.

TP Enhanced Fund summarized balance sheetJune 30,
2023		December 31, 2022
Total assets$100.5 $260.6 
Total liabilities6.3 148.6 
Total partners' capital$94.2 $112.0 
18Investment in Third Point Venture Offshore Fund I LP


 Three months ended
 September 30, 2017 September 30, 2016
Free standing Derivatives - Primary Underlying RiskRealized Gain (Loss) Unrealized Gain (Loss)* Realized Gain (Loss) Unrealized Gain (Loss)*
Credit($ in thousands)
Commodity Future Options - Purchased$—
 $—
 $(475) $(1,310)
Credit       
Credit Default Swaps - Protection Purchased2,824
 (4,059) (887) (433)
Credit Default Swaps - Protection Sold(26) (288) 38
 (7)
Total Return Swaps - Long Contracts—
 1,506
 —
 —
Equity Price       
Contracts for Differences - Long Contracts5,021
 13,949
 1,666
 791
Contracts for Differences - Short Contracts(511) (1,219) (3,767) (2,166)
Total Return Swaps - Long Contracts4,655
 5,455
 2,172
 3,174
Total Return Swaps - Short Contracts(2,732) (4,519) (4,392) 831
Interest Rates       
Commodity Futures - Short Contracts—
 —
 870
 —
Interest Rate Swaps(7) —
 —
 —
Interest Rate Swaptions—
 (512) (244) 216
Sovereign Debt Futures - Short Contracts(139) 1,284
 —
 —
Total Return Swaps - Long Contracts—
 —
 268
 (261)
Total Return Swaps - Short Contracts—
 —
 (100) 65
Treasury Futures - Short Contracts—
 —
 14
 1,191
Foreign Currency Exchange Rates       
Foreign Currency Forward Contracts(1,863) (609) (4,110) 2,838
Foreign Currency Options - Purchased(529) 3
 —
 (384)
Foreign Currency Options - Sold1
 (2) —
 (1)
 $6,694
 $10,989
 $(8,947) $4,544
Embedded Derivatives       
Embedded derivatives in reinsurance contracts$—
 $—
 $—
 $39
Total Derivative Liabilities (embedded)$—
 $—
 $—
 $39
        
        

19


 Nine months ended
 September 30, 2017 September 30, 2016
Free standing Derivatives - Primary Underlying RiskRealized Gain (Loss) Unrealized Gain (Loss)* Realized Gain (Loss) Unrealized Gain (Loss)*
Commodity Price($ in thousands)
Commodity Future Options - Purchased$—
 $—
 $106
 $490
Credit       
Credit Default Swaps - Protection Purchased359
 (4,029) 5,520
 (5,420)
Credit Default Swaps - Protection Sold11
 (347) (4,129) 4,245
Total Return Swaps - Long Contracts
(29) 1,469
 —
 —
Equity Price       
Contracts for Differences - Long Contracts51,946
 20,636
 (756) 412
Contracts for Differences - Short Contracts(4,716) 1,726
 803
 (1,888)
Total Return Swaps - Long Contracts8,517
 14,002
 (2,654) 3,974
Total Return Swaps - Short Contracts(6,475) (3,731) (3,701) (931)
Interest Rates       
Commodities Futures - Short Contracts—
 —
 (281) (52)
Fixed Income Swap - Short Contracts—
 —
 (94) —
Interest Rate Swaps(3,104) (1,740) —
 —
Interest Rate Swaptions522
 (2,854) (356) 171
Sovereign Debt Futures - Short Contracts(8,795) 1,942
 —
 —
Treasury Futures - Short Contracts—
 —
 14
 1,191
Foreign Currency Exchange Rates       
Foreign Currency Forward Contracts(11,898) (1,877) (13,014) (1,913)
Foreign Currency Options - Purchased(6,716) 1,165
 (2,040) (2,001)
Foreign Currency Options - Sold2,185
 (82) 617
 (183)
 $21,807
 $26,280
 $(19,965) $(1,905)
Embedded Derivatives       
Embedded derivatives in reinsurance contracts$—
 $(88) $—
 $128
Total Derivative Liabilities (embedded)$—
 $(88) $—
 $128
*Unrealized gain (loss) relatesTP Venture GP controls all of the investment decision-making authority of the TP Venture Fund. The Company does not have the power to derivatives still held at reporting date.
direct the activities which most significantly impact the economic performance of the TP Venture Fund. The Company’s derivative contracts are generally subjectmaximum exposure to International Swaps and Derivatives Association (“ISDA”) Master Agreements or other similar agreements that contain provisions setting forth events of default and/or termination events (“credit-risk-related contingent features”), including but not limitedloss corresponds to provisions setting forth maximum permissible declines in the Company’s net asset value. Upon the occurrence of a termination event with respect to an ISDA Agreement, the Company’s counterparty could elect to terminate the derivative contracts governed by such agreement, resulting in the realization of any net gains or losses with respect to such derivative contracts and the return of collateral held by such party.
The Company obtains/provides collateral from/to various counterparties for OTC derivative and futures contracts in accordance with bilateral collateral agreements. As of September 30, 2017, the aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position was $4.3 million (December 31, 2016 - $6.1 million) for which the Company posted collateral in the form of cash of $117.7 million (December 31, 2016 - $48.8 million) in the normal course of business. Similarly, the Company held collateral (approximately $2.8 million) in cash from certain counterparties as of September 30, 2017. If the credit-risk-related contingent features underlying these instruments had been triggered as of September 30, 2017 and the Company had to settle these instruments immediately, no additional amounts would be required to be posted that would exceed the settlement amounts of open derivative contracts or in the case of cross margining relationships, the assets in the Company’s prime brokerage accounts are sufficient to offset the derivative liabilities.

20


The Company’s derivatives do not qualify as hedges for financial reporting purposes and are recorded in the condensed consolidated financial statements on a gross basis and not offset against any collateral pledged or received. Pursuant to ISDA master agreements and other counterparty agreements, the Company and its counterparties typically have the ability to net certain payments owed to each other in specified circumstances. In addition, in the event a party to one of the ISDA master agreements or other derivatives agreements defaults, or a transaction is otherwise subject to termination, the non-defaulting party generally has the right to offset against payments owed to the defaulting party or collateral held by the non-defaulting party.
The Company has pledged cash collateral to counterparties to support the current value of amounts due to the counterparties based on the value of its investment in the underlying security. AsTP Venture Fund. See Note 7 for additional information on the Company’s investment in the TP Venture Fund.
Investment in Third Point Venture Offshore Fund II LP
TP Venture GP II controls all of September 30, 2017 and December 31, 2016, the gross and net amountsinvestment decision-making authority of derivative instruments and repurchase and reverse repurchase agreements that are subjectthe TP Venture Fund II. The Company does not have the power to enforceable master netting arrangements or similar agreements were as follows:
 Gross Amounts not Offset in the Condensed Consolidated Balance Sheet
September 30, 2017
Derivative Contracts		Gross Amount (1) Financial Instruments Cash Collateral Received Net Amount
Financial assets, derivative assets and collateral received($ in thousands)
Counterparty 1$1,174
 $1,174
 $—
 $—
Counterparty 23,279
 300
 —
 2,979
Counterparty 338,429
 5,408
 —
 33,021
Counterparty 45,041
 4,290
 —
 751
Counterparty 512,275
 3,515
 —
 8,760
Counterparty 63,625
 8
 2,806
 811
Counterparty 813,969
 3,889
 —
 10,080
Counterparty 9965
 965
 —
 —
 $78,757
 $19,549
 $2,806
 $56,402
        
 Gross Amounts not Offset in the Condensed Consolidated Balance Sheet
September 30, 2017
Derivative Contracts		Gross Amount (2) Financial Instruments Cash Collateral Pledged Net Amount
Financial liabilities, derivative liabilities and collateral pledged($ in thousands)
Counterparty 1$3,825
 $1,174
 $2,651
 $—
Counterparty 2300
 300
 —
 —
Counterparty 35,408
 5,408
 —
 —
Counterparty 44,290
 4,290
 —
 —
Counterparty 53,515
 3,515
 —
 —
Counterparty 68
 8
 —
 —
Counterparty 83,889
 3,889
 —
 —
Counterparty 92,215
 965
 1,250
 —
Counterparty 15410
 —
 359
 51
 $23,860
 $19,549
 $4,260
 $51
(1)The gross amounts of assets presented in the condensed consolidated balance sheets presented above includes the fair value of derivative contract assets as well as gross OTC option contract assets of $3.0 million included in other investments in the condensed consolidated balance sheets.
(2)The gross amounts of liabilities presented in the condensed consolidated balance sheets presented above includes the fair value of derivative contract liabilities as well as gross OTC option contract liabilities of $6.6 million included in securities sold, not yet purchased in the condensed consolidated balance sheets.

21


direct the activities which most significantly impact the economic performance of the TP Venture Fund II. The Company’s maximum exposure to loss corresponds to the value of its investment in TP Venture Fund II. See Note 7 for additional information on the Company’s investment in TP Venture Fund II.
 Gross Amounts not Offset in the Condensed Consolidated Balance Sheet
December 31, 2016
Derivative Contracts
Gross Amount (1) Financial Instruments Cash Collateral Received Net Amount
Financial assets, derivative assets and collateral received($ in thousands)
Counterparty 1$535
 $535
 $—
 $—
Counterparty 23,147
 607
 —
 2,540
Counterparty 38,652
 4,760
 —
 3,892
Counterparty 41,639
 1,639
 —
 —
Counterparty 57,336
 3,027
 —
 4,309
Counterparty 66,262
 2,599
 3,383
 280
Counterparty 7227
 —
 197
 30
Counterparty 8277
 277
 —
 —
Counterparty 937
 37
 —
 —
 $28,112
 $13,481
 $3,580
 $11,051
        
 Gross Amounts not Offset in the Condensed Consolidated Balance Sheet
December 31, 2016
Derivative Contracts
Gross Amount (2) Financial Instruments Cash Collateral Pledged Net Amount
Financial liabilities, derivative liabilities and collateral pledged($ in thousands)
Counterparty 1$2,959
 $535
 $2,424
 $—
Counterparty 2607
 607
 —
 —
Counterparty 34,760
 4,760
 —
 —
Counterparty 43,827
 1,639
 2,188
 —
Counterparty 53,027
 3,027
 —
 —
Counterparty 62,599
 2,599
 —
 —
Counterparty 8977
 277
 —
 700
Counterparty 9822
 37
 785
 —
 $19,578
 $13,481
 $5,397
 $700
        
Securities lending transactions       
Counterparty 3$302
 $302
 $—
 $—
 $302
 $302
 $—
 $—

30
(1)The gross amounts of assets presented in the condensed consolidated balance sheets presented above includes the fair value of derivative contract assets as well as gross OTC option contract assets of $0.7 million included in other investments in the condensed consolidated balance sheets.
(2)The gross amounts of liabilities presented in the condensed consolidated balance sheets presented above includes the fair value of derivative contract liabilities as well as gross OTC option contract liabilities of $3.5 million included in securities sold, not yet purchased in the condensed consolidated balance sheets.

22



7.11. Loss and loss adjustment expense reserves
As of September 30, 2017 and December 31, 2016, loss and loss adjustment expense reserves in the condensed consolidated balance sheets was comprised of the following:
 September 30,
2017		 December 31,
2016
 ($ in thousands)
Case loss and loss adjustment expense reserves$118,444
 $80,370
Incurred but not reported loss and loss adjustment expense reserves580,151
 522,818
Deferred gains on retroactive reinsurance contracts774
 1,941
 $699,369
 $605,129
The following table represents the activity in the loss and loss adjustment expense reserves for the ninesix months ended SeptemberJune 30, 20172023 and 2016:2022:
June 30, 2023June 30, 2022
Gross reserves for loss and loss adjustment expenses, beginning of period$5,268.7 $4,841.4 
Less: loss and loss adjustment expenses recoverable, beginning of period(1,376.2)(1,215.3)
Less: deferred charges on retroactive reinsurance contracts(1.0)(1.4)
Net reserves for loss and loss adjustment expenses, beginning of period3,891.5 3,624.7 
Net reserves for loss and loss adjustment expenses disposed (1)
(884.4)— 
Increase (decrease) in net loss and loss adjustment expenses incurred in respect of losses occurring in:
     Current year812.5 712.3 
     Prior years(138.4)(11.9)
Total incurred loss and loss adjustment expenses674.1 700.4 
Net loss and loss adjustment expenses paid in respect of losses occurring in:
     Current year(121.2)(92.1)
     Prior years(479.5)(474.3)
Total net paid losses(600.7)(566.4)
Foreign currency translation2.1 (76.6)
Net reserves for loss and loss adjustment expenses, end of period3,082.6 3,682.1 
Plus: loss and loss adjustment expenses recoverable, end of period2,276.7 1,257.5 
Plus: deferred (gains) charges on retroactive reinsurance (2)
(20.5)1.2 
Gross reserves for loss and loss adjustment expenses, end of period$5,338.8 $4,940.8 
 September 30,
2017		 September 30,
2016
 ($ in thousands)
Gross reserves for loss and loss adjustment expenses, beginning of period$605,129
 $466,047
Less: loss and loss adjustment expenses recoverable, beginning of period(1) (125)
Net reserves for loss and loss adjustment expenses, beginning of period605,128
 465,922
Increase (decrease) in net loss and loss adjustment expenses incurred in respect of losses occurring in:   
     Current year295,379
 249,212
     Prior years(23,433) 25,495
     Amortization of deferred gains on retroactive reinsurance contracts(1,397) (885)
Total incurred loss and loss adjustment expenses270,549
 273,822
Net loss and loss adjustment expenses paid in respect of losses occurring in:   
     Current year(47,655) (58,523)
     Prior years(145,550) (104,161)
Total net paid losses(193,205) (162,684)
Foreign currency translation15,310
 (11,379)
Net reserve for loss and loss adjustment expenses, end of period697,782
 565,681
Plus: loss and loss adjustment expenses recoverable, end of period1,587
 1
Gross reserve for loss and loss adjustment expenses, end of period$699,369
 $565,682

Changes in the Company’s(1)Net reserves for loss and loss adjustment expenseexpenses disposed represents the transfer of reserves result from re-estimating loss reserves andunder the 2023 LPT.
(2)Deferred charges on retroactive reinsurance are recorded in other assets on the Company’s consolidated balance sheets. Deferred gains on retroactive reinsurance are presented as a separate line item on the Company’s consolidated balance sheets.
The Company's prior year reserve development arises from changes to estimates of losses and loss adjustment expenses related to loss events that occurred in premium estimates.  Furthermore, many ofprevious calendar years.
For the Company’s contracts have sliding scale or profit commissions whereby loss reserve development can be offset by changes in acquisition costs that vary inversely with loss experience. In some instances,six months ended June 30, 2023, the Company can have loss reserve development on contracts where there is no sliding scale or profit commission or where the loss ratio falls outside of the loss ratio range to which the sliding scale or profit commission applies.
The $24.8 million decrease in prior years’ reserves, which includes amortization of deferred gains, for the nine months ended September 30, 2017 includes $31.7 million of net favorable reserve development related to re-estimating loss reserves, partially offset by $6.9 million of additional loss reserves resulting from increases in premium estimates on certain contracts. The net decrease in loss reserves as well as the impact of any offsetting changes in acquisition costs as a result of sliding scale or profit commissions is explained as follows:
The $31.7recorded $138.4 million of net favorable prior years’year loss reserve development forprimarily resulting from management reflecting the ninecontinued favorable reported loss emergence through June 30, 2023 in its best estimate of reserves, which was further validated by the pricing of the 2023 LPT from external reinsurers, which represents $118.2 million of the favorable loss reserve development.
For the six months ended SeptemberJune 30, 2017 was primarily a result 2022, the Company recorded $11.9 million of net favorable prior year loss reserve development driven by favorable development on certain retroactive reinsurance contracts.
COVID-19 reserves of $22.2 million due to better than expected loss experience, with the most significant offsetting movement being reserve strengthening in the property lines that was driven by the current elevated level of inflation.

23


These retroactive reinsurance contracts had profit commission terms such that the net favorable reserve development associated with these contracts was offset by similar increases in acquisition costs, resulting in minimal impact in net underwriting loss.12. Allowance for expected credit losses
The $6.9 million increaseCompany is exposed to credit losses through sales of its insurance and reinsurance products and services. The financial assets in scope of the current expected credit losses impairment model primarily include the Company’s insurance and reinsurance balances receivable and loss and loss adjustment expenses incurred related to increases in premium estimatesrecoverable. The Company pools these amounts by counterparty credit rating and applies a credit default rate that is determined based on certain contracts was accompaniedthe studies published by minimal increases in acquisition costs. The increase in earned premium related to the increase in premium estimates was $8.1 million, resulting in a net decrease of $1.2 million in net underwriting loss forrating agencies (e.g., AM Best, S&P). In circumstances where ratings are unavailable, the nine months ended September 30, 2017.Company applies an internally developed default rate based on historical experience, reference data including research publications, and other relevant inputs.

31

The $24.6 million increaseCompany's assets in prior years’ reserves, which includes amortizationscope of deferred gains, for the nine months ended Septembercurrent expected credit loss assessment as of June 30, 2016 includes $15.0 million of net adverse reserve development related to re-estimating loss reserves2023 and $9.6 million of additional loss reserves resulting from increases in premium estimates on certain contracts. The net increase in loss reserves as well as the impact of any offsetting changes in acquisition costs as a result of sliding scale or profit commissions is explainedDecember 31, 2022 are as follows:
June 30, 2023December 31, 2022
Insurance and reinsurance balances receivable, net$2,252.1 $1,876.9 
Loss and loss adjustment expenses recoverable, net2,276.7 1,376.2 
Other assets (1)
76.3 52.4 
Total assets in scope$4,605.1 $3,305.5 
(1)Relates to MGA trade receivables (included in other assets in the Company’s consolidated balance sheets), loans receivables (included in other long-term investments in the Company’s consolidated balance sheets) and interest and dividend receivables.
The $15.0Company’s allowance for expected credit losses was $34.3 million as of net adverse prior years’ reserve development for the nine months ended SeptemberJune 30, 2016 was accompanied by net decreases of $2.5 million in acquisition costs, resulting in a net increase of $12.5 million in net underwriting loss. The net underwriting loss impact of the adverse loss development was
primarily due to:
◦$4.8 million of net adverse underwriting loss development relating to one multi-line contract written since 2014. This contract contains underlying commercial auto physical damage and auto extended warranty exposure. The adverse loss experience is a result of an increase in the number of reported claims and inadequate pricing in certain segments of the underlying business;
◦$3.5 million of net adverse underwriting loss development relating to our Florida homeowners’ reinsurance contracts primarily as a result of higher than anticipated water damage claims and an increase in the practice of assignment of benefits whereby homeowners assign their rights for filing and settling claims to attorneys and public adjusters, which has led to increases in the frequency of claims reported as well as the severity of losses and loss adjustment expenses. Contracts for which we experienced this adverse loss development have not been renewed;
◦$3.3 million of net adverse underwriting loss development relating to a workers’ compensation contract written in 2012, 2013, and 2014 under which we have been experiencing claims developing with higher than anticipated severity, which led to an increase in our previous loss assumptions on this contract; and
◦$3.1 million of net adverse underwriting loss development relating to non-standard auto contracts, primarily due to the inability of cedents to promptly react to increasing frequency and severity trends, resulting in underpriced business and adverse selection.
The $9.6 million increase in loss and loss adjustment expenses incurred related to the increase in premium estimates on certain contracts was accompanied by a $5.2 million increase in acquisition costs, for a total of $14.8 million increase in loss and loss adjustment expenses incurred and acquisition costs. The related increase in earned premium related to the increase in premium estimates was $14.8 million, resulting in minimal impact in net underwriting loss for the nine months ended September 30, 2016.
In total, the change in net underwriting loss for prior periods due to loss reserve development and adjustments to premium estimates was an increase in net underwriting loss of $12.5 million for the nine months ended September 30, 2016.
8. Management, performance and founders fees
Third Point Re, Third Point Re BDA, TPRUSA and Third Point Re USA are parties to Joint Venture and Investment Management Agreements (the “Investment Agreements”) with Third Point LLC and Third Point Advisors LLC (“TP GP”) under which Third Point LLC manages certain jointly held assets.

24


Pursuant to the Investment Agreements, TP GP receives a performance fee allocation equal to 20% of the net investment income of the applicable company’s share of the investment assets managed by Third Point LLC. The performance fee accrued on net investment income is included in liabilities as a performance fee payable to related party during the period, unless funds are redeemed from the Joint Venture accounts, in which case, the proportionate share of performance fee, as described in Note 16, associated with the redemption is earned and allocated to noncontrolling interests in related party. At the end of each year, the remaining portion of the performance fee payable that has not been included in noncontrolling interests in related party through redemptions is earned and then allocated to TP GP’s capital account in accordance with the Investment Agreements.
The performance fee is subject to a loss carryforward provision pursuant to which TP GP is required to maintain a loss recovery account, which represents the sum of all prior period net loss amounts, not offset by prior year net profit amounts, and that is allocated to future profit amounts until the loss recovery account has returned to a positive balance. Until such time, no performance fees are payable under the Investment Agreements.
Additionally, Third Point LLC is entitled to receive management fees, which are paid monthly. Pursuant to the Investment Agreements, a total management fee of 1.5% (2.0% up to December 22, 2016), of net investments managed by Third Point LLC was paid to Third Point LLC and certain founding investors.
2023 (December 31, 2022 - $34.3 million). For the three and ninesix months ended SeptemberJune 30, 20172023, the Company did not record any change to the current expected credit (gains) losses (2022 - $(1.8) million and 2016, management$10.7 million, respectively). Changes to the current expected credit (gains) losses are included in net corporate and performance feesother expenses in the consolidated statements of income (loss).
The Company monitors counterparty credit ratings and macroeconomic conditions, and considers the most current AM Best and S&P credit ratings to related parties are as follows:
 Three months ended Nine months ended
 September 30,
2017		 September 30,
2016		 September 30,
2017		 September 30,
2016
 ($ in thousands)
Management fees - Third Point LLC$9,507
 $1,638
 $26,751
 $4,741
Management fees - Founders (1)—
 9,322
 —
 26,905
Performance fees - Third Point Advisors LLC21,041
 21,892
 76,428
 24,846
 $30,548
 $32,852
 $103,179
 $56,492
(1) KEP TP Bermuda Ltd., KIA TP Bermuda Ltd., Pine Brook LVR, L.P., P RE Opportunities Ltd. and Dowling Capital Partners I, L.P., collectivelydetermine the “Founders”, received a shareallowance each quarter. As of June 30, 2023, approximately 59% of the management feestotal gross assets in proportion to their initial investments in Third Point Re until December 22, 2016.scope were balances with counterparties rated by either AM Best or S&P and, of the total rated, 79% were rated A- or better.    
As of September 30, 2017, $73.2 million related to performance fees due under the Investment Agreements was included in performance fee payable to related party in the condensed consolidated balance sheets. As of December 31, 2016, $17.3 million related to performance fees earned by TP GP were included in noncontrolling interests in related party.
9. Deposit accounted contracts
The following table represents activity for the deposit contracts for the nine months ended September 30, 2017 and year ended December 31, 2016:
 September 30,
2017		 December 31,
2016
 ($ in thousands)
Balance, beginning of period$104,905
 $83,955
Consideration received9,143
 22,463
Consideration receivable13,520
 —
Net investment expense (income) allocation and change in fair value of embedded derivatives1,472
 (164)
Payments(2,763) (915)
Foreign currency translation214
 (434)
Balance, end of period$126,491
 $104,905

25


10. Senior Notes payable13. Debt and letter of credit facilities
Senior Notes payableDebt obligations
As of September 30, 2017, TPRUSA had outstanding debt obligations consisting of an aggregate principal amount of $115.0 million of senior unsecured notes (the “Notes”) due February 13, 2025.  The Notes bear interest at 7.0% and interest is payable semi-annually on February 13 and August 13 of each year. The Notes are fully and unconditionally guaranteed by Third Point Re, and, in certain circumstances specified in the indenture governing the Notes, certain existing or future subsidiariesfollowing table represents a summary of the Company may be required to guaranteeCompany’s debt obligations on its consolidated balance sheets as of June 30, 2023 and December 31, 2022:
June 30, 2023December 31, 2022
Amount
Effective rate (1)
Amount
Effective rate (1)
2017 SEK Subordinated Notes, at face value$254.9 7.8 %$264.3 6.0 %
Unamortized discount(7.8)(5.7)
2017 SEK Subordinated Notes, carrying value247.1 258.6 
2016 Senior Notes, at face value400.0 4.5 %400.0 4.5 %
Unamortized premium4.2 4.8 
2016 Senior Notes, carrying value404.2 404.8 
2015 Senior Notes, at face value115.0 7.0 %115.0 7.0 %
Unamortized issuance costs(0.4)(0.4)
2015 Senior Notes, carrying value114.6 114.6 
Total debt$765.9 $778.0 
(1)Effective rate considers the Notes. As of September 30, 2017, the Company had capitalized $1.3 million of costs associated with the Notes, which are presented as a direct deduction from the principal amounteffect of the Notes on the condensed consolidated balance sheets. As of September 30, 2017, the Notes had an estimated fair value of $121.3 million (December 31, 2016 - $103.4 million). debt issuance costs, discount, and premium.
The fair value measurements were based on observable inputs and therefore were considered to be Level 2. The Company was in compliance with all debt covenants as of Septemberand for the periods ended June 30, 20172023 and December 31, 2016.2022.
LettersStandby letter of credit facilities
As of SeptemberJune 30, 2017,2023, the Company had entered into the following letter of credit facilities:
June 30, 2023
Letters of CreditCollateral
Committed CapacityIssuedCash and Cash EquivalentsDebt securities
Committed - Secured letters of credit facilities$395.0 $310.0 $17.6 $214.7 
Uncommitted - Secured letters of credit facilitiesn/a987.0 14.3 1,164.3 
$1,297.0 $31.9 $1,379.0 

32
 Facility (1) Utilized Collateral
September 30, 2017($ in thousands)
Citibank$300,000
 $139,020
 $139,020
Lloyds Bank125,000
 70,474
 70,474
 $425,000
 $209,494
 $209,494

(1)On August 22, 2017, the J.P. Morgan facility of $50.0 million with Third Point Re BDA was not renewed.
The Company’s secured letter of credit facilities are bilateral agreements that generally renew on an annual basis. The letters of credit issued under the secured letter of credit facilities are fully collateralized. The above referenced facilities are subject to various affirmative, negative and financial covenants that the Company considers to be customary for such borrowings, including certain minimum net worth and maximum debt to capitalization standards. See Note 35 for additional information.
Revolving credit facility
11. Net investment income
Net investment incomeIn addition to the letter of credit facilities above, the Company entered into a three-year, $300.0 million senior unsecured revolving credit facility (the “Facility”) with JPMorgan Chase Bank, N.A. as administrative agent, effective February 26, 2021. The Facility includes an option, subject to satisfaction of certain conditions including agreement of lenders representing greater than a majority of commitments, for the three and nine months ended September 30, 2017 and 2016 consistedCompany to request an extension by such lenders of the following:
 Three months ended Nine months ended
 September 30,
2017		 September 30,
2016		 September 30,
2017		 September 30,
2016
Net investment income by type($ in thousands)
Net realized gains on investments and investment derivatives$25,877
 $20,688
 $180,382
 $62,642
Net unrealized gains on investments and investment derivatives75,666
 90,709
 203,461
 89,470
Net gains (losses) on foreign currencies7,572
 (1,191) 5,419
 (2,158)
Dividend and interest income17,355
 15,238
 57,062
 56,262
Dividends paid on securities sold, not yet purchased(1,537) (324) (3,205) (1,284)
Other expenses(4,883) (4,508) (15,063) (14,926)
Net gain (loss) on investment in Kiskadee Fund(534) 596
 (74) 1,078
Net investment income before management and performance fees to related parties119,516
 121,208
 427,982
 191,084
Management and performance fees to related parties(30,548) (32,852) (103,179) (56,492)
 $88,968
 $88,356
 $324,803
 $134,592

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The following table providesmaturity date of the Facility by an additional breakdown12 months. The Facility provides access to loans for working capital and general corporate purposes, and letters of our net investment income by assetcredit to support obligations under insurance and liability typereinsurance agreements, retrocessional agreements and for general corporate purposes. Loans and letters of credit under the three and nine months ended SeptemberFacility will become available, subject to customary conditions precedent. As of June 30, 2017 and 2016:2023, there were no outstanding borrowings under the Facility.
 Three months ended Nine months ended
 September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016
Net investment income (loss) by asset type($ in thousands)
Equity securities$81,778
 $89,979
 $343,605
 $111,485
Private common equity securities(65) 203
 (26) (1,034)
Private preferred equity securities1,439
 2,949
 3,066
 (2,398)
Total equities83,152
 93,131
 346,645
 108,053
Asset-backed securities6,532
 11,431
 11,665
 3,367
Bank debt1,277
 3,582
 7,491
 3,933
Corporate bonds999
 33,160
 6,707
 96,375
U.S. Treasury securities806
 (447) 3,171
 6,759
Sovereign debt9,835
 11,181
 21,683
 33,329
Other debt securities2,417
 —
 2,417
 —
Total debt securities21,866
 58,907
 53,134
 143,763
Options(9,343) (12,440) (26,409) (26,934)
Rights and warrants(16) (15) 22
 (298)
Real estate398
 —
 398
 —
Trade claims(716) (295) (497) 140
Total other investments(9,677) (12,750) (26,486) (27,092)
Net investment income in funds valued at NAV2,216
 1,117
 8,939
 1,895
Total net investment income from invested assets97,557
 140,405
 382,232
 226,619
Net investment income (loss) by liability type       
Equity securities(6,144) (15,503) (13,611) (8,228)
Sovereign debt—
 (1) 2
 (383)
Corporate bonds350
 333
 (1,819) (4,720)
Options4,593
 4,488
 8,175
 8,818
Total net investment loss from securities sold, not yet purchased(1,201) (10,683) (7,253) (4,513)
Other investment income (losses) and other expenses not presented above       
Other investment expenses(1,477) (1,436) (400) (4,231)
Net investment income (loss) on derivative contracts17,683
 (4,403) 48,087
 (21,870)
Net investment income (loss) on cash, including foreign exchange gain (loss)5,738
 (3,279) (255) (7,638)
Net investment losses on securities purchased under an agreement to sell and securities sold under and agreement to repurchase—
 (370) (39) (1,937)
Withholding taxes reclassified to income tax expense1,216
 974
 5,610
 4,654
Total other investment income (losses) and other expenses23,160
 (8,514) 53,003
 (31,022)
Net investment income before management and performance fees to related parties119,516
 121,208
 427,982
 191,084
Management and performance fees to related parties(30,548) (32,852) (103,179) (56,492)
Net investment income$88,968
 $88,356
 $324,803
 $134,592

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12. Other expenses
Other expenses for the three and nine months ended September 30, 2017 and 2016 consisted of the following:
 Three months ended Nine months ended
 September 30,
2017		 September 30,
2016		 September 30,
2017		 September 30,
2016
 ($ in thousands)
Deposit liabilities investment expense (income)$1,160
 $(1,838) $1,472
 $(507)
Reinsurance contracts investment expense2,686
 2,224
 7,292
 6,861
Change in fair value of embedded derivatives in deposit and reinsurance contracts—
 (39) 88
 (128)
 $3,846
 $347
 $8,852
 $6,226
13.14. Income taxes
The Company provides foris subject to income tax expense or benefit based upon pre-tax income or loss reported in the condensed consolidated statements of income (loss) and the provisions of currently enacted tax laws. The Company and its BermudaBermuda-domiciled subsidiaries are incorporated under the laws of Bermuda and are subject to Bermuda law with respect to taxation. Under current Bermuda law, the Company and its BermudaBermuda-domiciled subsidiaries are not subject to any income or capital gains taxes in Bermuda. In the event that such taxes are imposed, the Company and its BermudaBermuda-domiciled subsidiaries would be exempted from any such taxes until March 2035 under the Tax Assurance Certificates issued to such entities pursuant to the Bermuda Exempted Undertakings Tax Protection Act of 1966, as amended.
The Company has an operating subsidiary incorporatedsubsidiaries and branches that operate in Bermuda, Third Point Re USA, which made an electionvarious other jurisdictions around the world that are subject to pay tax in the United States of America under Section 953(d) ofjurisdictions in which they operate. The jurisdictions in which the U.S. Internal Revenue Code of 1986, as amended. The operations of Third Point Re USA will beCompany's subsidiaries and branches are subject to U.S. federal income taxes generally at a rate of 35%. Our non-U.S. subsidiaries would become subject to U.S. federal income tax only to the extent that they derive income from activity that is deemed to be the conduct of a trade or business within the United States. As of September 30, 2017, the Company has income tax returns open for examination in the United States for the tax years 2015 and 2016.
The Company also has subsidiaries inare Belgium, Canada, Germany, Gibraltar, Hong Kong (China), Luxembourg, Singapore, Sweden, Switzerland, the United Kingdom, TPRUK and Third Point Re UK, which are subject to applicable taxes in that jurisdiction.  
The Company is subject to withholding taxes on income sourced in the United States and in other countries, subject to each countries’ specific tax regulations. Income subject to withholding taxes includes, but is not limited to, dividends, capital gains and interest on certain investments.States.
The Company has recorded uncertain tax positions related to investment transactions in certain foreign jurisdictions. As of September 30, 2017, the Company has accrued $1.9 million (December 31, 2016 - $1.6 million) for uncertain tax positions.
For the three and ninesix months ended SeptemberJune 30, 2017 and 2016,2023, the Company recorded income tax (expense) benefit of $(16.8) million and $(42.6) million, respectively (2022 - $27.7 million and $18.0 million, respectively) on pre-tax income (loss) of $89.1 million and $259.9 million, respectively (2022 - $(83.8) million and $(287.4) million, respectively). The effective tax rates for the three and six months ended June 30, 2023 were 18.9% and 16.4%, respectively. The difference between the effective tax rate on income (losses) from continuing operations and the Bermuda statutory tax rate of 0.0% is primarily because of income recognized in jurisdictions with higher tax rates than Bermuda, and adjustments pursuant to applicable U.S. GAAP guidance on interim period financial reporting of taxes, which are based on the annual estimated effective tax rate.
In arriving at the estimated annual effective tax rate for the six months ended June 30, 2023 and 2022, the Company took into consideration all year-to-date income and expense items including the change in unrealized investment gains (losses) and realized investment gains (losses) and such items on a forecasted basis for the remainder of each year. Based on applicable U.S. GAAP guidance, jurisdictions with a projected loss for the full year where no tax benefit can be recognized are excluded from the estimation of the annual effective tax rate.
Uncertain tax positions
Recognition of the benefit of a given tax position is based upon whether a company determines that it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. In evaluating the more likely than not recognition threshold, the Company must presume that the tax position will be subject to examination by a taxing authority with full knowledge of all relevant information. If the recognition threshold is met, then the tax position is measured at the largest amount of benefit that is more than 50% likely of being realized upon ultimate settlement.
The total reserve for unrecognized tax benefits is $2.3 million as follows:of June 30, 2023, which did not materially change compared to December 31, 2022. If the Company determines in the future that its reserves for unrecognized tax benefits on permanent differences and interest and penalties are not needed, the reversal of $1.6 million of such reserves as of June 30, 2023 would be recorded as an income tax benefit and would impact the effective tax rate. The remaining balance is accrued interest and penalties.

33
 Three months ended Nine months ended
 September 30,
2017		 September 30,
2016		 September 30,
2017		 September 30,
2016
 ($ in thousands)
Income tax expense related to U.S. and U.K. subsidiaries (1)$2,219
 $1,372
 $8,246
 $1,053
Change in uncertain tax positions40
 138
 224
 158
Withholding taxes on certain investment transactions1,216
 974
 5,610
 4,654
 $3,475
 $2,484
 $14,080
 $5,865
(1)As of September 30, 2017, the Company no longer has net deferred tax assets (December 31, 2016 - $7.9 million). Deferred tax assets as of December 31, 2016 are included in other assets in the condensed consolidated balance sheets.

28



15. Shareholders' equity
14. Share capitalCommon shares
The following tables presenttable presents a summary of the common shares issued and outstanding and shares repurchased held as treasury shares as of and for the ninesix months ended SeptemberJune 30, 20172023 and 2016:2022:
20232022
Common shares issued and outstanding, beginning of period162,177,653 161,929,777 
Issuance of common shares, net of forfeitures and shares withheld1,022,977 1,094,101 
Shares repurchased— (695,047)
Common shares issued and outstanding, end of period163,200,630 162,328,831 
Common shares2017 2016
Balance, beginning of period106,501,299
 105,479,341
Options exercised150,802
 388,152
Restricted shares granted, net of forfeitures36,418
 47,712
Performance restricted shares granted, net of forfeitures694,886
 468,723
Balance, end of period107,383,405
 106,383,928
Treasury shares2017 2016
Balance, beginning of period644,768
 —
Repurchase of common shares3,300,152
 644,768
Balance, end of period3,944,920
 644,768
Authorized and issued
The Company’s authorized share capital of $33.0 million is comprisedconsists of 300,000,000 common shares with a par value of $0.10 eacheach. During the six months ended June 30, 2023 and 2022, the Company did not pay any dividends to its common shareholders.
Preference shares
The Company’s authorized share capital also consists of 30,000,000 preference shares with a par value of $0.10 each. No
Series B preference shares
The Series B preference shares are listed on the New York Stock Exchange under the symbol “SPNT PB”. The Company has 8,000,000 of Series B preference shares outstanding, par value $0.10. Dividends on the Series B preference shares are cumulative and payable quarterly in arrears at an initial rate of 8.0% per annum. The preference shareholders have no voting rights with respect to the Series B preference shares unless dividends have not been issued to date.
Share repurchases
On May 4, 2016,paid for six dividend periods, whether or not consecutive, in which case the Company’s Board of Directors authorized a common share repurchase program for up to an aggregate of $100.0 millionholders of the Company’s outstanding common shares. UnderSeries B preference shares will have the common share repurchase program,right to elect two directors.
The dividend rate will reset on each five-year anniversary of issuance at a rate equal to the five-year U.S. treasury rate at such time plus 7.298%. The Series B preference shares are perpetual and have no fixed maturity date. The Series B preference shares provide for redemption rights by the Company may repurchase shares from time to time(i) in privately negotiated transactionswhole, or in open-market purchasespart, on each five-year anniversary of issuance at 100%, (ii) in accordance with all applicable securities lawswhole, but not in part, (a) upon certain rating agency events, at 102%, (b) upon certain capital disqualification events, at 100%, and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended.(c) upon certain tax events, at 100%.
During the three and six months ended SeptemberJune 30, 2017,2023, the Company declared and paid dividends of $4.0 million and $8.0 million, respectively, to the Series B preference shareholders (2022 - $4.0 million and $8.0 million, respectively).
Share repurchases
As of June 30, 2023, the Company was authorized to repurchase up to an aggregate of $56.3 million of outstanding common shares and warrants under its repurchase program.
During the three and six months ended June 30, 2023, the Company did not repurchase any of its common shares.shares in the open market.
During the ninethree months ended SeptemberJune 30, 2017,2022, the Company repurchased 3,300,15250,000 of its common shares in the open market for $40.9$0.3 million at a weighted average cost, including commissions, of $12.38$6.02 per share. During the six months ended June 30, 2022, the Company repurchased 695,047 of its common shares in the open market for $5.0 million at a weighted average cost, including commissions, of $7.17 per share. Common shares repurchased by the Company were not canceled and are classified as treasury shares.
As of September 30, 2017, the Company is authorized to repurchase up to an aggregate of $51.7 million of additional common shares under its share repurchase program.
15. Share-based compensation
The following table provides the total share-based compensation expense included in general and administrative expenses during the three and nine months ended September 30, 2017 and 2016:period were retired.
 Three months ended Nine months ended
 September 30,
2017		 September 30,
2016		 September 30,
2017		 September 30,
2016
 ($ in thousands)
Management and director options$94
 $1,660
 $553
 $4,769
Restricted shares with service condition196
 387
 474
 979
Restricted shares with service and performance condition350
 (153) 2,987
 848
 $640
 $1,894
 $4,014
 $6,596

34

29


As of September 30, 2017, the Company had $7.3 million (December 31, 2016 - $4.6 million) of unamortized share compensation expense, which is expected to be amortized over a weighted average period of 1.6 years (December 31, 2016 - 1.4 years).
Management and director options
The management and director options activity for the nine months ended September 30, 2017 and year ended December 31, 2016 were as follows:

 
Number of
options
 
Weighted
average exercise
price
Balances as of January 1, 201610,250,586
 $13.52
Forfeited(139,534) 18.00
Exercised(514,059) 10.00
Balances as of January 1, 20179,596,993
 13.64
Forfeited(558,138) 18.00
Exercised(150,802) 10.00
Balances as of September 30, 20178,888,053
 $13.43
As of September 30, 2017, the weighted average remaining contractual term for options outstanding was 4.4 years (December 31, 2016 - 4.9 years).
The following table summarizes information about the Company’s management and director share options outstanding as of September 30, 2017:
 Options outstanding Options exercisable
Range of exercise prices
Number of
options
 
Weighted
average
exercise price
 
Remaining
contractual
life
 
Number of
options
 
Weighted
average
exercise price
$10.00 - $10.895,123,532
 $10.04
 4.3 years 5,081,671
 $10.03
$15.05 - $16.891,917,145
 15.93
 4.5 years 1,819,471
 15.96
$20.00 - $25.051,847,376
 20.26
 4.5 years 1,777,610
 20.17
 8,888,053
 $13.43
 4.4 years 8,678,752
 $13.35

30


Restricted shares with service condition
Restricted share award activity for the nine months ended September 30, 2017 and year ended December 31, 2016 was as follows:
 
Number of non-
vested restricted
shares
 
Weighted
average grant
date fair value
Balance as of January 1, 2016301,043
 $11.12
Granted47,712
 11.37
Vested(47,712) 11.37
Balance as of January 1, 2017301,043
 11.12
Granted36,418
 12.15
Vested(238,719) 10.30
Balance as of September 30, 201798,742
 $11.25
Restricted shares with service condition vest either ratably or at the end of the required service period and contain certain restrictions during the vesting period, relating to, among other things, forfeiture in the event of termination of employment or service and transferability.
Restricted shares with service and performance condition
Restricted share award activity for the restricted shares with a service and performance condition for the nine months ended September 30, 2017 and year ended December 31, 2016 were as follows:
 
Number of non-
vested restricted
shares
 
Number of non-
vested restricted
shares probable of vesting
 Weighted average grant date fair value of shares probable of vesting
Balance as of January 1, 2016921,553
 536,234
 $14.24
Granted653,958
 435,974
 11.40
Forfeited(193,771) (119,009) 13.16
Change in estimated restricted shares considered probable of vestingn/a
 (275,713) 13.06
Balance as of January 1, 20171,381,740
 577,486
 12.91
Granted935,825
 623,882
 12.17
Forfeited(240,939) —
 14.60
Vested(136,618) (136,618) 14.60
Change in estimated restricted shares considered probable of vestingn/a
 (102,080) 12.31
Balance as of September 30, 20171,940,008
 962,670
 $12.25
16. Noncontrolling interests in related party
Noncontrolling interests in related party represents the portion of equity in consolidated subsidiaries not attributable, directly or indirectly, to the Company. The joint ventures created through the Investment Agreements (Note 8) have been considered variable interest entities and have been consolidated in accordance with ASC 810, Consolidation (ASC 810).Since the Company was deemed to be the primary beneficiary, the Company has consolidated the joint ventures and has recorded TP GP’s minority interests as redeemable noncontrolling interests in related party and noncontrolling interests in related party in the condensed consolidated balance sheets.
A portion of the noncontrolling interest in investment affiliates is subject to contractual withdrawal rights of TP GP, whereas TP GP, at its sole discretion, can withdraw the capital over the minimum capital required to be maintained in its capital accounts. This excess capital is therefore recorded on the Company’s consolidated balance sheets as

31


redeemable noncontrolling interest in related party whereas the required minimum capital is recorded as noncontrolling interests in related party within shareholders’ equity on the Company’s consolidated balance sheet since it does not have withdrawal rights.
The following table is a reconciliation of the beginning and ending carrying amounts of redeemable noncontrolling interests in related party, noncontrolling interests in related party and total noncontrolling interests in related party for the nine months ended September 30, 2017 and 2016 (See Note 2 for additional information on changes in the presentation of noncontrolling interests):
 Redeemable noncontrolling interests in related party Noncontrolling interests in related party Total noncontrolling interests in related party
 September 30,
2017		 September 30, 2016 September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016
 ($ in thousands)
Balance, beginning of period$—
 $—
 $35,674
 $16,157
 $35,674
 $16,157
Changes in capital account allocation16,813
 —
 (30,433) 2,473
 (13,620) 2,473
Balance, end of period$16,813
 $—
 $5,241
 $18,630
 $22,054
 $18,630
In addition, the following table is a reconciliation of beginning and ending carrying amount of total noncontrolling interests in related party resulting from the consolidation of the Company’s joint venture in Third Point Re BDA and Third Point Re USA:
 Third Point Re BDA Third Point Re USA Total
 September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016
 ($ in thousands)
Balance, beginning of period$30,358
 $14,152
 $5,316
 $2,005
 $35,674
 $16,157
Net income attributable to total noncontrolling interests in related party2,503
 1,263
 657
 210
 3,160
 1,473
Contributions (1)2,865
 —
 354
 1,000
 3,219
 1,000
Redemptions(17,999) —
 (2,000) —
 (19,999) —
Balance, end of period$17,727
 $15,415
 $4,327
 $3,215
 $22,054
 $18,630
(1) Contributions include performance fees earned associated with redemptions made in the period. See Note 8 for additional information.
The following variable interest entities were not consolidated as per ASC 810:
TP Lux Holdco LP
The Company is a limited partner in TP Lux Holdco LP (the “Cayman HoldCo”), which is an affiliate of the Investment Manager. The Cayman HoldCo was formed as a limited partnership under the laws of the Cayman Islands and invests and holds debt and equity interests in TP Lux HoldCo S.a.r.l, a Luxembourg private limited liability company (the “LuxCo”) established under the laws of the Grand-Duchy of Luxembourg, which is also an affiliate of the Investment Manager.
LuxCo’s principal objective is to act as a collective investment vehicle to purchase Euro debt and equity investments. The Company invests in the Cayman HoldCo alongside other investment funds managed by the Investment Manager. As of September 30, 2017, Third Point Re BDA held a 15.6% (December 31, 2016 - 13.8%) interest in the Cayman Holdco. The Company accounts for its investment in the limited partnership under the variable interest model, in which the Company is not the primary beneficiary, at fair value in the condensed consolidated balance sheets. The Company has elected the fair value option for this investment and records changes in fair value in the condensed consolidated statements of income.

32


As of September 30, 2017, the estimated fair value of the investment in the limited partnership was $0.6 million (December 31, 2016 - $37.6 million).  The Company received net distributions of $39.6 million from the Cayman HoldCo during the nine months ended September 30, 2017 due to the disposition of underlying investments (2016 - $2.0 million). The valuation policy with respect to this investment in a limited partnership is further described in Note 4. The Company’s maximum exposure to loss as a result of its involvement with this investment is limited to the carrying value of the investment.
Third Point Hellenic Recovery US Feeder Fund, L.P.
Third Point Re BDA is a limited partner in Third Point Hellenic Recovery US Feeder Fund, L.P. (the “Hellenic Fund”), which is an affiliate of the Investment Manager. The Hellenic Fund was formed as a limited partnership under the laws of the Cayman Islands on April 12, 2013 and invests and holds debt and equity interests.
Third Point Re BDA has committed to invest $10.9 million (December 31, 2016 - $10.6 million) in the Hellenic Fund. Capital distributions of $1.3 million were made during the nine months ended September 30, 2017. No capital distributions or calls were made during the nine months ended September 30, 2016.
As of September 30, 2017, the estimated fair value of Third Point Re BDA’s investment in the Hellenic Fund was $5.2 million (December 31, 2016 - $5.5 million), representing a 2.9% interest (December 31, 2016 - 2.8%). Third Point Re BDA accounts for its investment in the limited partnership under the variable interest model, in which Third Point Re BDA is not the primary beneficiary, at fair value in the condensed consolidated balance sheets. The Company has elected the fair value option for this investment and records the change in the fair value in the condensed consolidated statements of income.
The valuation policy with respect to this investment in a limited partnership is further described in Note 4. Third Point Re BDA’s maximum exposure to loss as a result of its involvement with this investment is limited to the carrying value of the investment.
TP DR Holdings LLC
The Company holds an equity and debt investment in TP DR Holdings LLC (“TP DR”), which is an affiliate of the Investment Manager. In December 2016, TP DR was formed as a limited liability company under the laws of the Cayman Islands to invest and own 100% equity interest in DCA Holdings Six Ltd. and its wholly owned subsidiary group. TP DR’s principal objective is to own, develop and manage properties in the Dominican Republic.
The Company invests in TP DR alongside other investment funds managed by the Investment Manager and third-party investors.  As of September 30, 2017, Third Point Re BDA held a 6.8% equity (December 31, 2016 - 7.2%) and 13.1% debt interest (December 31, 2016 - 13.7%) in TP DR. The Company has elected the fair value option for its investments in TP DR and records changes in fair value in the condensed consolidated statements of income. The Company accounts for its equity investment in TP DR under the variable interest model, in which the Company is not the primary beneficiary, at fair value in the condensed consolidated balance sheets.
As of September 30, 2017, the estimated fair value of the investment was $11.7 million (December 31, 2016 - $9.5 million), corresponding to $2.9 million of equity (December 31, 2016 - $0.9 million) and $8.8 million of debt interest (December 31, 2016 - $8.6 million). During the nine months ended September 30, 2017, the Company contributed cash of $1.4 million (2016 - $nil) to TP DR. The Company has no further commitments or guarantees with respect to TP DR. The valuation policy with respect to this investment in investment funds is further described in Note 4. The Company’s maximum exposure to loss as a result of its involvement with this investment is limited to the carrying value of the investment.
Cloudbreak II Cayman Ltd and TP Trading II LLC
The Company holds an equity interest in Cloudbreak II Cayman Ltd, Cloudbreak II US LLC (collectively, the “Cloudbreak entities”) and TP Trading II LLC which are affiliates of the Investment Manager.  The Company invests in the Cloudbreak entities and TP Trading II LLC alongside other investment funds managed by the Investment Manager. These entities’ are invested in a structure whose primary purpose is to purchase consumer loans for securitization and warrants from a marketplace lending platform. 

33


As of September 30, 2017, the Cloudbreak entities held $5.5 million of the Company’s asset-backed security investments, which are included in investments in securities in the condensed consolidated balance sheet. The Company’s pro rata interest in the underlying investments is registered in the name of Cloudbreak II US LLC and the related income and expense are reflected in the condensed consolidated balance sheets and the condensed consolidated statements of income.
As of September 30, 2017, Third Point Re BDA held a 8.5% interest in TP Trading II LLC. The Company has elected the fair value option for its investment TP Trading II LLC and records changes in fair value in the condensed consolidated statements of income. The Company accounts for its equity investment in TP Trading II LLC under the variable interest model, in which the Company is not the primary beneficiary, at fair value in the condensed consolidated balance sheets. As of September 30, 2017, the estimated fair value of the investment was $4.7 million.  The valuation policy with respect to this investment is further described in Note 4.
17. Earnings (loss) per share available to Third Point ReSiriusPoint common shareholders
The following sets forth the computation of basic and diluted earnings (loss) per share available to Third Point ReSiriusPoint common shareholders for the three and ninesix months ended SeptemberJune 30, 20172023 and 2016:2022:
Three months endedSix months ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
Weighted-average number of common shares outstanding:
Basic number of common shares outstanding162,027,831 160,258,883 161,473,011 160,064,319 
Dilutive effect of options494,422 — 307,705 — 
Dilutive effect of warrants1,304,823 — 951,655 — 
Dilutive effect of restricted share awards and units2,881,856 — 3,264,827 — 
Dilutive effect of Series A preference shares— — — — 
Diluted number of common shares outstanding166,708,932 160,258,883 165,997,198 160,064,319 
Basic earnings (loss) per common share:
Net income (loss) available to SiriusPoint common shareholders$66.3 $(60.8)$204.9 $(277.8)
Net income allocated to SiriusPoint participating shareholders(4.8)— (15.1)— 
Net income (loss) allocated to SiriusPoint common shareholders$61.5 $(60.8)$189.7 $(277.8)
Basic earnings (loss) per share available to SiriusPoint common shareholders$0.38 $(0.38)$1.18 $(1.74)
Diluted earnings (loss) per common share:
Net income (loss) available to SiriusPoint common shareholders$66.3 $(60.8)$204.9 $(277.8)
Net income allocated to SiriusPoint participating shareholders(4.8)— (15.1)— 
Net income (loss) allocated to SiriusPoint common shareholders$61.5 $(60.8)$189.7 $(277.8)
Diluted earnings (loss) per share available to SiriusPoint common shareholders$0.37 $(0.38)$1.14 $(1.74)
  Three months ended Nine months ended
  September 30,
2017		 September 30,
2016		 September 30,
2017		 September 30,
2016
Weighted-average number of common shares outstanding:($ in thousands, except share and per share amounts)
 Basic number of common shares outstanding, net of treasury shares101,391,145
 103,780,196
 102,553,346
 104,055,946
 Dilutive effect of options1,536,419
 940,627
 1,162,851
 570,580
 Dilutive effect of warrants1,416,696
 912,286
 1,067,832
 682,594
 Dilutive effect of restricted shares with service and performance condition335,314
 162,204
 256,222
 281,548
 Diluted number of common shares outstanding104,679,574
 105,795,313
 105,040,251
 105,590,668
Basic earnings per common share:       
 Net income available to Third Point Re common shareholders$54,685
 $72,081
 $233,449
 $74,328
 Net income allocated to Third Point Re participating common shareholders(55) (241) (256) (233)
 Net income allocated to Third Point Re common shareholders$54,630
 $71,840
 $233,193
 $74,095
 Basic earnings per share available to Third Point Re common shareholders$0.54
 $0.69
 $2.27
 $0.71
Diluted earnings per common share:       
 Net income available to Third Point Re common shareholders$54,685
 $72,081
 $233,449
 $74,328
 Net income allocated to Third Point Re participating common shareholders(53) (237) (250) (229)
 Net income allocated to Third Point Re common shareholders$54,632
 $71,844
 $233,199
 $74,099
 Diluted earnings per share available to Third Point Re common shareholders$0.52
 $0.68
 $2.22
 $0.70
For the three and six months ended SeptemberJune 30, 2017 and 2016, anti-dilutive2023, options of 3,825,1882,327,965 and 4,322,659,2,756,476, respectively, warrants of 27,097,859 and 27,097,859, respectively, and restricted share units of 20,042 and 397,151, respectively, were excluded from the computation of diluted earnings per share. share available to SiriusPoint common shareholders.
For the ninethree and six months ended SeptemberJune 30, 2017 and 2016, anti-dilutive 2022, options of 4,155,0134,019,196 and 4,384,788,4,222,338, respectively, and warrants of 31,123,755 and 31,123,755, respectively, were excluded from the computation of diluted earningsloss per share.
share attributable to SiriusPoint common shareholders.

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18.17. Related party transactions
In addition to the transactions disclosed in Notes 4, 87 and 1610 to these condensed consolidated financial statements, the following transaction istransactions are classified as a related party transaction,transactions, as the counterparties have either a direct or indirect shareholding in the Company or the Company has an investment in such counterparty.
(Re)insurance contracts
During the three and six months ended June 30, 2023, insurance and reinsurance contracts with certain of the Company’s insurance and MGA related parties resulted in gross premiums written of $79.8 million and $147.3 million, respectively (2022 - $56.8 million and $118.0 million, respectively). As of June 30, 2023, the Company had total receivables from these related parties of $21.0 million and payables of $0.0 million (December 31, 2022 - $59.6 million and $4.6 million, respectively).

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Investments managed by related parties
The following table provides the fair value of the Company's investments managed by related parties as of June 30, 2023 and December 31, 2022:
June 30,
2023		December 31, 2022
Third Point Enhanced LP$83.9 $100.3 
Third Point Venture Offshore Fund I LP25.1 26.0 
Third Point Venture Offshore Fund II LP2.3 2.5 
Investments in related party investment funds, at fair value111.3 128.8 
Third Point Optimized Credit Portfolio (1)
558.9 530.7 
Total investments managed by related parties$670.2 $659.5 
(1)The Third Point Loan L.L.C. (“Loan LLC”)Optimized Credit Portfolio is reported in debt securities available for sale and trading in the consolidated balance sheets.
Management, advisory and performance fees to related parties
The total management, advisory and performance fees to related parties for the three and six months ended June 30, 2023 and 2022 were as follows:
Three months endedSix months ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
Management and advisory fees$2.5 $2.5 $4.2 $5.2 
Performance fees— (1.5)— (1.3)
Total management, advisory and performance fees to related parties (1)
$2.5 $1.0 $4.2 $3.9 
(1)Management, advisory and performance fees for the Related Party Investment Funds, where applicable, are presented within net realized and unrealized investment gains from related party investment funds in the consolidated statements of income (loss).
Management and advisory fees
Third Point Enhanced LP
Pursuant to the 2020 LPA, effective February 26, 2021, and the 2022 LPA, effective February 23, 2022, Third Point LLC is entitled to receive monthly management fees. Management fees are charged at the TP Enhanced Fund level and are calculated based on 1.25% per annum of the investment in TP Enhanced Fund.
Third Point Venture Offshore Fund I LP
No management fees are payable by the Company under the 2021 Venture LPA.
Third Point Venture Offshore Fund II LP
Pursuant to the 2022 Venture II LPA, management fees are charged at the TP Venture Fund II level and are calculated based on 0.1875% per quarter (0.75% per annum).
Third Point Insurance Portfolio Solutions and Third Point VenturesOptimized Credit
Effective February 26, 2021, Third Point LLC, Third Point Insurance Portfolio Solutions (“Ventures LLC”TPIPS”) and together with Loan LLC, “Nominees”the Company entered into an Investment Management Agreement (the “TPIPS IMA”), pursuant to which TPIPS will serve as nomineesinvestment manager to the Company and provide investment advice with respect to the investable assets of the Company, other than assets that the Company may withdraw from time to time as working capital. The Amended and other affiliated investment management clientsRestated Collateral Assets Investment Management Agreement was terminated at the effective date of the Investment Manager for certain investments. The Nominees have appointedTPIPS IMA.
Pursuant to the Investment Manager as its trueTPIPS IMA, the Company will pay Third Point LLC a fixed management fee, payable monthly in advance, equal to 1/12 of 0.06% of the fair value of assets managed (other than assets invested in TP Enhanced Fund).

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On February 23, 2022, the Company entered into the 2022 IMA with Third Point LLC and lawful agentthe other parties thereto, which amended and attorney. Asrestated the TPIPS IMA.
Pursuant to the 2022 IMA, effective February 23, 2022, the Company will also pay Third Point LLC a monthly management fee equal to one twelfth of September 30, 2017, Loan LLC held $128.4 million (December 31, 2016 - $124.1 million)0.50% (0.50% per annum) of the TPOC Portfolio, net of any expenses, and Ventures LLC held $27.3 million (December 31, 2016 - $22.6 million)a fixed advisory fee of $1,500,000 per annum.
Performance fees
Third Point Enhanced LP
Pursuant to the2020 LPA, TP GP receives a performance fee allocation equal to 20% of the Company’s investments, which are included in investments in securities and derivative contractsinvestment income in the condensed consolidated balance sheets.related party investment fund. The Company’s pro rata interestperformance fee is included as part of “Investments in related party investment fund, at fair value” on the underlying investments registered in the name of the Nominees and the related income and expense are reflected in the condensedCompany’s consolidated balance sheets since the fees are charged at the TP Enhanced Fund level.
The performance fee is subject to a loss carryforward provision pursuant to which TP GP is required to maintain a loss recovery account, which represents the sum of all prior period net loss amounts and not subsequently offset by prior year net profit amounts, and that is allocated to future profit amounts until the condensed loss recovery account has returned to a positive balance. Until such time, no performance fees are payable, provided that the loss recovery account balance shall be reduced proportionately to reflect any withdrawals from TP Enhanced Fund. The 2020 LPA preserves the loss carryforward attributable to our investment in TP Enhanced Fund when contributions to TP Enhanced Fund are made within nine months of certain types of withdrawals from TP Enhanced Fund.
The 2022 LPA did not amend the performance fee calculation.
Third Point Venture Offshore Fund I LP
Pursuant to the 2021 Venture LPA, TP Venture GP receives a performance fee allocation equal to 20% of the Company’s investment income in the related party investment fund.
Third Point Venture Offshore Fund II LP
Pursuant to the 2022 Venture II LPA, TP Venture GP II receives a performance fee allocation equal to 20% of the Company’s investment income in the related party investment fund.
Third Point Optimized Credit
Pursuant to the 2022 IMA, the Company will pay Third Point LLC, from the assets of each sub-account, an annual incentive fee equal to 15% of outperformance over a specified benchmark. The performance fee is included as part of “Net investment income” on the Company’s consolidated statements of income.income (loss).
19. Financial instruments with off-balance sheet risk or concentrations18. Commitments and contingencies
Financing
See Note 13 for additional information related to the Company’s debt obligations.
Letters of credit risk
Off-balance sheet riskSee Note 13 for additional information related to the Company’s letter of credit facilities.
In the normal course of business,Liability-classified capital instruments
On February 26, 2021, the Company trades various financial instrumentscompleted its acquisition of Sirius International Insurance Group, Ltd. (“Sirius Group”). The aggregate consideration for the transaction included the issuance of preference shares, warrants, and engages in various investment activities with off-balance sheet risk. These financial instruments include securities sold, not yet purchased, forwards, futures, options, swaptions, swaps and contracts for differences. Generally, these financial instruments represent future commitments to purchase or sell other financial instrumentscontingent value components, which are recorded at specific terms at specified future dates. Each of these financial instruments contains varying degrees of off-balance sheet risk whereby changesfair value in the fair valuesliability-classified capital instruments line of the securities underlying the financial instruments or fluctuations in interest rates and index values may exceed the amounts recognized in the condensed consolidated balance sheets.
Securities sold, not yet purchased are recorded as liabilities in the condensed consolidated balance sheets and have market riskSeries A Preference Shares
On February 26, 2021, certain holders of Sirius Group shares elected to receive Series A preference shares, par value $0.10 per share (“Series A Preference Shares”), with respect to the extent thatconsideration price of the Sirius Group acquisition. The

37

Company in satisfying its obligations, may be required to purchase securities at a higher value than that recorded inissued 11,720,987 Series A Preference Shares. The Series A Preference Shares rank pari passu with the condensed consolidated balance sheets. The Company’s investments in securities and commodities and amounts due from brokers are partially restricted until the Company satisfies the obligation to deliver securities sold, not yet purchased.
Forward and futures contracts are a commitment to purchase or sell financial instruments, currencies or commodities at a future date at a negotiated rate. Forward and futures contracts expose the Company to market riskscommon shares with respect to the extent that adverse changes occur to the underlying financial instruments such as currency ratespayment of dividends or equity index fluctuations.
Option contracts give the purchaser the right, but not the obligation, to purchase from or sell to the option writer financial instruments, commodities or currencies within a defined time period for a specified price. The premium received by the Company upon writing an option contract is recorded as a liability, marked to market on a daily basis and is included in securities sold, not yet purchased in the condensed consolidated balance sheets. In writing an option, the Company bears the market risk of an unfavorable change in the financial instrument underlying the written option. Exercise of an option written by the Company could result in the Company selling or buying a financial instrument at a price different from the current fair value.
In the normal course of trading activities in its investment portfolio, the Company trades and holds certain derivative contracts, such as written options, which constitute guarantees. The maximum payout for written put options is limiteddistributions. Each Series A Preference Share has voting power equal to the number of contracts writtenCompany shares into which it is convertible, and the related strike pricesSeries A Preference Shares and Company shares shall vote together as a single class with respect to any and all matters. Upon the maximum payout for written call optionsthird anniversary of the closing date of the Sirius Group acquisition, the Series A Preference Shares will be subject to a conversion ratio calculation, which will be based on ultimate COVID-19 losses along with other measurement criteria, to convert to the Company’s common shares.
During the six months ended June 30, 2023, the Company did not declare or pay dividends to holders of Series A Preference Shares.
During the three and six months ended June 30, 2023, the Company recorded losses of $8.2 million and $13.5 million, respectively, from the change in fair value of the Series A Preference Shares. As of June 30, 2023, the fair value of the Series A Preference Shares is dependent upon$15.3 million.
Merger Warrants
On February 26, 2021, the marketCompany issued certain warrants with respect to the consideration price of the underlying security at the date of a payout event.Sirius Group acquisition (the “Merger warrants”). As of SeptemberJune 30, 2017,2023, the investment portfolioCompany had a maximum payout amountreserved for issuance common shares underlying warrants to purchase, in the aggregate, up to 21,009,324 common shares, to previous Sirius Group common shareholders.
During the three and six months ended June 30, 2023, the Company recorded losses of approximately $346.9$8.6 million (December 31, 2016 - $87.5 million) relating to written put option contracts with expiration ranging from two months to three months and $24.6 million, respectively, from the balance sheet date. The maximum payout amount could be offset by the subsequent sale, if any, of assets obtained via the settlement of a payout event. Thechange in fair value of these written put options asthe Merger warrants. As of SeptemberJune 30, 2017 was $1.4 million (December 31, 2016 - $1.3 million) and2023, the estimated fair value of the Merger warrants is included in securities sold, not yet purchased in the condensed consolidated balance sheets.$39.3 million.
Swaption contracts giveSirius Group Private Warrants
On February 26, 2021, the Company entered into an assumption agreement pursuant to which the right, but notCompany agreed to assume all of the obligation,warrants issued on November 5, 2018 and November 28, 2018 (the “Private warrants”) by Sirius Group to entercertain counterparties.
During the three and six months ended June 30, 2023, the Company recorded losses of $2.1 million and $6.4 million, respectively, from the change in fair value of the Private warrants. As of June 30, 2023, the estimated fair value of the Private warrants is $11.3 million.
During the three and six months ended June 30, 2023, 325,530 Private warrants were exercised out of 5,418,434 originally issued.
Sirius Group Public Warrants
Under the merger agreement between Sirius Group and Easterly Acquisition Corporation (“Easterly”), each of Easterly’s existing issued and outstanding public warrants was converted into a specified interest-rate swap within a specified period of time. The Company’s marketwarrant exercisable for Sirius Group common shares (“Sirius Group Public Warrants”).
During the three and counterparty credit risk is limited to the premium paid to enter into the swaption contract and net unrealized gains.

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Total return swaps, contracts for differences, index swaps, and interest rate swaps that involve the exchange of cash flows between the Company and counterparties are based on thesix months ended June 30, 2023, there was no change in the fair value of a particular equity, index, or interest rate on a specified notional holding.the Sirius Group Public Warrants. The useSirius Group Public Warrants have no estimated fair value as of these contracts exposesJune 30, 2023.
Upside Rights
On February 26, 2021, the Company issued Upside Rights with respect to market risks equivalent to actually holding securitiesthe consideration price of the notionalSirius Group acquisition. The Upside Rights expired without any value but typically involve little capital commitment relativeon February 26, 2022.
Contingent Value Rights
On February 26, 2021, the Company entered into a contingent value rights agreement with respect to the exposure achieved. The gains or lossesconsideration price of the Company may therefore be magnifiedSirius Group acquisition. The contingent value rights (“CVRs”) became publicly traded on the capital commitment.OTCQX Best Market during the quarter ended June 30, 2021. The CVRs matured on February 26, 2023 and were settled for $38.5 million.
Credit derivatives

Credit default swaps protect the buyer against the loss of principal on one or more underlying bonds, loans, or mortgages in the event the issuer suffers a credit event. Typical credit events include failure to pay or restructuring of obligations, bankruptcy, dissolution or insolvency of the underlying issuer. The buyer of the protection pays an initial and/or a periodic premium to the seller and receives protection for the period of the contract. If there is not a credit event, as defined in the contract, the buyer receives no payments from the seller. If there is a credit event, the buyer receives a payment from the seller of protection as calculated by the contract between the two parties.38

The Company may also enter into index and/or basket credit default swaps where the credit derivative may reference a basket of single-name credit default swaps or a broad-based index. Generally, in the event of a default on one of the underlying names, the buyer will receive a pro-rata portion of the total notional amount of the credit default index or basket contract from the seller. WhenPromissory notes & loan agreement
On September 16, 2020, the Company purchases single-name, index and basket credit default swaps, the Company is exposedentered into an Unsecured Promissory Note agreement with Arcadian, pursuant to counterparty nonperformance.
Upon selling credit default swap protection, the Company may expose itself to the risk of loss from related credit events specified in the contract. Credit spreads of the underlying positions together with the period of expiration is indicative of the likelihood of a credit event under the credit default swap contract and the Company’s risk of loss. Higher credit spreads and shorter expiration dates are indicative of a higher likelihood of a credit event resulting in the Company’s payment to the buyer of protection. Lower credit spreads and longer expiration dates would indicate the opposite and lowers the likelihood the Company needs to pay the buyer of protection. As of September 30, 2017, there was no cash collateral received specifically related to written credit default swaps as collateral is based on the net exposure associated with all derivative instruments subject to applicable netting agreements with counterparties and may not be specific to any individual derivative contract.
The following table sets forth certain information related to the Company’s written credit derivatives as of September 30, 2017 and December 31, 2016:
September 30, 2017Maximum Payout/ Notional Amount
(by period of expiration)		 Fair Value of Written Credit Derivatives (2)
Credit Spreads on underlying (basis points)0-5 years 5 years or
Greater Expiring Through 2047		 Total Written
Credit Default
Swaps (1)		 Asset Liability Net Asset/(Liability)
 ($ in thousands)
Single name (0 - 250)$3,320
 $2,393
 $5,713
 $—
 $2,760
 $(2,760)
Single name (251 - 500)1,318
 —
 1,318
 —
 68
 (68)
 $4,638
 $2,393
 $7,031
 $—
 $2,828
 $(2,828)
            
December 31, 2016Maximum Payout/ Notional Amount
(by period of expiration)		 Fair Value of Written Credit Derivatives (2)
Credit Spreads on underlying (basis points)0-5 years 5 years or
Greater Expiring Through 2047		 Total Written
Credit Default
Swaps (1)		 Asset Liability Net Asset/(Liability)
 ($ in thousands)
Single name (0 - 250)$—
 $3,943
 $3,943
 $—
 $1,952
 $(1,952)
(1)As of September 30, 2017 and December 31, 2016, the Company did not hold any offsetting buy protection credit derivatives with the same underlying reference obligation.
(2)Fair value amounts of derivative contracts are shown on a gross basis prior to cash collateral or counterparty netting.

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Concentrations of credit risk
Investments
In addition to off-balance sheet risks related to specific financial instruments, the Company may be subject to concentrations of credit risk with certain counterparties. Substantially all securities transactions and individual counterparty concentrations are with major securities firms, such as prime brokers or their affiliates. However, the Company reduces its credit risk with counterparties by entering into master netting agreements. Therefore, assets represent the Company’s greater unrealized gains less unrealized losses for derivative contracts in which the Company has master netting agreements. Similarly, liabilities representcommitted to loan up to $18.0 million. Interest shall accrue and be computed on the Company’s greater unrealized losses less unrealized gains for derivative contracts in which the Joint Ventures have master netting agreements. Furthermore,aggregate principal amount drawn and outstanding at a rate of 8.0% per annum. No amounts were drawn as of June 30, 2023.
On March 7, 2022, the Company obtains collateral from counterpartiesentered into an Unsecured Convertible Promissory Note agreement with Player’s Health, pursuant to reduce its exposure to counterparty credit risk.
The Company’s maximum exposure to credit risk associated with counterparty nonperformance on derivative contracts is limited to the net unrealized gains by counterparties inherent in such contracts which are recognized in the condensed consolidated balance sheets. As of September 30, 2017, the Company’s maximum counterparty credit risk exposure was $78.8 million (December 31, 2016 - $28.1 million).
Underwriting
The Company is exposed to credit risk in several reinsurance contracts with companies that write credit risk insurance, which primarily consists of mortgage insurance credit risk. Loss experience in these lines of business is cyclical and is affected by the state of the general economic environment. The Company provides its clients in these lines of business with reinsurance protection against credit deterioration, defaults or other types of financial non-performance. The Company mitigates the risks associated with these credit-sensitive lines of business through the use of risk management techniques such as risk diversification and monitoring of risk aggregations.
The Company has exposure to credit risk as it relates to its business written through brokers, if any of the Company’s brokers are unable to fulfill their contractual obligations with respect to payments to the Company. In addition, in some jurisdictions, if the broker fails to make payments to the insured under the Company’s policy, the Company may remain liable to the insured for the deficiency. The Company’s exposure to such credit risk is somewhat mitigated in certain jurisdictions by contractual terms.
The Company has exposure to credit risk related to balances receivable under our reinsurance contracts, including funds withheld and premiums receivable, and the possibility that counterparties may default on their obligations to the Company. The risk of counterparty default is partially mitigated by the fact that any amount owed from a reinsurance counterparty would be netted against any losses or acquisition costs the Company would pay in the future. The Company monitors the collectability of these balances on a regular basis.
20. Commitments and Contingencies
Investments
Loan and other participation interests purchased by the Company, such as bank debt, may include revolving credit arrangements or other financing commitments obligating the Company to advance additional amounts on demand. As of September 30, 2017, the Company had one unfunded capital commitment of $3.3 million related to its investment in the Hellenic Fund (see Note 16 for additional information).
In the normal course of business, the Company, as part of its investment strategy, enters into contracts that contain a variety of indemnifications and warranties. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. However, the Company has not had prior claims or losses pursuant to these contractslent $8.0 million. Interest shall accrue and expectsbe computed on the riskaggregate principal amount drawn and outstanding at a rate of loss to be remote. Thus, no amounts have been accrued related to such indemnifications. The Company also indemnifies TP GP, Third Point LLC and its employees from and against any loss or expense, including, without limitation any judgment, settlement, legal fees and other costs. Any expenses related to this indemnification are reflected in net investment income in the condensed consolidated statements of income.

37


Financing
In February 2015, TPRUSA issued $115.0 million of Notes due February 13, 2025. The Notes bear interest at 7.0% and interest is payable semi-annually on February 13 and August 13 of each year. The Notes are fully and unconditionally guaranteed by Third Point Re, and, in certain circumstances specified in the indenture governing the Notes, certain existing or future subsidiaries of the Company may be required to guarantee the Notes.6.0% per annum.
Litigation
From time to time in the normal course of business, the Company may be involved in formal and informal dispute resolution procedures,processes, which may include arbitration or litigation, the outcomes of which determine the rights and obligations under the Company’s reinsurance and insurance contracts and other contractual agreements. In some disputes, the Company may seek to enforce its rights under an agreement or to collect funds owingowed to it. In other matters, the Company may resist attempts by others to collect funds or enforce alleged rights. WhileThe Company may also be involved, from time to time in the final outcomenormal course of legal disputes that may arise cannot be predicted with certainty, the Company is not currently involvedbusiness, in any material formal orand informal dispute resolution procedures.processes that do not arise from, or are not directly related to, claims activity. The Company believes that no individual litigation or arbitration to which it is presently a party is likely to have a material adverse effect on its results of operations, financial condition, business or operations.
21. Segment reportingLeases
The determinationCompany operates in Bermuda, the United States, Canada, Europe and Asia, and leases office space under various non-cancelable operating lease agreements.     
During the three and six months ended June 30, 2023, the Company recognized operating lease expense of the Company’s business segments is based on the manner in which management monitors the performance of its operations. The Company reports one operating segment, Property$2.6 million and Casualty Reinsurance. The Company has also identified a corporate function that includes the Company’s investment income on capital, certain general$5.1 million, respectively (2022 - $2.8 million and administrative$5.7 million, respectively), including property taxes and routine maintenance expense as well as rental expenses related to corporate activities, interest expense, foreign exchange (gains) losses and income tax expense.

38


The following is a summary of the Company’s operating segment results for the three and nine months ended September 30, 2017 and 2016:
 Three months ended September 30, 2017
 Property and Casualty Reinsurance Corporate Total
Revenues($ in thousands)
Gross premiums written$174,539
 $—
 $174,539
Gross premiums ceded—
 —
 —
Net premiums written174,539
 —
 174,539
Change in net unearned premium reserves(68,564) —
 (68,564)
Net premiums earned105,975
 —
 105,975
Expenses     
Loss and loss adjustment expenses incurred, net77,275
 —
 77,275
Acquisition costs, net33,974
 —
 33,974
General and administrative expenses7,291
 5,927
 13,218
Total expenses118,540
 5,927
 124,467
Net underwriting loss(12,565)  n/a
  n/a
      
Net investment income26,531
 62,437
 88,968
Other expenses(3,846) —
 (3,846)
Interest expense—
 (2,074) (2,074)
Foreign exchange losses—
 (5,437) (5,437)
Income tax expense—
 (3,475) (3,475)
Net income attributable to noncontrolling interests in related party—
 (959) (959)
Segment income$10,120
 $44,565
  
Net income available to Third Point Re common shareholders  

 $54,685
      
Property and Casualty Reinsurance - Underwriting Ratios (1):    
Loss ratio72.9%    
Acquisition cost ratio32.1%    
Composite ratio105.0%    
General and administrative expense ratio6.9%    
Combined ratio111.9%    
(1) Underwriting ratios are calculated by dividing the related expense by net premiums earned.

39


 Nine months ended September 30, 2017
 Property and Casualty Reinsurance Corporate Total
Revenues($ in thousands)
Gross premiums written$477,457
 $—
 $477,457
Gross premiums ceded(2,550) —
 (2,550)
Net premiums written474,907
 —
 474,907
Change in net unearned premium reserves(57,365) —
 (57,365)
Net premiums earned417,542
 —
 417,542
Expenses     
Loss and loss adjustment expenses incurred, net270,549
 —
 270,549
Acquisition costs, net157,067
 —
 157,067
General and administrative expenses23,252
 15,552
 38,804
Total expenses450,868
 15,552
 466,420
Net underwriting loss(33,326)  n/a
  n/a
      
Net investment income93,857
 230,946
 324,803
Other expenses(8,852) —
 (8,852)
Interest expense—
 (6,151) (6,151)
Foreign exchange losses—
 (10,233) (10,233)
Income tax expense—
 (14,080) (14,080)
Net income attributable to noncontrolling interests in related party—
 (3,160) (3,160)
Segment income$51,679
 $181,770
  
Net income available to Third Point Re common shareholders

 

 $233,449
      
Property and Casualty Reinsurance - Underwriting Ratios (1):    
Loss ratio64.8%    
Acquisition cost ratio37.6%    
Composite ratio102.4%    
General and administrative expense ratio5.6%    
Combined ratio108.0%    
(1) Underwriting ratios are calculated by dividing the related expense by net premiums earned.


















40


 Three months ended September 30, 2016
 Property and Casualty Reinsurance Corporate Total
Revenues($ in thousands)
Gross premiums written$142,573
 $—
 $142,573
Gross premiums ceded(927) —
 (927)
Net premiums written141,646
 —
 141,646
Change in net unearned premium reserves(13,463) —
 (13,463)
Net premiums earned128,183
 —
 128,183
Expenses     
Loss and loss adjustment expenses incurred, net85,015
 —
 85,015
Acquisition costs, net45,127
 —
 45,127
General and administrative expenses6,380
 5,974
 12,354
Total expenses136,522
 5,974
 142,496
Net underwriting loss(8,339)  n/a
  n/a
      
Net investment income22,031
 66,325
 88,356
Other expenses(347) —
 (347)
Interest expense—
 (2,069) (2,069)
Foreign exchange gains—
 3,905
 3,905
Income tax expense—
 (2,484) (2,484)
Net income attributable to noncontrolling interests in related party—
 (967) (967)
Segment income$13,345
 $58,736
  
Net income available to Third Point Re common shareholders    $72,081
      
Property and Casualty Reinsurance - Underwriting Ratios (1):    
Loss ratio66.3%    
Acquisition cost ratio35.2%    
Composite ratio101.5%    
General and administrative expense ratio5.0%    
Combined ratio106.5%    
(1) Underwriting ratios are calculated by dividing the related expense by net premiums earned.

41


 Nine months ended September 30, 2016
 Property and Casualty Reinsurance Corporate Total
Revenues($ in thousands)
Gross premiums written$536,595
 $—
 $536,595
Gross premiums ceded(2,352) —
 (2,352)
Net premiums written534,243
 —
 534,243
Change in net unearned premium reserves(136,136) —
 (136,136)
Net premiums earned398,107
 —
 398,107
Expenses     
Loss and loss adjustment expenses incurred, net273,822
 —
 273,822
Acquisition costs, net145,296
 —
 145,296
General and administrative expenses19,527
 14,358
 33,885
Total expenses438,645
 14,358
 453,003
Net underwriting loss(40,538)  n/a
  n/a
      
Net investment income32,868
 101,724
 134,592
Other expenses(6,226) —
 (6,226)
Interest expense—
 (6,163) (6,163)
Foreign exchange gains—
 14,359
 14,359
Income tax expense—
 (5,865) (5,865)
Net income attributable to noncontrolling interests in related party—
 (1,473) (1,473)
Segment income (loss)$(13,896) $88,224
  
Net income available to Third Point Re common shareholders    $74,328
      
Property and Casualty Reinsurance - Underwriting Ratios (1):    
Loss ratio68.8%    
Acquisition cost ratio36.5%    
Composite ratio105.3%    
General and administrative expense ratio4.9%    
Combined ratio110.2%    
(1) Underwriting ratios are calculated by dividing the related expense by net premiums earned.

42


The following table lists the number of contracts that individually contributed more than 10% of total gross premiums written for the three and nine months ended September 30, 2017 and 2016 as a percentage of total gross premiums written in the relevant period:
 Three months ended Nine months ended
 September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016
Largest contract51.1% 42.4% 21.6% 20.9%
Second largest contract14.9% 26.8% 18.7% 11.3%
Third largest contractn/a
 10.1% 12.2% n/a
Total for contracts contributing greater than 10% each66.0% 79.3% 52.5% 32.2%
Total for contracts contributing less than 10% each34.0% 20.7% 47.5% 67.8%
 100.0% 100.0% 100.0% 100.0%
short term leases.
The following table provides a breakdown ofpresents the Company’s gross premiums written by line of business forlease balances within the three and nine months ended September 30, 2017 and 2016:
 Three months ended Nine months ended
 September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016
 ($ in thousands)
Property$(3) —% $56,632
 39.7% $(8,818) (1.9)% $63,714
 11.9%
Casualty161,110
 92.3% 26,640
 18.7% 366,455
 76.8 % 187,146
 34.9%
Specialty13,432
 7.7% 59,301
 41.6% 119,820
 25.1 % 285,735
 53.2%
 $174,539
 100.0% $142,573
 100.0% $477,457
 100.0 % $536,595
 100.0%
The following table provides a breakdown of the Company’s gross premiums written by prospective and retroactive reinsurance contracts for the three and nine months ended September 30, 2017 and 2016:
 Three months ended Nine months ended
 September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016
 ($ in thousands)
Prospective$172,856
 99.0% $142,573
 100.0% $391,897
 82.1% $536,595
 100.0%
Retroactive (1)
1,683
 1.0% —
 —% 85,560
 17.9% —
 —%
 $174,539
 100.0% $142,573
 100.0% $477,457
 100.0% $536,595
 100.0%
(1)Includes all retroactive exposure in reinsurance contracts.
The Company records the gross premium written and earned at the inception of the contract for retroactive exposures in reinsurance contracts.
Substantially all of the Company’s business is sourced through reinsurance brokers. The following table sets forth the Company’s premiums written by source that individually contributed more than 10% of total gross premiums written for the three and nine months ended September 30, 2017 and 2016:
 Three months ended Nine months ended
 September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016
 ($ in thousands)
Largest broker$90,341
 51.8% $95,073
 66.7% $134,324
 28.1% $186,737
 34.8%
Second largest broker44,676
 25.6% 27,461
 19.3% 118,618
 24.9% 180,631
 33.7%
Third largest brokern/a
 n/a
 n/a
 n/a
 107,612
 22.5% 89,756
 16.7%
Other39,522
 22.6% 20,039
 14.0% 116,903
 24.5% 79,471
 14.8%

$174,539
 100.0% $142,573
 100.0% $477,457
 100.0% $536,595
 100.0%


43


The following table provides a breakdown of the Company’s gross premiums written by domicile of the ceding companies for the three and nine months ended September 30, 2017 and 2016:
 Three months ended Nine months ended
 September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016
 ($ in thousands)
United States$145,313
 83.3% $123,233
 86.4% $189,082
 39.6% $290,971
 54.2%
Bermuda8,278
 4.7% 18,538
 13.0% 62,353
 13.1% 65,078
 12.1%
United Kingdom948
 0.5% 802
 0.6% 201,542
 42.2% 180,546
 33.7%
Other20,000
 11.5% —
 —% 24,480
 5.1% —
 —%
 $174,539
 100.0% $142,573
 100.0% $477,457
 100.0% $536,595
 100.0%
22. Supplemental guarantor information
Third Point Re fully and unconditionally guarantees the $115.0 million of Notes issued by TPRUSA, a wholly owned subsidiary.
The following information sets forth condensed consolidatingconsolidated balance sheets as of SeptemberJune 30, 20172023 and December 31, 2016, condensed consolidating statements of income and condensed consolidating statements of cash flows for the three and nine months ended September 30, 2017 and 2016 for Third Point Re, TPRUSA and the non-guarantor subsidiaries of Third Point Re. Investments2022:
June 30,
2023		December 31, 2022
Operating lease right-of-use assets(1)
$22.5 $25.9 
Operating lease liabilities(2)
$25.7 $30.3 
Weighted average lease term (years)5.45.5
Weighted average discount rate3.1 %3.1 %
(1) Operating lease right-of-use assets are included in subsidiaries are accounted forother assets on the equity method; accordingly, entries necessaryCompany’s consolidated balance sheets.
(2) Operating lease liabilities are included in accounts payable, accrued expenses and other liabilitieson the Company’s consolidated balance sheets.
Future minimum rental commitments as of June 30, 2023 under these leases are expected to consolidate the parent guarantor, TPRUSA and all other subsidiaries are reflected in the eliminations column.
be as follows:

44


Future Payments
Remainder of 2023$4.1 
20245.8 
20254.5 
20263.7 
2027 and thereafter9.6 
Total future annual minimum rental payments27.7 
Less: present value discount(2.0)
Total lease liability as of June 30, 2023$25.7 
CONDENSED CONSOLIDATING BALANCE SHEET
As of September 30, 2017
(expressed in thousands of U.S. dollars)
          
 
Third
Point Re
 TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated
Assets         
Equity securities$—
 $—
 $2,017,463
 $—
 $2,017,463
Debt securities—
 —
 656,118
 —
 656,118
Other investments—
 —
 30,932
 —
 30,932
Total investments in securities—
 —
 2,704,513
 —
 2,704,513
Cash and cash equivalents—
 200
 6,234
 —
 6,434
Restricted cash and cash equivalents—
 —
 477,362
 —
 477,362
Investment in subsidiaries1,613,968
 276,251
 165,913
 (2,056,132) —
Due from brokers—
 —
 387,786
 —
 387,786
Derivative assets, at fair value—
 —
 75,781
 —
 75,781
Interest and dividends receivable—
 —
 4,210
 —
 4,210
Reinsurance balances receivable—
 —
 478,206
 —
 478,206
Deferred acquisition costs, net—
 —
 223,091
 —
 223,091
Amounts due from (to) affiliates(1,493) (3,588) 5,081
 —
 —
Other assets734
 —
 10,730
 —
 11,464
Total assets$1,613,209
 $272,863
 $4,538,907
 $(2,056,132) $4,368,847
Liabilities         
Accounts payable and accrued expenses (1)$1,055
 $(7,920) $31,445
 $—
 $24,580
Reinsurance balances payable—
 —
 54,654
 —
 54,654
Deposit liabilities—
 —
 126,491
 —
 126,491
Unearned premium reserves—
 —
 615,375
 —
 615,375
Loss and loss adjustment expense reserves—
 —
 699,369
 —
 699,369
Securities sold, not yet purchased, at fair value—
 —
 405,845
 —
 405,845
Due to brokers—
 —
 602,230
 —
 602,230
Derivative liabilities, at fair value—
 —
 17,280
 —
 17,280
Performance fee payable to related party—
 —
 73,210
 —
 73,210
Interest and dividends payable—
 1,026
 891
 —
 1,917
Senior notes payable, net of deferred costs—
 113,688
 —
 —
 113,688
Total liabilities1,055
 106,794
 2,626,790
 —
 2,734,639
Redeemable noncontrolling interests in related party—
 —
 16,813
 —
 16,813
Shareholders’ equity         
Common shares10,738
 —
 1,250
 (1,250) 10,738
Treasury shares(48,253) —
 —
 —
 (48,253)
Additional paid-in capital1,099,998
 166,080
 1,533,281
 (1,699,361) 1,099,998
Retained earnings (deficit)549,671
 (11) 355,532
 (355,521) 549,671
Shareholders’ equity attributable to Third Point Re common shareholders1,612,154
 166,069
 1,890,063
 (2,056,132) 1,612,154
Noncontrolling interests in related party—
 —
 5,241
 —
 5,241
Total shareholders’ equity1,612,154
 166,069
 1,895,304
 (2,056,132) 1,617,395
Total liabilities, noncontrolling interests and shareholders’ equity

$1,613,209
 $272,863
 $4,538,907
 $(2,056,132) $4,368,847

(1) Negative balance of $7.9 million represents net deferred tax assets that are offset by net deferred tax liabilities in Third Point Re USA of $8.0 million, resulting in a net liability position as of September 30, 2017.

45


39
CONDENSED CONSOLIDATING BALANCE SHEET
As of December 31, 2016
(expressed in thousands of U.S. dollars)
          
 Third
Point Re		 TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated
Assets         
Equity securities$—
 $—
 $1,506,854
 $—
 $1,506,854
Debt securities—
 —
 1,057,957
 —
 1,057,957
Other investments—
 —
 82,701
 —
 82,701
Total investments in securities—
 —
 2,647,512
 —
 2,647,512
Cash and cash equivalents1,629
 79
 8,243
 —
 9,951
Restricted cash and cash equivalents—
 —
 298,940
 —
 298,940
Investment in subsidiaries1,413,078
 269,622
 165,324
 (1,848,024) —
Due from brokers—
 —
 284,591
 —
 284,591
Derivative assets, at fair value—
 —
 27,432
 —
 27,432
Interest and dividends receivable—
 —
 6,505
 —
 6,505
Reinsurance balances receivable—
 —
 381,951
 —
 381,951
Deferred acquisition costs, net—
 —
 221,618
 —
 221,618
Amounts due from (to) affiliates(142) (8,394) 8,536
 —
 —
Other assets637
 5,507
 11,000
 —
 17,144
Total assets$1,415,202
 $266,814
 $4,061,652
 $(1,848,024) $3,895,644
Liabilities         
Accounts payable and accrued expenses$1,151
 $40
 $9,130
 $—
 $10,321
Reinsurance balances payable—
 —
 43,171
 —
 43,171
Deposit liabilities—
 —
 104,905
 —
 104,905
Unearned premium reserves—
 —
 557,076
 —
 557,076
Loss and loss adjustment expense reserves—
 —
 605,129
 —
 605,129
Securities sold, not yet purchased, at fair value—
 —
 92,668
 —
 92,668
Due to brokers—
 —
 899,601
 —
 899,601
Derivative liabilities, at fair value—
 —
 16,050
 —
 16,050
Interest and dividends payable—
 3,057
 386
 —
 3,443
Senior notes payable, net of deferred costs—
 113,555
 —
 —
 113,555
Total liabilities1,151
 116,652
 2,328,116
 —
 2,445,919
Shareholders’ equity         
Common shares10,650
 —
 1,250
 (1,250) 10,650
Treasury shares(7,389) —
 —
 —
 (7,389)
Additional paid-in capital1,094,568
 165,456
 1,528,827
 (1,694,283) 1,094,568
Retained earnings (deficit)316,222
 (15,294) 167,785
 (152,491) 316,222
Shareholders' equity attributable to Third Point Re common shareholders1,414,051
 150,162
 1,697,862
 (1,848,024) 1,414,051
Noncontrolling interests in related party—
 —
 35,674
 —
 35,674
Total shareholders' equity1,414,051
 150,162
 1,733,536
 (1,848,024) 1,449,725
Total liabilities, noncontrolling interests and shareholders’ equity

$1,415,202
 $266,814
 $4,061,652
 $(1,848,024) $3,895,644

46



CONDENSED CONSOLIDATING STATEMENTS OF INCOME
(expressed in thousands of U.S. dollars)
 
Three months ended September 30, 2017 Third
Point Re		 TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated
Revenues          
Gross premiums written $—
 $—
 $174,539
 $—
 $174,539
Gross premiums ceded —
 —
 —
 —
 —
Net premiums written —
 —
 174,539
 —
 174,539
Change in net unearned premium reserves —
 —
 (68,564) —
 (68,564)
Net premiums earned —
 —
 105,975
 —
 105,975
Net investment income —
 —
 88,968
 —
 88,968
Equity in earnings (losses) of subsidiaries 55,847
 5,473
 (30) (61,290) —
Total revenues 55,847
 5,473
 194,913
 (61,290) 194,943
Expenses          
Loss and loss adjustment expenses incurred, net —
 —
 77,275
 —
 77,275
Acquisition costs, net —
 —
 33,974
 —
 33,974
General and administrative expenses 1,162
 17
 12,039
 —
 13,218
Other expenses —
 —
 3,846
 —
 3,846
Interest expense —
 2,074
 —
 —
 2,074
Foreign exchange losses —
 —
 5,437
 —
 5,437
Total expenses 1,162
 2,091
 132,571
 —
 135,824
Income before income tax expense 54,685
 3,382
 62,342
 (61,290) 59,119
Income tax (expense) benefit —
 732
 (4,207) —
 (3,475)
Net income 54,685
 4,114
 58,135
 (61,290) 55,644
Net income attributable to noncontrolling interests in related party —
 —
 (959) —
 (959)
Net income available to Third Point Re common shareholders $54,685
 $4,114
 $57,176
 $(61,290) $54,685
           
Nine months ended September 30, 2017 Third
Point Re		 TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated
Revenues          
Gross premiums written $—
 $—
 $477,457
 $—
 $477,457
Gross premiums ceded —
 —
 (2,550) —
 (2,550)
Net premiums written —
 —
 474,907
 —
 474,907
Change in net unearned premium reserves —
 —
 (57,365) —
 (57,365)
Net premiums earned —
 —
 417,542
 —
 417,542
Net investment income —
 —
 324,803
 —
 324,803
Equity in earnings (losses) of subsidiaries 237,060
 19,305
 (35) (256,330) —
Total revenues 237,060
 19,305
 742,310
 (256,330) 742,345
Expenses         

Loss and loss adjustment expenses incurred, net —
 —
 270,549
 —
 270,549
Acquisition costs, net —
 —
 157,067
 —
 157,067
General and administrative expenses 3,611
 37
 35,156
 —
 38,804
Other expenses —
 —
 8,852
 —
 8,852
Interest expense —
 6,151
 —
 —
 6,151
Foreign exchange losses —
 —
 10,233
 —
 10,233
Total expenses 3,611
 6,188
 481,857
 —
 491,656
Income before income tax expense 233,449
 13,117
 260,453
 (256,330) 250,689
Income tax (expense) benefit —
 2,166
 (16,246) —
 (14,080)
Net income 233,449
 15,283
 244,207
 (256,330) 236,609
Net income attributable to noncontrolling interests in related party —
 —
 (3,160) —
 (3,160)
Net income available to Third Point Re common shareholders $233,449
 $15,283
 $241,047
 $(256,330) $233,449

47


CONDENSED CONSOLIDATING STATEMENTS OF INCOME
(expressed in thousands of U.S. dollars)
 
Three months ended September 30, 2016 Third
Point Re		 TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated
Revenues          
Gross premiums written $—
 $—
 $142,573
 $—
 $142,573
Gross premiums ceded —
 —
 (927) —
 (927)
Net premiums written —
 —
 141,646
 —
 141,646
Change in net unearned premium reserves —
 —
 (13,463) —
 (13,463)
Net premiums earned —
 —
 128,183
 —
 128,183
Net investment income —
 —
 88,356
 —
 88,356
Equity in earnings (losses) of subsidiaries 73,268
 3,916
 (35) (77,149) —
Total revenues 73,268
 3,916
 216,504
 (77,149) 216,539
Expenses          
Loss and loss adjustment expenses incurred, net —
 —
 85,015
 —
 85,015
Acquisition costs, net —
 —
 45,127
 —
 45,127
General and administrative expenses 1,187
 11
 11,156
 —
 12,354
Other expenses —
 —
 347
 —
 347
Interest expense —
 2,069
 —
 —
 2,069
Foreign exchange gains —
 —
 (3,905) —
 (3,905)
Total expenses 1,187
 2,080
 137,740
 —
 141,007
Income before income tax expense 72,081
 1,836
 78,764
 (77,149) 75,532
Income tax (expense) benefit —
 728
 (3,212) —
 (2,484)
Net income 72,081
 2,564
 75,552
 (77,149) 73,048
Net income attributable to noncontrolling interests in related party —
 —
 (967) —
 (967)
Net income available to Third Point Re common shareholders $72,081
 $2,564
 $74,585
 $(77,149) $72,081
           
Nine months ended September 30, 2016 Third
Point Re		 TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated
Revenues          
Gross premiums written $—
 $—
 $536,595
 $—
 $536,595
Gross premiums ceded —
 —
 (2,352) —
 (2,352)
Net premiums written —
 —
 534,243
 —
 534,243
Change in net unearned premium reserves —
 —
 (136,136) —
 (136,136)
Net premiums earned —
 —
 398,107
 —
 398,107
Net investment income —
 —
 134,592
 —
 134,592
Equity in earnings (losses) of subsidiaries 77,829
 6,015
 (78) (83,766) —
Total revenues 77,829
 6,015
 532,621
 (83,766) 532,699
Expenses          
Loss and loss adjustment expenses incurred, net —
 —
 273,822
 —
 273,822
Acquisition costs, net —
 —
 145,296
 —
 145,296
General and administrative expenses 3,501
 41
 30,343
 —
 33,885
Other expenses —
 —
 6,226
 —
 6,226
Interest expense —
 6,163
 —
 —
 6,163
Foreign exchange gains —
 —
 (14,359) —
 (14,359)
Total expenses 3,501
 6,204
 441,328
 —
 451,033
Income (loss) before income tax (expense) benefit 74,328
 (189) 91,293
 (83,766) 81,666
Income tax (expense) benefit —
 2,171
 (8,036) —
 (5,865)
Net income 74,328
 1,982
 83,257
 (83,766) 75,801
Net income attributable to noncontrolling interests in related party —
 —
 (1,473) —
 (1,473)
Net income available to Third Point Re common shareholders $74,328
 $1,982
 $81,784
 $(83,766) $74,328

48


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Nine months ended September 30, 2017
(expressed in thousands of U.S. dollars)
          
 Third
Point Re		 TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated
Operating activities         
Net income$233,449
 $15,283
 $244,207
 $(256,330) $236,609
Adjustments to reconcile net income to net cash provided by (used in) operating activities:         
Equity in (earnings) losses of subsidiaries(237,060) (19,305) 35
 256,330
 —
Share compensation expense184
 —
 3,830
 —
 4,014
Net interest expense on deposit liabilities—
 —
 1,472
 —
 1,472
Net unrealized gain on investments and derivatives—
 —
 (203,299) —
 (203,299)
Net realized gain on investments and derivatives—
 —
 (180,382) —
 (180,382)
Net foreign exchange losses—
 —
 10,233
 —
 10,233
Amortization of premium and accretion of discount, net—
 133
 (585) —
 (452)
Changes in assets and liabilities:         
Reinsurance balances receivable—
 —
 (77,444) —
 (77,444)
Deferred acquisition costs, net—
 —
 (1,473) —
 (1,473)
Other assets(97) 5,507
 288
 —
 5,698
Interest and dividends receivable, net—
 (2,031) 2,800
 —
 769
Unearned premium reserves—
 —
 58,299
 —
 58,299
Loss and loss adjustment expense reserves—
 —
 78,931
 —
 78,931
Accounts payable and accrued expenses(96) (7,960) 22,229
 —
 14,173
Reinsurance balances payable—
 —
 11,462
 —
 11,462
Performance fees payable to related party—
 —
 73,210
 —
 73,210
Amounts due from (to) affiliates1,351
 (4,806) 3,455
 —
 —
Net cash provided by (used in) operating activities(2,269) (13,179) 47,268
 —
 31,820
Investing activities         
Purchases of investments—
 —
 (2,238,167) —
 (2,238,167)
Proceeds from sales of investments—
 —
 2,536,688
 —
 2,536,688
Purchases of investments to cover short sales—
 —
 (440,242) —
 (440,242)
Proceeds from short sales of investments—
 —
 735,132
 —
 735,132
Change in due to/from brokers, net—
 —
 (400,566) —
 (400,566)
Change in restricted cash and cash equivalents—
 —
 (178,422) —
 (178,422)
Net cash provided by investing activities—
 —
 14,423
 —
 14,423
Financing activities         
Proceeds from issuance of Third Point Re common shares, net of costs1,504
 —
 —
 —
 1,504
Purchases of Third Point Re common shares under share repurchase program(40,864) —
 —
 —
 (40,864)
Decrease in deposit liabilities, net—
 —
 6,380
 —
 6,380
Change in total noncontrolling interests in related party, net—
 —
 (16,780) —
 (16,780)
Dividend received by (paid to) parent40,000
 13,300
 (53,300) —
 —
Net cash provided by (used in) financing activities640
 13,300
 (63,700) —
 (49,760)
Net increase (decrease) in cash and cash equivalents(1,629) 121
 (2,009) —
 (3,517)
Cash and cash equivalents at beginning of period1,629
 79
 8,243
 —
 9,951
Cash and cash equivalents at end of period$—
 $200
 $6,234
 $—
 $6,434


49


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Nine months ended September 30, 2016
(expressed in thousands of U.S. dollars)
          
 Third
Point Re		 TPRUSA Non-Guarantor Subsidiaries Eliminations Consolidated
Operating activities         
Net income$74,328
 $1,982
 $83,257
 $(83,766) $75,801
Adjustments to reconcile net income to net cash provided by (used in) operating activities:         
Equity in (earnings) losses of subsidiaries(77,829) (6,015) 78
 83,766
 —
Share compensation expense362
 —
 6,234
 —
 6,596
Net interest income on deposit liabilities—
 —
 (507) —
 (507)
Net unrealized loss on investments and derivatives—
 —
 (90,675) —
 (90,675)
Net realized gain on investments and derivatives—
 —
 (62,316) —
 (62,316)
Net foreign exchange gains—
 —
 (14,359) —
 (14,359)
Amortization of premium and accretion of discount, net—
 133
 4,821
 —
 4,954
Changes in assets and liabilities:         
Reinsurance balances receivable—
 —
 (145,593) —
 (145,593)
Deferred acquisition costs, net—
 —
 (58,286) —
 (58,286)
Other assets(187) (2,171) (2,602) —
 (4,960)
Interest and dividends receivable, net—
 (2,021) (1,676) —
 (3,697)
Unearned premium reserves—
 —
 137,270
 —
 137,270
Loss and loss adjustment expense reserves—
 —
 111,014
 —
 111,014
Accounts payable and accrued expenses(1,561) 20
 3,059
 —
 1,518
Reinsurance balances payable—
 —
 24,013
 —
 24,013
Performance fees payable to related party—
 —
 24,846
 —
 24,846
Amounts due from (to) affiliates(345) 8,067
 (7,722) —
 —
Net cash provided by (used in) operating activities(5,232) (5) 10,856
 —
 5,619
Investing activities         
Purchases of investments—
 —
 (2,803,862) —
 (2,803,862)
Proceeds from sales of investments—
 —
 2,533,656
 —
 2,533,656
Purchases of investments to cover short sales—
 —
 (978,039) —
 (978,039)
Proceeds from short sales of investments—
 —
 854,689
 —
 854,689
Change in due to/from brokers, net—
 —
 362,695
 —
 362,695
Increase in securities sold under an agreement to repurchase—
 —
 46,936
 —
 46,936
Change in restricted cash and cash equivalents—
 —
 (34,536) —
 (34,536)
Contributed capital to subsidiaries(5,000) 5,000
 —
 —
 —
Contributed capital from parent and/or subsidiaries—
 (5,000) 5,000
 —
 —
Net cash used in investing activities(5,000) —
 (13,461) —
 (18,461)
Financing activities         
Proceeds from issuance of Third Point Re common shares, net of costs3,878
 —
 —
 —
 3,878
Purchases of Third Point Re common shares under share repurchase program(7,389) —
 —
 —
 (7,389)
Increase in deposit liabilities, net—
 —
 15,928
 —
 15,928
Change in total noncontrolling interests in related party, net—
 —
 1,000
 —
 1,000
Dividend received by (paid to) parent15,000
 —
 (15,000) —
 —
Net cash provided by financing activities11,489
 —
 1,928
 —
 13,417
Net decrease in cash and cash equivalents1,257
 (5) (677) —
 575
Cash and cash equivalents at beginning of period308
 5
 20,094
 —
 20,407
Cash and cash equivalents at end of period$1,565
 $—
 $19,417
 $—
 $20,982

50


ItemITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis is intended to help the reader understand our business, financial condition, results of operations, liquidity and capital resources. You should read this discussion in conjunction with our unaudited condensed consolidated interim financial statements and the related notes contained elsewhere in this Quarterly Report on Form 10-Q.10-Q (“Form 10-Q”). The terms “we,” “our,” “us” and the “Company,” as used in this report, refer to SiriusPoint Ltd. (“SiriusPoint”) and its directly and indirectly owned subsidiaries as a combined entity, except where otherwise stated or where it is clear that the terms mean only SiriusPoint exclusive of its subsidiaries.
The statements in this discussion regarding industrybusiness outlook, our expectations regarding our future performance, liquidity and capital resources and other non-historical statements in this discussion are forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the risks and uncertainties described in “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”) and ”Specialin “Cautionary Note Regarding Forward-Looking Statements”. below. Our actual results may differ materially from those contained in or implied by any forward lookingforward-looking statements.
SpecialCautionary Note Regarding Forward-Looking Statements
Certain statements in this Quarterly Report on Form 10-Q may constitute “forward-looking” statements“forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding prospects for our industry, our business strategy, plans, goals and expectations concerning our market position, international expansion, investment portfolio expectations, future operations, margins, profitability, future efficiencies, capital expenditures, liquidity and capital resources and other non-historical financial and operating information. When used in this discussion, the words “may,” “believes,” “intends,” “seeks,” “anticipates,” “aims,” “plans,” “targets,” “estimates,” “expects,” “should,” “assumes,” “continues,” “should,” “could,” “will,” “future”“may” and the negative of these or similar terms and phrases are intended to identify forward-looking statements in this Quarterly Report on Form 10-Q.statements.
Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Although we believe the expectations reflected in the forward-looking statements are reasonable, we can give you no assurance these expectations will prove to have been correct. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, the following:
fluctuation•our ability to execute on our strategic transformation, including re-underwriting to reduce volatility and improving underwriting performance, de-risking our investment portfolio, and transforming our business, including re-balancing our portfolio and growing the Insurance & Services segment;
•the impact of unpredictable catastrophic events including uncertainties with respect to current and future COVID-19 losses across many classes of insurance business and the amount of insurance losses that may ultimately be ceded to the reinsurance market, supply chain issues, labor shortages and related increased costs, changing interest rates and equity market volatility;
•inadequacy of loss and loss adjustment expense reserves, the lack of available capital, and periods characterized by excess underwriting capacity and unfavorable premium rates;
•the performance of financial markets, impact of inflation, and foreign currency fluctuations;
•our ability to compete successfully in the (re)insurance market and the effect of consolidation in the (re)insurance industry;
•technology breaches or failures, including those resulting from a malicious cyber-attack on us, our business partners or service providers;
•the effects of global climate change, including increased severity and frequency of weather-related natural disasters and catastrophes and increased coastal flooding in many geographic areas;
•our ability to retain key senior management and key employees;
•a downgrade or withdrawal of our financial ratings;
•fluctuations in our results of operations;
more established competitors;
losses exceeding reserves;
downgrades or withdrawal•legal restrictions on certain of ratings by rating agencies;
dependence on key executives;
dependence on letter of credit facilities that may not be available on commercially acceptable terms;
dependence on financing available through our investment accounts to secure letters of creditSiriusPoint’s insurance and collateral for reinsurance contracts;
potential inabilitysubsidiaries’ ability to pay dividends;dividends and other distributions to SiriusPoint;
inability•the outcome of legal and regulatory proceedings and regulatory constraints on our business;

40

•reduced returns or losses in SiriusPoint’s investment portfolio;
•our potential exposure to serviceU.S. federal income and withholding taxes and our indebtedness;significant deferred tax assets, which could become devalued if we do not generate future taxable income or applicable corporate tax rates are reduced;
limited cash flow and liquidity due to our indebtedness;
unavailability of capital in the future;
fluctuations in market price of our common shares;
dependence on clients’ evaluations of •risks associated with such clients’ insurance underwriting;delegating authority to third party managing general agents (“MGAs”);
suspension or revocation of our reinsurance licenses;
potentially being deemed an investment company under U.S. federal securities law;

51


potential characterization of Third Point Re and/or Third Point Re BDA as a passive foreign investment company;
•future strategic transactions such as acquisitions, dispositions, mergerinvestments, mergers or joint ventures;
dependence on Third Point LLC•SiriusPoint’s response to implement our investment strategy;
termination by Third Point LLC of our investment management agreements;
risks associated with our investment strategy being greater than those faced by competitors;
increased regulation or scrutiny of alternative investment advisers affecting our reputation;
Third Point Re and/or Third Point Re BDA potentially becoming subject to U.S. federal income taxation, including as a result of the bill currently proposed in the U.S House of Representatives;
potentially becoming subject to U.S. withholding and information reporting requirements under the Foreign Account Tax Compliance Act;
changes in Bermuda or other law and regulationany acquisition proposal that may have an adverse impact on our operations;be received from any party, including any actions that may be considered by the Company’s board of directors or any committee thereof; and
•other risks and factors listed under “Risk Factors” in our most recent Annual Report on2022 Form 10-K and other subsequent periodic reports filed with the Securities and Exchange Commission.
Any one of these factors or a combination of these factors could materially affect our financial condition or future results of operations and could influence whether any forward-looking statements contained in this report ultimately prove to be accurate. Our forward-looking statements are not guarantees of future performance, and you should not place undue reliance on them. All forward-looking statements speak only as of the date made and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
In addition, while we do, from time to time, communicate with security analysts, it is against our policy to disclose to them any material non-public information or other confidential information. Accordingly, shareholders should not assume that we agree with any statement or report issued by any analyst irrespective of the content of the statement or report. Thus, to the extent that reports issued by securities analysts contain any projections, forecasts, or opinions, such reports are not our responsibility.
Unless the context otherwise indicates or requires, the terms “we,” “our,” “us,” and the “Company,” as used in this report, refer to Third Point Reinsurance Ltd. (“Third Point Re”) and its directly and indirectly owned subsidiaries, including Third Point Reinsurance Company Ltd. (“Third Point Re BDA”) and Third Point Reinsurance (USA) Ltd. (“Third Point Re USA”), as a combined entity, except where otherwise stated or where it is clear that the terms mean only Third Point Re exclusive of its subsidiaries.
Overview
We are a holding company domiciled in Bermuda. Through our reinsurance subsidiaries, we provide specialty property and casualty reinsurance products tomulti-line insurance and reinsurance companiesproducts and services on a worldwide basis. Our goal isWe aim to deliver attractivebe a highly diversified business with a sustainable and scalable underwriting platform, and a portfolio of insurance-related businesses. We seek to leverage our underwriting talent and capabilities, proven management expertise and geographical footprint, to build on our existing portfolio and identify new opportunities to create value. We intend to allocate our capital to the best opportunities and react quickly to new risks. We are focused on optimizing capital allocation and rebalancing towards insurance and higher margin and growth lines. We have equity returns tostakes in 33 entities (MGAs, Insurtech and Other), after we sold our shareholders by combining profitable reinsurance underwriting with superior investment management provided by Third Point LLC, our investment manager. We believe that our reinsuranceequity stakes in two entities since the last quarter. These entities, which include consolidated and investment strategy differentiates us from our competitors.non-consolidated MGAs, underwrite or distribute a wide range of lines of business. See “Segment Results” below for additional information.
We manage our business on the basis of one operating segment, PropertyProducts and Casualty Reinsurance. We also have a corporate function that includes our investment income on capital, certain general and administrative expenses related to corporate activities, interest expense, foreign exchange gains (losses) and income tax expense.Services
Property and Casualty Reinsurance Segment
We provide reinsurance products to insurance and reinsurance companies, government entities, and other risk bearing vehicles. Contracts can be writtenvehicles on ana treaty or facultative basis. For reinsurance assumed, we generally participate in the prospective, as opposed to retroactive, reinsurance market globally through the broker market distribution channel. We primarily write treaty reinsurance, on both a proportional and excess of loss basis, or quota share basis, althoughand provide facultative reinsurance in some of our business lines. In the majority of contracts writtenUnited States and Bermuda, our core focus is on distribution, risk and clients located in North America while our international operation is focused primarily on distribution, risks and clients located in Europe, Asia and Latin America.
The Reinsurance segment provides coverage in the following product lines: Aviation & Space, Casualty, Contingency, Credit & Bond, Marine & Energy, Mortgage and Property.
Insurance & Services Segment
The Insurance & Services segment predominantly provides insurance coverage in addition to date have been on a quota share basis.receiving fees for services provided within Insurance & Services and to third parties. Insurance & Services revenue allows us to diversify our traditional reinsurance portfolio and generally has lower capital requirements. We make both controlling and noncontrolling equity investments and debt investments in MGAs and other insurance-related business. In addition, we write contracts on bothservice fees from MGAs and their insurance provided are generally not as prone to the volatile underwriting cycle that is common in reinsurance marketplace. The Insurance & Services segment provides coverage in the following product lines: Accident & Health (“A&H”), Environmental, Workers’ Compensation, and other lines of business including a prospective basiscross section of Property and a

Casualty lines.
52


41


retroactive basis. Prospective reinsurance contracts cover losses incurred as a result of future insurable events. Retroactive reinsurance contracts cover the potential for changes in estimates of loss and loss adjustment expense reserves related to loss events that have occurred in the past. Retroactive reinsurance contracts can be an attractive type of contract for us as they can generate an underwriting profit should the ultimate loss and loss adjustment expenses settle for less than the initial estimate of reserves and the premiums received at the inception of the contract generate insurance float. The product lines that we currently underwrite for this operating segment are: property, casualty and specialty. We assume a minimal amount of property catastrophe risk and we anticipate that our property catastrophe exposures will consistently remain low when compared to many other reinsurers with whom we compete.
Insurance float is an important aspect of our property and casualty reinsurance operation. In an insurance or reinsurance operation, float arises because premiums from reinsurance contracts and consideration received for deposit accounted contracts are collected before losses are paid on reinsurance contracts and payments are made on deposit accounted contracts. In some instances, the interval between cash receipts and payments can extend over many years. During this time interval, we invest the cash received and seek to generate investment returns. Float is not a concept defined by U.S. GAAP and therefore, there are no comparable U.S. GAAP measures. As a result, net investment income on float, is considered to be a non-GAAP measure.
We believe that over time, our property and casualty reinsurance segment will contribute to our results by both generating underwriting income as well as generating float.  In addition, we expect that float will grow over time as our reinsurance operations expand.
Investment Management
OurWe continue to reposition our investment portfolio to better align with our underwriting strategy, while leveraging our strategic partnership with Third Point LLC. We believe that this repositioning will result in lower volatility, while taking advantage of opportunities to improve risk-adjusted returns across asset classes.
Under our investment strategy, is implemented by our investment manager,fixed income investments, which comprise the majority of our portfolio, are outsourced to a diversified range of third-party asset managers. This includes the Third Point LLC, under two long-termOptimized Credit fixed income strategy, which is predominately investment management contracts. We directly own the investments that are held in two separate accountsgrade and managed by Third Point LLC, on substantiallyto which we are contractually obligated to reinvest part of the same basis as Third Point LLC’s main hedge funds.
Non-GAAP Financial Measures and Other Financial Metrics
We have included certain financial measures that are not calculated under standards or rules that comprise GAAP. Such measures, including net investment income on float, book value per share, diluted book value per share, change in diluted book value per share and return on beginning shareholders’ equity, are referred to as non-GAAP financial measures. These non-GAAP financial measures may be defined or calculated differently by other companies. We believe these measures allow for a more complete understanding of our underlying business. These measures are used by management to monitor our results and should not be viewed as a substitute for those determined in accordance with GAAP. Reconciliations of non-GAAP measures to the most comparable GAAP figures are included below.
In addition, we refer to certain financial metrics such as net investment return on investments managed byEnhanced LP (“TP Enhanced Fund”) withdrawals. Third Point LLC which is an important metriccontinues to measure the performancemanage a portion of our investment manager,alternative investments, including TP Enhanced Fund, Third Point LLC.  Venture Offshore Fund I LP (“TP Venture Fund”) and Third Point Venture Offshore Fund II LP (“TP Venture Fund II”), totaling 1.7% of SiriusPoint’s investment portfolio at June 30, 2023, as well as working with us on asset-liability management strategies that are tailored to our risk and capital considerations.
Our investment objective is to maximize long-term after-tax total return while (1) limiting the investment risk within prudent risk tolerance thresholds, (2) maintaining adequate liquidity, and (3) complying with the regulatory, rating agency, and internal risk and capital management requirements, all in support of the company goal of meeting policyholder obligations.
Recent Developments
Indication of Interest
On April 12, 2023, we acknowledged that Dan Loeb, and certain of his affiliates, disclosed in a Schedule 13D/A more detailed descriptionfiling an indication of thisinterest to explore a potential acquisition of all, or substantially all, of the outstanding common shares of the Company (“Indication of Interest”).
On May 12, 2023, we acknowledged that Dan Loeb, and certain of his affiliates, disclosed in a Schedule 13D/A filing the decision to conclude discussions regarding a potential transaction to acquire the Company.
Ratings
On March 22, 2023, Fitch Ratings revised our outlook from negative to stable to reflect recent underwriting performance improvement.
On April 19, 2023, AM Best affirmed our financial metricstrength rating and outlook.
SiriusPoint International Loss Portfolio Transfer
On March 2, 2023, we agreed, subject to applicable regulatory approvals and other closing conditions, to enter into a loss portfolio transfer transaction (“2023 LPT”), on a funds withheld basis, with Pallas Reinsurance Company Ltd., a subsidiary of the Compre Group, an insurance and reinsurance legacy specialist. The transaction covered loss reserves ceded initially estimated at $1.3 billion as of the valuation date of September 30, 2022, which were reduced to $905.6 million as of June 30, 2023, as a result of paid losses and favorable prior accident year reserve development recognized during the interim period. Upon closing, we recorded funds held payable of $884.4 million and an initial estimate of a deferred gain of $21.2 million, which will be amortized over the claim payout period of the subject business. The 2023 LPT comprises several classes of business from 2021 and prior underwriting years. The aggregate limit under the 2023 LPT is included below.130% of the booked reserves as of the inception of the contract.
Restructuring Plan
On November 2, 2022, we announced a restructuring of our underwriting platform to support the future shape of our business. In line with our strategy to strengthen underwriting results and align our operating platform to our business portfolio, we have made changes to the structure and composition of our international branch network (the "Restructuring Plan"). We have reduced the locations from which SiriusPoint underwrites property catastrophe reinsurance. As a result, we are in the process of closing our offices in Hamburg, Miami and Singapore, and reducing our footprint in Liege and Toronto. Following the anticipated closures and scaling of our operating platform, we will continue to serve clients and underwrite North American property catastrophe business from Bermuda, and international property catastrophe business from Stockholm.

42

Interest Rates and Inflation
In recent periods, Central banks’ monetary policies across the globe resulted in increased interest rates. While the rise in interest rates negatively affects the fair value of current debt security holdings, it also provides higher reinvestment rates upon maturity or sales of our existing portfolio. Additionally, our 2017 SEK Subordinated Notes bear interest at a variable rate based on the Stockholm Interbank Offered Rate plus a margin.
As inflation continues to be elevated, we have evaluated the impact on our underwriting results and reserves. We proactively adjusted trend assumptions in our pricing. As of June 30, 2023, we believe our estimate of the impact of inflation is within our established reserves given the existing provisions for uncertainty that we previously established. As the inflationary environment is dynamic with a relatively high degree of uncertainty, we will continue to monitor and analyze the inflationary environment and its effect on our portfolio in order to maintain adequate pricing and reserving estimates.
Key Performance Indicators
We believe that by combining a disciplined and opportunistic approach to reinsurance underwriting with investment results from the active management offollowing key financial indicators are the most important in evaluating our investment portfolio, we will be able to generate attractive returns for our shareholders.
performance:

Three months endedSix months ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
($ in millions, except for per share data and ratios)
Combined ratio81.9 %93.1 %78.2 %93.4 %
Core underwriting income (1)$81.7 $9.6 $189.1 $22.3 
Core net services income (1)$3.6 $10.6 $16.4 $24.6 
Core income (1)$85.3 $20.2 $205.5 $46.9 
Core combined ratio (1)87.7 %98.3 %84.4 %98.0 %
Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders13.0 %(11.8)%20.9 %(25.7)%
Book value per common share (2)$12.59 $11.56 $12.59 $11.56 
Book value per diluted common share (2)$12.29 $11.32 $12.29 $11.32 
Tangible book value per diluted common share (1) (2)$11.39 $10.43 $11.39 $10.43 
53


The table below shows the key performance indicators that we believe are most meaningful in analyzing our consolidated business for the three and nine months ended September 30, 2017 and 2016:
 Three months ended Nine months ended
 September 30,
2017		 September 30,
2016		 September 30,
2017		 September 30,
2016
Key underwriting metrics for Property and Casualty Reinsurance segment:($ in thousands, except for per share data and ratios)
Net underwriting loss (1)$(12,565) $(8,339) $(33,326) $(40,538)
Combined ratio (1)111.9% 106.5% 108.0% 110.2%
Key investment return metrics:       
Net investment income$88,968
 $88,356
 $324,803
 $134,592
Net investment return on investments managed by Third Point LLC3.6% 4.0% 14.6% 6.0%
Key shareholders’ value creation metrics:      
Book value per share (2) (3)$15.90
 $13.57
 $15.90
 $13.57
Diluted book value per share (2) (3)$15.24
 $13.16
 $15.24
 $13.16
Change in diluted book value per share (2)3.4% 5.2% 15.8% 5.4%
Return on beginning shareholders’ equity (2)3.5% 5.2% 16.8% 5.4%
Invested asset leverage (3)1.57
 1.55
 1.57
 1.55
(1)See Note 21 to the accompanying condensed consolidated financial statements for a calculation of net underwriting loss and combined ratio.
(2)Book value per share, diluted book value per share, change in diluted book value per share and return on beginning shareholders’ equity are non-GAAP financial measures. There are no comparable GAAP measures. See reconciliations below.
(3)
Prior year comparatives represent amounts as of December 31, 2016.
Net Underwriting Income (Loss) for Property and Casualty Reinsurance Segment
One way that we evaluate the performance of our property and casualty reinsurance results is by measuring net(1)Core underwriting income, (loss). We do not measure performance based on the amount of gross premiums written. Net underwritingCore net services income, or loss is calculated from net premiums earned, less net lossCore income and loss adjustment expenses, acquisition costsCore combined ratio are non-GAAP financial measures. See definitions in “Non-GAAP Financial Measures” and generalreconciliations in “Segment Results” below and administrative expenses related to underwriting activities. See additional informationNote 4 “Segment reporting” in Note 21 to our condensedunaudited consolidated financial statements.
Combined Ratio for Property and Casualty Reinsurance Segment
Combined ratio is calculated by dividing the sum of loss and loss adjustment expenses incurred, net, acquisition costs, net and general and administrative expenses related to underwriting activities by net premiums earned. This ratio is a key indicator of a reinsurance company’s underwriting profitability. A combined ratio of greater than 100% means that loss and loss adjustment expenses, acquisition costs and general and administrative expenses related to underwriting activities exceeded net premiums earned. See additional informationstatements included elsewhere in Note 21 to our condensed consolidated financial statements.
Net Investment Income
Net investment income is an important measure that affects overall profitability. Net investment income is primarily affected by the performance of Third Point LLC as our exclusive investment manager and the amount of investable cash, or float, generated by our reinsurance operations. Pursuant to our investment management agreements, Third Point LLC is required to manage our investment portfolio on substantially the same basis as its main hedge funds, subject to certain conditions set forth in our investment guidelines. These conditions include limitations on investing in private securities, a limitation on portfolio leverage, and a limitation on portfolio concentration in individual securities. Our investment management agreements allow us to withdraw cash from our investment accounts with Third Point LLC at any time with three days’ notice to pay claims and with five days’ notice to pay expenses. Net investment income is net of investment fee expenses, which include performance and management fees to related parties.

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Net Investment Income on Float
We track cash flows generated by our property and casualty reinsurance operations, or float, in separate accounts that allow us to also track the net investment income generated on the float. We believe that net investment income on float is an important consideration because it assists our management and investors in evaluating the overall contribution of our property and casualty reinsurance operations to our consolidated results. Net investment income on float as presentedthis Form 10-Q. Tangible book value per diluted common share is a non-GAAP financial measure. See the tabledefinition and reconciliation in “Non-GAAP Financial Measures.”
(2)Prior year comparatives represent amounts as of December 31, 2022.
Core Results
See “Segment Results” below for a reconciliationadditional information.
Annualized Return on Average Common Shareholders’ Equity Attributable to SiriusPoint Common Shareholders
Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders is calculated by dividing annualized net income (loss) available to SiriusPoint common shareholders for the period by the average common shareholders’ equity determined using the common shareholders’ equity balances at the beginning and end of net investment incomethe period.

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Annualized return on floataverage common shareholders’ equity attributable to net investment income.SiriusPoint common shareholders for the three and six months ended June 30, 2023 and 2022 was calculated as follows:
Net investment
Three months endedSix months ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
($ in millions)
Net income (loss) available to SiriusPoint common shareholders$66.3 $(60.8)$204.9 $(277.8)
Common shareholders’ equity attributable to SiriusPoint common shareholders - beginning of period2,036.6 2,088.2 1,874.7 2,303.7 
Common shareholders’ equity attributable to SiriusPoint common shareholders - end of period2,054.8 2,023.3 2,054.8 2,023.3 
Average common shareholders’ equity attributable to SiriusPoint common shareholders$2,045.7 $2,055.8 $1,964.8 $2,163.5 
Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders13.0 %(11.8)%20.9 %(25.7)%
The increase in annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders for the three months ended June 30, 2023 was due to net income for the three and nine months ended SeptemberJune 30, 20172023 compared to a net loss for three months ended June 30, 2022, primarily as a result of increased underwriting income due to favorable prior year loss reserve development and 2016 was comprised of the following:increased net investment income and income in related party investment funds.
 Three months ended Nine months ended
 September 30,
2017		 September 30,
2016		 September 30,
2017		 September 30,
2016
 ($ in thousands)
Net investment income on float$26,531
 $22,031
 $93,857
 $32,868
Net investment income on capital62,971
 65,729
 231,020
 100,646
Net investment income on investments managed by Third Point LLC89,502
 87,760
 324,877
 133,514
Net gain (loss) on investment in Kiskadee Fund(534) 596
 (74) 1,078
Net investment income$88,968
 $88,356
 $324,803
 $134,592
Net Investment Return on Investments Managed by Third Point LLC
Net investment return represents theThe increase in annualized return on our investments managed by Third Point LLC,average common shareholders’ equity attributable to SiriusPoint common shareholders for the six months ended June 30, 2023 was due to net income for the six months ended June 30, 2023, primarily as a result of fees. Theincreased underwriting income due to favorable prior year loss reserve development and lower catastrophe losses and increased net investment return on investments managed by Third Point LLC isincome and income in related party investment funds, compared to a net loss for the percentage change in value of a dollar invested over the reporting period on our investment assets managed by Third Point LLC, net of total noncontrolling interests. The stated return is net of withholding taxes, which are presentedsix months ended June 30, 2022, primarily as a componentresult of income tax expense in our condensed consolidated statements of income. Netrealized and unrealized investment return is the key indicator by which we measure the performance of Third Point LLC, our investment manager.losses.
Book Value Per Share and Diluted Book Value Per Share
Book value per share and diluted book value per share are non-GAAP financial measures and there are no comparable GAAP measures. Book value percommon share is calculated by dividing common shareholders’ equity attributable to Third Point ReSiriusPoint common shareholders by the number of issued and outstandingcommon shares at period end, net of treasury shares. Diluted bookoutstanding. Book value per share represents book value per share combined with the impact from dilution of all in-the-money share options issued, warrants and unvested restricted shares outstanding as of any period end. For unvested restricted shares with a performance condition, we include the unvested restricted shares for which we consider vesting to be probable. Change in book value perdiluted common share is calculated by takingdividing common shareholders’ equity attributable to SiriusPoint common shareholders by the change innumber of diluted common shares outstanding, calculated similar to the treasury stock method.
Tangible book value per diluted common share divided byis a non-GAAP financial measure and the beginning of periodmost comparable U.S. GAAP measure is book value per common share. Change in dilutedSee “Non-GAAP Financial Measures” for an explanation and reconciliation.
As of June 30, 2023, book value per share is calculated by taking the change in diluted book value per share divided by the beginning of period diluted book value per share. We believe that long-term growth in diluted book value per share is the most important measure of our financial performance because it allows our management and investors to track over time the value created by the retention of earnings. In addition, we believe this metric is used by investors because it provides a basis for comparison with other companies in our industry that also report a similar measure.
As of September 30, 2017, book value percommon share was $15.90,$12.59, representing an increase of $0.54$0.05 per share, or 3.5%0.4%, from $15.36$12.54 per share as of March 31, 2023. As of June 30, 2017. As of September 30, 2017, diluted2023, book value per diluted common share was $15.24,$12.29, representing a decrease of $0.02 per share, or 0.2%, from $12.31 per share as of March 31, 2023. As of June 30, 2023, tangible book value per diluted common share was $11.39, representing a decrease of $0.02 per share, or 0.2%, from $11.41 per share as of March 31, 2023. The decreases were primarily due to dilution from Private warrants.
As of June 30, 2023, book value per common share was $12.59, representing an increase of $0.50$1.03 per share, or 3.4%8.9%, from $14.74$11.56 per share as of December 31, 2022. As of June 30, 2017.2023, book value per diluted common share was $12.29, representing an increase of $0.97 per share, or 8.6%, from $11.32 per share as of December 31, 2022. As of June 30, 2023, tangible book value per diluted common share was $11.39, representing an increase of $0.96 per share, or 9.2%, from $10.43 per share as of December 31, 2022. The increases were primarily due to net income in the current period.
As of September 30, 2017, book value per share was $15.90, representing an increase of $2.33 per share, or 17.2%, from $13.57 per share as of December 31, 2016. As of September 30, 2017, diluted book value per share was $15.24,

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55


representing an increase of $2.08 per share, or 15.8%, from $13.16 per share as of December 31, 2016. The increases were primarily due to net income in the period.
The changes in book value per share and diluted book value per share were also impacted by share activity including share repurchases and the issuance of performance restricted shares.
The following table sets forth the computation of basic and diluted book value per share as of September 30, 2017 and December 31, 2016:    

 September 30,
2017		 December 31,
2016
Basic and diluted book value per share numerator:($ in thousands, except share and per share amounts)
Shareholders' equity attributable to Third Point Re common shareholders$1,612,154
 $1,414,051
Effect of dilutive warrants issued to founders and an advisor46,512
 46,512
Effect of dilutive stock options issued to directors and employees54,572
 52,930
Diluted book value per share numerator:$1,713,238
 $1,513,493
Basic and diluted book value per share denominator: 
Issued and outstanding shares, net of treasury shares101,399,735
 104,173,748
Effect of dilutive warrants issued to founders and an advisor4,651,163
 4,651,163
Effect of dilutive stock options issued to directors and employees5,332,833
 5,274,333
Effect of dilutive restricted shares issued to directors and employees (1)1,061,412
 878,529
Diluted book value per share denominator:112,445,143
 114,977,773
    
Basic book value per share$15.90
 $13.57
Diluted book value per share$15.24
 $13.16
(1)As of September 30, 2017, the effect of dilutive restricted shares issued to directors and employees was comprised of 98,742 restricted shares with a service condition only and 962,670 restricted shares with a service and performance condition that were considered probable of vesting.
Return on Beginning Shareholders’ Equity Attributable to Third Point Re Common Shareholders
Return on beginning shareholders’ equity attributable to Third Point Re common shareholders as presented is a non-GAAP financial measure. Return on beginning shareholders’ equity attributable to Third Point Re common shareholders is calculated by dividing net income available to Third Point Re common shareholders by the beginning shareholders’ equity attributable to Third Point Re common shareholders. We believe that return on beginning shareholders’ equity attributable to Third Point Re common shareholders is an important measure because it assists our management and investors in evaluating the Company’s profitability. For the nine months ended September 30, 2017, we have also adjusted the beginning shareholders’ equity attributable to Third Point Re common shareholders for the impact of the shares repurchased on a weighted average basis. This adjustment increased the stated returns on beginning shareholders’ equity attributable to Third Point Re common shareholders.

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Return on beginning shareholders’ equity for the three and nine months ended September 30, 2017 and 2016 was calculated as follows:
 Three months ended Nine months ended
 September 30,
2017		 September 30,
2016		 September 30,
2017		 September 30,
2016
 ($ in thousands)
Net income available to Third Point Re common shareholders$54,685
 $72,081
 $233,449
 $74,328
Shareholders’ equity attributable to Third Point Re common shareholders - beginning of period1,556,323
 1,380,332
 1,414,051
 1,379,726
Impact of weighting related to shareholders’ equity from shares repurchased—
 —
 (25,023) (3,348)
Adjusted shareholders’ equity attributable to Third Point Re common shareholders - beginning of period$1,556,323
 $1,380,332
 $1,389,028
 $1,376,378
Return on beginning shareholders’ equity attributable to Third Point Re common shareholders3.5% 5.2% 16.8% 5.4%
Invested asset leverage

Invested asset leverage is a ratio calculated by dividing our net investments managed by Third Point LLC by shareholders’ equity attributable to Third Point Re common shareholders and is a key metric in assessing the amount of insurance float generated by our reinsurance operation that has been invested by our investment manager, Third Point LLC.  Given the sensitivity of our return on beginning shareholders’ equity to our net investment return on investments managed by Third Point LLC, invested asset leverage is an important metric that management monitors.  It is also an important metric by which we evaluate our capital adequacy for rating agency and regulatory purposes.  Maintaining an appropriate invested asset leverage in order to optimize the return potential of the Company, while maintaining sufficient rating agency and regulatory capital is an important aspect of how we manage the Company.
Revenues
We derive our revenues from two principal sources:
premiums from property and casualty reinsurance business assumed; and
income from investments.
Premiums from our property and casualty reinsurance business assumed are directly related to the number, type and pricing of contracts we write. Premiums are earned over the contract period based on the exposure period of the underlying contracts of the ceding company.
Income from our investments is primarily comprised of interest income, dividends, and net realized and unrealized gains on investment securities included in our investment portfolio.
Expenses
Our expenses consist primarily of the following:
loss and loss adjustment expenses;
acquisition costs;
investment-related expenses;
general and administrative expenses;
other expenses;
interest expense;
foreign exchange; and
income taxes.
Loss and loss adjustment expenses are a function of the amount and type of reinsurance contracts we write and loss experience of the underlying coverage. Loss and loss adjustment expenses are based on an actuarial analysis of the

57


estimated losses, including losses incurred during the period and changes in estimates from prior periods. Depending on the nature of the contract, loss and loss adjustment expenses may be paid over a number of years.
Acquisition costs consist primarily of brokerage fees, ceding commissions, premium taxes and other direct expenses that relate to writing reinsurance contracts and are presented net of commissions ceded under reinsurance contracts. We amortize deferred acquisition costs in the same proportion that the premiums are earned.
Investment-related expenses primarily consist of management fees we pay to our investment manager, Third Point LLC, and performance fees we pay to TP GP. A 1.5% management fee calculated on net investment assets under management is paid monthly to Third Point LLC. In addition, a performance fee equal to 20% of the net investment income is paid annually to TP GP. See Note 8 to our condensed consolidated financial statements for additional information on our Founders and management, performance and founders fees. The performance fee is subject to a loss carryforward provision pursuant to which TP GP is required to maintain a loss recovery account, which represents the sum of all prior period net loss amounts, not offset by prior year net profit amounts, and that is allocated to future profit amounts until the loss recovery account has returned to a positive balance. Until such time, no performance fees are payable under the Investment Agreements.
General and administrative expenses consist primarily of salaries, benefits and related payroll costs, including costs associated with our incentive compensation plan, share compensation expense, legal and accounting fees, travel and client entertainment, fees relating to our letter of credit facilities, information technology, occupancy and other general operating expenses.
Other expenses consist of investment credit expenses on deposit and reinsurance contracts and changes in the fair value of embedded derivatives in our deposit and reinsurance contracts.
Interest expense consists of interest expense incurred on TPRUSA’s $115.0 million senior unsecured notes (the “Notes”) issued in February 2015. The Notes bear interest at 7.0% and interest is payable semi-annually on February 13 and August 13 of each year. Also included in interest expense is the amortization of certain costs incurred in issuing the Notes. These costs are amortized over the term of the debt and are included in interest expense.
Foreign exchange gains (losses) consist of the revaluation of monetary assets and liabilities denominated in foreign currencies to U.S. dollar, our functional currency.
Income taxes consist primarily of taxes incurred in the U.S. as a result of our U.S. operations and withholding taxes and uncertain tax positions on certain investment transactions in the U.S. and in certain foreign jurisdictions.
Business Outlook
The reinsurance markets in which we operate have historically been cyclical. During periods of excess underwriting capacity, as defined by the availability of capital, competition can result in lower pricing and less favorable policy terms and conditions for insurers and reinsurers. During periods of reduced underwriting capacity, pricing and policy terms and conditions are generally more favorable for insurers and reinsurers. Historically, underwriting capacity has been affected by several factors, including industry losses, the impact of catastrophes, changes in legal and regulatory guidelines, new entrants and investment results including interest rate levels and the credit ratings and financial strength of competitors.
For the past several years, there has been significant underwriting capacity available and market conditions have been challenging. We believe this excess capacity was primarily due to strong retained earnings in the reinsurance industry as a result of historically low catastrophe losses, an influx of capacity from collateralized reinsurance and other insurance-linked securities vehicles and increased competition from new entrants. While we do not participate in the property catastrophe excess of loss reinsurance segment, we believe that traditional reinsurers facing extreme price pressure in this segment were more aggressively pursuing our targeted lines of business. During the third quarter of 2017, the insurance industry was impacted by significant catastrophe losses, including losses caused by hurricanes Harvey, Irma and Maria and two earthquakes in Mexico. Considering the third quarter catastrophe losses, other smaller catastrophe losses incurred earlier in the year and subsequent to the third quarter, AIR Worldwide, Risk Management Solutions, Inc., and other industry experts believe that the amount of insured catastrophe losses for 2017 will exceed $100 billion.

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It is uncertain at this point what impact that these significant catastrophe losses will have on the property catastrophe and the broader reinsurance markets.
We focus on segments and clients where we believe we benefit from relatively more attractive pricing opportunities due to the strength of our relationships, the tailored nature of our reinsurance solutions, an acute need for reinsurance capital as a result of market dislocation, a client’s growth or historically poor performance. We expect to see increased demand for our products as companies that sustained significant catastrophe losses look for ways to bolster their capital positions but it is unclear how the supply of capacity to unaffected lines of business will be impacted.

We believe that we are well positioned to benefit from any improvement in terms and conditions and/or increased demand given our modest losses from the recent catastrophe events and strong balance sheet position as well as our focus on customized reinsurance solutions for our clients to support their capital needs. Most of our senior management team have spent decades within the reinsurance market and have strong relationships with intermediaries and reinsurance buyers from which we are receiving a strong flow of submissions in the lines and types of reinsurance we target.  Although we are typically presented by brokers with proposed structures on syndicated deals, we often seek to customize the proposed solution for the client while improving our risk and return profile and establishing our position as the lead reinsurer in the transaction. We also look for non-syndicated opportunities where a highly customized solution is needed. These solutions may take the form of aggregate stop loss covers, loss portfolio transfers or other forms of reserve covers where clients seek capital relief and enhanced investment returns on the assets that back their loss and unearned premium reserves.
During our first four years of operation through 2015, we had significant premium growth and float generation and reached a premium level that supports our fixed expense base and an invested asset leverage that appropriately utilizes our capital. As a result of challenging market conditions, it has been more difficult to originate reinsurance opportunities that meet our underwriting standards and therefore gross written premium in 2016 was slightly lower than 2015. Given our focus on improving underwriting results, it is possible that our premiums written for 2017 may decline further. However, we believe that the recent catastrophe events will help to expose the industry’s underpricing of risk in many areas and could lead to an improvement in market conditions going forward.
Consolidated Results of Operations—Three and ninesix months ended SeptemberJune 30, 20172023 and 20162022:
The following table sets forth the key items discussed in the consolidated results of operations section, and the period over period change, for the three and ninesix months ended SeptemberJune 30, 20172023 and 2016:2022:
Three months endedSix months ended
June 30, 2023June 30, 2022ChangeJune 30, 2023June 30, 2022Change
($ in millions)
Total underwriting income$127.3 $38.8 $88.5 $283.8 $72.3 $211.5 
Net realized and unrealized investment gains (losses) and net investment income65.8 (141.5)207.3 139.6 (346.6)486.2 
Other revenues(1.7)45.8 (47.5)14.1 83.0 (68.9)
Net corporate and other expenses(70.3)(72.0)1.7 (130.3)(149.4)19.1 
Intangible asset amortization(2.9)(2.0)(0.9)(5.3)(3.9)(1.4)
Interest expense(11.7)(9.4)(2.3)(24.5)(18.7)(5.8)
Foreign exchange gains (losses)(17.4)56.5 (73.9)(17.5)75.9 (93.4)
Income tax (expense) benefit(16.8)27.7 (44.5)(42.6)18.0 (60.6)
Net income (loss)$72.3 $(56.1)$128.4 $217.3 $(269.4)$486.7 
 Three months ended Nine months ended
 September 30,
2017		 September 30,
2016		 Change September 30,
2017		 September 30,
2016		 Change
 ($ in thousands)
Net underwriting income (loss)$(12,565) $(8,339) $(4,226) $(33,326) $(40,538) $7,212
Net investment income88,968
 88,356
 612
 324,803
 134,592
 190,211
Net investment return on investments managed by Third Point LLC3.6% 4.0% (0.4)% 14.6% 6.0% 8.6%
General and administrative expenses (1)(5,927) (5,974) 47
 (15,552) (14,358) (1,194)
Other expenses(3,846) (347) (3,499) (8,852) (6,226) (2,626)
Foreign exchange gains (losses)(5,437) 3,905
 (9,342) (10,233) 14,359
 (24,592)
Income tax expense(3,475) (2,484) (991) (14,080) (5,865) (8,215)
Net income available to Third Point Re common shareholders$54,685
 $72,081
 $(17,396) $233,449
 $74,328
 $159,121
(1) Corporate function only.
AThe key driver of our consolidated results of operations is the performance of our investments managed by Third Point LLC. Given the nature of the underlying investment strategies, we expect volatility in our investment returns and

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thereforechanges in our consolidated net income. See additional information regarding investment performance in “Investment Results” section below.
The other key changes in net incomeresults for the three and ninesix months ended SeptemberJune 30, 20172023 compared to the prior year periods were primarily due to the following:are discussed below.
ChangesUnderwriting results
The improvement in net underwriting results:
The increase in net underwriting lossresults for the three months ended SeptemberJune 30, 20172023 was driven by improved favorable prior year loss reserve development of $33.0 million compared to $6.4 million for the three months ended SeptemberJune 30, 20162022. This increase in favorable prior year loss reserve development was primarily due to $5.3 million of net underwriting losses as athe result of third quarter catastrophes, comparedmanagement reflecting the continued favorable reported loss emergence through June 30, 2023 in its best estimate of reserves, which was further validated by the pricing of the 2023 LPT from external reinsurers, including $16.6 million resulting from a reduction in unallocated loss adjustment expenses related to the claims that will no catastrophe losses inlonger be managed by SiriusPoint under the prior year period, and an increase in general and administrative expense.terms of the 2023 LPT. See “Segment Results” below for additional details.information. In addition, there were no property catastrophe losses for the three months ended June 30, 2023 compared to $16.2 million for the three months ended June 30, 2022.
The decreaseimprovement in net underwriting lossresults for the ninesix months ended SeptemberJune 30, 20172023 was driven by improved favorable prior year loss reserve development of $138.4 million compared to nine$11.9 million for the six months ended SeptemberJune 30, 20162022. This increase in favorable prior year loss reserve development was primarily due to adverse development on certain contractsthe result of management reflecting the continued favorable reported loss emergence through June 30, 2023 in its best estimate of reserves, which was further validated by the prior year period, partially offset by $5.3pricing of the 2023 LPT from external reinsurers, which represents $118.2 million of net underwriting losses as a result of third quarter catastrophes and an increase in general and administrative expenses.the favorable loss reserve development. See “Segment Results” below for additional details.
Other key variances:
The increase in generalinformation. In addition, catastrophe losses, net of reinsurance and administrative expense in our corporate functionreinstatement premiums, were $12.9 million, or 1.0 percentage points on the combined ratio, for the ninesix months ended SeptemberJune 30, 2017 was primarily due2023, compared to an increase$23.1 million, or 2.1 percentage points on the combined ratio, for the six months ended June 30, 2022. The lower catastrophe losses were a result of the Company’s significant reduction in our annual incentive plan compensation expense,catastrophe exposed business. In the six months ended June 30, 2023, the Company continued its efforts to reduce its exposure to catastrophe exposed business by reducing its overall probable maximum loss (“PML”) by approximately 10% from December 31, 2022. The improvement in underwriting results was partially offset by lower stock compensation expense in the current year period and separation costs in the prior year period. Our annual incentive plan is based$18.9 million, or 1.5 percentage points on the Company’s return on average equity and we increased our accrual to reflect the performancecombined ratio, of the Company year-to-date.
The change in foreign exchange gains (losses) was primarily due to the revaluation of foreign currency loss and loss adjustment expense reserves denominated in British pounds into the United States dollar, which had strengthened during the prior year period compared to the current year period. For these contracts, non-U.S. dollar reinsurance assets, or balances held in trust accounts securing reinsurance liabilities generally offset reinsurance liabilities in the same non-U.S. dollar currencies resulting in minimal net exposure. As a result, the foreign exchange losses on loss and loss adjustment expense reserves in the period are offset by corresponding foreign exchange gainsoverhead expenses included in net investment income resulting fromOther underwriting expense for the revaluation of foreign currency reinsurance collateral heldsix months ended June 30, 2023 that were previously included in trust accounts.
The increase inNet corporate and other expenses for the three and ninesix months ended SeptemberJune 30, 20172022.

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Investments
Investment Portfolio
The following is a summary of our total investments, cash and cash equivalents and restricted cash and cash equivalents as of June 30, 2023 and December 31, 2022:
June 30,
2023		December 31, 2022
($ in millions)
Debt securities, available for sale$4,172.1 $2,635.5 
Debt securities, trading753.2 1,526.0 
Total debt securities (1)
4,925.3 4,161.5 
Short-term investments559.2 984.6 
Investments in Related Party Investment Funds111.3 128.8 
Other long-term investments355.4 377.2 
Equity securities1.6 1.6 
Total investments5,952.8 5,653.7 
Cash and cash equivalents676.2 705.3 
Restricted cash and cash equivalents (2)
95.2 208.4 
Total invested assets and cash(1)
$6,724.2 $6,567.4 
(1)Includes $558.9 million of investments in the Third Point Optimized Credit portfolio (“TPOC Portfolio”) as of June 30, 2023 (December 31, 2022 - $530.7 million).
(2)Primarily consists of cash and fixed income securities such as U.S. Treasuries, money markets funds, and sovereign debt, securing our contractual obligations under certain (re)insurance contracts that we will not be released from until the underlying risks have expired or have been settled.
The main driver for the increase in total investments as of June 30, 2023 was net investment income of $68.5 million primarily driven by increases in interest and dividend income due to revised estimates of underlying assumptions on our deposit liability contractsthe change in the three months ended September 30, 2016 that resulted inmix of our investment portfolio, prioritizing fixed income securities. These fixed income securities are primarily made up of U.S. treasury and corporate debt positions which yield increased investment income due to a decrease in other expenses in the prior year periods.
The increase in income tax expense for the nine months ended September 30, 2017higher interest rate environment. Additionally, there was primarily the result of an increase in taxabletotal debt securities of $763.8 million which was partially offset by a decrease of $425.4 million of short-term investments as of June 30, 2023, due to the maturity of short-term bonds purchased in 2022 and the rotation into corporate debt and similar structured products.
We extended the duration of our fixed income generated byportfolio to 2.5 years, excluding cash and cash equivalents, to secure yield on our U.S. subsidiaries.
Segment Results—Threecorporate and nine months ended Septemberstructured credit securities (December 31, 2022 - 1.8 years). With the impact of the 2023 LPT, we have increased the position of our fixed income portfolio backing net loss reserves to an effective duration of 2.7 years, excluding cash and cash equivalents, which matches the duration of our economic liabilities (December 31, 2022 - 2.5 years). The average credit rating of our investment portfolio is AA as of June 30, 2017 and 2016.2023 (AA at December 31, 2022) with no defaults in the investment portfolio.
The determinationCompany has elected to classify debt securities purchased on or after April 1, 2022 as available for sale which has resulted in decreased volatility in net income. This election was made as the AFS model more accurately reflects the investment strategy as we do not actively trade individual securities within our investment portfolio. The AFS portfolio has been funded by sales of our reportable segments is based on the manner in which management monitorstrading portfolio and reallocation of investments from the performance of our operations. For the periods presented, our business comprises one operating segment, Property and Casualty Reinsurance. We have also identified a corporate function that includes investment results, certain general and administrative expenses related to corporate activities, interest expense, foreign exchange (gains) losses and income tax expense.

TP Enhanced Fund.
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46


Property and Casualty ReinsuranceInvestment Results
The following table sets forth net underwritingis a summary of the results from investments and ratios, and the period over period changes for the Property and Casualty Reinsurance segmentcash for the three and ninesix months ended SeptemberJune 30, 20172023 and 2016:2022:
Three months endedSix months ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
($ in millions)
Net investment income$73.6 $20.8 $140.7 $32.6 
Change in fair value of trading portfolio (1)
24.8 (63.2)45.9 (142.6)
Net realized investment losses(26.6)(35.2)(36.4)(37.7)
Net realized and unrealized investment losses from related party investment funds(0.9)(60.5)(0.1)(191.5)
Investment results70.9 (138.1)150.1 (339.2)
Investment expenses(5.1)(3.4)(10.5)(7.4)
Total realized and unrealized investment gains (losses) and net investment income$65.8 $(141.5)$139.6 $(346.6)
 Three months ended Nine months ended
 September 30,
2017		 September 30,
2016		 Change September 30,
2017		 September 30,
2016		 Change
 ($ in thousands)
Gross premiums written$174,539
 $142,573
 $31,966
 $477,457
 $536,595
 $(59,138)
Net premiums earned105,975
 128,183
 (22,208) 417,542
 398,107
 19,435
Loss and loss adjustment expenses incurred, net77,275
 85,015
 (7,740) 270,549
 273,822
 (3,273)
Acquisition costs, net33,974
 45,127
 (11,153) 157,067
 145,296
 11,771
General and administrative expenses7,291
 6,380
 911
 23,252
 19,527
 3,725
Net underwriting income (loss )(12,565) (8,339) (4,226) (33,326) (40,538) 7,212
Net investment income on float26,531
 22,031
 4,500
 93,857
 32,868
 60,989
Other expenses(3,846) (347) (3,499) (8,852) (6,226) (2,626)
Segment income (loss)$10,120
 $13,345
 $(3,225) $51,679
 $(13,896) $65,575
Underwriting ratios (1):           
Loss ratio72.9% 66.3% 6.6 % 64.8% 68.8% (4.0)%
Acquisition cost ratio32.1% 35.2% (3.1)% 37.6% 36.5% 1.1 %
Composite ratio105.0% 101.5% 3.5 % 102.4% 105.3% (2.9)%
General and administrative expense ratio6.9% 5.0% 1.9 % 5.6% 4.9% 0.7 %
Combined ratio111.9% 106.5% 5.4 % 108.0% 110.2% (2.2)%
(1)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
Gross Premiums Written(1)Trading portfolio is inclusive of all non-AFS designated investments in the investment portfolio.
The amount of gross premiums written and earned that we recognize can vary significantly from period to period due to several reasons, which include:
We writefollowing is a small number of large contracts; therefore individual renewals or new business can have a significant impact on premiums recognized in a period;
We offer customized solutions to our clients, including reserve covers, on which we will not have a regular renewal opportunity;
We record gross premiums written and earned for reserve covers, which are considered retroactive reinsurance contracts, at the inceptionsummary of the contract;
We write multi-year contracts that will not necessarily renew in a comparable period;
We may extend and/or amend contracts resulting in premium that will not necessarily renew in a comparable period;
Our reinsurance contracts often contain commutation and/or cancellation provisions; and
Our quota share reinsurance contracts are subject to significant judgment in the amount of premiums that we expect to recognize and changes in premium estimates are recorded in the period they are determined.
As a result of these factors, we may experience volatility in the amount of gross premiums written and net premiums earned and period to period comparisons may not be meaningful.

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The following table provides a breakdown of our Property and Casualty Reinsurance segment’s gross premiums writtenresults from investments by line of businessinvestment classification, for the three and ninesix months ended SeptemberJune 30, 20172023 and 2016:2022:
Three months endedSix months ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
($ in millions)
Debt securities, available for sale$48.5 $2.9 $83.6 $2.9 
Debt securities, trading10.5 (60.9)39.6 (120.2)
Short-term investments5.9 (0.9)14.3 (2.6)
Other long-term investments(3.8)(0.6)0.6 (1.6)
Derivative instruments3.5 — 3.5 — 
Equity securities— (0.3)— (0.4)
Net realized and unrealized investment losses from Related Party Investment Funds(0.9)(60.5)(0.1)(191.5)
Realized and unrealized investment gains (losses) and net investment income before other investment expenses and investment loss on cash and cash equivalents63.7 (120.3)141.5 (313.4)
Investment expenses(5.1)(3.4)(10.5)(7.4)
Net investment income (loss) on cash and cash equivalents7.2 (17.8)8.6 (25.8)
Total realized and unrealized investment gains (losses) and net investment income$65.8 $(141.5)$139.6 $(346.6)

 Three months ended Nine months ended
 September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016
 ($ in thousands)
Property$(3) —% $56,632
 39.7% $(8,818) (1.9)% $63,714
 11.9%
Casualty161,110
 92.3% 26,640
 18.7% 366,455
 76.8 % 187,146
 34.9%
Specialty13,432
 7.7% 59,301
 41.6% 119,820
 25.1 % 285,735
 53.2%
 $174,539
 100.0% $142,573
 100.0% $477,457
 100.0 % $536,595
 100.0%
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The increase in gross premiums written of $32.0 million, or 22.4%, for the three months ended September 30, 2017 compared to the three months ended September 30, 2016 was driven by:
Factor resulting in an increase:
For the three months ended September 30, 2017, we wrote $154.0 million of new premium, of which $141.5 million was casualty business and $12.5 million was specialty business.
Factors resulting in decreases:
We recognized premium of $109.1 million for the three months ended September 30, 2016 related to the net impact of contract extensions, cancellations and contracts written with no comparable premium in the current year period.
We recorded net increases in premium estimates relating to prior periods of $9.2 million and $18.6 million for the three months ended September 30, 2017 and 2016, respectively. The increases in premium estimates for the three months ended September 30, 2017 and 2016 were due to several contracts for which clients provided updated projections indicating that they expected to write more business than initially estimated.
Changes in renewal premiums for the three months ended September 30, 2017 resulted in a net decrease in premiums of $3.5 million. Premiums can change on renewals of contracts due to a number of factors, including changes in our line size or participation, changes in the underlying premium volume and pricing trends of the client’s program as well as other contractual terms and conditions.
The decrease in gross premiums written of $59.1 million, or 11.0%, for the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016 was driven by:
Factors resulting in decreases:
We recognized $164.9 million of premium in the nine months ended September 30, 2016 related to contracts that we did not renew in the nine months ended September 30, 2017 as a result of underlying terms and conditions.
We recognized a net increase in premium of $83.0 million in the nine months ended September 30, 2017 compared to a net increase of $221.9 million in the nine months ended September 30, 2016 related to the net impact of contract extensions, cancellations and contracts renewed with no premium in the comparable period.
We recorded net increases in premium estimates relating to prior periods of $21.4 million and $52.8 million for the nine months ended September 30, 2017 and 2016, respectively. The increases in premium estimates for the nine months ended September 30, 2017 and 2016 were due to several contracts for which clients provided updated projections indicating that they expected to write more business than initially estimated.
Changes in renewal premiums for the nine months ended September 30, 2017 resulted in a net decrease in premiums of $7.6 million. Premiums can change on renewals of contracts due to a number of factors, including: changes in our line size or participation, changes in the underlying premium volume and pricing trends of the client’s program as well as other contractual terms and conditions.

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Factor resulting in an increase:
For the nine months ended September 30, 2017, we wrote $283.7 million of new premium, of which $265.0 million was casualty business and $18.7 million was specialty business.
Net Premiums Earned
The decrease in net premiums earned in the three months ended September 30, 2017 compared to the three months ended September 30, 2016 was primarily due to a lower in-force underwriting portfolio.
The increase in net premiums earned in the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016 was primarily due to the addition of $85.6 million of new retroactive exposures in reinsurance contracts in the current year period, which was fully earned when written, partially offset by a lower in-force underwriting portfolio. We did not write any retroactive reinsurance contracts in the three and nine months ended September 30, 2016.
Net Loss and Loss Adjustment Expenses
The reinsurance contracts we write have a wide range of initial loss ratio estimates. As a result, our net loss and loss expense ratio can vary significantly from period to period depending on the mix of business. The change in our net loss and loss adjustment expenses and related ratio was primarily affected by changes in mix of business, prior years’ reserve development and catastrophe losses in 2017.
For the three and nine months ended September 30, 2017, we incurred $5.3 million of net loss and loss adjustment expenses as a result of third quarter catastrophe losses compared to no catastrophe losses in the prior year periods.Investment Returns
The following is a summary of the net impact from reserve developmentreturns for our investments on a U.S. Dollar and local currency basis for the three and ninesix months ended SeptemberJune 30, 20172023 and 2016:2022:
For
Three months endedSix months ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
TP Enhanced Fund(0.5)%(12.5)%0.6 %(25.9)%
TP Venture Fund0.1 %(9.8)%0.3 %(17.3)%
TP Venture Fund II (1)
(2.7)%n/a(8.2)%n/a
SiriusPoint total fixed income investments (2)(3)
In U.S. dollars0.1 %(1.8)%1.9 %(3.6)%
In local currencies0.1 %(1.3)%1.9 %(3.0)%
SiriusPoint total equity securities and other long-term investments
In U.S. dollars(0.7)%(0.5)%2.1 %(0.6)%
In local currencies(0.9)%(0.3)%2.0 %(0.5)%
(1)TP Venture Fund II was funded on October 6, 2022; therefore there is no comparative return.
(2)Fixed income investments exclude cash and cash equivalents.
(3)Includes returns of 0.1% and 2.4% from investments in the TPOC Portfolio for the three and six months ended SeptemberJune 30, 2017, we incurred $0.8 million of2023, respectively.
Total realized and unrealized investment gains and net adverse prior years’ reserve development, offset by net decreases of $0.8 million in acquisition costs, resulting in minimal impact in net underwriting loss. The net underwriting loss impact of the adverse loss development was primarily due to the following factors:
$8.8 million of net adverse loss development as a result of worse than expected loss experience on one retroactive reinsurance contract.
$9.2 million of net favorable loss development relating to casualty contracts where cedants reported better than expected loss experience.
The contracts that contributed to the loss reserve development above each had profit commission terms such that the loss reserve development associated with these contracts was offset by similar changes in acquisition costs, resulting in minimal impact in net underwriting loss.
For the three months ended September 30, 2016, we incurred $0.5 million of net adverse prior years’ reserve development, offset by net decreases of $0.5 million in acquisition costs, resulting in minimal impact in net underwriting loss. The net underwriting loss impact of the adverse loss development was primarily due to the following factors:
•$1.4 million of net favorable underwriting loss development across several lines of business; and
$1.3 million of net adverse underwriting loss development relating to non-standard auto contracts.
For the nine months ended September 30, 2017, we incurred $31.7 million of net favorable prior years’ reserve development. The $31.7 million of net favorable prior years’ reserve development for the nine months ended September 30, 2017 was primarily a result of net favorable loss development on certain retroactive reinsurance contracts. These retroactive reinsurance contracts had profit commission terms such that the net favorable reserve development associated with these contracts was offset by similar increases in acquisition costs, resulting in minimal impact in net underwriting loss.

For the nine months ended September 30, 2016, we incurred $15.0 million of net adverse prior years’ reserve development. The $15.0 million of net adverse prior years’ reserve development for the nine months ended September 30, 2016 was accompanied by net decreases of $2.5 million in acquisition costs, resulting in a net increase of $12.5

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million in net underwriting loss, or 3.1 percentage points. The net underwriting loss impact of the adverse loss development was primarily due to:
$4.8 million of net adverse underwriting loss development relating to one multi-line contract written since 2014. This contract contains underlying commercial auto physical damage and auto extended warranty exposure. The adverse loss experience is a result of an increase in the number of reported claims and inadequate pricing in certain segments of the underlying business;
$3.5 million of net adverse underwriting loss development relating to our Florida homeowners’ reinsurance contracts primarily as a result of higher than anticipated water damage claims and an increase in the practice of assignment of benefits whereby homeowners assign their rights for filing and settling claims to attorneys and public adjusters, which we believe has led to increases in the frequency of claims reported as well as the severity of losses and loss adjustment expenses. Contracts for which we experienced this adverse loss development have not been renewed;
$3.3 million of net adverse underwriting loss development relating to a workers’ compensation contract written in 2012, 2013, and 2014 under which we have been experiencing claims developing with higher than anticipated severity, which led to an increase in our previous loss assumptions on this contract; and
$3.1 million of net adverse underwriting loss development relating to non-standard auto contracts, primarily due to the inability of cedents to promptly react to increasing frequency and severity trends, resulting in underpriced business and adverse selection.
Acquisition Costs
Acquisition costs include commissions, brokerage and excise taxes. Acquisition costs are presented net of commissions on reinsurance ceded. The reinsurance contracts we write have a wide range of acquisition cost ratios. As a result, our acquisition cost ratio can vary significantly from period to period depending on the mix of business. Furthermore, a number of our contracts have a sliding scale commission or profit commission feature that will vary depending on the expected loss expense for the contract. As a result, changes in estimates of loss and loss adjustment expenses on a contract can result in changes in the sliding scale commissions or profit commissions and a contract’s overall acquisition cost ratio.
Most of our contracts have similar expected composite ratios (combined ratio before general and administrative expenses); therefore, contracts with higher initial loss ratio estimates have lower acquisition cost ratios and contracts with lower initial loss ratios have higher acquisition cost ratios.
The decrease in acquisition costs, net, and the related acquisition cost ratioinvestment income for the three months ended SeptemberJune 30, 20172023 was primarily due to a change in mix of business and lower earned premiums in the current year period resulting in a lower acquisition cost expense amount.
The increase in acquisition costs, net, and the related acquisition cost ratio for the nine months ended September 30, 2017 was primarily dueattributable to net favorable developmentinvestment results from our debt and short-term investment portfolio of $64.9 million. These fixed income positions returned 0.1% in U.S. dollars and an original currency basis, inclusive of marked to market losses on retroactive reinsurance contractsAFS securities of $52.7 million. These returns were driven by dividend and interest income primarily on U.S. treasury bills and corporate debt positions which have profit commission terms such that the favorable development associated with these contracts was offset by similar increases in acquisition costs, partially offset by a change in business mix. See additional information in Net Loss and Loss Adjustment Expenses section above.
Net Investment Income
Net investment income allocated to the Property and Casualty Reinsurance segment consistsmake up 46.6% of net investment income on float. The increase in net investment income on float for the three and nine months ended Septemberour total investments as of June 30, 20172023, compared to the three28.5% of our portfolio as of June 30, 2022.
Total realized and nine months ended September 30, 2016 was primarily due to the increase inunrealized investment returns compared to the prior year periods. See the discussion of net investment income under “Corporate Function” below for explanations of the investment returns on investments managed by Third Point LLCgains and total net investment income for the years presented.

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General and Administrative Expenses
The increase in general and administrative expenses and the related general and administrative expenses ratio for the three and ninesix months ended SeptemberJune 30, 2017 compared2023 was primarily attributable to net investment income related to interest income from our debt and short-term investment portfolio of $137.5 million. Increased dividend and investment income is due to the three and nine months ended September 30, 2016 was primarily due to an increase in our annual incentive plan compensation expense, partially offset by lower stock compensation expense as a result of most stock options granted to certain employees being fully vested. Our annual incentive plan is based on the Company’s return on average equity and we increased our accrual to reflect the performanceongoing re-positioning of the Company year-to-date.portfolio to focus on investing in high grade fixed income securities.
Other expenses
The increase in other expenses Total realized and unrealized investment losses and net investment loss for the three and nine months ended September 30, 2017 was primarily due to revised estimates of underlying assumptions on our deposit liability contracts in the three months ended SeptemberJune 30, 2016 that resulted in2022 was primarily attributable to a decrease in other expensesnet investment loss of $57.3 million from our investment in the prior year periods.
Corporate Function
The following table sets forth net income and the period over period changes for the Corporate Function for the three and nine months ended September 30, 2017 and 2016:
 Three months ended Nine months ended
 September 30,
2017		 September 30,
2016		 Change September 30,
2017		 September 30,
2016		 Change
 ($ in thousands)
Net investment income on capital$62,437
 $66,325
 $(3,888) $230,946
 $101,724
 $129,222
General and administrative expenses(5,927) (5,974) 47
 (15,552) (14,358) (1,194)
Interest expense(2,074) (2,069) (5) (6,151) (6,163) 12
Foreign exchange gains (losses)(5,437) 3,905
 (9,342) (10,233) 14,359
 (24,592)
Income tax expense(3,475) (2,484) (991) (14,080) (5,865) (8,215)
Segment loss attributable to noncontrolling interests(959) (967) 8
 (3,160) (1,473) (1,687)
Segment income$44,565
 $58,736
 $(14,171) $181,770
 $88,224
 $93,546

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Investment Results
The primary driver of our net investment income is the returns generatedTP Enhanced Fund, corresponding to a (12.5)% return driven by our investment portfolio managed by our investment manager, Third Point LLC. The following is a summary of the net investment return on investments managed by Third Point LLC by investment strategy for the three and nine months ended September 30, 2017 and 2016:
 Three months ended
 September 30, 2017 September 30, 2016
 Long Short Net Long Short Net
Equity3.5% (0.9)% 2.6% 4.1% (2.2)% 1.9 %
Credit0.5% (0.1)% 0.4% 2.1% (0.1)% 2.0 %
Other0.9% (0.3)% 0.6% 0.2% (0.1)% 0.1 %
Net investment return on investments managed by Third Point LLC
4.9% (1.3)% 3.6% 6.4% (2.4)% 4.0 %
            
S&P 500 Total Return Index    4.5%     3.9 %
            
 Nine months ended
 September 30, 2017 September 30, 2016
 Long Short Net Long Short Net
Long/short equities16.8% (3.0)% 13.8% 3.8% (2.5)% 1.3 %
Credit0.6% (0.5)% 0.1% 6.5% (0.7)% 5.8 %
Other1.9% (1.2)% 0.7% 0.1% (1.2)% (1.1)%
Net investment return on investments managed by Third Point LLC19.3% (4.7)% 14.6% 10.4% (4.4)% 6.0 %
            
S&P 500 Total Return Index    14.2%     7.8 %
For the three months ended September 30, 2017, the investment portfolio generated positive net returns from each investment strategy with equities remaining the strongest performing strategy for the quarter.  Gains generateddetraction from long investments in every sector except consumerevent/fundamental equities; credit, including corporate credit and asset-backed securities; and from late stage private positions. These losses were partially offset by contribution from interest rate hedges and single name short equity positions. In addition to losses inon the shortTP Enhanced Fund, we recognized losses of $58.0 million, or (1.8)%, on our debt securities and $0.9 million, or (0.5)%, on our equity securities and other long-term investment portfolios, primarily due to rising interest rates and to a lesser extent foreign currency movements and widening credit spreads. Our fixed income portfolio is positioned shorter than liabilities.
Total realized and unrealized investment losses and net investment loss for most sectors as well as market hedges.  Performancethe six months ended June 30, 2022 was primarily attributable to long activist or long-term growth investmentsa net investment loss of $185.6 million from our investment in the industrials, healthcare and technology, media and telecommunications sectors.  Within credit, long sovereign investments in Latin America and U.S.-based structured credit positions drove gains.  Exposure in the other strategy remains modest and positive returnsTP Enhanced Fund, corresponding to a (25.9)% return driven by a detraction from long risk arbitrage, currency,event/fundamental equities; credit, including corporate credit and asset-backed securities; and from late stage private and macroeconomic portfoliospositions. These losses were partially offset by contribution from interest rate hedges and single name short equity positions. In addition to losses inon the corresponding short portfolios.
For the nine months ended September 30, 2017, the net investment results were primarily attributable toTP Enhanced Fund, we recognized losses of $117.3 million, or (3.6)%, on our debt securities and $2.0 million, or (0.6)%, on our equity portfolio. Within equities, the investment account saw positive net returns from every sector led by healthcare, industrials, consumer and technology, media and telecommunications. The long portfolio added meaningful returns while the short portfolio generated alpha amidst a strong broader market backdrop. Within credit, gains in each sub-strategy on the long side were partially offset by negative performance by the short performing credit book. Positive returns from risk arbitrage, private and currency investments negated modest detraction from macroeconomic hedges in the other strategy.
For the three months ended September 30, 2016, we generated positive performance in each of our investment strategies. Within equities, we generated positive returns within each long equity sub-sector/strategy, with consumer and technology, media and telecommunications being notable performers. The gains in our long equity portfolio were partially offset by losses in our short equity positions, including equity hedges. Within our credit strategy, performing credit was the primary contributor to the positive returns for the quarter. The macrosecurities and other strategy also contributed modestly to returns.
For the nine months ended September 30, 2016, we generated positive results despite a volatile market environment.
Within equities, positive performance within our long equity portfolio was reduced by losses from one long equity

66


healthcare position. The net gains in our long equity portfolio were partially offset by losses in our short equity positions, including equity hedges. Within credit, our sovereign and performing creditlong-term investment portfolios, contributed positive performance with positions traded within the energy sector driving performing credit and one sovereign position contributing significantly to returns for the year to date period. The macro and other category reduced returns for the nine months ended September 30, 2016 primarily due to negative performance from severalrising interest rates and to a lesser extent foreign currency movements and portfolio macroeconomic hedges.widening credit spreads.
Based on management’s view and expectation, the Company has targeted that it will achieve between $220 million and $240 million of net investment income for the full year 2023.
Refer to “ITEMPart I, Item 3. Quantitative“Quantitative and Qualitative Disclosures about Market Risks”Risks” of this Form 10-Q for a listdiscussion of certain risks and factors that could adversely impact our investments results.
General

48

Other Revenues
For the three months ended June 30, 2023, other revenues primarily consisted of a loss of $19.1 million from the change in fair value of liability-classified capital instruments from the increase in the Company’s common share price and Administrative$22.4 million of service fee revenue from MGAs. For the three months ended June 30, 2022, other revenues consisted of a gain of $25.3 million from the change in fair value of liability-classified capital instruments and $19.9 million of service fee revenue from MGAs. The decrease is driven by the loss from the change in fair value of liability-classified capital instruments due to the increase in the Company’s common share price, partially offset by an increase in service fee revenue primarily due to higher services fee revenue from International Medical Group, Inc. (“IMG”) from improved market conditions.
For the six months ended June 30, 2023, other revenues primarily consisted of $51.9 million of service fee revenue from MGAs and a gain of $4.5 million from the sale of renewal rights of our environmental business, partially offset by a loss of $44.1 million from the change in fair value of liability-classified capital instruments. For the six months ended June 30, 2022, other revenues consisted of $45.9 million of service fee revenue from MGAs and a gain of $37.2 million from the change in fair value of liability-classified capital instruments. The decrease in other revenues is driven by the loss from the change in fair value of liability-classified capital instruments due to the increase in the Company’s common share price, partially offset by an increase in service fee revenue primarily resulting from IMG from improved market conditions.
Net Corporate and Other Expenses
GeneralNet corporate and administrativeother expenses include services expenses, costs associated with operating as a publicly-traded company, non-underwriting activities, including service fee expenses from our MGA subsidiaries, restructuring charges, and current expected credit losses from our insurance and reinsurance balances receivable and loss and loss adjustment expenses recoverable.
The decrease in Net corporate and other expenses for the three months ended June 30, 2023 compared to the three months ended June 30, 2022 was primarily driven by the reclassification of certain compensation costs, including compensation expenses, previously included in Net corporate and other expense into Other underwriting expense. For the three months ended June 30, 2023, $9.3 million of costs were included in Other underwriting expenses that were previously included in Net corporate and other expenses in the three months ended June 30, 2022. This change in estimate was based in part on an assessment of the amount of time certain employees spend on underwriting-related activities versus other activities for 2023, which resulted in additional overhead expenses being allocated to Other underwriting expenses and less to Net corporate activitiesand other expenses. The decrease was partially offset by restructuring charges of $8.8 million incurred for the three months ended June 30, 2023, which include allocationsseverance-related charges, compared to $11.7 million of payroll and related costs for certain executives and non-underwriting staff. We also allocate a portion of overheadseverance and other related costs based on a headcount analysis. The increase in general and administrative expenses related to corporate activitiescharges for the ninethree months ended SeptemberJune 30, 2017 2022. In addition, the Company incurred $6.7 million of costs associated with the 2023 LPT and the Indication of Interest in the three months ended June 30, 2023.
The decrease in Net corporate and other expenses for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 was primarily driven by the reclassifications addressed above. For the six months ended June 30, 2023, $18.9 million of costs were included in Other underwriting expenses that were previously included in Net corporate and other expenses in the six months ended June 30, 2022. These amounts were offset by restructuring charges of $18.8 million, which include severance-related charges, for the six months ended June 30, 2023 compared to $12.6 million of severance and other related charges for the six months ended June 30, 2022. The Company expects that in total $25 million of restructuring charges will be incurred in 2023. In addition, the Company incurred $7.9 million of costs associated with the 2023 LPT and the Indication of Interest in the six months ended June 30, 2023.
Service fee expense increased to $50.0 million for the three months ended June 30, 2023 compared to $44.8 million for the three months ended June 30, 2022. For the six months ended June 30, 2023, service fee expense increased to $95.5 million compared to $88.1 million for the six months ended June 30, 2022. This was due to the increased service expenses from IMG for both periods.
For the three and six months ended June 30, 2023, we did not record a current expected credit loss as there was no significant change in the allowance from December 31, 2022. For the three and six months ended June 30, 2022, we recorded a current expected credit (gain) loss of $(1.8) million and $10.7 million, respectively. The current expected credit loss for the six months ended June 30, 2022 was primarily due to an increasecredit exposure to Russian (re)insurers and cedents and downgrades of certain Florida catastrophe exposed insurers.

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Amortization of Intangible Assets
Amortization of intangible assets for the three and six months ended June 30, 2023 was $2.9 million and $5.3 million, respectively (2022 - $2.0 million and $3.9 million, respectively). The increases in our annual incentive plan compensation expense, partially offset by lower stock compensation expense inamortization were due to the current year period and separation costs in the prior year period. Our annual incentive plan isuse of amortization patterns which are based on the Company’s return on average equity and we increased our accrualperiod over which they are expected to reflectgenerate future net cash inflows from the performanceuse of the Company year-to-date.underlying intangible assets.
Interest Expense
In February 2015, TPRUSA issued $115.0Interest expense and finance costs are related to interest due on our senior and subordinated notes as well as interest associated with certain reinsurance contracts. Total interest expense for the three and six months ended June 30, 2023 was $11.7 million and $24.5 million, respectively (2022 - $9.4 million and $18.7 million, respectively). The increases in interest expense were due to the increased variable rate on the 2017 SEK Subordinated Notes.
Foreign Currency Translation
Except forthe Canadian reinsurance operations of senior notes bearing 7.0% interest. As a result, ourSiriusPoint America and certain subsidiaries of IMG, the U.S. dollar is the functional currency for SiriusPoint’s business. Assets and liabilities are remeasured into the functional currency using current exchange rates; revenues and expenses are remeasured into the functional currency using the average exchange rate for the period. The remeasurement process results in foreign exchange gains (losses) in the consolidated results of operations include interest expense.operations. Foreign exchange (gains) losses exclude investment generated net realized and unrealized investment gains (losses) as addressed in Investment Results above.
Foreign Exchange Gains (Losses)
The foreign exchange losses of $17.4 million for the three months ended June 30, 2023 were primarily due to $16.5 million of foreign exchange losses from our international operations and net losses $0.9 million of foreign currency losses on the 2017 SEK Subordinated Notes and a swap designed to minimize currency exposure on the notes as a result of the weakening of the Swedish Krona relative to the U.S. dollar.
The foreign exchange losses of $17.5 million for the six months ended June 30, 2023 were primarily due to $16.5 million of foreign exchange gains from our international operations which were offset by $1.0 million of foreign currency losses on the 2017 SEK Subordinated Notes, as a result of the weakening of the Swedish Krona relative to the U.S. dollar.
The foreign exchange gains of $56.5 million for the three months ended June 30, 2022 were primarily due to $85.4 million of foreign exchange gains from our international operations and the foreign currency effects of the 2017 SEK Subordinated Notes, as a result of the strengthening of the U.S. Dollar. These gains were partially offset by losses on foreign currency derivatives intended to reduce foreign currency exposure.
The foreign exchange gains of $75.9 million for the six months ended June 30, 2022 were primarily due to $112.0 million of foreign exchange gains from our international operations and the foreign currency effects of the 2017 SEK Subordinated Notes, as a result of the strengthening of the U.S. Dollar. These gains were partially offset by losses on foreign currency derivatives intended to reduce foreign currency exposure.
Additional foreign currency gains (losses) were recorded as part of the investments results. See Note 8 “Total realized and unrealized investment gains (losses) and net investment income” in our unaudited consolidated financial statements included elsewhere in this Form 10-Q.
On an aggregate basis, the effects of foreign exchange resulted in charges to net income of $7.4 million and comprehensive income of $7.0 million for the three months ended June 30, 2023 and charges to net income of $6.0 million and comprehensive income of $5.4 million for the six months ended June 30, 2023.
Income Tax Expense
Income tax expense for the three and ninesix months ended SeptemberJune 30, 20172023 compared to the foreign exchange gainsincome tax benefit for the three and ninesix months ended September June 30, 20162022 is due to increased underwriting and investment income.
Segment Results — Three and six months ended June 30, 2023 and 2022
The determination of our reportable segments is based on the manner in which management monitors the performance of our operations. We classify our business into two reportable segments - Reinsurance and Insurance & Services. Collectively, the sum of these two segments constitute “Core” results. Core underwriting income, Core net services income, Core income and

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Core combined ratio are non-GAAP financial measures. We believe it is useful to review Core results as it better reflects how management views the business and reflects our decision to exit the runoff business. The sum of Core results and Corporate results are equal to the consolidated results of operations.
Corporate includes the results of all runoff business, which represent certain classes of business that we no longer actively underwrite, including those that have asbestos and environmental and other latent liability exposures and certain reinsurance contracts that have interest crediting features.
The following tables set forth the operating segment results and ratios for the three months ended June 30, 2023 and 2022:
Three months ended June 30, 2023
ReinsuranceInsurance & ServicesCore
Eliminations (2)
CorporateSegment Measure ReclassTotal
($ in millions)
Gross premiums written
$387.1 $462.7 $849.8 $— $37.3 $— $887.1 
Net premiums written341.3 291.6 632.9 — 37.3 — 670.2 
Net premiums earned320.7 339.6 660.3 — 43.5 — 703.8 
Loss and loss adjustment expenses incurred, net167.0 227.7 394.7 (1.5)13.8 — 407.0 
Acquisition costs, net62.4 84.0 146.4 (35.9)15.7 — 126.2 
Other underwriting expenses12.0 25.5 37.5 — 5.8 — 43.3 
Underwriting income79.3 2.4 81.7 37.4 8.2 — 127.3 
Services revenues(2.8)62.2 59.4 (37.0)— (22.4)— 
Services expenses— 50.0 50.0 — — (50.0)— 
Net services fee income (loss)(2.8)12.2 9.4 (37.0)— 27.6 — 
Services noncontrolling income— (1.7)(1.7)— — 1.7 — 
Net investment losses from Strategic Investments— (4.1)(4.1)— — 4.1 — 
Net services income (loss)(2.8)6.4 3.6 (37.0)— 33.4 — 
Segment income$76.5 $8.8 $85.3 $0.4 $8.2 $33.4 $127.3 
Underwriting Ratios: (1)
Loss ratio52.1 %67.0 %59.8 %57.8 %
Acquisition cost ratio19.5 %24.7 %22.2 %17.9 %
Other underwriting expenses ratio3.7 %7.5 %5.7 %6.2 %
Combined ratio
75.3 %99.2 %87.7 %81.9 %
(1)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
(2)Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards.

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Three months ended June 30, 2022
ReinsuranceInsurance & ServicesCore
Eliminations (2)
CorporateSegment Measure ReclassTotal
($ in millions)
Gross premiums written
$378.3 $433.9 $812.2 $— $0.4 $— $812.6 
Net premiums written321.5 301.4 622.9 — 0.1 — 623.0 
Net premiums earned319.5 244.3 563.8 — 5.0 — 568.8 
Loss and loss adjustment expenses incurred, net204.7 154.8 359.5 (1.1)1.9 — 360.3 
Acquisition costs, net86.3 63.9 150.2 (26.8)0.2 — 123.6 
Other underwriting expenses28.7 15.8 44.5 — 1.6 — 46.1 
Underwriting income (loss)(0.2)9.8 9.6 27.9 1.3 — 38.8 
Services revenues— 56.6 56.6 (36.7)— (19.9)— 
Services expenses— 44.8 44.8 — — (44.8)— 
Net services fee income— 11.8 11.8 (36.7)— 24.9 — 
Services noncontrolling income— (0.7)(0.7)— — 0.7 — 
Net investment losses from Strategic Investments— (0.5)(0.5)— — 0.5 — 
Net services income— 10.6 10.6 (36.7)— 26.1 — 
Segment income (loss)$(0.2)$20.4 $20.2 $(8.8)$1.3 $26.1 $38.8 
Underwriting Ratios: (1)
Loss ratio64.1 %63.4 %63.8 %63.3 %
Acquisition cost ratio27.0 %26.2 %26.6 %21.7 %
Other underwriting expenses ratio9.0 %6.5 %7.9 %8.1 %
Combined ratio
100.1 %96.1 %98.3 %93.1 %
(1)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
(2)Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards.
Core Premium Volume
Gross premiums written increased by $37.6 million, or 4.6%, for the three months ended June 30, 2023 compared to the three months ended June 30, 2022. Net premiums written increased by $10.0 million, or 1.6%, for the three months ended June 30, 2023 compared to the three months ended June 30, 2022. Net premiums earned increased by $96.5 million, or 17.1%, for the three months ended June 30, 2023 compared to the three months ended June 30, 2022. The increases in premium volume were primarily a result of growth across Insurance & Services, including growth in premiums from strategic partnerships, as well as growth in the property and casualty lines of business in the North America reinsurance business. The Company will continue to prioritize underwriting profitability over premium growth as we look to improve return on average common shareholders’ equity attributable to SiriusPoint common shareholders and other key performance indicators. SiriusPoint measures premium rate change in its premium renewals at June 1 and July 1, as these are both important renewal dates. At July 1, 2023, the Company experienced positive premium rate increases with an average rate change at around 7% across our renewal portfolio, mainly driven by around 30% rate increases in the US Property portfolio. As part of the remediation of the international property catastrophe book, we continued exiting businesses consistent with our desire to manage our PML and market share.
Core Underwriting Results
The improvement in net underwriting results was primarily duedriven by increased favorable prior year loss reserve development, lower catastrophe losses and favorable expense ratios (both commission and other underwriting expense ratios), which results in a higher underwriting gain.

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Losses incurred included $25.2 million of favorable prior year loss reserve development for the three months ended June 30, 2023, compared to $1.5 million for the revaluationthree months ended June 30, 2022. For the three months ended June 30, 2023, favorable prior year loss reserve development was driven by decreases in the domestic and international property and casualty lines of foreign currencybusiness in the Reinsurance segment, partially offset by loss emergence in the property and casualty business lines in the Insurance & Service segment. This increase in favorable prior year loss reserve development was primarily the result of management reflecting the continued favorable reported loss emergence through June 30, 2023 in its best estimate of reserves, which was further validated by the pricing of the 2023 LPT from external reinsurers, in addition to a reduction in unallocated loss adjustment expense reserves denominated in British pounds intorelated to the United States dollar, which had strengthened duringclaims that will no longer be managed by SiriusPoint under the prior year periodterms of the 2023 LPT.
For the three months ended June 30, 2023, there were no significant catastrophe losses compared to $16.2 million, or 2.9 percentage points on the combined ratio, for the three months ended June 30, 2022.
Core Services Results
Services revenues was $59.4 million for the three months ended June 30, 2023 compared to $56.6 million for the current year period. For these contracts, non-U.S. dollar reinsurance assets, or balances held in trust accounts securing reinsurance liabilities generally offset reinsurance liabilities in the same non-U.S. dollar currencies resulting in minimal net exposure. As a result, the foreign exchange losses on loss and loss adjustment expense reserves in the period are offset by corresponding foreign exchange gains included in net investment income resulting from the revaluation of foreign currency reinsurance collateral held in trust accounts. Refer to “ITEM 3. Quantitative and Qualitative Disclosures about Market Risks” for further discussion on foreign currency risk related to our reinsurance contracts.
Income Taxes
See Note 13 to our condensed consolidated financial statements for additional information regarding income taxes.three months ended June 30, 2022. The increase in income tax expense for the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016 was primarily due to higher taxableservices revenues in IMG from increased demand for travel insurance products and services, as well as continued growth in Arcadian Risk Capital Ltd. (“Arcadian”).
For the three months ended June 30, 2023, net services fee income decreased to $9.4 million compared to net services fee income of $11.8 million for the three months ended June 30, 2022 primarily due to increased services expenses from IMG and lower income from weather derivatives. Service margin, which is calculated as Net service fee income as a percentage of services revenues, decreased to 15.8% for the three months ended June 30, 2023 from 20.8% for the three months ended June 30, 2022.
We generated net services income of $3.6 million for the three months ended June 30, 2023, compared to net services income of $10.6 million for the three months ended June 30, 2022. Net services income for the three months ended June 30, 2023 included net investment losses from Strategic Investments of $4.1 million compared to losses of $0.5 million for the three months ended June 30, 2022.

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The following tables set forth the operating segment results and ratios for the six months ended June 30, 2023 and 2022:
Six months ended June 30, 2023
ReinsuranceInsurance & ServicesCore
Eliminations (2)
CorporateSegment Measure ReclassTotal
($ in millions)
Gross premiums written
$783.3 $1,126.7 $1,910.0 $— $87.6 $— $1,997.6 
Net premiums written652.3 744.2 1,396.5 — 65.4 — 1,461.9 
Net premiums earned580.2 630.8 1,211.0 — 88.3 — 1,299.3 
Loss and loss adjustment expenses incurred, net252.6 400.2 652.8 (2.8)24.1 — 674.1 
Acquisition costs, net128.4 155.7 284.1 (68.4)30.2 — 245.9 
Other underwriting expenses40.2 44.8 85.0 — 10.5 — 95.5 
Underwriting income159.0 30.1 189.1 71.2 23.5 — 283.8 
Services revenues(2.6)125.8 123.2 (71.3)— (51.9)— 
Services expenses— 95.5 95.5 — — (95.5)— 
Net services income (loss)(2.6)30.3 27.7 (71.3)— 43.6 — 
Services noncontrolling income— (3.3)(3.3)— — 3.3 — 
Net investment losses from Strategic Investments— (8.0)(8.0)— — 8.0 — 
Net services income (loss)(2.6)19.0 16.4 (71.3)— 54.9 — 
Segment income$156.4 $49.1 $205.5 $(0.1)$23.5 $54.9 $283.8 
Underwriting Ratios: (1)
Loss ratio43.5 %63.4 %53.9 %51.9 %
Acquisition cost ratio22.1 %24.7 %23.5 %18.9 %
Other underwriting expenses ratio6.9 %7.1 %7.0 %7.4 %
Combined ratio
72.5 %95.2 %84.4 %78.2 %
(1)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
(2)Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards.

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Six months ended June 30, 2022
ReinsuranceInsurance & ServicesCore
Eliminations (2)
CorporateSegment Measure ReclassTotal
($ in millions)
Gross premiums written
$902.5 $917.4 $1,819.9 $— $2.4 $— $1,822.3 
Net premiums written696.4 638.9 1,335.3 — 1.6 — 1,336.9 
Net premiums earned627.1 457.1 1,084.2 — 13.9 — 1,098.1 
Loss and loss adjustment expenses incurred, net399.2 288.8 688.0 (2.3)14.7 — 700.4 
Acquisition costs, net166.2 117.4 283.6 (52.4)0.9 — 232.1 
Other underwriting expenses58.8 31.5 90.3 — 3.0 — 93.3 
Underwriting income (loss)2.9 19.4 22.3 54.7 (4.7)— 72.3 
Services revenues— 113.4 113.4 (67.5)— (45.9)— 
Services expenses— 88.1 88.1 — — (88.1)— 
Net services fee income— 25.3 25.3 (67.5)— 42.2 — 
Services noncontrolling loss— 0.1 0.1 — — (0.1)— 
Net investment losses from Strategic Investments— (0.8)(0.8)— — 0.8 — 
Net services income— 24.6 24.6 (67.5)— 42.9 — 
Segment income (loss)$2.9 $44.0 $46.9 $(12.8)$(4.7)$42.9 $72.3 
Underwriting Ratios: (1)
Loss ratio63.7 %63.2 %63.5 %63.8 %
Acquisition cost ratio26.5 %25.7 %26.2 %21.1 %
Other underwriting expenses ratio9.4 %6.9 %8.3 %8.5 %
Combined ratio
99.6 %95.8 %98.0 %93.4 %
(1)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
(2)Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards.
Core Premium Volume
Gross premiums written increased by $90.1 million, or 5.0%, for the six months ended June 30, 2023 compared to the six months ended June 30, 2022. Net premiums written increased by $61.2 million, or 4.6%, for the six months ended June 30, 2023 compared to the six months ended June 30, 2022. Net premiums earned increased by $126.8 million, or 11.7%, for the six months ended June 30, 2023 compared to the six months ended June 30, 2022. The increases in premium volume were primarily driven by growth across Insurance & Services, including growth in premiums from strategic partnerships, partially offset by a decrease in the Reinsurance segment as we execute the Restructuring Plan.
Core Underwriting Results
We generated underwriting income of $189.1 million and a combined ratio of 84.4% for the six months ended June 30, 2023, compared to underwriting income of $22.3 million and a combined ratio of 98.0% for the six months ended June 30, 2022. The improvement in net underwriting results was primarily driven by favorable prior year loss reserve development, lower catastrophe losses, and favorable expense ratios (both commission and other underwriting expense ratios), which results in a higher underwriting gain.
For the six months ended June 30, 2023, catastrophe losses, net of reinsurance and reinstatement premiums, were $7.0 million, or 0.6 percentage points on the combined ratio, compared to $23.1 million, or 2.1 percentage points on the combined ratiofor the six months ended June 30, 2022. For the six months ended June 30, 2022, losses from the Russia/Ukraine conflict, including losses from the political risk, trade credit, and aviation lines of business, were $13.2 million, or 1.2 percentage points on the combined ratio.

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Losses incurred included $117.1 million of favorable loss reserve development for the six months ended June 30, 2023 compared to favorable loss reserve development of $6.5 million for the six months ended June 30, 2022. This increase in favorable prior year loss reserve development was primarily the result of management reflecting the continued favorable reported loss emergence through June 30, 2023 in its best estimate of reserves, which was further validated by the pricing of the 2023 LPT from external reinsurers, in addition to a reduction in unallocated loss adjustment expense reserves related to the claims that will no longer be managed by SiriusPoint under the terms of the 2023 LPT.
Core Services Results
Services revenues was $123.2 million for the six months ended June 30, 2023 compared to $113.4 million for the six months ended June 30, 2022. The increase was primarily due to higher services revenues in IMG from increased demand for travel insurance products and services, as well as continued growth in Arcadian.
For the six months ended June 30, 2023, net services fee income increased to $27.7 million from $25.3 million for the six months ended June 30, 2022 primarily due to increased services revenues from IMG and Arcadian for the six months ended June 30, 2023. Service margin, which is calculated as net service fee income as a percentage of services revenues, remained stable at 22.5% for the six months ended June 30, 2023 compared six months ended June 30, 2022.
We recognized net services income of $16.4 million for the six months ended June 30, 2023, compared to $24.6 million for the six months ended June 30, 2022. Net services income for the six months ended June 30, 2023 included net investment losses from Strategic Investments of $8.0 million compared to losses of $0.8 million for the six months ended June 30, 2022.
Reinsurance Segment
Reinsurance consists of our underwriting lines of business which offer Aviation & Space, Casualty, Contingency, Credit & Bond, Marine & Energy, Mortgage, and Property on a worldwide basis. The following table sets forth underwriting results and ratios, and the period over period changes for the Reinsurance segment, for the three and six months ended June 30, 2023 and 2022:
Three months endedSix months ended
June 30, 2023June 30, 2022ChangeJune 30, 2023June 30, 2022Change
($ in millions)
Gross premiums written$387.1 $378.3 $8.8 $783.3 $902.5 $(119.2)
Net premiums written341.3 321.5 19.8 652.3 696.4 (44.1)
Net premiums earned320.7 319.5 1.2 580.2 627.1 (46.9)
Loss and loss adjustment expenses incurred, net167.0 204.7 (37.7)252.6 399.2 (146.6)
Acquisition costs, net62.4 86.3 (23.9)128.4 166.2 (37.8)
Other underwriting expenses12.0 28.7 (16.7)40.2 58.8 (18.6)
Underwriting income (loss)79.3 (0.2)79.5 159.0 2.9 156.1 
Services revenues(2.8)— (2.8)(2.6)— (2.6)
Net services loss(2.8)— (2.8)(2.6)— (2.6)
Segment income (loss)$76.5 $(0.2)$76.7 $156.4 $2.9 $153.5 
Underwriting ratios: (1)
Loss ratio52.1 %64.1 %(12.0)%43.5 %63.7 %(20.2)%
Acquisition cost ratio19.5 %27.0 %(7.5)%22.1 %26.5 %(4.4)%
Other underwriting expense ratio3.7 %9.0 %(5.3)%6.9 %9.4 %(2.5)%
Combined ratio75.3 %100.1 %(24.8)%72.5 %99.6 %(27.1)%
(1)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
Premium Volume
Gross premiums written in the Reinsurance segment increased by $8.8 million, or 2.3%, for the three months ended June 30, 2023 compared to the three months ended June 30, 2022, as the North America reinsurance business experienced growth in

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the property and casualty lines of business. This was partially offset by lower premiums written in International reinsurance, primarily in the property lines, as we execute the Restructuring Plan.
Gross premiums written in the Reinsurance segment decreased by $119.2 million, or 13.2%, for the six months ended June 30, 2023 compared to the six months ended June 30, 2022, driven by lower premiums written in International reinsurance, primarily in the property lines, as we execute the Restructuring Plan.
Underwriting Results
The increase in net underwriting results for the three months ended June 30, 2023, compared to the three months ended June 30, 2022,was primarily due to increased favorable prior year loss reserve development and lower catastrophe losses. Favorable prior year loss reserve development was $25.9 million for the three months ended June 30, 2023 compared to adverse development of $4.6 million for the three months ended June 30, 2022. The favorable prior year loss reserve development for three months ended June 30, 2023 was primarily the result of management reflecting the continued favorable reported loss emergence through June 30, 2023 in its best estimate of reserves, which was further validated by the pricing of the 2023 LPT from external reinsurers, in addition to a reduction in unallocated loss adjustment expense reserves related to the claims that will no longer be managed by SiriusPoint under the terms of the 2023 LPT.
The increase in net underwriting results for the six months ended June 30, 2023, compared to the six months ended June 30, 2022, was due primarily to higher favorable loss reserve development and lower catastrophe losses. Net favorable prior year loss reserve development was $100.5 million for the six months ended June 30, 2023 compared to net adverse prior year loss reserve development of $4.5 million for the six months ended June 30, 2022. The favorable loss reserve development for the six months ended June 30, 2023 was primarily the result of management reflecting the continued favorable reported loss emergence through June 30, 2023 in its best estimate of reserves, which was further validated by the pricing of the 2023 LPT from external reinsurers, in addition to a reduction in unallocated loss adjustment expense reserves related to the claims that will no longer be managed by SiriusPoint under the terms of the 2023 LPT.
For the three months ended June 30, 2023, there were no significant catastrophe losses compared to $16.2 million, for the three months ended June 30, 2022. For the six months ended June 30, 2023, catastrophe losses, net of reinsurance and reinstatement premiums, were $6.0 million, compared to $23.1 million for the six months ended June 30, 2022.
Insurance & Services Segment
Insurance & Services offers a comprehensive set of services for startup MGAs and insurance services companies including risk capital and equity and debt financing. Furthermore, we offer expertise in underwriting, pricing and product development to businesses with whom we partner. The Insurance & Services segment predominantly provides insurance coverage in addition to receiving fees for services provided within Insurance & Services and to third parties. The Insurance & Services segment provides coverage in the following product lines: A&H (including business generated by IMG and Armada), Environmental, Workers' Compensation, and other lines of business including a cross section of property and casualty lines. At June 30, 2023, we had equity stakes in 33 entities (MGA, Insurtech and Other) which underwrite or distribute a wide range of lines of business, including workers’ compensation, general liability, professional liability, directors & offices, credit and bond, cyber, commercial automobile, accident & health, and other specialty insurance classes. We consolidate five MGAs in our U.S. subsidiaries.

financial statements: Arcadian Risk Capital Ltd. (“Arcadian”), ArmadaCorp Capital, LLC (“Armada”), Alta Signa Holdings (“Alta Signa”), Banyan Risk Ltd. (“Banyan Risk”) and International Medical Group, Inc. (“IMG”). Of the remaining investments, we provide underwriting capacity in the form of insurance or reinsurance to 18 MGAs, while 10 are equity investments only.
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The following table sets forth underwriting results, net MGA results, and ratios for the segment results, and the period over period changes, for the three and six months ended June 30, 2023 and 2022:
Three months endedSix months ended
June 30, 2023June 30, 2022ChangeJune 30, 2023June 30, 2022Change
($ in millions)
Gross premiums written$462.7 $433.9 $28.8 $1,126.7 $917.4 $209.3 
Net premiums written291.6 301.4 (9.8)744.2 638.9 105.3 
Net premiums earned339.6 244.3 95.3 630.8 457.1 173.7 
Loss and loss adjustment expenses incurred, net227.7 154.8 72.9 400.2 288.8 111.4 
Acquisition costs, net84.0 63.9 20.1 155.7 117.4 38.3 
Other underwriting expenses25.5 15.8 9.7 44.8 31.5 13.3 
Underwriting income2.4 9.8 (7.4)30.1 19.4 10.7 
Services revenues62.2 56.6 5.6 125.8 113.4 12.4 
Services expenses50.0 44.8 5.2 95.5 88.1 7.4 
Net services fee income12.2 11.8 0.4 30.3 25.3 5.0 
Services noncontrolling (income) loss(1.7)(0.7)(1.0)(3.3)0.1 (3.4)
Net investment losses from Strategic Investments(4.1)(0.5)(3.6)(8.0)(0.8)(7.2)
Net services income6.4 10.6 (4.2)19.0 24.6 (5.6)
Segment income$8.8 $20.4 $(11.6)$49.1 $44.0 $5.1 
Underwriting ratios: (1)
Loss ratio67.0 %63.4 %3.6 %63.4 %63.2 %0.2 %
Acquisition cost ratio24.7 %26.2 %(1.5)%24.7 %25.7 %(1.0)%
Other underwriting expense ratio7.5 %6.5 %1.0 %7.1 %6.9 %0.2 %
Combined ratio99.2 %96.1 %3.1 %95.2 %95.8 %(0.6)%
(1)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
Premium Volume
Gross premiums written increased by $28.8 million, or 6.6%, for the three months ended June 30, 2023 compared to the three months ended June 30, 2022, primarily driven by growth across Insurance & Services, including growth in premiums from strategic partnerships, mainly Arcadian.
Gross premiums written increased by $209.3 million, or 22.8%, for the six months ended June 30, 2023 compared to the six months ended June 30, 2022, primarily driven by growth across Insurance & Services, including growth in premiums from strategic partnerships, mainly Arcadian and Corvus Insurance, and A&H.
Consolidated MGAs
Gross premiums written generated by the consolidated MGAs in the aggregate increased by $16.2 million, or 10.5%, to $170.3 million for the three months ended June 30, 2023 compared to $154.0 million for the three months ended June 30, 2022, primarily driven by increases in Arcadian.
Gross premiums written generated by the consolidated MGAs in the aggregate increased by $36.8 million, or 11.1%, to $368.4 million for the six months ended June 30, 2023 compared to $331.6 million for the six months ended June 30, 2022, primarily driven by increases in IMG.
Book value for the consolidated MGAs was $90.8 million as of June 30, 2023, compared to $85 million at December 31, 2022.

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Underwriting Results
The decrease in underwriting income of $7.4 million for the three months ended June 30, 2023 compared to the three months ended June 30, 2022 was primarily due to decreased favorable prior year loss reserve development. Net adverse prior year loss reserve development was $0.7 million for the three months ended June 30, 2023, compared to net favorable prior year loss reserve development of $6.1 million for the three months ended June 30, 2022. The adverse prior year loss reserve development was primarily the result of loss emergence from certain strategic partnerships.
The improvement in underwriting income of $10.7 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 was primarily driven by the increased favorable prior loss reserve development. Net favorable prior year loss reserve development was $16.6 million for the six months ended June 30, 2023, compared to favorable prior year loss reserve development of $11.0 million for the six months ended June 30, 2022, which was primarily driven by better than expected reported loss emergence in A&H.
Services Results
The increase in services revenues of $5.6 million for the three months ended June 30, 2023 compared to the three months ended June 30, 2022 was primarily due to higher services revenues in IMG from increased demand for its travel products and services, as well as continued growth in Arcadian.
The increase in services revenues of $12.4 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 was primarily due to higher services revenues in IMG from increased demand for its travel products and services, as well as continued growth in Arcadian.
The decrease in net services income of $4.2 million for the three months ended June 30, 2023 compared to the three months ended June 30, 2022 was primarily due to net investment losses from Strategic Investments of $4.1 million compared to $0.5 million for the three months ended June 30, 2022.
The decrease in net services income of $5.6 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 was primarily due to net investment losses from Strategic Investments of $8.0 million compared to $0.8 million for the six months ended June 30, 2022, partially offset by higher margins achieved in our IMG business for the six months ended June 30, 2023.
Corporate
Corporate includes the results of all runoff business, which represent certain classes of business that we no longer actively underwrite, including those that have asbestos and environmental and other latent liability exposures and certain reinsurance contracts that have interest crediting features. The following table sets forth underwriting results and the period over period changes for the three and six months ended June 30, 2023 and 2022:
Three months endedSix months ended
June 30, 2023June 30, 2022ChangeJune 30, 2023June 30, 2022Change
($ in millions)
Gross premiums written$37.3 $0.4 $36.9 $87.6 $2.4 $85.2 
Net premiums written37.3 0.1 37.2 65.4 1.6 63.8 
Net premiums earned43.5 5.0 38.5 88.3 13.9 74.4 
Loss and loss adjustment expenses incurred, net13.8 1.9 11.9 24.1 14.7 9.4 
Acquisition costs, net15.7 0.2 15.5 30.2 0.9 29.3 
Other underwriting expenses5.8 1.6 4.2 10.5 3.0 7.5 
Underwriting income (loss)$8.2 $1.3 $6.9 $23.5 $(4.7)$28.2 
Corporate results include the effect of certain business lines no longer actively written due to the Restructuring Plan. Underwriting income for the three months ended June 30, 2023 is primarily due to favorable prior year loss reserve development of $7.8 million, which was primarily the result of management reflecting the continued favorable reported loss emergence through June 30, 2023 in its best estimate of reserves, which was further validated by the pricing of the 2023 LPT from external reinsurers, in addition to a reduction in unallocated loss adjustment expense reserves related to the claims that will no longer be managed by SiriusPoint under the terms of the 2023 LPT.

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Underwriting income for the six months ended June 30, 2023 is primarily due to favorable loss reserve development of $21.3 million, due to management reflecting the continued favorable reported loss emergence through June 30, 2023 in its best estimate of reserves, which was further validated by the pricing of the 2023 LPT from external reinsurers, in addition to a reduction in unallocated loss adjustment expense reserves related to the claims that will no longer be managed by SiriusPoint under the terms of the 2023 LPT, compared to an underwriting loss for the six months ended June 30, 2022 reflecting losses from the Russian/Ukraine conflict, including losses from the property lines of business, of $5.3 million.
Non-GAAP Financial Measures
We have included certain financial measures that are not calculated under standards or rules that comprise U.S. GAAP. Such measures, including Core underwriting income, Core net services income, Core income, Core combined ratio, accident year loss ratio, accident year combined ratio, attritional loss ratio and tangible book value per diluted common share, are referred to as non-GAAP financial measures. These non-GAAP financial measures may be defined or calculated differently by other companies. We believe these measures allow for a more complete understanding of our underlying business. These measures are used by management to monitor our results and should not be viewed as a substitute for those determined in accordance with U.S. GAAP. Reconciliations of non-GAAP measures to the most comparable U.S. GAAP measures are included below.
Core Results
Collectively, the sum of the Company's two segments, Reinsurance and Insurance & Services, constitute "Core" results. Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. We believe it is useful to review Core results as it better reflects how management views the business and reflects our decision to exit the runoff business. The sum of Core results and Corporate results are equal to the consolidated results of operations.
Core underwriting income - calculated by subtracting loss and loss adjustment expenses incurred, net, acquisition costs, net, and other underwriting expenses from net premiums earned.
Core net services income - consists of services revenues which include commissions, brokerage and fee income related to consolidated MGAs, and other revenues, services expenses which include direct expenses related to consolidated MGAs, services noncontrolling income which represent minority ownership interests in consolidated MGAs, and net investment gains from Strategic Investments which are net investment gains/losses from investment in our strategic partners. Net services income is a key indicator of the profitability of the Company's services provided, including investment returns on non-consolidated investment positions held.
Core income - consists of two components, core underwriting income and core net services income. Core income is a key measure of our segment performance.
Core combined ratio - calculated by dividing the sum of Core loss and loss adjustment expenses incurred, net, acquisition costs, net and other underwriting expenses by Core net premiums earned. Accident year loss ratio and accident year combined ratio are calculated by excluding prior year loss reserve development to present the impact of current accident year net loss and loss adjustment expenses on the Core loss ratio and Core combined ratio, respectively. Attritional loss ratio excludes catastrophe losses from the accident year loss ratio as they are not predictable as to timing and amount. These ratios are useful indicators of our underwriting profitability.
See Note 4 “Segment reporting” to our unaudited consolidated financial statements included elsewhere in this Form 10-Q for additional information and a calculation of Core income (loss).
Tangible Book Value Per Diluted Common Share
Tangible book value per diluted common share, as presented, is a non-GAAP financial measure and the most comparable U.S. GAAP measure is book value per common share. Tangible book value per diluted common share excludes the total number of unvested restricted shares, at period end, and intangible assets. While restricted shares are outstanding, they are excluded because they are unvested. Further, management believes that effects of intangible assets are not indicative of underlying underwriting results or trends and make book value comparisons to less acquisitive peer companies less meaningful. The tangible book value per diluted common share is also useful because it provides a more accurate measure of the realizable value of shareholder returns, excluding intangible assets.

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The following table sets forth the computation of book value per common share, book value per diluted common share and tangible book value per diluted common share as of June 30, 2023 and December 31, 2022:
June 30,
2023		December 31, 2022
($ in millions, except share and per share amounts)
Common shareholders’ equity attributable to SiriusPoint common shareholders$2,054.8 $1,874.7 
Intangible assets(158.5)(163.8)
Tangible diluted common shareholders' equity attributable to SiriusPoint common shareholders$1,896.3 $1,710.9 
Common shares outstanding163,200,630162,177,653
Effect of dilutive stock options, restricted share units, warrants and Series A preference shares3,964,586 3,492,795
Book value per diluted common share denominator167,165,216165,670,448
Unvested restricted shares(649,528)(1,708,608)
Tangible book value per diluted common share denominator166,515,688163,961,840
Book value per common share$12.59 $11.56 
Book value per diluted common share$12.29 $11.32 
Tangible book value per diluted common share$11.39 $10.43 
Liquidity and Capital Resources
Our investment portfolioLiquidity Requirements
Liquidity is concentrateda measure of a company’s ability to generate cash flows sufficient to meet short-term and long-term cash requirements of its business operations. SiriusPoint’s insurance and reinsurance operations are subject to regulation and supervision in tradeable securitieseach of the jurisdictions where they are domiciled and is markedlicensed to market each day. Pursuant to our investment guidelinesconduct business. Generally, regulatory authorities have broad supervisory and administrative powers over such matters as specified in our two investment management agreements with Third Point LLC, at least 60%licenses, standards of our portfolio must be invested in securitiessolvency, premium rates, policy forms, investments, security deposits, methods of publicly traded companiesaccounting, form and governmentscontent of Organization of Economic Co-operationfinancial statements, reserves for unpaid loss and Development high income countries, asset-backed securities, cash, cash equivalentsloss adjustment expenses, reinsurance, minimum capital and goldsurplus requirements, dividends and other precious metals. We can liquidate all ordistributions to shareholders, periodic examinations and annual and other report filings. In general, such regulation is for the protection of policyholders rather than shareholders. SiriusPoint manages its liquidity needs primarily through the maintenance of a portion of our investment portfolio at any time with not less than three days’ notice to pay claims on our reinsurance contracts,short duration and with not less than five days’ notice to pay for expenses, and on not less than three days’ notice in order to satisfy a requirement of A.M. Best. Since we do not write excess of loss property catastrophe contracts or other types of reinsurance contracts that are typically subject to sudden, acute, liquidity demands, we believe the liquidity provided by our investment portfolio will be sufficient to satisfy our liquidity requirements to manage our operations.high quality fixed income portfolio.
As of September 30, 2017, $1,945.2 million, or 71.9% (December 31, 2016 - $1,452.3 million, or 54.9%) of our total investments in securities were classified as Level 1 assets, which are defined as securities valued using quoted prices available in active markets. See Note 4 to our condensed consolidated financial statements for additional information on the framework for measuring fair value established by U.S. GAAP disclosure requirements.
General
Third Point ReSiriusPoint is a holding company and has no substantial operations of its own and has moderate cash needs, most of which are related to the payment of corporate expenses. Itsits assets consist primarily of its investments in subsidiaries. Third Point Re’s abilityIts cash needs primarily consist of the payment of corporate expenses, interest payments on senior and subordinated notes, strategic investment opportunities and dividends to preference shareholders. SiriusPoint may also require cash to fund share repurchases. Cash at the subsidiaries is used primarily to pay dividends or return capitalloss and loss adjustment expenses, reinsurance premiums, acquisition costs, interest expense, taxes, general and administrative expenses and to shareholders will depend uponpurchase investments. The insurance and reinsurance business of our operating subsidiaries inherently provide liquidity, as premiums are received in advance of the availabilitytime losses are paid. However, the amount of dividends or other statutorily permissible distributionscash required to fund loss payments can fluctuate significantly from those subsidiaries.period to period, due to the low frequency/high severity nature of certain types of business we write.
WeFor additional commitments and contingencies that may affect our Bermuda subsidiariesliquidity requirements see Note 18 “Commitments and contingencies” in our unaudited consolidated financial statements included elsewhere in this Form 10-Q.
Dividend Capacity and Capital
We are subject to Bermuda regulatory and other constraints that affect our ability to pay dividends. UnderDuring the Companies Act, as amended, a Bermuda company may declare orthree and six months ended June 30, 2023, SiriusPoint did not pay a dividend out of distributable reserves only if it has reasonable grounds for believing that it is, or would afterany dividends to its common shareholders.
During the payment, be able to pay its liabilities as they become duethree and if the realizable value of its assets would thereby not be less than its liabilities. Under the Insurance Act, Third Point Re BDAsix months ended June 30, 2023, SiriusPoint declared and Third Point Re USA, as Class 4 insurers, are prohibited from declaring or paying a dividend if they are in breach of their respective minimum solvency margin (“MSM”), enhanced capital requirement (“ECR”) or minimum liquidity ratio or if the declaration or payment of such dividend would cause such a breach. Where either Third Point Re BDA or Third Point Re USA, as Class 4 insurers, fails to meet its MSM or minimum liquidity ratio on the last day of any financial year, it is prohibited from declaring or paying any dividends during the next financial year without the approval of the Bermuda Monetary Authority (“BMA”).
In addition, each of Third Point Re BDA and Third Point Re USA, as Class 4 insurers, is prohibited from declaring or paying in any financial yearpaid dividends of more than 25%$4.0 million and $8.0 million, respectively, to the Series B preference shareholders (2022 - $4.0 million and $8.0 million, respectively).
For the three and six months ended June 30, 2023, SiriusPoint received $20.0 million and $79.2 million, respectively (2022 - $25.0 million and $75.0 million, respectively), of its respective total statutory capital and surplus (as shown on its previous financial year’s statutory balance sheet) unless it files (at least seven days before payment of such dividend) with the BMA an affidavit signed by at least two directors (one of whom must be adistributions from SiriusPoint Bermuda resident director if any of the insurer’s directors are resident in Bermuda) and the principal representative stating that it will continue to meet its solvency margin and minimum liquidity ratio.Insurance Company Ltd.
As of December 31, 2016, Third Point Re BDA could pay dividends to Third Point Re of approximately $326.9 million. Third Point Re USA has also entered into a Net Worth Maintenance Agreement that further restricts the amount of capital and surplus it has available for the payment of dividends. In order to remain in compliance with the Net Worth Maintenance Agreement we have entered into with Third Point Re USA (the “Net Worth Maintenance Agreement”

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(“SiriusPoint Bermuda”), we have committed to ensuring that Third Point Re USA will maintain a minimum levelits immediate wholly-owned subsidiary. We believe the dividend/distribution capacity of capital of $250.0 million. Failure of Third Point Re USA to maintain the minimum level of capital required by the Net Worth Maintenance Agreement could limit or prevent Third Point Re USA from paying dividends to us. As a result, Third Point Re USA could pay dividends ultimately to Third Point Re ofSiriusPoint’s subsidiaries, which was approximately $19.6$713.5 million as of December 31, 2016.2022, provides SiriusPoint with sufficient liquidity for the foreseeable future. For a further discussion of the various restrictions on SiriusPoint Bermuda’s ability to pay dividends, see Part I, Item 1 “Business - Regulation” in our 2022 Form 10-K.
In addition to the regulatory and other contractual constraints to paying dividends, we manage the capital of the group and each of our operating subsidiaries to support our current ratings from A.M. Best.AM Best, Fitch, and S&P. This could further reduce the ability and amount of dividends that could be paid from Third Point Re BDA or Third Point Re USAsubsidiaries to Third Point Reinsurance Ltd. After several yearsSiriusPoint. In addition, the Company annually files the prescribed form of premium growthcapital and float generation fromsolvency return, which comprises the insurer’s Bermuda Solvency Capital Requirement (“BSCR”) model. The BSCR model is a risk-based capital model which provides a method for determining a Class 3A and Class 4 insurer’s capital requirements (statutory economic capital and surplus) by taking into account the risk characteristics of different aspects of the Class 3A and Class 4 insurer’s business. The Company’s 2022 filed BSCR ratio was 217%. Further, the Company filed its first quarter 2023 Bermuda Quarterly Financial Return, the most recent period available, with the ratio improving to 219%.
In connection with our inception, we have reachedgroup capital, as assessed by rating agencies and the Bermuda Monetary Authority, the 2023 LPT, together with the first half of 2023 release of reserves linked to the 2023 LPT, is expected to result in a

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level that allows us net increase in capital in excess of $150 million and more than 15% improvement in the BSCR ratio compared to rationalize ourDecember 31, 2022. This projected capital increase is expected to be attributable primarily to a reduction in required capital associated with reserve risks and an increase in available capital due to the cession of loss reserves to the 2023 LPT below their original carrying value due to the first half of 2023 favorable prior year loss reserve development. For additional information see Note 3 “Significant transactions” and Note 11 “Loss and loss adjustment expense base and appropriately utilize our capital. Given difficult market conditions and our focus on improving our underwriting results, we plan to remain selectivereserves” in our underwriting which may slow the growth rateunaudited consolidated financial statements included elsewhere in this Form 10-Q.
Sources of our gross written premium.Liquidity
Liquidity and Cash Flows
Historically, ourOur operating subsidiaries sources of fundsliquidity have primarily consisted of net premiums written, reinsurance recoveries, investment income and proceeds from sales of or dividends or distributions attributable to investments. Other potential sources of liquidity include borrowings under our credit facilities and redemptionsissuances of securities.
Effective February 26, 2021, the Company entered into a three-year, $300.0 million senior unsecured revolving credit facility (the “Facility”) with JPMorgan Chase Bank, N.A. as administrative agent. The Facility includes an option, subject to satisfaction of certain conditions including agreement of lenders representing greater than a majority of commitments, for the Company to request an extension by such lenders of the maturity date of the Facility by an additional 12 months. The Facility provides access to loans for working capital and general corporate purposes, and letters of credit to support obligations under insurance and reinsurance agreements, retrocessional agreements and for general corporate purposes. Loans and letters of credit under the Facility will become available, subject to customary conditions precedent. As of June 30, 2023, the Company was in compliance with all of the covenants under the Facility and there were no outstanding borrowings under the Facility.
Financing
We expect that our cash and cash equivalents on the balance sheet and cash flow from operations will provide us with the financial flexibility to execute our strategic objectives. Our ability to generate cash, however, is subject to our performance, general economic conditions, industry trends and other factors. To the extent cash and cash equivalents on the balance sheet, investment returns and cash flow from operations are insufficient to fund our future activities and requirements, we may need to raise additional funds through public or private equity or debt financing. If we issue equity securities in order to raise additional funds, substantial dilution to existing shareholders may occur. If we raise cash through the issuance of additional indebtedness, we may be subject to additional contractual restrictions on our business. There is no assurance that we would be able to raise the additional funds on favorable terms or at all.
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The following table represents a summary of our debt obligations as of June 30, 2023 and December 31, 2022:
June 30, 2023December 31, 2022
Amount
Effective rate (1)
Amount
Effective rate (1)
2017 SEK Subordinated Notes, at face value$254.9 7.8 %$264.3 6.0 %
Unamortized discount(7.8)(5.7)
2017 SEK Subordinated Notes, carrying value247.1 258.6 
2016 Senior Notes, at face value400.0 4.5 %400.0 4.5 %
Unamortized premium4.2 4.8 
2016 Senior Notes, carrying value
404.2 404.8 
2015 Senior Notes, at face value115.0 7.0 %115.0 7.0 %
Unamortized issuance costs(0.4)(0.4)
2015 Senior Notes, carrying value114.6 114.6 
Total debt$765.9 $778.0 
(1)Effective rate considers the effect of the debt issuance costs, discount, and premium.
For further details and discussion with respect to the 2017 SEK Subordinated Notes, 2016 Senior Notes and 2015 Senior Notes, please refer to Note 16 “Debt and letter of credit facilities” of Part II, Item 8. “Financial Statements and Supplementary Data” included in our 2022 Form 10-K.
Debt Covenants
As of June 30, 2023, SiriusPoint was in compliance with all of the covenants under the 2017 SEK Subordinated Notes, the 2016 Senior Notes and the 2015 Senior Notes.
Series A Preference Shares
SiriusPoint has 11,720,987 Series A preference shares outstanding, par value of $0.10 per share. The Series A preference shares rank pari passu with the Company’s common shares with respect to the payment of dividends or distributions.
As of June 30, 2023, the estimated fair value of the Series A preference shares was $15.3 million based upon a stochastic model and is reflected in liability-classified capital instruments in the consolidated balance sheets. During the six months ended June 30, 2023, the Company did not declare or pay dividends to Series A preference shareholders.
For further details and discussion with respect to the Series A preference shares, see Note 18 “Commitments and contingencies” in our unaudited consolidated financial statements included elsewhere in this Form 10-Q.
Series B Preference Shares
SiriusPoint has 8,000,000 of Series B preference shares outstanding, par value $0.10, which are listed on the New York Stock Exchange under the symbol “SPNT PB.” Dividends on the Series B preference shares are cumulative and payable quarterly in arrears at an initial rate of 8.0%.
As of June 30, 2023, the carrying value of the Series B preference shares was $200.0 million and reflected in shareholders’ equity attributable to SiriusPoint shareholders in the consolidated balance sheets. During the three and six months ended June 30, 2023, the Company declared and paid dividends of $4.0 million and $8.0 million, respectively, to the Series B preference shareholders.
For further details and discussion with respect to the Series B preference shares, see Note 15 “Shareholders' equity” in our unaudited consolidated financial statements included elsewhere in this Form 10-Q.
Letter of Credit Facilities
As of June 30, 2023, $1,297.0 million of letters of credit had been issued. Each of the facilities contain customary events of default and restrictive covenants, including but not limited to, limitations on liens on collateral, transactions with affiliates, mergers and sales of assets, as well as solvency and maintenance of certain minimum pledged equity requirements and a minimum rating from rating agencies. Each restricts issuance of any debt without the consent of the letter of credit provider. Additionally, if an event of default exists under any of the letter of credit facilities, our subsidiaries could be prohibited from
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paying dividends. We were in compliance with all of the covenants under the aforementioned letter of credit facilities as of June 30, 2023.
For further details and discussion with respect to letter of credit facilities, see Note 13 “Debt and letter of credit facilities” in our unaudited consolidated financial statements included elsewhere in this Form 10-Q.
Cash Secured Letter of Credit Agreements
Under the cash secured letter of credit facilities, we provide collateral that consists of cash and cash equivalents and debt securities. As of June 30, 2023, total cash and cash equivalents and debt securities with a fair value of $1,410.9 million were pledged as collateral against the letters of credit issued.
We believe that we have adequate capacity between our existing cash secured letter of credit agreements as well as available investments to post in reinsurance trusts to meet our collateral obligations under our existing and future reinsurance business.
For further details and discussion with respect to cash secured letter of credit agreements, see Note 13 “Debt and letter of credit facilities” in our unaudited consolidated financial statements included elsewhere in this Form 10-Q.
Cash, Restricted Cash and Cash Equivalents and Restricted Investments
Cash and cash equivalents consist of cash held in banks and other short-term, highly liquid investments with original maturity dates of 90 days or less. We invest a portion of the collateral securing certain reinsurance contracts in U.S. treasury securities and sovereign debt. This portion of the collateral is included in debt securities in the consolidated balance sheets and is disclosed as part of restricted investments. In addition, restricted investments also pertain to limited partnership interests in Third Point funds securing the Company’s contractual obligations under certain reinsurance contracts that the Company will not be released from until the underlying risks have expired or have been settled.
Restricted cash and cash equivalents and restricted investments increased by $202.1 million, or 8.4%, to $2,612.7 million as of June 30, 2023 from $2,410.6 million as of December 31, 2022. The increase was due to an increase in investments securing reinsurance contracts and letters of credit.
For additional information on restricted cash, cash equivalents and investments, see Note 5 “Cash, cash equivalents, restricted cash and restricted investments” in our unaudited consolidated financial statements included elsewhere in this Form 10-Q.
Cash is used primarily to pay loss and loss adjustment expenses, reinsurance premiums, acquisition costs, interest expense, taxes, general and administrative expenses and to purchase investments.Flows
Our cash flows from operations generally represent the difference between: (l)(1) premiums collected and investment earnings realizedincome and (2) loss and loss expenses paid, reinsurance purchased, underwriting and other expenses paid. Cash flows from operations may differ substantially from net income (loss) and may be volatile from period to period depending on the underwriting opportunities available to us and other factors. Due to the nature of our underwriting portfolio, claim payments can be unpredictable and may need to be made within relatively short periods of time. Claim payments can also be required several months or years after premiums are collected. In addition, as discussed above, SiriusPoint has access to the $300.0 million Facility that provides access to loans for working capital and general corporate purposes, and letters of credit to support obligations under insurance and reinsurance agreements and retrocessional agreements.
Operating, investing and financing cash flows for the ninesix months ended SeptemberJune 30, 20172023 and 20162022 were as follows:
 2017 2016
 ($ in thousands)
Net cash provided by operating activities$31,820
 $5,619
Net cash provided by (used in) investing activities14,423
 (18,461)
Net cash provided by (used in) financing activities(49,760) 13,417
Net increase (decrease) in cash and cash equivalents(3,517) 575
Cash and cash equivalents at beginning of period9,951
 20,407
Cash and cash equivalents at end of period$6,434
 $20,982
20232022
($ in millions)
Net cash provided by operating activities$206.3 $45.2 
Net cash used in investing activities(297.5)(605.4)
Net cash used in financing activities(51.1)(11.0)
Net decrease in cash, cash equivalents and restricted cash(142.3)(571.2)
Cash, cash equivalents and restricted cash at beginning of period913.7 1,948.4 
Cash, cash equivalents and restricted cash at end of period$771.4 $1,377.2 
Operating Activities
Cash flows provided by operating activities generally represent netcan fluctuate due to timing differences between the collection of premiums collected less lossand reinsurance recoverables, the payment of losses and loss adjustment expenses, acquisition costs and general and administrative expenses paid.the payment of premiums to reinsurers. The increasechange in
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cash flows fromin operating activities infor the ninesix months ended SeptemberJune 30, 20172023 compared to the ninesix months ended SeptemberJune 30, 2016 is2022 was primarily due to higher float generated from our reinsurance operationsan increase in the nine months ended September 30, 2017 comparedcollection of premiums due to the nine months ended September 30, 2016. Excess cash generated from our operating activities is typically then invested by Third Point LLC.
Forincrease in premiums written which have outpaced the nine months ended September 30, 2017 and 2016, we contributed $41.1 million and $24.1 million, respectively, to our separate accounts managed by Third Point LLC from float generated from our reinsurance operations. These amounts do not correspond to the net cash provided by operating activities as presented in the condensed consolidated statementspayment of cash flows prepared in accordance with U.S. GAAP. The amount of float can vary significantly from period to period depending on the timing, type and size of reinsurance contracts we bind. Refer to “ITEM 2. Management’s Discussion and Analysis - Property and Casualty Reinsurance” for a definition of insurance float.claims.
Investing Activities
Cash flows provided by investing activities primarily reflects investment activities related to our separate accounts managed by Third Point LLC. Cash flows provided by investing activities for the nine months ended September 30, 2017 primarily relates to proceeds from the sale of certain investments to fund cash flows from operations and share repurchases of $40.9 million. Cash flows used in investing activities for the ninesix months ended SeptemberJune 30, 20162023 primarily reflectsrelates to the increase in sales and maturities of U.S. treasuries during the period. Cash flows used in investing activities for the six months ended June 30, 2022 primarily relates to the increase in purchases of debt securities during the period resulting from increased premium volume and net investment of float generatedincome from our reinsurance operations, including the proceeds from deposit liability contracts.fixed income portfolio.

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Financing Activities
Cash flows used in financing activities for the ninesix months ended SeptemberJune 30, 20172023 primarily consisted of $16.8 million of net withdrawals from total noncontrolling interests and $40.9$38.5 million for the settlement of CVRs, $8.0 million for cash dividends paid to preference shareholders, and $7.5 million for taxes paid on withholding shares, repurchased.partially offset by $9.3 million of funds provided from loans related to agreements to repurchase securities. Cash flows provided byused in financing activities for the ninesix months ended SeptemberJune 30, 20162022 primarily consisted of contributions received$9.8 million for payments on deposit liability contracts, $8.0 million for cash dividends paid to preference shareholders, $6.5 million for taxes paid on withholding shares and proceeds from the exercise of stock options,$5.0 million for shares repurchased, partially offset by $7.4$17.5 million of shares repurchased.funds provided from loans related to agreements to repurchase securities.
For the period from inception until September
Financial Condition
As of June 30, 2017, we have had sufficient cash flow from the proceeds of our initial capitalization and IPO, the issuance of Notes in February 2015, and from our operations2023, total shareholders’ equity was $2,267.7 million, compared to meet our liquidity requirements. We expect that projected operating and capital expenditure requirements and debt service requirements for at least the next twelve months will be met by our balance of cash, cash flows generated from operating activities and investment income. We may incur additional indebtedness in the future if we determine that it would be an efficient part of our capital structure.
In addition, we expect that our existing cash and cash flow from operations will provide us with the financial flexibility to execute our strategic objectives. Our ability to generate cash, however, is subject to our performance, general economic conditions, industry trends and other factors. To the extent existing cash and cash equivalents, investment returns and operating cash flow are insufficient to fund our future activities and requirements, we may need to raise additional funds through public or private equity or debt financing. If we issue equity securities in order to raise additional funds, substantial dilution to existing shareholders may occur. If we raise cash through the issuance of additional indebtedness, we may be subject to additional contractual restrictions on our business. There is no assurance that we would be able to raise the additional funds on favorable terms or at all. There are regulatory and contractual restrictions and rating agency considerations that might impact the ability of our reinsurance subsidiaries to pay dividends to their respective parent companies, including for purposes of servicing TPRUSA’s debt obligations.
We do not believe that inflation has had a material effect on our consolidated results of operations to date. The effects of inflation are considered implicitly in pricing our reinsurance contracts. Loss reserves are established to recognize likely loss settlements at the date payment is made. Those reserves inherently recognize the effects of inflation. However, the actual effects of inflation on our results cannot be accurately known until claims are ultimately resolved.
Cash, Restricted Cash and Cash Equivalents and Restricted Investments
Cash and cash equivalents consist of cash held in banks and other short-term, highly liquid investments with original maturity dates of ninety days or less.
See Note 3 to our condensed consolidated financial statements for additional information on restricted cash, cash equivalents and investments.
Restricted cash and cash equivalents and restricted investments increased by $79.1 million, or 10.9%, to $805.4 million as of September 30, 2017 from $726.2$2,082.6 million as of December 31, 2016. The increase was primarily due to an increase in the number of reinsurance contracts that required collateral. In addition, we are now investing a portion of the collateral securing certain reinsurance contracts in U.S. treasury securities and sovereign debt. This portion of the collateral is included in debt securities in the condensed consolidated balance sheets and is disclosed as part of restricted investments.
Letter of Credit Facilities
See Note 10 to our condensed consolidated financial statements for additional information regarding our letter of credit facilities.
As of September 30, 2017, $209.5 million (December 31, 2016 - $231.8 million) of letters of credit, representing 49.3% of the total available facilities of $425.0 million, had been issued (December 31, 2016 - 44.2% (based on total available facilities of $525.0 million)).
Under the letter of credit facilities, we provide collateral that consists of cash and cash equivalents. As of September 30, 2017, total cash and cash equivalents with a fair value of $209.5 million (December 31, 2016 - $231.8 million) was pledged as collateral against the letters of credit issued. Our ability to post collateral securing letters of credit and certain

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reinsurance contracts depends in part on our ability to borrow against certain assets in our Investment Accounts through prime brokerage arrangements. See Note 5 to our condensed consolidated financial statements for additional information regarding our prime brokerage arrangements. The loss or reduction in this borrowing capacity could reduce the amount of reinsurance we write or reduce the amount of float that we contribute to our Investment Accounts.The collateral amounts securing letters of credit are included in restricted cash and cash equivalents in the condensed consolidated balance sheets. Each of the facilities contain customary events of default and restrictive covenants, including but not limited to, limitations on liens on collateral, transactions with affiliates, mergers and sales of assets, as well as solvency and maintenance of certain minimum pledged equity requirements and an A.M. Best Company rating of “A-“ or higher. Each restricts issuance of any debt without the consent of the letter of credit provider. Additionally, if an event of default exists, as defined in the letter of credit facilities, we will be prohibited from paying dividends. We were in compliance with all of the covenants under the aforementioned facilities as of September 30, 2017.
Financial Condition
Shareholders’ equity
As of September 30, 2017, total shareholders’ equity was $1,617.4 million, compared to $1,449.7 million as of December 31, 2016.2022. The increase was primarily due to net income of $233.4 million and share compensation expense and proceeds from stock options exercised totaling $5.5 million, partially offset by share repurchases of $40.9$204.9 million in the ninesix months ended SeptemberJune 30, 2017.2023.
Investments
As of September 30, 2017, total cash and net investments managed by Third Point LLC was $2,525.0 million, compared to $2,191.6 million as of December 31, 2016. The increase was primarily due to net investment income on investments managed by Third Point LLC of $324.9 million and net contributions of $17.3 million.
Contractual Obligations
There have been no other material changes to our contractual obligations from our most recent Annual Report on2022 Form 10-K, as filed with the SEC.10-K.
Off-Balance Sheet Commitments and Arrangements
We have no obligations, assets or liabilities, other than those derivatives in our investment portfolio and disclosed in the notes to our condensed consolidated financial statements, which would be considered off-balance sheet arrangements. We do not participate in transactions that create relationships with unconsolidated entities or financial partnerships, often referred to as variable interest entities, which would have been established for the purpose of facilitating off-balance sheet arrangements.
As of September 30, 2017, we had an unfunded capital commitment of $3.3 million related to our investment in the Hellenic Fund (see Note 16 to our condensed consolidated financial statements for additional information).
Critical Accounting Policies and Estimates
For a summary of our significant accounting and reporting policies, please refer to Note 2 “Significant “Significant accounting policies”, of Part II, Item 8. “Financial Statements and Supplementary Data” included in our 20162022 Form 10-K.
Our condensed consolidated financial statements are prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions. We believe that As of December 31, 2022, the accounting policies that requirerequired the most significant judgments and estimations by management are:were: (1) premium revenue recognition, includingincluding evaluation of risk transfer, (2) loss and loss adjustment expense reserves, and (3) fair value measurements related to our investments.investments, (4) valuation of components of purchase consideration, loss and adjustment expenses reserves and intangible assets relating to acquisition of Sirius Group and (5) income taxes. If actual events differ significantly from the underlying judgments or estimates used by management in the application of these accounting policies, there could be a material adverse effect on our results of operations and financial condition.

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There have been no material changes in our critical accounting estimates for the nine months ended September 30, 2017. Refer to Part II, Item 7, “Management's“Management’s Discussion and Analysis of Financial Condition and Results of Operations”,Operations,” included in our 20162022 Form 10-K.
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
Our consolidated balance sheets include a substantial amount of assets and liabilities whose fair values are subject to market risk. The term market risk refers to the risk of loss arising from adverse changes in interest rates, credit spreads, equity markets prices, and other relevant market rates and prices. Due to our sizable investment portfolio, market risk can have a significant effect on our consolidated financial position.
We believe we are principally exposed to the following types of market risk:
equity price risk;
foreign currency risk;
▪interest rate risk;
commodity price risk;
credit risk;
liquidity▪foreign currency exchange risk; and
political▪other long-term investments price risk.
Equity Price
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Interest Rate Risk
Interest rate risk is the price sensitivity of a security to changes in interest rates. Our investment manager, Third Point LLC, tracksportfolio includes fixed income investments, whose fair values will fluctuate with changes in interest rates. Increases and decreases in prevailing interest rates generally translate into decreases and increases in fair values of fixed income investments, respectively. Additionally, fair values of interest rate sensitive instruments may be affected by the performancecreditworthiness of the issuer, prepayment options, relative values of alternative investments, the liquidity of the instrument, and exposuresother market factors.
We manage the interest rate risk associated with our portfolio of fixed income investments by matching asset backing reserves with that of our investment portfolio, each strategyeconomic liabilities, in addition to monitoring the average of investment-grade corporate securities; U.S. government and sector,agency securities; foreign government, agency and selective individual securities. A particular focus is placed on “beta” exposure, which isprovincial obligations; preferred stocks; asset-backed and mortgage-backed securities; and municipal obligations.
The following table summarizes the portion of the portfolio that is directly correlated to risks and movements of the equity market as a whole (usually represented by the S&P 500 index) as opposed to idiosyncratic risks and factors associated with a specific position. Further, the performance of our investment portfolio has historically been compared to several market indices, including the S&P 500, CS/Tremont Event Driven Index, HFRI Event Driven Index, and others.
As of September 30, 2017, our investment portfolio included long and short equity securities, along with certain equity-based derivative instruments, the carrying values of which are primarily based on quoted market prices. Generally, market prices of common equity securities are subject to fluctuation, which could cause the amount to be realized upon the closing of the position to differ significantly from their current reported value. This risk is partly mitigated by the

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presence of both long and short equity securities in our investment portfolio. As of September 30, 2017, a 10% decline in the value of all equity and equity-linked derivatives would result in a loss of $172.5 million, or 6.6% of our total net investments managed by Third Point LLC.
Computations of the prospectiveestimated effects of hypothetical equity price changes are basedincreases and decreases in market interest rates on numerous assumptions, including the maintenanceour debt securities as of June 30, 2023:
Fair valueAssumed change in interest rateEstimated fair value after change in interest ratePre-tax increase (decrease) in carrying value
($ in millions)
Debt securities$4,925.3 300 bp decrease$5,308.9 $383.6 
200 bp decrease5,180.6 255.3 
100 bp decrease5,052.3 127.0 
50 bp decrease4,988.1 62.8 
50 bp increase4,857.3 (68.0)
100 bp increase4,790.6 (134.7)
200 bp increase4,657.3 (268.0)
300 bp increase$4,524.0 $(401.3)
The magnitude of the existingfair value decrease in rising rates scenarios may be more significant than the fair value increase in comparable falling rates scenarios. This can occur because (i) the analysis floors interest rates at a de minimis level in falling rate scenarios, muting price increases, (ii) portions of the fixed income investment portfolio may be callable, muting price increases in falling interest rate scenarios and/or (iii) portions of the fixed income investment portfolio may experience cash flow extension in higher interest rate environments, which generally results in lower fixed income asset prices.
Interest payments on our 2017 SEK Subordinated Notes are required to be serviced in Swedish kronor by reference to Stockholm Interbank Offered Rate, a floating interest rate benchmark. This benchmark rate has increased year to date and composition of investment securities and should not be relied on as indicative of future results.it is possible that it will continue to do so, which could result in increasing our interest expense in U.S. dollars.
Foreign Currency Exchange Risk
Reinsurance Contracts
We have foreign currency exposure related to non-U.S. dollar denominated reinsurance contracts. Of our gross premiums written from inception, $387.8 million, or 13.0%, were written in currencies other than the U.S. dollar. As of September 30, 2017, loss and loss adjustment expense reserves included $161.7 million (December 31, 2016 - $94.5 million) and net reinsurance balances receivable included $14.1 million (December 31, 2016 - $5.1 million) in foreign currencies. These foreign currency liability exposures were generally offset by foreign currencies held in trust accounts of $185.5 million as of September 30, 2017 (December 31, 2016 - $104.2 million).  The foreign currency cash and cash equivalents and investments held in reinsurance trust accounts are included in net investments managed by Third Point LLC. The exposure to foreign currency collateral held in trust accounts is excluded from the foreign currency investment exposure table below.
Investments
Third Point LLC continually measures foreign currency exposures in the investment portfolio and compares current exposures to historical movement within the relevant currencies. WithinIn the ordinary course of business, Third Point LLC may decide to hedgewe hold non-U.S. dollar denominated assets and liabilities, which are valued using period-end exchange rates. Non-U.S. dollar denominated foreign currency risk within our investment portfolio byrevenues and expenses are valued using short-term forward contracts; however, from time to time Third Point LLC may determine not to hedge based on its views ofaverage exchange rates over the likely movements of the underlying currency.
We are exposed to foreign currency risk through cash, forwards, options and investments in securities denominated in foreign currencies.period. Foreign currency exchange rateexchange-rate risk is the potential forrisk that we will incur losses on a U.S. dollar basis due to adverse changes in the U.S. dollar value of investments (long and short) and foreign currency derivative instruments, which we employ from both a speculative and risk management perspective, due to a change in the exchange rate of the foreign currency in which cash and financial instruments are denominated. As of September 30, 2017, our total net short exposure to foreign denominated securities represented 6.0% (December 31, 2016 - 10.6%) of our investment portfolio including cash and cash equivalents, of $157.9 million (December 31, 2016 - $204.0 million).rates.
The following table summarizes the net impact thatestimated effects of a hypothetical 10% increase and decrease in the value of the U.S. dollar against select foreign currencies would have had on the carrying value of our investment portfolionet assets as of SeptemberJune 30, 2017:2023:
10% increase10% decrease
($ in millions)
Euro to U.S. dollar$(1.1)$1.1 
Swedish Krona to U.S. dollar7.1 (7.1)
British Pound to U.S. dollar(2.1)2.1 
South African Rand to U.S. Dollar(0.4)0.4 
Canadian Dollar to U.S. dollar$(3.8)$3.8 
 10% increase in U.S. dollar 10% decrease in U.S. dollar
 Change in fair value Change in fair value as % of investment portfolio Change in fair value Change in fair value as % of investment portfolio
 ($ in thousands)
Hong Kong Dollar$13,512
 0.5 % $(13,512) (0.5)%
Saudi Arabian Riyal11,556
 0.4 % (11,556) (0.4)%
Egyptian Pound(2,933) (0.1)% 2,933
 0.1 %
Brazilian Real(4,618) (0.2)% 4,618
 0.2 %
Other(1,726) (0.1)% 1,726
 0.1 %
Total$15,791
 0.5 % $(15,791) (0.5)%
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Interest RateOther Long-term Investments Price Risk
OurThe carrying values of our other long-term investments are at either fair value, using the equity method, net asset value, or management's cost less any impairment, which is based on fair value, as of the balance sheet date. The fair values of these investments are subject to fluctuations. These fluctuations could cause the amount realized upon sale or exercise of these instruments to differ significantly from the current reported value. The fluctuations may result from perceived changes in the underlying economic characteristics of the investment portfolio includes interest rate sensitive securities, such as corporate bonds, U.S. treasury securities, and sovereign debt instruments, asset-backed securities (“ABS”), and interest rate options and derivatives. One keyor other market risk exposure for any debt instrument is interest rate risk. Asfactors, including interest rates rise, the fair value of our long fixed-income portfolio falls, and the opposite is also true as interest rates fall. Additionally, some of our corporateforeign exchange. Assuming a hypothetical 10% and sovereign debt instruments, ABS and derivative investments may also be credit sensitive and their value may indirectly fluctuate with changes in interest rates.
The effect of interest rate movements have historically not had a material impact on the performance of our investment portfolio as managed by Third Point LLC. However, our investment manager monitors the potential effects of interest rate shifts by performing stress tests against the portfolio composition using a proprietary in-house risk system.
The following table summarizes the impact that a 100 basis point30% increase or decrease in interest rates would have on the value of our investment portfolioother long-term investments as of SeptemberJune 30, 2017:2023, the carrying value of our other long-term investments would have increased or decreased by approximately $35.5 million and $106.6 million, pre-tax, respectively.
Investments in Related Party Investment Funds
 100 basis point increase in interest rates 100 basis point decrease in interest rates
 Change in fair value Change in fair value as % of investment portfolio Change in fair value Change in fair value as % of investment portfolio
 ($ in thousands)
Corporate bonds, U.S. treasuries and sovereign debt instruments(1)
$4,704
 0.2 % $(4,323) (0.2)%
Asset-backed securities(2)
(2,666) (0.1)% 2,742
 0.1 %
Interest rate swaps and derivatives3,980
 0.2 % (3,980) (0.2)%
Net exposure to interest rate risk$6,018
 0.3 % $(5,561) (0.3)%
(1)Includes interest rate risk associated with investments held in reinsurance trust accounts.
(2)Includes instruments for which durations are available on September 30, 2017. Includes a convexity adjustment if convexity is available. Not included are mortgage hedges which would reduce the impact of interest rate changes.
ForThe carrying values of our investments in Related Party Investment Funds are carried at fair value. We have elected the purposespractical expedient for fair value for these investments which is estimated based on our share of the above table,net asset value of the hypothetical impact of changes in interest rates on debt instruments, ABS, and interest rate options was determined based on the interest rates and credit spreads applicable to each instrument individually. We and our investment manager periodically monitor our net exposure to interest rate risk and generally do not expect changes in interest rates to have a materially adverse impact on our operations.
Commodity Price Risk
In managing our investment portfolio, Third Point LLC periodically monitors and actively trades to take advantage of, and/or seeks to minimize any losses from, fluctuations in commodity prices. As our investment manager, Third Point LLC may choose to opportunistically make a long or short investment in a commodity or in a security directly affectedrespective limited partnership, as provided by the price of a commodity as a response to market developments. From time to time, we invest in commodities or commodities exposures in the form of derivative contracts from both a speculative and risk management perspective. Generally, marketindependent fund administrator. Market prices of commoditiesthe underlying investment securities, in general, are subject to fluctuation.
As of September 30, 2017, our investment portfolio had de minimis (December 31, 2016 - de minimis) commodity exposure.
Wefluctuations. Assuming a hypothetical 10% and our investment manager periodically monitor our exposure to commodity price fluctuations and generally do not expect changes in commodity prices to have a material adverse impact on our operations.

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Credit Risk
Reinsurance Contracts
We have exposure to credit risk in several reinsurance contracts with companies that write credit risk insurance, which primarily consists of mortgage insurance credit risk. Loss experience in these lines of business is cyclical and is affected by the state of the general economic environment. We provide our clients in these lines of business with reinsurance protection against credit deterioration, defaults30% increase or other types of financial non-performance. We mitigate the risks associated with these credit-sensitive lines of business through the use of risk management techniques such as risk diversification and monitoring of risk aggregations. We have written $253.2 million, or 8.5%, of credit and financial lines premium since inception, of which $24.8 million was writtendecrease in the nine months ended September 30, 2017. The majority of the mortgage insurance premium has been written as quota shares of private mortgage insurers, primarily in the United States. We also wrote a financial lines retrocessional cover that includes mortgage risk.
We have exposure to credit risk as it relates to its business written through brokers, if any of our brokers are unable to fulfill their contractual obligations with respect to payments to us. In addition, in some jurisdictions, if the broker fails to make payments to the insured under our policy, we may remain liable to the insured for the deficiency. Our exposure to such credit risk is somewhat mitigated in certain jurisdictions by contractual terms.
We are exposed to credit risk relating to balances receivable under our reinsurance contracts, including premiums receivable, and the possibility that counterparties may default on their obligations to us. The risk of counterparty default is partially mitigated by the fact that any amount owed to us from a reinsurance counterparty would be netted against any losses we would pay in the future. We monitor the collectability of these balances on a regular basis.
Investments
We are also exposed to credit risk through our investment activities related to our separate accounts managed by Third Point LLC. Third Point LLC typically performs intensive fundamental analysis on the broader markets, credit spreads, security-specific information, and the underlying issuers of debt securities that are contained in our investment portfolio.
In addition, the securities and cash in our investment portfolio are held with several prime brokers, subjecting us to the related credit risk from the possibility that one or more of them may default on their obligations to us. Our investment manager closely and regularly monitors the concentration of credit risk with each broker and if necessary, transfers cash or securities among brokers to diversify and mitigate our credit risk.
As of September 30, 2017 and December 31, 2016, the Company’s holdings in non-investment grade securities, those having a rating lower than BBB- as determined by Standard & Poor's or Fitch Ratings, Baa3 by Moody's Investor Services and securities not rated by any rating agency, were as follows:
 September 30, 2017 December 31, 2016
 ($ in thousands)
Assets:   
Asset backed securities$196,405
 $254,852
Bank debt20,279
 56,896
Corporate bonds51,713
 189,059
Other debt securities11,882
 —
Sovereign debt47,671
 100,620
Trade claims7,246
 9,022
 $335,196
 $610,449
Liabilities:   
Corporate bonds$6,335
 $17,683
 $6,335
 $17,683

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As of September 30, 2017 and December 31, 2016, all of our ABS holdings were private-label issued, non-investment grade securities, and none of these securities were guaranteed by a government sponsored entity. As of September 30, 2017 and December 31, 2016, the largest concentration of our asset-backed securities (“ABS”) holdings were as follows:
 September 30, 2017 December 31, 2016
 ($ in thousands)
Reperforming loans$123,813
 63.0% $44,359
 17.4%
Subprime RMBS—
 —% 117,152
 46.0%
Market place loans54,403
 27.7% 44,143
 17.3%
Other (1)18,189
 9.3% 49,198
 19.3%
 $196,405
 100.0% $254,852
 100.0%
(1)Other includes: U.S. Alt-A positions, collateralized debt obligations, commercial mortgage-backed securities, non-U.S. RMBS and student loans ABS.
The Company may also be exposed to non-investment grade securities held within certain investments in limited partnerships and derivatives. As a result of its investment in this type of ABS and certain other non-investment grade securities, our investment portfolio is exposed to credit risk of underlying borrowers, which may not be able to make timely payments on loans or which may default on their loans.  All of these classes of ABS and certain other non-investment grade securities are sensitive to changes in interest rates and any resulting change in the rate at which borrowers sell their properties (in the case of mortgage backed securities), refinance or otherwise pre-pay loans.  As an investor in these classes of ABS and certain other non-investment grade securities, we may be exposed to the credit risk of underlying borrowers not being able to make timely payments on loans or the likelihood of borrowers defaulting on their loans.  In addition, we may be exposed to significant market and liquidity risks.
Liquidity Risk
Certainvalue of our investments may become illiquid. Disruptions in the credit markets may materially affect the liquidity of certain investments, including ABS, which represent 7.3% (December 31, 2016 - 9.7%) of total cash and investmentsRelated Party Investment Funds as of SeptemberJune 30, 2017. If we require significant amounts of cash on short notice in excess of normal cash requirements, which could include2023, the payment of claims expenses or to satisfy a requirement of A.M. Best, in a period of market illiquidity, certain investments may be difficult to sell in a timely manner and may have to be disposed of for less than what may otherwise have been possible under normal conditions. As of September 30, 2017, we had $1,945.2 million (December 31, 2016 - $1,452.3 million) of unrestricted, liquid investment assets, defined as unrestricted cash and investments and securities with quoted prices available in active markets/exchanges.
Political Risk
Investments
We are exposed to political risk to the extent our investment manager trades securities that are listed on various U.S. and foreign exchanges and markets. The governments in anycarrying value of these jurisdictions could impose restrictions, regulationsinvestments would have increased or other measures, which may have a material impact on our investment strategydecreased by approximately $11.1 million and underwriting operations.$33.4 million, pre-tax, respectively.
In managing our investment portfolio, Third Point LLC routinely monitors and assesses relative levels of risk associated with local political and market conditions and focuses its investments primarily in countries in which it believes the rule of law is respected and followed, thereby affording more predictable outcomes of investments in that country.
Reinsurance Contracts
We also have limited political risk exposure in several reinsurance contracts with companies that write political risk insurance.

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Recent Accounting Pronouncements
Refer to Note 2 to our condensed consolidated financial statements for the nine months ended September 30, 2017 included in Item 1 of this Quarterly Report on Form 10-Q for details of recently issued accounting standards.
ITEM 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Management, with the participation of our Chief Executive Officer and the Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended) (the “Exchange Act”) as of SeptemberJune 30, 2017.2023. Based upon this evaluation, our Chief Executive Officer and the Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of SeptemberJune 30, 2017.2023.
Changes in Internal Control overOver Financial Reporting
During the first quarter of 2023, we implemented new accounting and financial reporting systems, including the general ledger. We have modified our existing controls infrastructure, as well as added other processes and internal controls, to adapt to our new general ledger.
There have been no materialother changes toin our internal control over financial reporting (as defined in connection with the evaluation required by Rules 13a-15(d)Rule 13a-15(f) and 15d-15(d)Rule 15d-15(f) under the Exchange ActAct) that occurred during the most recent fiscal quarterthree and six months ended June 30, 2023, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.


PART II - Other Information
ITEM 1. Legal Proceedings
We anticipateThe Company and its subsidiaries are subject to lawsuits and regulatory actions in the normal course of business that similardo not arise from or directly relate to claims on reinsurance treaties or contracts or direct surplus lines insurance policies. In the Company’s industry, business litigation may involve allegations of underwriting or claims-handling errors or misconduct, disputes relating to the restscope of, or compliance with, the terms of delegated underwriting agreements, employment claims, regulatory actions or disputes arising from the Company’s business ventures. The Company’s operating subsidiaries are subject to claims litigation involving, among other things, disputed interpretations of policy coverages. Generally, the Company’s direct insurance operations are subject to greater frequency and diversity of claims and claims-related litigation than its reinsurance industry, we willoperations and, in some jurisdictions, may be subject to litigationdirect actions by allegedly injured persons or entities seeking damages from policyholders. These lawsuits, which involve or arise out of claims on policies issued by the Company’s subsidiaries, are typical to the insurance industry in general and arbitrationin the normal course of our business. These claims are considered in the Company’s loss and loss expense reserves. In addition, the Company may from time to time engage in litigation or arbitration related to its claims for payment in respect of ceded reinsurance, including disputes that challenge the ordinary courseCompany’s ability to enforce its underwriting intent. Such matters could result, directly or indirectly, in providers of business.
If we areprotection not meeting their obligations to the Company or not doing so on a timely basis. The Company may also be subject to other disputes in the ordinary course of our business, we anticipate engaging in discussions with the partiesfrom time to the applicable contracttime, relating to seek to resolve the matter. If such discussions are unsuccessful, we anticipate invoking the dispute resolution provisions of the relevant contract, which typically provide for the parties to submit tooperational or other matters distinct from insurance or
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reinsurance claims. Any litigation or arbitration, or regulatory process, contains an element of uncertainty, and the value of an exposure or a gain contingency related to a dispute is difficult to estimate. The Company believes that no individual litigation as applicable, to resolve the dispute.
There are currently no material legal proceedingsor arbitration to which weit is presently a party is likely to have a material adverse effect on its results of operations, financial condition, business or our subsidiaries are a party.operations.
ITEM 1A. Risk Factors
There have been no material changes to the Company's risk factors previously disclosed in our Form 10-K filed with the Securities and Exchange Commission on February 24, 2017, other than modifications to the following risk factors.

We may be subject to United States federal income taxation.

We are incorporated under the laws of Bermuda and we believe that our activities, as currently conducted (including through our U.S.-based subsidiary, Third Point Re USA) and as contemplated, will not cause us to be treated as engaging in a United States trade or business and will not cause us to be subject to current United States federal income taxation on our net income, except with respect to Third Point Re USA, which is treated as a domestic corporation for U.S. federal income tax purposes. However, because there are no definitive standards provided by the Internal Revenue Code of 1986 as amended or the Code, regulations or court decisions as to the specific activities that constitute being engaged in the conduct of a trade or business within the United States, and as any such determination is essentially factual in nature and must be made annually, we cannot assure you that the United States Internal Revenue Service, or the IRS, will not successfully assert that we are engaged in a trade or business in the United States or, if applicable under the income tax treaty between the U.S. and Bermuda (the “Bermuda Treaty”), engaged in a trade or business in the United States through a permanent establishment, and thus are subject to current United States federal income taxation. If we were deemed to be engaged in a trade or business in the United States (and, if applicable under the Bermuda Treaty, were deemed to be so engaged through a permanent establishment), Third Point Re generally would become subject to United States federal income tax on its income “effectively connected” (or treated as effectively connected) with the U.S. trade or business, and would become subject to the “branch profits” tax on its earnings and profits that are both effectively connected with the U.S. trade or business and deemed repatriated out of the United States. Any such federal tax liability could materially and adversely affect our operations and financial condition.

United States persons who own our shares may be subject to United States federal income taxation on our undistributed earnings and may recognize ordinary income upon disposition of shares.

Passive Foreign Investment Company (“PFIC”). Significant potential adverse U.S. federal income tax consequences generally apply to any United States person who owns shares in a PFIC. In general, either we and/or Third Point Re would be a PFIC for a taxable year if 75% or more of its income constitutes “passive income” or 50% or more of its assets were held to produce “passive income.” Passive income generally includes interest, dividends and other investment income but does not include income derived in the active conduct of an insurance business by a corporation predominantly engaged in an insurance business. This exception for insurance companies is intended to ensure that a bona fide insurance company’s income is not treated as passive income, except to the extent such income is attributable to financial reserves in excess of the reasonable needs of the insurance business. However, there is very little authority as to what constitutes the active conduct of an insurance business for purposes of the PFIC rules. The IRS has notified taxpayers in IRS Notice 2003-34 that it intends to scrutinize the activities of certain insurance companies located outside of the United States, including reinsurance companies that invest a significant portion of their assets in alternative investment strategies, to determine whether such companies qualify for the active insurance company exception in the PFIC rules. The IRS recently proposed regulations concerning the active insurance company exception. The proposed regulations provide that the active conduct of an insurance business must include the performance of substantial managerial and operational services by an insurance company’s own employees and officers. The activities of independent contractors and employees of affiliates are not sufficient to satisfy this requirement. The proposed regulations also clarify that income from investment assets held by an insurance company to meet its obligations under insurance and annuity contracts will not be treated as passive income for PFIC purposes. However, the IRS did not propose a specific method for determining the portion of an insurance company’s assets that are held to meet obligations under insurance and annuity contracts, and solicited comments on appropriate approaches. At this time it is unclear whether final regulations will include a specific methodology and how any such methodology would apply to us. The proposed regulations will be effective when issued in final form.

We believe that our financial reserves are consistent with industry standards and are not in excess of the reasonable needsPart I, Item 1A of our insurance business, that we are actively engaged in insurance activities that involve sufficient transfer of risk, and that our employees and officers provide substantial managerial and operational services. However, we cannot assure you the IRS will agree with our position and will not successfully assert that we do not qualify for the insurance exception. Moreover, our expectation with respect to any taxable year is based on the amount of risk that we expect to underwrite during that year. If we are unable to underwrite a sufficient amount of risk for any taxable year, we and/or Third Point Re might be treated as a PFIC. Furthermore, in certain circumstances, we may seek to manage the volatility
2022 Form 10-K.

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of our reinsurance results by writing policies that contain certain contractual terms and conditions (such as loss ratio caps), which may cause the IRS to assert that such policies lack sufficient risk transfer to constitute insurance for United States federal income tax purposes, increasing the risk that we and/or Third Point Re may be treated as a PFIC. Counsel to the Company and its subsidiaries (the “Group”) have never provided an opinion regarding the Group’s PFIC status due to the absence of applicable authority regarding the active insurance company exception and the dependence of the Group’s PFIC status on the actual operational results and other relevant facts for each taxable year. Readers are urged to consult their own tax advisors to assess their tolerance of this risk.

The proposed “Tax Cuts and Jobs Act” (H.R. 1), released by the U.S. House of Representatives on November 2, 2017 (the “House Tax Bill”) would modify the insurance exception to apply to a company only if (i) the company would be taxed as an insurance company were it a U.S. corporation and (ii) either (A) loss and loss adjustment expenses and certain reserves constitute more than 25% of the company’s gross assets for the relevant year or (B) loss and loss adjustments expenses and certain reserves constitute more than 10% of the company’s gross assets for the relevant year and, based on the applicable facts and circumstances, the company is predominantly engaged in an insurance business and the failure of the company to satisfy the preceding 25% test is due solely to run-off related or rating-related circumstances involving the insurance business. If such legislation were enacted in its current form, no assurance can be given that we would be able to operate in a manner to satisfy these requirements in any given year. No assurance can be given as to whether such legislation will be adopted and if so, in what form. Moreover, as discussed above, there can be no assurance as to what methodologies the proposed regulations will adopt for determining the portion of an insurance company’s assets that are held to meet obligations under insurance and annuity contracts, or whether the proposed regulations will be enacted in their current form.

If a “United States person” holds our shares as “capital assets” within the meaning of section 1221 of the Code during any taxable year in which we and/or Third Point Re are treated as PFICs, such shares will generally be treated as stock in a PFIC for all subsequent years. Certain elections designed to mitigate the adverse consequences of owning shares in a PFIC, including a “Protective QEF Election,” may be available. If you are a United States person, we advise you to consult your own tax advisor concerning the potential tax consequences to you under the PFIC rules, the advisability of making one of these elections and to assess your tolerance of this risk.

Controlled Foreign Corporations (“CFC”). United States persons who, directly or indirectly or through attribution rules, own 10% or more of the voting power of our shares, which we refer to as United States 10% shareholders, may be subject to the CFC rules. Under the CFC rules, each United States 10% shareholder must annually include its pro rata share of the CFC’s “subpart F income,” even if no distributions are made. In general (subject to the special rules applicable to “related person insurance income” described below), a foreign insurance company will be treated as a CFC only if United States 10% shareholders collectively own more than 25% of the total combined voting power or total value of the company’s shares for an uninterrupted period of 30 days or more during any year. We believe that the restrictions placed on the voting power of our shares should generally prevent shareholders who acquire shares from being treated as United States 10% shareholders of a CFC. We cannot assure you, however, that these rules will not apply to you. If you are a United States person we strongly urge you to consult your own tax advisor concerning the controlled foreign corporation rules.

Related Person Insurance Income. If (a) our gross income attributable to insurance or reinsurance policies pursuant to which the direct or indirect insureds are our direct or indirect United States shareholders or persons related to such United States shareholders equals or exceeds 20% of our gross insurance income in any taxable year; and (b) direct or indirect insureds and persons related to such insureds own directly or indirectly 20% or more of the voting power or value of our shares, a United States person who owns any shares directly or indirectly on the last day of the taxable year would most likely be required to include its allocable share of our related person insurance income for the taxable year in its income, even if no distributions are made. We do not expect that it is likely that either or both of the 20% gross insurance income threshold or the 20% direct or indirect ownership threshold will be met. However, we cannot assure you that this will be the case. Consequently, we cannot assure you that a person who is a direct or indirect United States shareholder will not be required to include amounts in its income in respect of related person insurance income in any taxable year.


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Dispositions of Our Shares. If a United States shareholder is treated as disposing of shares in a CFC of which it is a United States 10% shareholder, or of shares in a foreign insurance corporation that has related person insurance income and in which United States persons collectively own 25% or more of the voting power or value of the company’s share capital, any gain from the disposition will generally be treated as a dividend to the extent of the United States shareholder’s portion of the corporation’s undistributed earnings and profits, as the case may be, that were accumulated during the period that the U.S. shareholder owned the shares. In addition, the shareholder will be required to comply with certain reporting requirements, regardless of the amount of shares owned by the direct or indirect United States shareholder. Although not free from doubt, we believe it would be reasonable for a United States person to take the position that these rules should not apply to dispositions of our shares because we should not have any United States 10% shareholders and will not be directly engaged in the insurance business. We cannot assure you, however, that the IRS will interpret the proposed regulations potentially applicable to such dispositions in this manner or that the proposed regulations will not be promulgated in final form in a manner that would cause these rules to apply to dispositions of our shares.

Change in United States tax laws may be retroactive and could subject us to increased taxes and/or United States persons who own our shares to United States income taxation on our undistributed earnings and could adversely affect our operations and financial condition.

New tax laws and regulations and changes in existing tax laws and regulations are continuously being enacted that could result in increased tax expenditures in the future. The House Tax Bill would impose a 20% excise tax on certain payments by United States corporations to a related foreign corporation. If enacted in its present form, this could impose material incremental taxes on reinsurance transactions between Third Point Re USA and Third Point Re BDA and as a result materially and adversely affect our operations and financial condition. No assurance can be given as to whether such legislation will be adopted and if so, in what form.

The tax laws and interpretations thereof regarding whether a company is engaged in a United States trade or business, is a CFC, has related party insurance income or is a PFIC are subject to change, possibly on a retroactive basis. The regulations regarding the application of the passive foreign investment company rules to an insurance company and regarding related party insurance income are in proposed form. New regulations or pronouncements interpreting or clarifying such rules may be forthcoming from the IRS. We are not able to predict if, when or in what form such guidance will be provided and whether such guidance will have a retroactive effect.

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ITEM 2. Unregistered Sales of Equity Securities, and Use of Proceeds and Issuer Purchases of Equity Securities
WeOn February 28, 2018, the Company’s Board of Directors authorized the repurchase of an additional $148.3 million common shares, which, together with the amount remaining under the share repurchase program previously authorized on May 4, 2016, will allow the Company to repurchase up to $200.0 million of the Company’s outstanding common shares in the aggregate.
As of June 30, 2023, a maximum value of approximately $56.3 million of common shares and warrants may yet be purchased under the program.
The Company did not make any repurchases of common shares during the three and six months ended SeptemberJune 30, 2017.2023.
On May 4, 2016, our Board of Directors authorized a common share repurchase program for up to an aggregate of $100.0 million of our outstanding common shares. As of September 30, 2017, a maximum value of approximately $51.7 million of common shares may yet be purchased under the program.
ITEM 3. Defaults Upon Senior Securities
None.
ITEM 4. Mine Safety Disclosures
Not applicable.
ITEM 5. Other Information
Not applicable.During the three months ended June 30, 2023, none of the Company’s directors or officers adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act of 1933, as amended).
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ITEM 6. Exhibits
10.32.410.1*
10.2*
10.3
10.4.310.4
10.4.410.5
31.1
31.2
32.1**
32.2**
101.INSXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCHInline XBRL Taxonomy Extension Schema Document
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document
101.LABInline XBRL Taxonomy Extension Labels Linkbase Document
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document
*104This certification accompaniesCover Page Interactive Data File (embedded within the Form 10-Q to which it relates, is not deemed filedInline XBRL with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of the Registrant under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Form 10-Q), irrespective of any general incorporation languageapplicable taxonomy extension information contained in such filing.Exhibits 101)

*    Management contracts or compensatory plans or arrangements.
**    This certification accompanies the Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of the Registrant under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Form 10-Q), irrespective of any general incorporation language contained in such filing.
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
SiriusPoint Ltd.
Date: August 2, 2023
/s/ Scott Egan
Scott Egan
Chief Executive Officer
(Principal Executive Officer)
Third Point Reinsurance Ltd./s/ Stephen Yendall
Date: November 9, 2017Stephen Yendall
/s/ J. Robert Bredahl
J. Robert Bredahl
President and Chief Executive Officer
(Principal Executive Officer)
/s/ Christopher S. Coleman
Christopher S. Coleman
Chief Financial Officer
(Principal Financial Officer)
/s/ Anthony L. LeHan
Anthony L. LeHan
Chief Accounting Officer and
(Principal Accounting Officer)



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