Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 28, 2023 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-36052 | |
Entity Registrant Name | SIRIUSPOINT LTD. | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 98-1599372 | |
Entity Address, Address Line One | Point Building | |
Entity Address, Address Line Two | 3 Waterloo Lane | |
Entity Address, City or Town | Pembroke | |
Entity Address, Postal Zip Code | HM 08 | |
Entity Address, Country | BM | |
City Area Code | 441 | |
Local Phone Number | 542-3300 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 164,501,084 | |
Entity Central Index Key | 0001576018 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Shares, $0.10 par value | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Shares, $0.10 par value | |
Trading Symbol | SPNT | |
Security Exchange Name | NYSE | |
8.00% Resettable Fixed Rate Preference Shares, Series B, $0.10 par value, $25.00 liquidation preference per share | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 8.00% Resettable Fixed Rate Preference Shares, Series B, $0.10 par value, $25.00 liquidation preference per share | |
Trading Symbol | SPNT PB | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
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) | 753.2 | 1,526 |
Short-term investments, at fair value (cost - $555.1; 2022 - $984.5) | 559.2 | 984.6 |
Investments in related party investment funds, at fair value | 111.3 | 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)) | 355.4 | 377.2 |
Equity securities, trading, at fair value (cost - $1.8; 2022 - $1.8) | 1.6 | 1.6 |
Total investments managed by related parties | 5,952.8 | 5,653.7 |
Cash and cash equivalents | 676.2 | 705.3 |
Restricted cash and cash equivalents | 95.2 | 208.4 |
Redemption receivable from related party investment fund | 5 | 18.5 |
Due from brokers | 18.2 | 4.9 |
Interest and dividends receivable | 36.8 | 26.7 |
Insurance and reinsurance balances receivable, net | 2,252.1 | 1,876.9 |
Deferred acquisition costs, net | 340.3 | 294.9 |
Unearned premiums ceded | 481.3 | 348.8 |
Loss and loss adjustment expenses recoverable, net | 2,276.7 | 1,376.2 |
Deferred tax asset | 164.3 | 200.3 |
Intangible assets | 158.5 | 163.8 |
Other assets | 165.4 | 157.9 |
Total assets | 12,622.8 | 11,036.3 |
Liabilities | ||
Loss and loss adjustment expense reserves | 5,338.8 | 5,268.7 |
Unearned premium reserves | 1,819.2 | 1,521.1 |
Reinsurance balances payable | 1,845.4 | 813.6 |
Deposit liabilities | 137.8 | 140.5 |
Deferred gains on retroactive reinsurance contracts | 21.2 | 0 |
Debt | 765.9 | 778 |
Securities sold, not yet purchased, at fair value | 0 | 27 |
Securities sold under an agreement to repurchase | 11 | 18 |
Due to brokers | 28.1 | 0 |
Deferred tax liability | 61 | 59.8 |
Liability-classified capital instruments | 65.4 | 60.4 |
Accounts payable, accrued expenses and other liabilities | 261.3 | 266.6 |
Total liabilities | 10,355.1 | 8,953.7 |
Commitments and contingent liabilities | ||
Shareholders’ equity | ||
Common shares (issued and outstanding: 163,200,630; 2022 - 162,177,653) | 16.3 | 16.2 |
Additional paid-in capital | 1,645.6 | 1,641.3 |
Retained earnings | 467.1 | 262.2 |
Accumulated other comprehensive loss, net of tax | (74.2) | (45) |
Shareholders’ equity attributable to SiriusPoint shareholders | 2,254.8 | 2,074.7 |
Noncontrolling interests | 12.9 | 7.9 |
Total shareholders’ equity | 2,267.7 | 2,082.6 |
Total liabilities, noncontrolling interests and shareholders’ equity | 12,622.8 | 11,036.3 |
Series B preference shares | ||
Shareholders’ equity | ||
Series B preference shares (par value $0.10; authorized and issued: 8,000,000) | $ 200 | $ 200 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt securities, available for sale, cost | $ 4,241.3 | $ 2,678.1 |
Debt securities, trading, cost | 802.3 | 1,630.1 |
Debt securities, available for sale, allowance for credit losses | 0 | 0 |
Short-term investments, cost | 555.1 | 984.5 |
Other long-term investments, cost | 377.6 | 392 |
Related party investments at fair value | 199.4 | 201.2 |
Equity securities, trading, cost | $ 1.8 | $ 1.8 |
Common share, shares issued (in shares) | 163,200,630 | 162,177,653 |
Common share, shares outstanding (in shares) | 163,200,630 | 162,177,653 |
Series B preference shares | ||
Preference shares, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preference shares, shares authorized (in shares) | 8,000,000 | 8,000,000 |
Preference shares, shares issued (in shares) | 8,000,000 | 8,000,000 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 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 income | 68.5 | 17.4 | 130.2 | 25.2 |
Net realized and unrealized investment gains (losses) and net investment income | 65.8 | (141.5) | 139.6 | (346.6) |
Other revenues | (1.7) | 45.8 | 14.1 | 83 |
Total revenues | 767.9 | 473.1 | 1,453 | 834.5 |
Expenses | ||||
Loss and loss adjustment expenses incurred, net | 407 | 360.3 | 674.1 | 700.4 |
Acquisition costs, net | 126.2 | 123.6 | 245.9 | 232.1 |
Other underwriting expenses | 43.3 | 46.1 | 95.5 | 93.3 |
Net corporate and other expenses | 70.3 | 72 | 130.3 | 149.4 |
Intangible asset amortization | 2.9 | 2 | 5.3 | 3.9 |
Interest expense | 11.7 | 9.4 | 24.5 | 18.7 |
Foreign exchange (gains) losses | 17.4 | (56.5) | 17.5 | (75.9) |
Total expenses | 678.8 | 556.9 | 1,193.1 | 1,121.9 |
Income (loss) before income tax (expense) benefit | 89.1 | (83.8) | 259.9 | (287.4) |
Income tax (expense) benefit | (16.8) | 27.7 | (42.6) | 18 |
Net income (loss) | 72.3 | (56.1) | 217.3 | (269.4) |
Net income attributable to noncontrolling interests | (2) | (0.7) | (4.4) | (0.4) |
Net income (loss) available to SiriusPoint | 70.3 | (56.8) | 212.9 | (269.8) |
Dividends on Series B preference shares | (4) | (4) | (8) | (8) |
Net income (loss) available to SiriusPoint common shareholders | 66.3 | (60.8) | 204.9 | (277.8) |
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 (in dollars per share) | $ 0.38 | $ (0.38) | $ 1.18 | $ (1.74) |
Diluted earnings (loss) per share available to SiriusPoint common shareholders (in dollars per share) | $ 0.37 | $ (0.38) | $ 1.14 | $ (1.74) |
Weighted average number of common shares used in the determination of earnings (loss) per share | ||||
Basic (in shares) | 162,027,831 | 160,258,883 | 161,473,011 | 160,064,319 |
Diluted (in shares) | 166,708,932 | 160,258,883 | 165,997,198 | 160,064,319 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 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 translation | 1.5 | (1.2) | 1.2 | (0.4) |
Unrealized losses from debt securities held as available for sale investments | (54.9) | (9.8) | (32) | (9.8) |
Reclassifications from accumulated other comprehensive income | 2.2 | 0 | 1.6 | 0 |
Total other comprehensive loss | (51.2) | (11) | (29.2) | (10.2) |
Comprehensive income (loss) | 21.1 | (67.1) | 188.1 | (279.6) |
Net income attributable to noncontrolling interests | (2) | (0.7) | (4.4) | (0.4) |
Comprehensive income (loss) available to SiriusPoint | $ 19.1 | $ (67.8) | $ 183.7 | $ (280) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Parent | Preference shares Series B preference shares | Common shares | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss, net of tax | Net change in foreign currency translation adjustment | Unrealized losses from debt securities held as available for sale investments | Noncontrolling interests |
Balance, beginning of period at Dec. 31, 2021 | $ 200 | $ 16.2 | $ 1,622.7 | $ 665 | $ (0.2) | $ (0.2) | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of preference shares, net | 0 | |||||||||
Issuance of common shares, net | 0.1 | 0 | ||||||||
Share compensation | 12.5 | |||||||||
Common shares repurchased and retired | $ (5) | (0.1) | (4.9) | |||||||
Exercise of Warrants | 0 | |||||||||
Change in ownership interest in subsidiary | 0 | |||||||||
Net income (loss) | (269.4) | (269.4) | ||||||||
Net income attributable to noncontrolling interests | (0.4) | (0.4) | ||||||||
Dividends on preference shares | (8) | |||||||||
Net change in foreign currency translation adjustment | (0.4) | (0.4) | ||||||||
Unrealized losses from debt securities held as available for sale investments | (9.8) | (9.8) | ||||||||
Reclassifications from accumulated other comprehensive income | 0 | 0 | ||||||||
Balance, end of period at Jun. 30, 2022 | 2,224.1 | $ 2,223.3 | 200 | 16.2 | 1,630.3 | 387.2 | (10.4) | (0.6) | (9.8) | $ 0.8 |
Balance, beginning of period at Mar. 31, 2022 | 200 | 16.2 | 1,623.4 | 448 | 0.6 | 0.6 | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of preference shares, net | 0 | |||||||||
Issuance of common shares, net | 0 | 0 | ||||||||
Share compensation | 7.2 | |||||||||
Common shares repurchased and retired | (0.3) | 0 | (0.3) | |||||||
Exercise of Warrants | 0 | |||||||||
Change in ownership interest in subsidiary | 0 | |||||||||
Net income (loss) | (56.1) | (56.1) | ||||||||
Net income attributable to noncontrolling interests | (0.7) | (0.7) | ||||||||
Dividends on preference shares | (4) | |||||||||
Net change in foreign currency translation adjustment | (1.2) | (1.2) | ||||||||
Unrealized losses from debt securities held as available for sale investments | (9.8) | (9.8) | ||||||||
Reclassifications from accumulated other comprehensive income | 0 | 0 | ||||||||
Balance, end of period at Jun. 30, 2022 | 2,224.1 | 2,223.3 | 200 | 16.2 | 1,630.3 | 387.2 | (10.4) | (0.6) | (9.8) | 0.8 |
Balance, beginning of period at Dec. 31, 2022 | 2,082.6 | 200 | 16.2 | 1,641.3 | 262.2 | (45) | (5.2) | (39.8) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of preference shares, net | 0 | |||||||||
Issuance of common shares, net | 0.1 | 0.1 | ||||||||
Share compensation | 3.4 | |||||||||
Common shares repurchased and retired | 0 | 0 | ||||||||
Exercise of Warrants | 2 | |||||||||
Change in ownership interest in subsidiary | (1.2) | |||||||||
Net income (loss) | 217.3 | 217.3 | ||||||||
Net income attributable to noncontrolling interests | (4.4) | (4.4) | ||||||||
Dividends on preference shares | (8) | |||||||||
Net change in foreign currency translation adjustment | 1.2 | 1.2 | ||||||||
Unrealized losses from debt securities held as available for sale investments | (32) | (32) | ||||||||
Reclassifications from accumulated other comprehensive income | 1.6 | 1.6 | ||||||||
Balance, end of period at Jun. 30, 2023 | 2,267.7 | 2,254.8 | 200 | 16.3 | 1,645.6 | 467.1 | (74.2) | (4) | (70.2) | 12.9 |
Balance, beginning of period at Mar. 31, 2023 | 200 | 16.2 | 1,642.6 | 400.8 | (23) | (5.5) | (17.5) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of preference shares, net | 0 | |||||||||
Issuance of common shares, net | 0.1 | 0.1 | ||||||||
Share compensation | 0.9 | |||||||||
Common shares repurchased and retired | 0 | 0 | ||||||||
Exercise of Warrants | 2 | |||||||||
Change in ownership interest in subsidiary | 0 | |||||||||
Net income (loss) | 72.3 | 72.3 | ||||||||
Net income attributable to noncontrolling interests | (2) | (2) | ||||||||
Dividends on preference shares | (4) | |||||||||
Net change in foreign currency translation adjustment | 1.5 | 1.5 | ||||||||
Unrealized losses from debt securities held as available for sale investments | (54.9) | (54.9) | ||||||||
Reclassifications from accumulated other comprehensive income | 2.2 | 2.2 | ||||||||
Balance, end of period at Jun. 30, 2023 | $ 2,267.7 | $ 2,254.8 | $ 200 | $ 16.3 | $ 1,645.6 | $ 467.1 | $ (74.2) | $ (4) | $ (70.2) | $ 12.9 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating activities | ||
Net income (loss) | $ 217.3 | $ (269.4) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Share compensation | 10.8 | 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 funds | 0.1 | 191.5 |
Other revenues | 44.1 | (37.2) |
Amortization of premium and accretion of discount, net | (36.3) | 8.6 |
Amortization of intangible assets | 5.3 | 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/liability | 37.2 | (34.3) |
Other assets | (12.4) | (5) |
Interest and dividends receivable | (10.1) | (6.3) |
Loss and loss adjustment expense reserves | 70.1 | 99.4 |
Unearned premium reserves | 298.1 | 358.8 |
Deferred gain on retroactive reinsurance | 21.2 | 0 |
Reinsurance balances payable | 1,031.8 | 70.7 |
Accounts payable, accrued expenses and other liabilities | (5.3) | (23.3) |
Net cash provided by operating activities | 206.3 | 45.2 |
Investing activities | ||
Proceeds from redemptions from related party investment funds | 30.9 | 654 |
Contributions to related party investment funds | 0 | (4) |
Purchases of investments | (3,092.3) | (2,915.7) |
Proceeds from sales and maturities of investments | 2,749.1 | 1,705.7 |
Change in due to/from brokers, net | 14.8 | (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 | 0 | (5) |
Proceeds from loans under an agreement to repurchase | 9.3 | 17.5 |
Cash dividends paid to preference shareholders | (8) | (8) |
Settlement of Contingent Value Rights | (38.5) | 0 |
Net proceeds from exercise of Warrants | 1.5 | 0 |
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) |
Net decrease in cash, cash equivalents and restricted cash | (142.3) | (571.2) |
Cash, cash equivalents and restricted cash at beginning of period | 913.7 | 1,948.4 |
Cash, cash equivalents and restricted cash at end of period | $ 771.4 | $ 1,377.2 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. Organization SiriusPoint Ltd. (together with its consolidated subsidiaries, “SiriusPoint” or the “Company”) was incorporated under the laws of Bermuda on October 6, 2011. Through its subsidiaries, the Company is a provider of global multi-line reinsurance and insurance products and services. These unaudited consolidated financial statements 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 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, 2022 (the “2022 Form 10-K”) filed with the U.S. Securities and Exchange Commission on February 24, 2023. In the opinion of management, these unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement 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 six months ended June 30, 2023 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. |
Significant accounting policies
Significant accounting policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant accounting policies | 2. Significant accounting policies Other than described below, there have been no material changes to the Company’s significant accounting policies as described in its 2022 Form 10-K. Retroactive 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 deferred gain is recognized in earnings. The deferred gain is disclosed as a separate line item in the Company’s consolidated balance sheets and changes in the deferred gain are recognized within losses incurred in the Company’s income statement. Recently issued accounting standards Accounting pronouncements issued during the three and six 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. |
Significant Transactions
Significant Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Significant Transactions | 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, 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 |
Segment reporting
Segment reporting | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment reporting | 4. Segment reporting The determination of the Company’s business segments is based on the manner in which management monitors the performance of its operations. The Company reports two operating segments: Reinsurance and Insurance & Services. The Company’s segments each have managers who are responsible for the overall profitability of their segments and who are directly accountable to the Company’s chief operating decision maker, the Chief Executive Officer ("CEO"). The CEO assesses segment operating performance, allocates capital, and makes resource allocation decisions based on Segment income (loss). The Company does not manage 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 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 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 manage segment results or allocate resources to segments when considering these items and they are therefore excluded from our definition of segment income (loss). The following is a summary of the Company’s operating segment results for the three and six months ended June 30, 2023 and 2022: Three months ended June 30, 2023 Reinsurance Insurance & Services Core Eliminations (2) Corporate Segment Measure Reclass Total Gross premiums written $ 387.1 $ 462.7 $ 849.8 $ — $ 37.3 $ — $ 887.1 Net premiums written 341.3 291.6 632.9 — 37.3 — 670.2 Net premiums earned 320.7 339.6 660.3 — 43.5 — 703.8 Loss and loss adjustment expenses incurred, net 167.0 227.7 394.7 (1.5) 13.8 — 407.0 Acquisition costs, net 62.4 84.0 146.4 (35.9) 15.7 — 126.2 Other underwriting expenses 12.0 25.5 37.5 — 5.8 — 43.3 Underwriting income 79.3 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 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 income 68.5 — 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 ratio 52.1 % 67.0 % 59.8 % 57.8 % Acquisition cost ratio 19.5 % 24.7 % 22.2 % 17.9 % Other underwriting expenses ratio 3.7 % 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. Three months ended June 30, 2022 Reinsurance Insurance & Services Core Eliminations (2) Corporate Segment Measure Reclass Total Gross premiums written $ 378.3 $ 433.9 $ 812.2 $ — $ 0.4 $ — $ 812.6 Net premiums written 321.5 301.4 622.9 — 0.1 — 623.0 Net premiums earned 319.5 244.3 563.8 — 5.0 — 568.8 Loss and loss adjustment expenses incurred, net 204.7 154.8 359.5 (1.1) 1.9 — 360.3 Acquisition costs, net 86.3 63.9 150.2 (26.8) 0.2 — 123.6 Other underwriting expenses 28.7 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 income 17.4 — 17.4 Other revenues 25.9 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 gains 56.5 — 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 ratio 64.1 % 63.4 % 63.8 % 63.3 % Acquisition cost ratio 27.0 % 26.2 % 26.6 % 21.7 % Other underwriting expenses ratio 9.0 % 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. Six months ended June 30, 2023 Reinsurance Insurance & Services Core Eliminations (2) Corporate Segment Measure Reclass Total Gross premiums written $ 783.3 $ 1,126.7 $ 1,910.0 $ — $ 87.6 $ — $ 1,997.6 Net premiums written 652.3 744.2 1,396.5 — 65.4 — 1,461.9 Net premiums earned 580.2 630.8 1,211.0 — 88.3 — 1,299.3 Loss and loss adjustment expenses incurred, net 252.6 400.2 652.8 (2.8) 24.1 — 674.1 Acquisition costs, net 128.4 155.7 284.1 (68.4) 30.2 — 245.9 Other underwriting expenses 40.2 44.8 85.0 — 10.5 — 95.5 Underwriting income 159.0 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 income 156.4 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 income 130.2 — 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 income 205.5 (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 ratio 43.5 % 63.4 % 53.9 % 51.9 % Acquisition cost ratio 22.1 % 24.7 % 23.5 % 18.9 % Other underwriting expenses ratio 6.9 % 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. Six months ended June 30, 2022 Reinsurance Insurance & Services Core Eliminations (2) Corporate Segment Measure Reclass Total Gross premiums written $ 902.5 $ 917.4 $ 1,819.9 $ — $ 2.4 $ — $ 1,822.3 Net premiums written 696.4 638.9 1,335.3 — 1.6 — 1,336.9 Net premiums earned 627.1 457.1 1,084.2 — 13.9 — 1,098.1 Loss and loss adjustment expenses incurred, net 399.2 288.8 688.0 (2.3) 14.7 — 700.4 Acquisition costs, net 166.2 117.4 283.6 (52.4) 0.9 — 232.1 Other underwriting expenses 58.8 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 income 25.2 — 25.2 Other revenues 37.1 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 gains 75.9 — 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 ratio 63.7 % 63.2 % 63.5 % 63.8 % Acquisition cost ratio 26.5 % 25.7 % 26.2 % 21.1 % Other underwriting expenses ratio 9.4 % 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. |
Cash, cash equivalents, restric
Cash, cash equivalents, restricted cash and restricted investments | 6 Months Ended |
Jun. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash, cash equivalents, restricted cash and restricted investments | 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, 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 underwriters 25.2 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 clients in support of our obligations under reinsurance contracts. The Company will not be released from the obligation to provide these letters of credit until the reserves underlying the reinsurance 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 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 time 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 Company’s consolidated statements of cash flows. (4) Restricted investments include required deposits with certain insurance state regulatory agencies in order to maintain insurance licenses. |
Fair value measurements
Fair value measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | 6. Fair value 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 – Inputs are based all or in part on significant unobservable inputs for the investment, and include situations 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 following tables present the Company’s investments, categorized by the level of the fair value hierarchy as of June 30, 2023 and December 31, 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 agency 1,079.3 4.2 — 1,083.5 Non-U.S. government and government agency 3.2 79.0 — 82.2 Total debt securities, available for sale 1,082.5 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 agency 108.9 — — 108.9 Non-U.S. government and government agency 1.7 29.2 — 30.9 Total debt securities, trading 110.6 642.6 — 753.2 Total equity securities 1.6 — — 1.6 Short-term investments 540.4 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 investments 88.2 Investments in funds valued at NAV 143.5 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 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 agency 1,546.2 4.4 — 1,550.6 Non-U.S. government and government agency 5.0 31.6 — 36.6 Total debt securities, available for sale 1,551.2 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 agency 264.1 6.3 — 270.4 Non-U.S. government and government agency 8.7 79.5 — 88.2 Preferred stocks — — 3.2 3.2 Total debt securities, trading 272.8 1,250.0 3.2 1,526.0 Total equity securities 1.6 — — 1.6 Short-term investments 972.8 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 investments 104.8 Investments in funds valued at NAV 173.9 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 six months ended June 30, 2023, the Company did not reclassify its assets or liabilities between Levels 2 and 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. 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 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 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 six months ended June 30, 2023: April 1, 2023 Transfers in to (out of) Level 3 Purchases Sales & Settlements Realized and Unrealized Gains (Losses) (1) June 30, 2023 Assets Preferred stocks $ 3.2 $ — $ — $ (2.3) $ (0.9) $ — Other long-term investments 227.4 — 6.3 (0.3) 1.6 235.0 Derivative assets 11.3 — 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, Transfers in to (out of) Level 3 Purchases Sales & Settlements Realized and Unrealized Gains (Losses) (1) June 30, Assets Preferred stocks $ 3.2 $ — $ — $ (2.3) $ (0.9) $ — Other long-term investments 227.3 — 6.6 (0.3) 1.4 235.0 Derivative assets 9.5 — 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) (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). The following table presents the reconciliation of all investments measured at fair value using Level 3 inputs for the three and six months ended June 30, 2022: April 1, 2022 Transfers in to (out of) Level 3 Purchases Sales & Settlements Realized and Unrealized Gains (Losses) (1) June 30, 2022 Assets Preferred stocks $ 3.3 $ — $ — $ — $ (0.1) $ 3.2 Other long-term investments 242.4 — — (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, Transfers in to (out of) Level 3 Purchases Sales Realized and Unrealized Gains (Losses) (1) June 30, Assets Preferred stocks $ 2.8 $ — $ — $ — $ 0.4 $ 3.2 Other long-term investments 262.1 — 1.6 (19.6) (2.4) 241.7 Derivative assets 0.4 — 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 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 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. The following table includes 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, 2023 December 31, 2022 Fair Value Carrying Value Fair Value Carrying Value 2017 SEK Subordinated Notes $ 250.0 $ 247.1 $ 259.0 $ 258.6 2016 Senior Notes 332.3 404.2 343.7 404.8 2015 Senior Notes 107.1 114.6 112.6 114.6 Series B preference shares $ 202.4 $ 200.0 $ 186.0 $ 200.0 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 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 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 declines in fair 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 Company's debt securities as of June 30, 2023 and December 31, 2022: June 30, 2023 Cost or Gross Gross unrealized losses (2) Net foreign Fair value Debt securities, available for sale Asset-backed securities $ 712.0 $ 2.7 $ (9.9) $ — $ 704.8 Residential mortgage-backed securities 700.8 2.0 (18.4) — 684.4 Commercial mortgage-backed securities 136.5 0.1 (2.9) — 133.7 Corporate debt securities 1,507.8 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 agency 82.9 — (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 securities 93.8 — (13.2) — 80.6 Commercial mortgage-backed securities 82.4 — (9.7) — 72.7 Corporate debt securities 110.0 — (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 agency 32.5 — (1.6) — 30.9 Total debt securities, trading $ 802.3 $ 0.1 $ (48.9) $ (0.3) $ 753.2 December 31, 2022 Cost or Gross Gross Net foreign Fair value Debt securities, available for sale Asset-backed securities $ 234.1 $ 0.9 $ (4.3) $ — $ 230.7 Residential mortgage-backed securities 354.3 0.3 (13.9) — 340.7 Commercial mortgage-backed securities 62.1 — (0.9) — 61.2 Corporate debt securities 428.5 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 agency 37.2 — (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 securities 155.9 — (22.3) — 133.6 Commercial mortgage-backed securities 130.5 — (17.1) — 113.4 Corporate debt securities 391.4 — (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 agency 95.8 — (4.0) (3.6) 88.2 Preferred stocks 2.4 0.8 — — 3.2 Total debt securities, trading $ 1,630.1 $ 0.9 $ (100.7) $ (4.3) $ 1,526.0 (1) The Company had no short positions in long duration U.S. Treasuries as of June 30, 2023 (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 December 31, 2022, the Company did not record an allowance for credit losses on the AFS portfolio. As of June 30, 2023, 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, 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. Debt securities, trading Debt securities, AFS Cost or Fair value Cost or 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 years 57.9 52.9 2,313.3 2,275.7 Due after five years through ten years 20.6 18.4 170.5 167.0 Due after ten years 34.9 28.7 2.7 2.4 Mortgage-backed and asset-backed securities 547.3 512.0 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 years 426.5 407.0 1,822.7 1,802.0 Due after five years through ten years 63.4 55.7 95.8 92.3 Due after ten years 35.5 28.5 4.9 4.6 Mortgage-backed and asset-backed securities 861.9 800.7 650.5 632.6 Preferred stocks 2.4 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, 2023 December 31, 2022 Debt securities, trading Debt securities, AFS Debt securities, trading Debt securities, AFS AAA $ 351.0 $ 618.1 $ 564.4 $ 172.8 AA 238.4 1,945.2 523.2 1,907.6 A 47.6 911.9 181.1 188.9 BBB 54.0 380.4 158.1 149.9 Other 62.2 316.5 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 equity securities and other long-term investments as of June 30, 2023 and December 31, 2022 were as follows: Cost or Gross Gross Net foreign 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 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, December 31, 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) Includ es $47.6 million of investments carried at NAV (December 31, 2022 - $45.1 million) and $25.4 million of i nvestments 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 these 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, December 31, Equity method eligible unconsolidated entities, using the fair value option $ 153.5 $ 147.9 Equity method investments 41.5 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, December 31, Third Point Enhanced LP $ 83.9 $ 100.3 Third Point Venture Offshore Fund I LP 25.1 26.0 Third Point Venture Offshore Fund II LP 2.3 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”). 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 not 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 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 h ad 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 co mpanies, 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 . |
Total realized and unrealized i
Total realized and unrealized investment gains (losses) and net investment income | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Total realized and unrealized investment gains (losses) and net investment income | 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 ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Debt securities, available for sale $ 48.5 $ 2.9 $ 83.6 $ 2.9 Debt securities, trading 10.5 (60.9) $ 39.6 $ (120.2) Short-term investments 5.9 (0.9) 14.3 (2.6) Other long-term investments (3.8) (0.6) 0.6 (1.6) Derivative instruments 3.5 — 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 equivalents 63.7 (120.3) 141.5 (313.4) Investment expenses (5.1) (3.4) (10.5) (7.4) Net investment income (loss) on cash and cash equivalents 7.2 (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 ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 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 investments 24.8 (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 ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 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 equivalents 5.6 (15.4) 4.4 (11.5) Net realized investment (losses) $ (26.6) $ (35.2) $ (36.4) $ (37.7) Net unrealized investment gains (losses) Net unrealized investment gains (losses) for the three and six months ended June 30, 2023 and 2022 consisted of the following: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Debt securities, trading $ 28.9 $ (57.0) $ 51.9 $ (121.1) Short-term investments 1.1 (2.6) 0.7 (4.6) Derivative instruments 3.5 — 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 unrealized investment gains (losses) – Level 3 investments for the three and six months ended June 30, 2023 and 2022: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Debt securities, trading $ (0.9) $ — $ (0.8) $ 0.5 Other long-term investments 2.0 1.6 (2.8) (2.3) Total unrealized investment gains (losses) – Level 3 investments $ 1.1 $ 1.6 $ (3.6) $ (1.8) |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 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 entered 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 o ther revenues . Management uses available market data and intern al 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 of June 30, 2023. The Company does not provide or hold any collateral associated with the weather derivatives. 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, 2023 December 31, 2022 Derivatives not designated as hedging instruments Derivative assets at fair value (1) Derivative liabilities at fair value (2) Notional Derivative assets at fair value (1) Derivative liabilities at fair value (2) Notional 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 consolidated balance sheets . (2) Derivative liabilities are classified within accounts payable, accrued expenses and other liabilities in the Company’s consolidated balance sheets. 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 ended Six months ended Derivatives not designated as hedging instruments Classification of gains (losses) recognized in earnings June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Foreign currency forwards Foreign exchange gains $ (13.3) $ (5.8) $ (14.9) $ (6.8) Foreign currency futures contracts Foreign exchange gains — (24.9) — (30.8) Weather derivatives Other revenues (0.3) 0.2 3.2 (0.4) Equity warrants Net realized and unrealized investment gains (losses) — — — (0.1) Foreign currency swaps Foreign exchange gains (12.0) — (13.6) — Interest rate swaps Net realized and unrealized investment gains (losses) $ 3.5 $ — $ 3.5 $ — |
Variable and voting interest en
Variable and voting interest entities | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable and voting interest entities | 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 C ompany 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 bala nce sheets were $50.0 million and $8.3 million, re spectively ( December 31, 2022 - $32.3 million and $9.7 million , respectively). 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, 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 eliminat ions, included in the Company’s consolidated balance sheets were $4.7 million and $0.7 million, respectively (December 31, 2022 - $8.0 million and $1.1 million, respe ctively). Joyn Joyn Insurance Services Inc. (“Joyn”) was considered a VIE through the third quarter of 2022 and the Company concluded that it was the primary beneficiary of Joyn because the Company could have exercised control over the activities that most significantly impacted the economic performance of Joyn. As a result, the Company had consolidated the results of Joyn 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 professional lines insurance. The Company’s ownership in Alta Signa as of June 30, 2023 was 75.1%. Alta Signa is considered a VOE and the Company holds a majority of the voting interests through its seats on Alta Signa’s board of directors. As a result, the Company has consolidated the results of Alta Signa in its consolidated financial statements. As of June 30, 2023, Alta Signa’s assets and liabilities, after intercompany eliminations, included in the Company’s consolidated balance sheets were $7.9 million and $1.6 million, respectively ( December 31, 2022 - $8.0 million and $2.1 million , respectively). Noncontrolling interests Noncontrolling interests represent the portion of equity in consolidated subsidiaries not attributable, directly or indirectly, to the Company. The following table is a reconciliation of the beginning and ending carrying amount of noncontrolling interests for the three and six months ended June 30, 2023 and 2022: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 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 interests 2.0 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 T he Company is a passive investor in certain third-party-managed hedge and private 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 loss 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. 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 Assets On-Balance Sheet Off-Balance Sheet Total 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 also 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 TP 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 Company’s consolidated statements of income (loss). Three months ended Six months ended TP Enhanced Fund summarized income statement June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Total investment income (loss) $ — $ (57.9) $ 2.1 $ (195.6) Total expenses 0.5 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 December 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 underlying assets and liabilities of TP Enhanced Fund. TP Enhanced Fund summarized balance sheet June 30, December 31, 2022 Total assets $ 100.5 $ 260.6 Total liabilities 6.3 148.6 Total partners' capital $ 94.2 $ 112.0 Investment in Third Point Venture Offshore Fund I LP TP Venture GP controls all of the investment decision-making authority of the TP Venture Fund. The Company does not have the power to direct the activities which most significantly impact the economic performance of the TP Venture Fund . The Company’s maximum exposure to loss corresponds to the value of its investment in the TP 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 the investment decision-making authority of the TP Venture Fund II. The Company does not have the power to 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 . |
Loss and loss adjustment expens
Loss and loss adjustment expense reserves | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Loss and loss adjustment expense reserves | 11. Loss and loss adjustment expense reserves The following table represents the activity in the loss and loss adjustment expense reserves for the six months ended June 30, 2023 and 2022: June 30, 2023 June 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 period 3,891.5 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 year 812.5 712.3 Prior years (138.4) (11.9) Total incurred loss and loss adjustment expenses 674.1 700.4 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 translation 2.1 (76.6) Net reserves for loss and loss adjustment expenses, end of period 3,082.6 3,682.1 Plus: loss and loss adjustment expenses recoverable, end of period 2,276.7 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 (1) Net reserves for loss and loss adjustment expenses disposed represents the transfer of reserves under 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 previous calendar years. For the six months ended June 30, 2023, the Company recorded $138.4 million of net favorable prior year loss reserve development primarily resulting from 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, which represents $118.2 million of the favorable loss reserve development. For the six months ended June 30, 2022 , the Company recorded $11.9 million of net favorable prior year loss reserve development driven by favorable development on 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. |
Allowance for expected credit l
Allowance for expected credit losses | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Allowance for expected credit losses | 12. Allowance for expected credit losses The Company 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 recoverable. The Company pools these amounts by counterparty credit rating and applies a credit default rate that is determined based on the studies published by the rating agencies (e.g., AM Best, S&P). In circumstances where ratings are unavailable, the Company applies an internally developed default rate based on historical experience, reference data including research publications, and other relevant inputs. The Company's assets in scope of the current expected credit loss assessment as of June 30, 2023 and December 31, 2022 are as follows: June 30, 2023 December 31, 2022 Insurance and reinsurance balances receivable, net $ 2,252.1 $ 1,876.9 Loss and loss adjustment expenses recoverable, net 2,276.7 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 Company’s allowance for expected credit losses was $34.3 million as of June 30, 2023 (December 31, 2022 - $34.3 million). For the three and six months ended June 30, 2023, the Company did not record any change to the current expected credit (gains) losses (2022 - $(1.8) million and $10.7 million, respectively). Changes to the current expected credit (gains) losses are included in net corporate and other expenses in the consolidated statements of income (loss). |
Debt and letter of credit facil
Debt and letter of credit facilities | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt and letter of credit facilities | 13. Debt and letter of credit facilities Debt obligations The following table represents a summar y of the Company’s debt obl igations on its consolidated balance sheets as of June 30, 2023 and December 31, 2022: June 30, 2023 December 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 value 247.1 258.6 2016 Senior Notes, at face value 400.0 4.5 % 400.0 4.5 % Unamortized premium 4.2 4.8 2016 Senior Notes, carrying value 404.2 404.8 2015 Senior Notes, at face value 115.0 7.0 % 115.0 7.0 % Unamortized issuance costs (0.4) (0.4) 2015 Senior Notes, carrying value 114.6 114.6 Total debt $ 765.9 $ 778.0 (1) Effective rate considers the effect of the debt issuance costs, discount, and premium. The Company was in compliance with all debt covenants as of and for the periods ended June 30, 2023 and December 31, 2022. Standby letter of credit facilities As of June 30, 2023, the Company had entered into the following letter of credit facilities: June 30, 2023 Letters of Credit Collateral Committed Capacity Issued Cash and Cash Equivalents Debt securities Committed - Secured letters of credit facilities $ 395.0 $ 310.0 $ 17.6 $ 214.7 Uncommitted - Secured letters of credit facilities n/a 987.0 14.3 1,164.3 $ 1,297.0 $ 31.9 $ 1,379.0 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 5 for additional information. Revolving credit facility In 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 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 availa ble, subject to customary conditions precedent. As of June 30, 2023, there were no outstanding borrowings under the Facility. |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 14. Income taxes The Company is subject to income tax expense or benefit based upon pre-tax income or loss reported in the consolidated statements of income (loss) and the provisions of currently enacted tax laws. The Company and its Bermuda-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 Bermuda-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 Bermuda-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 subsidiaries and branches that operate in various other jurisdictions around the world that are subject to tax in the jurisdictions in which they operate. The jurisdictions in which the Company's subsidiaries and branches are subject to tax are Belgium, Canada, Germany, Gibraltar, Hong Kong (China), Luxembourg, Singapore, Sweden, Switzerland, the United Kingdom, and the United States. For the three and six months ended June 30, 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. |
Shareholders' equity
Shareholders' equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Shareholders' equity | 15. Shareholders' equity Common shares The following table presents a summary of the common shares issued and outstanding and shares repurchased as of and for the six months ended June 30, 2023 and 2022: 2023 2022 Common shares issued and outstanding, beginning of period 162,177,653 161,929,777 Issuance of common shares, net of forfeitures and shares withheld 1,022,977 1,094,101 Shares repurchased — (695,047) Common shares issued and outstanding, end of period 163,200,630 162,328,831 The Company’s authorized share capital consists of 300,000,000 common shares with a par value of $0.10 each. 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. 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 paid for six dividend periods, whether or not consecutive, in which case the holders of the Series B preference shares will have the 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 (i) in whole, or in part, on each five-year anniversary of issuance at 100%, (ii) in whole, but not in part, (a) upon certain rating agency events, at 102%, (b) upon certain capital disqualification events, at 100%, and (c) upon certain tax events, at 100%. 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 (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 aggreg ate 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 in the open market. During the three months ended June 30, 2022, the Company repurchased 50,000 of its common shares in the open market for $0.3 million at a weighted average cost, including commissions, of $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 during the period were retired. |
Earnings (loss) per share avail
Earnings (loss) per share available to SiriusPoint common shareholders | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (loss) per share available to SiriusPoint common shareholders | 16. Earnings (loss) per share available to SiriusPoint common shareholders The following sets forth the computation of basic and diluted earnings (loss) per share available to SiriusPoint common shareholders for the three and six months ended June 30, 2023 and 2022: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Weighted-average number of common shares outstanding: Basic number of common shares outstanding 162,027,831 160,258,883 161,473,011 160,064,319 Dilutive effect of options 494,422 — 307,705 — Dilutive effect of warrants 1,304,823 — 951,655 — Dilutive effect of restricted share awards and units 2,881,856 — 3,264,827 — Dilutive effect of Series A preference shares — — — — Diluted number of common shares outstanding 166,708,932 160,258,883 165,997,198 160,064,319 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) For the three and six months ended June 30, 2023, options of 2,327,965 and 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 available to SiriusPoint common shareholders. For the three and six months ended June 30, 2022, options of 4,019,196 and 4,222,338, respectively, and warrants of 31,123,755 and 31,123,755, respectively, were excluded from the computation of diluted loss per share attributable to SiriusPoint common shareholders. |
Related party transactions
Related party transactions | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related party transactions | 17. Related party transactions In addition to the transactions disclosed in Notes 7 and 10 to these consolidated financial statements, the following transactions are classified as related party 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, i nsurance 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). 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, December 31, 2022 Third Point Enhanced LP $ 83.9 $ 100.3 Third Point Venture Offshore Fund I LP 25.1 26.0 Third Point Venture Offshore Fund II LP 2.3 2.5 Investments in related party investment funds, at fair value 111.3 128.8 Third Point Optimized Credit Portfolio (1) 558.9 530.7 Total investments managed by related parties $ 670.2 $ 659.5 (1) The Third Point 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 ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 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, m anagement 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 Optimized Credit Effective February 26, 2021, Third Point LLC, Third Point Insurance Portfolio Solutions (“TPIPS”) and the Company entered into an Investment Management Agreement (the “TPIPS IMA”), pursuant to which TPIPS will serve as investment 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 Restated Collateral Assets Investment Management Agreement was terminated at the effective date of the TPIPS IMA. Pursuant to the TPIPS 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 ). On February 23, 2022, the Company entered into the 2022 IMA with Third Point LLC and the other parties thereto, which amended and restated 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 0.50% (0.50% per annum) of the TPOC Portfolio, net of any expenses, and a fixed advisory fee of $1,500,000 per annum. Performance fees Third Point Enhanced LP Pursuant to the 2020 LPA, TP GP receives a performance fee allocation equal to 20% of the Company’s investment income in the related party investment fund. The performance fee is included as part of “Investments in related party investment fund, at fair value” on the Company’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 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 (loss) . |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 18. Commitments and contingencies Financing See Note 13 for additional information related to the Company’s debt obligations. Letters of credit See Note 13 for additional information related to the Company’s letter of credit facilities. Liability-classified capital instruments On February 26, 2021, the Company completed its acquisition of Sirius International Insurance Group, Ltd. (“Sirius Group”). The aggregate consideration for the transaction included the issuance of preference shares, warrants, and other contingent value components, which are recorded at fair value in the liability-classified capital instruments line of the consolidated balance sheets. Series 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 consideration price of the Sirius Group acquisition. The Company issued 11,720,987 Series A Preference Shares. The Series A Preference Shares rank pari passu with the Company’s common shares with respect to the payment of dividends or distributions. Each Series A Preference Share has voting power equal to the number of Company shares into which it is convertible, and the Series A Preference Shares and Company shares shall vote together as a single class with respect to any and all matters. Upon the third 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, t he fair value of the Series A Preference Shares is $15.3 million. Merger Warrants On February 26, 2021, the Company issued certain warrants with respect to the consideration price of the Sirius Group acquisition (the “Merger warrants”) . As of June 30, 2023, the Company had reserved 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 $8.6 million and $24.6 million, respectively, from the change in fair value of the Merger warrants. As of June 30, 2023, t he estimated fair value of the Merger warrants is $39.3 million. Sirius Group Private Warrants On February 26, 2021, the Company entered into an assumption agreement pursuant to which the Company agreed to assume all of the warrants issued on November 5, 2018 and November 28, 2018 (the “Private warrants”) by Sirius Group to certain 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 P rivate warrants. As of June 30, 2023, the e stimated 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 warrant exercisable for Sirius Group common shares (“Sirius Group Public Warrants”). During the three and six months ended June 30, 2023, there was no change in the fair value of the Sirius Group Public Warrants. The Sirius Group Public Warrants have no estimated fair value as of June 30, 2023. Upside Rights On February 26, 2021, the Company issued Upside Rights with respect to the consideration price of the Sirius Group acquisition. The Upside Rights expired without any value on February 26, 2022. Contingent Value Rights On February 26, 2021, the Company entered into a contingent value rights agreement with respect to the consideration price of the Sirius Group acquisition. The contingent value rights (“ CVRs”) became publicly traded on the OTCQX Best Market during the quarter ended June 30, 2021. The CVRs matured on February 26, 2023 and were settled for $38.5 million. Promissory notes & loan agreement On September 16, 2020, the Company entered into an Unsecured Promissory Note agreement with Arcadian, pursuant to which the Company has committed to loan up to $18.0 million. Interest shall accrue and be computed on the 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 entered into an Unsecured Convertible Promissory Note agreement with Player’s Health, pursuant to which the Company has lent $8.0 million. Interest shall accrue and be computed on the aggregate principal amount drawn and outstanding at a rate of 6.0% per annu m. Litigation From time to time in the normal course of business, the Company may be involved in formal and informal dispute resolution 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 owed to it. In other matters, the Company may resist attempts by others to collect funds or enforce alleged rights. The Company may also be involved, from time to time in the normal course of business, in formal and informal dispute resolution 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. Leases The Company 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 $2.6 million and $5.1 million, respectively (2022 - $2.8 million and $5.7 million, respectively), including property taxes and routine maintenance expense as well as rental expenses related to short term leases. The following table presents the lease balances within the consolidated balance sheets as of June 30, 2023 and December 31, 2022: June 30, 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) 5.4 5.5 Weighted average discount rate 3.1 % 3.1 % (1) Operating lease right-of-use assets are included in other assets . (2) Operating lease liabilities are included in accounts payable, accrued expenses and other liabilities on the Company’s consolidated balance sheets . Future minimum rental commitments as of June 30, 2023 under these leases are expected to be as follows: Future Payments Remainder of 2023 $ 4.1 2024 5.8 2025 4.5 2026 3.7 2027 and thereafter 9.6 Total future annual minimum rental payments 27.7 Less: present value discount (2.0) Total lease liability as of June 30, 2023 $ 25.7 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 70.3 | $ (56.8) | $ 212.9 | $ (269.8) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant accounting polici_2
Significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Retroactive Reinsurance | Retroactive ReinsuranceA 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 deferred gain is recognized in earnings. The deferred gain is disclosed as a separate line item in the Company’s consolidated balance sheets and changes in the deferred gain are recognized within losses incurred in the Company’s income statement. |
Recently issued accounting standards | Recently issued accounting standards Accounting pronouncements issued during the three and six months ended June 30, 2023 were either not relevant to the Company or did not impact the Company’s consolidated financial statements. |
Segment reporting (Tables)
Segment reporting (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of operating segment results | The following is a summary of the Company’s operating segment results for the three and six months ended June 30, 2023 and 2022: Three months ended June 30, 2023 Reinsurance Insurance & Services Core Eliminations (2) Corporate Segment Measure Reclass Total Gross premiums written $ 387.1 $ 462.7 $ 849.8 $ — $ 37.3 $ — $ 887.1 Net premiums written 341.3 291.6 632.9 — 37.3 — 670.2 Net premiums earned 320.7 339.6 660.3 — 43.5 — 703.8 Loss and loss adjustment expenses incurred, net 167.0 227.7 394.7 (1.5) 13.8 — 407.0 Acquisition costs, net 62.4 84.0 146.4 (35.9) 15.7 — 126.2 Other underwriting expenses 12.0 25.5 37.5 — 5.8 — 43.3 Underwriting income 79.3 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 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 income 68.5 — 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 ratio 52.1 % 67.0 % 59.8 % 57.8 % Acquisition cost ratio 19.5 % 24.7 % 22.2 % 17.9 % Other underwriting expenses ratio 3.7 % 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. Three months ended June 30, 2022 Reinsurance Insurance & Services Core Eliminations (2) Corporate Segment Measure Reclass Total Gross premiums written $ 378.3 $ 433.9 $ 812.2 $ — $ 0.4 $ — $ 812.6 Net premiums written 321.5 301.4 622.9 — 0.1 — 623.0 Net premiums earned 319.5 244.3 563.8 — 5.0 — 568.8 Loss and loss adjustment expenses incurred, net 204.7 154.8 359.5 (1.1) 1.9 — 360.3 Acquisition costs, net 86.3 63.9 150.2 (26.8) 0.2 — 123.6 Other underwriting expenses 28.7 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 income 17.4 — 17.4 Other revenues 25.9 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 gains 56.5 — 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 ratio 64.1 % 63.4 % 63.8 % 63.3 % Acquisition cost ratio 27.0 % 26.2 % 26.6 % 21.7 % Other underwriting expenses ratio 9.0 % 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. Six months ended June 30, 2023 Reinsurance Insurance & Services Core Eliminations (2) Corporate Segment Measure Reclass Total Gross premiums written $ 783.3 $ 1,126.7 $ 1,910.0 $ — $ 87.6 $ — $ 1,997.6 Net premiums written 652.3 744.2 1,396.5 — 65.4 — 1,461.9 Net premiums earned 580.2 630.8 1,211.0 — 88.3 — 1,299.3 Loss and loss adjustment expenses incurred, net 252.6 400.2 652.8 (2.8) 24.1 — 674.1 Acquisition costs, net 128.4 155.7 284.1 (68.4) 30.2 — 245.9 Other underwriting expenses 40.2 44.8 85.0 — 10.5 — 95.5 Underwriting income 159.0 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 income 156.4 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 income 130.2 — 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 income 205.5 (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 ratio 43.5 % 63.4 % 53.9 % 51.9 % Acquisition cost ratio 22.1 % 24.7 % 23.5 % 18.9 % Other underwriting expenses ratio 6.9 % 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. Six months ended June 30, 2022 Reinsurance Insurance & Services Core Eliminations (2) Corporate Segment Measure Reclass Total Gross premiums written $ 902.5 $ 917.4 $ 1,819.9 $ — $ 2.4 $ — $ 1,822.3 Net premiums written 696.4 638.9 1,335.3 — 1.6 — 1,336.9 Net premiums earned 627.1 457.1 1,084.2 — 13.9 — 1,098.1 Loss and loss adjustment expenses incurred, net 399.2 288.8 688.0 (2.3) 14.7 — 700.4 Acquisition costs, net 166.2 117.4 283.6 (52.4) 0.9 — 232.1 Other underwriting expenses 58.8 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 income 25.2 — 25.2 Other revenues 37.1 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 gains 75.9 — 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 ratio 63.7 % 63.2 % 63.5 % 63.8 % Acquisition cost ratio 26.5 % 25.7 % 26.2 % 21.1 % Other underwriting expenses ratio 9.4 % 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. |
Cash, cash equivalents, restr_2
Cash, cash equivalents, restricted cash and restricted investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of restrictions on cash and cash equivalents and 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, 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 underwriters 25.2 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 clients in support of our obligations under reinsurance contracts. The Company will not be released from the obligation to provide these letters of credit until the reserves underlying the reinsurance 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 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 time 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 Company’s consolidated statements of cash flows. (4) Restricted investments include required deposits with certain insurance state regulatory agencies in order to maintain insurance licenses. |
Schedule of cash and cash equivalents | 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, 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 underwriters 25.2 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 clients in support of our obligations under reinsurance contracts. The Company will not be released from the obligation to provide these letters of credit until the reserves underlying the reinsurance 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 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 time 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 Company’s consolidated statements of cash flows. (4) Restricted investments include required deposits with certain insurance state regulatory agencies in order to maintain insurance licenses. |
Fair value measurements (Tables
Fair value measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of investments, categorized by the level of the fair value hierarchy | The following tables present the Company’s investments, categorized by the level of the fair value hierarchy as of June 30, 2023 and December 31, 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 agency 1,079.3 4.2 — 1,083.5 Non-U.S. government and government agency 3.2 79.0 — 82.2 Total debt securities, available for sale 1,082.5 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 agency 108.9 — — 108.9 Non-U.S. government and government agency 1.7 29.2 — 30.9 Total debt securities, trading 110.6 642.6 — 753.2 Total equity securities 1.6 — — 1.6 Short-term investments 540.4 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 investments 88.2 Investments in funds valued at NAV 143.5 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 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 agency 1,546.2 4.4 — 1,550.6 Non-U.S. government and government agency 5.0 31.6 — 36.6 Total debt securities, available for sale 1,551.2 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 agency 264.1 6.3 — 270.4 Non-U.S. government and government agency 8.7 79.5 — 88.2 Preferred stocks — — 3.2 3.2 Total debt securities, trading 272.8 1,250.0 3.2 1,526.0 Total equity securities 1.6 — — 1.6 Short-term investments 972.8 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 investments 104.8 Investments in funds valued at NAV 173.9 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 |
Reconciliation of assets measured at fair value using Level 3 inputs | The following table presents the reconciliation of all investments measured at fair value using Level 3 inputs for the three and six months ended June 30, 2023: April 1, 2023 Transfers in to (out of) Level 3 Purchases Sales & Settlements Realized and Unrealized Gains (Losses) (1) June 30, 2023 Assets Preferred stocks $ 3.2 $ — $ — $ (2.3) $ (0.9) $ — Other long-term investments 227.4 — 6.3 (0.3) 1.6 235.0 Derivative assets 11.3 — 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, Transfers in to (out of) Level 3 Purchases Sales & Settlements Realized and Unrealized Gains (Losses) (1) June 30, Assets Preferred stocks $ 3.2 $ — $ — $ (2.3) $ (0.9) $ — Other long-term investments 227.3 — 6.6 (0.3) 1.4 235.0 Derivative assets 9.5 — 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) (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). The following table presents the reconciliation of all investments measured at fair value using Level 3 inputs for the three and six months ended June 30, 2022: April 1, 2022 Transfers in to (out of) Level 3 Purchases Sales & Settlements Realized and Unrealized Gains (Losses) (1) June 30, 2022 Assets Preferred stocks $ 3.3 $ — $ — $ — $ (0.1) $ 3.2 Other long-term investments 242.4 — — (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, Transfers in to (out of) Level 3 Purchases Sales Realized and Unrealized Gains (Losses) (1) June 30, Assets Preferred stocks $ 2.8 $ — $ — $ — $ 0.4 $ 3.2 Other long-term investments 262.1 — 1.6 (19.6) (2.4) 241.7 Derivative assets 0.4 — 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 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 underwriting expenses, net of foreign exchange (gains) losses, in the consolidated statements of income (loss). |
Reconciliation of liabilities measured at fair value using Level 3 inputs | The following table presents the reconciliation of all investments measured at fair value using Level 3 inputs for the three and six months ended June 30, 2023: April 1, 2023 Transfers in to (out of) Level 3 Purchases Sales & Settlements Realized and Unrealized Gains (Losses) (1) June 30, 2023 Assets Preferred stocks $ 3.2 $ — $ — $ (2.3) $ (0.9) $ — Other long-term investments 227.4 — 6.3 (0.3) 1.6 235.0 Derivative assets 11.3 — 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, Transfers in to (out of) Level 3 Purchases Sales & Settlements Realized and Unrealized Gains (Losses) (1) June 30, Assets Preferred stocks $ 3.2 $ — $ — $ (2.3) $ (0.9) $ — Other long-term investments 227.3 — 6.6 (0.3) 1.4 235.0 Derivative assets 9.5 — 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) (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). The following table presents the reconciliation of all investments measured at fair value using Level 3 inputs for the three and six months ended June 30, 2022: April 1, 2022 Transfers in to (out of) Level 3 Purchases Sales & Settlements Realized and Unrealized Gains (Losses) (1) June 30, 2022 Assets Preferred stocks $ 3.3 $ — $ — $ — $ (0.1) $ 3.2 Other long-term investments 242.4 — — (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, Transfers in to (out of) Level 3 Purchases Sales Realized and Unrealized Gains (Losses) (1) June 30, Assets Preferred stocks $ 2.8 $ — $ — $ — $ 0.4 $ 3.2 Other long-term investments 262.1 — 1.6 (19.6) (2.4) 241.7 Derivative assets 0.4 — 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 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 underwriting expenses, net of foreign exchange (gains) losses, in the consolidated statements of income (loss). |
Schedule of financial instruments for which the carrying value differs from the estimated fair values | The following table includes 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, 2023 December 31, 2022 Fair Value Carrying Value Fair Value Carrying Value 2017 SEK Subordinated Notes $ 250.0 $ 247.1 $ 259.0 $ 258.6 2016 Senior Notes 332.3 404.2 343.7 404.8 2015 Senior Notes 107.1 114.6 112.6 114.6 Series B preference shares $ 202.4 $ 200.0 $ 186.0 $ 200.0 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of 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 Company's debt securities as of June 30, 2023 and December 31, 2022: June 30, 2023 Cost or Gross Gross unrealized losses (2) Net foreign Fair value Debt securities, available for sale Asset-backed securities $ 712.0 $ 2.7 $ (9.9) $ — $ 704.8 Residential mortgage-backed securities 700.8 2.0 (18.4) — 684.4 Commercial mortgage-backed securities 136.5 0.1 (2.9) — 133.7 Corporate debt securities 1,507.8 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 agency 82.9 — (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 securities 93.8 — (13.2) — 80.6 Commercial mortgage-backed securities 82.4 — (9.7) — 72.7 Corporate debt securities 110.0 — (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 agency 32.5 — (1.6) — 30.9 Total debt securities, trading $ 802.3 $ 0.1 $ (48.9) $ (0.3) $ 753.2 December 31, 2022 Cost or Gross Gross Net foreign Fair value Debt securities, available for sale Asset-backed securities $ 234.1 $ 0.9 $ (4.3) $ — $ 230.7 Residential mortgage-backed securities 354.3 0.3 (13.9) — 340.7 Commercial mortgage-backed securities 62.1 — (0.9) — 61.2 Corporate debt securities 428.5 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 agency 37.2 — (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 securities 155.9 — (22.3) — 133.6 Commercial mortgage-backed securities 130.5 — (17.1) — 113.4 Corporate debt securities 391.4 — (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 agency 95.8 — (4.0) (3.6) 88.2 Preferred stocks 2.4 0.8 — — 3.2 Total debt securities, trading $ 1,630.1 $ 0.9 $ (100.7) $ (4.3) $ 1,526.0 (1) The Company had no short positions in long duration U.S. Treasuries as of June 30, 2023 (December 31, 2022 - $27.0 million). This amount was included in securities sold, not yet purchased in the consolidated balance sheets. |
Schedule of debt securities by contractual maturity | 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, 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. Debt securities, trading Debt securities, AFS Cost or Fair value Cost or 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 years 57.9 52.9 2,313.3 2,275.7 Due after five years through ten years 20.6 18.4 170.5 167.0 Due after ten years 34.9 28.7 2.7 2.4 Mortgage-backed and asset-backed securities 547.3 512.0 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 years 426.5 407.0 1,822.7 1,802.0 Due after five years through ten years 63.4 55.7 95.8 92.3 Due after ten years 35.5 28.5 4.9 4.6 Mortgage-backed and asset-backed securities 861.9 800.7 650.5 632.6 Preferred stocks 2.4 3.2 — — Total debt securities $ 1,630.1 $ 1,526.0 $ 2,678.1 $ 2,635.5 |
Schedule of the ratings and fair value of debt securities | 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, 2023 December 31, 2022 Debt securities, trading Debt securities, AFS Debt securities, trading Debt securities, AFS AAA $ 351.0 $ 618.1 $ 564.4 $ 172.8 AA 238.4 1,945.2 523.2 1,907.6 A 47.6 911.9 181.1 188.9 BBB 54.0 380.4 158.1 149.9 Other 62.2 316.5 99.2 216.3 Total debt securities $ 753.2 $ 4,172.1 $ 1,526.0 $ 2,635.5 |
Schedule of 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 equity securities and other long-term investments as of June 30, 2023 and December 31, 2022 were as follows: Cost or Gross Gross Net foreign 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 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, December 31, 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) Includ es $47.6 million of investments carried at NAV (December 31, 2022 - $45.1 million) and $25.4 million of i nvestments 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 these investments ( December 31, 2022 - $16.0 million). |
Schedule of other long-term investments | The following table presents the components of other long-term investments as of June 30, 2023 and December 31, 2022: June 30, December 31, Equity method eligible unconsolidated entities, using the fair value option $ 153.5 $ 147.9 Equity method investments 41.5 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. |
Schedule of 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, December 31, Third Point Enhanced LP $ 83.9 $ 100.3 Third Point Venture Offshore Fund I LP 25.1 26.0 Third Point Venture Offshore Fund II LP 2.3 2.5 Investments in related party investment funds, at fair value $ 111.3 $ 128.8 |
Total realized and unrealized_2
Total realized and unrealized investment gains (losses) and net investment income (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of 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 ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Debt securities, available for sale $ 48.5 $ 2.9 $ 83.6 $ 2.9 Debt securities, trading 10.5 (60.9) $ 39.6 $ (120.2) Short-term investments 5.9 (0.9) 14.3 (2.6) Other long-term investments (3.8) (0.6) 0.6 (1.6) Derivative instruments 3.5 — 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 equivalents 63.7 (120.3) 141.5 (313.4) Investment expenses (5.1) (3.4) (10.5) (7.4) Net investment income (loss) on cash and cash equivalents 7.2 (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) |
Schedule of net realized investment gains (losses) | 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 ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 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 investments 24.8 (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) for the three and six months ended June 30, 2023 and 2022 consisted of the following: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 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 equivalents 5.6 (15.4) 4.4 (11.5) Net realized investment (losses) $ (26.6) $ (35.2) $ (36.4) $ (37.7) |
Schedule of net unrealized investment gains (losses) | 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 ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 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 investments 24.8 (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 unrealized investment gains (losses) for the three and six months ended June 30, 2023 and 2022 consisted of the following: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Debt securities, trading $ 28.9 $ (57.0) $ 51.9 $ (121.1) Short-term investments 1.1 (2.6) 0.7 (4.6) Derivative instruments 3.5 — 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 unrealized investment gains (losses) – Level 3 investments for the three and six months ended June 30, 2023 and 2022: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Debt securities, trading $ (0.9) $ — $ (0.8) $ 0.5 Other long-term investments 2.0 1.6 (2.8) (2.3) Total unrealized investment gains (losses) – Level 3 investments $ 1.1 $ 1.6 $ (3.6) $ (1.8) |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments | 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, 2023 December 31, 2022 Derivatives not designated as hedging instruments Derivative assets at fair value (1) Derivative liabilities at fair value (2) Notional Derivative assets at fair value (1) Derivative liabilities at fair value (2) Notional 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 consolidated balance sheets . (2) Derivative liabilities are classified within accounts payable, accrued expenses and other liabilities in the Company’s consolidated balance sheets. |
Schedule of net impact on earnings relating to derivatives | 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 ended Six months ended Derivatives not designated as hedging instruments Classification of gains (losses) recognized in earnings June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Foreign currency forwards Foreign exchange gains $ (13.3) $ (5.8) $ (14.9) $ (6.8) Foreign currency futures contracts Foreign exchange gains — (24.9) — (30.8) Weather derivatives Other revenues (0.3) 0.2 3.2 (0.4) Equity warrants Net realized and unrealized investment gains (losses) — — — (0.1) Foreign currency swaps Foreign exchange gains (12.0) — (13.6) — Interest rate swaps Net realized and unrealized investment gains (losses) $ 3.5 $ — $ 3.5 $ — |
Variable and voting interest _2
Variable and voting interest entities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reconciliation of noncontrolling interests | The following table is a reconciliation of the beginning and ending carrying amount of noncontrolling interests for the three and six months ended June 30, 2023 and 2022: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 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 interests 2.0 0.7 4.4 0.4 Contributions (Redemptions) (0.5) — 0.6 — Balance, end of period $ 12.9 $ 0.8 $ 12.9 $ 0.8 |
Schedule of information related to unconsolidated variable interest entities | 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 Assets On-Balance Sheet Off-Balance Sheet Total 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 also VIEs and are discussed separately below. 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 Company’s consolidated statements of income (loss). Three months ended Six months ended TP Enhanced Fund summarized income statement June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Total investment income (loss) $ — $ (57.9) $ 2.1 $ (195.6) Total expenses 0.5 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 December 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 underlying assets and liabilities of TP Enhanced Fund. TP Enhanced Fund summarized balance sheet June 30, December 31, 2022 Total assets $ 100.5 $ 260.6 Total liabilities 6.3 148.6 Total partners' capital $ 94.2 $ 112.0 |
Loss and loss adjustment expe_2
Loss and loss adjustment expense reserves (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Schedule of loss and loss adjustment expense reserves | The following table represents the activity in the loss and loss adjustment expense reserves for the six months ended June 30, 2023 and 2022: June 30, 2023 June 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 period 3,891.5 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 year 812.5 712.3 Prior years (138.4) (11.9) Total incurred loss and loss adjustment expenses 674.1 700.4 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 translation 2.1 (76.6) Net reserves for loss and loss adjustment expenses, end of period 3,082.6 3,682.1 Plus: loss and loss adjustment expenses recoverable, end of period 2,276.7 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 (1) Net reserves for loss and loss adjustment expenses disposed represents the transfer of reserves under 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. |
Allowance for expected credit_2
Allowance for expected credit losses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Schedule of assets in scope of the current expected credit losses assessment | The Company's assets in scope of the current expected credit loss assessment as of June 30, 2023 and December 31, 2022 are as follows: June 30, 2023 December 31, 2022 Insurance and reinsurance balances receivable, net $ 2,252.1 $ 1,876.9 Loss and loss adjustment expenses recoverable, net 2,276.7 1,376.2 Other assets (1) 76.3 52.4 Total assets in scope $ 4,605.1 $ 3,305.5 |
Debt and letter of credit fac_2
Debt and letter of credit facilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of debt obligations | The following table represents a summar y of the Company’s debt obl igations on its consolidated balance sheets as of June 30, 2023 and December 31, 2022: June 30, 2023 December 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 value 247.1 258.6 2016 Senior Notes, at face value 400.0 4.5 % 400.0 4.5 % Unamortized premium 4.2 4.8 2016 Senior Notes, carrying value 404.2 404.8 2015 Senior Notes, at face value 115.0 7.0 % 115.0 7.0 % Unamortized issuance costs (0.4) (0.4) 2015 Senior Notes, carrying value 114.6 114.6 Total debt $ 765.9 $ 778.0 (1) Effective rate considers the effect of the debt issuance costs, discount, and premium. |
Schedule of letter of credit facilities | As of June 30, 2023, the Company had entered into the following letter of credit facilities: June 30, 2023 Letters of Credit Collateral Committed Capacity Issued Cash and Cash Equivalents Debt securities Committed - Secured letters of credit facilities $ 395.0 $ 310.0 $ 17.6 $ 214.7 Uncommitted - Secured letters of credit facilities n/a 987.0 14.3 1,164.3 $ 1,297.0 $ 31.9 $ 1,379.0 |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of common shares issued and outstanding | The following table presents a summary of the common shares issued and outstanding and shares repurchased as of and for the six months ended June 30, 2023 and 2022: 2023 2022 Common shares issued and outstanding, beginning of period 162,177,653 161,929,777 Issuance of common shares, net of forfeitures and shares withheld 1,022,977 1,094,101 Shares repurchased — (695,047) Common shares issued and outstanding, end of period 163,200,630 162,328,831 |
Earnings (loss) per share ava_2
Earnings (loss) per share available to SiriusPoint common shareholders (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings (loss) per share available to SiriusPoint common shareholders | The following sets forth the computation of basic and diluted earnings (loss) per share available to SiriusPoint common shareholders for the three and six months ended June 30, 2023 and 2022: Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Weighted-average number of common shares outstanding: Basic number of common shares outstanding 162,027,831 160,258,883 161,473,011 160,064,319 Dilutive effect of options 494,422 — 307,705 — Dilutive effect of warrants 1,304,823 — 951,655 — Dilutive effect of restricted share awards and units 2,881,856 — 3,264,827 — Dilutive effect of Series A preference shares — — — — Diluted number of common shares outstanding 166,708,932 160,258,883 165,997,198 160,064,319 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) |
Related party transactions (Tab
Related party transactions (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | 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, December 31, 2022 Third Point Enhanced LP $ 83.9 $ 100.3 Third Point Venture Offshore Fund I LP 25.1 26.0 Third Point Venture Offshore Fund II LP 2.3 2.5 Investments in related party investment funds, at fair value 111.3 128.8 Third Point Optimized Credit Portfolio (1) 558.9 530.7 Total investments managed by related parties $ 670.2 $ 659.5 (1) The Third Point Optimized Credit Portfolio is reported in debt securities available for sale and trading in the consolidated balance sheets. 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 ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 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). |
Commitment and contingencies (T
Commitment and contingencies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of lease balances | The following table presents the lease balances within the consolidated balance sheets as of June 30, 2023 and December 31, 2022: June 30, 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) 5.4 5.5 Weighted average discount rate 3.1 % 3.1 % (1) Operating lease right-of-use assets are included in other assets . (2) Operating lease liabilities are included in accounts payable, accrued expenses and other liabilities on the Company’s consolidated balance sheets . |
Schedule of future minimum rental commitments | Future minimum rental commitments as of June 30, 2023 under these leases are expected to be as follows: Future Payments Remainder of 2023 $ 4.1 2024 5.8 2025 4.5 2026 3.7 2027 and thereafter 9.6 Total future annual minimum rental payments 27.7 Less: present value discount (2.0) Total lease liability as of June 30, 2023 $ 25.7 |
Significant Transactions (Detai
Significant Transactions (Details) $ in Millions | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) |
Business Interruption Loss [Line Items] | |||
Loss reserves | $ 905.6 | $ 1,300 | |
Deferred gains on retroactive reinsurance contracts | $ 21.2 | $ 0 | |
Aggregate limit, percentage of booked reserves | 1.30 | ||
Reinsurance balances payable | $ 1,845.4 | $ 813.6 | |
Pallas Reinsurance Company Ltd. | |||
Business Interruption Loss [Line Items] | |||
Reinsurance balances payable | $ 884.4 |
Segment reporting - Narrative (
Segment reporting - Narrative (Details) | 6 Months Ended |
Jun. 30, 2023 segment product | |
Segment Reporting Information [Line Items] | |
Number of operating segments | segment | 2 |
Reinsurance | Credit & Bond | Minimum | |
Segment Reporting Information [Line Items] | |
Credit insurance coverage period | 60 days |
Reinsurance | Credit & Bond | Maximum | |
Segment Reporting Information [Line Items] | |
Credit insurance coverage period | 120 days |
Insurance & Services | Environmental | |
Segment Reporting Information [Line Items] | |
Number of core products | product | 4 |
Segment reporting - Operating s
Segment reporting - Operating segment results (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 887.1 | $ 812.6 | $ 1,997.6 | $ 1,822.3 |
Net premiums written | 670.2 | 623 | 1,461.9 | 1,336.9 |
Net premiums earned | 703.8 | 568.8 | 1,299.3 | 1,098.1 |
Loss and loss adjustment expenses incurred, net | 407 | 360.3 | 674.1 | 700.4 |
Acquisition costs, net | 126.2 | 123.6 | 245.9 | 232.1 |
Other underwriting expenses | 43.3 | 46.1 | 95.5 | 93.3 |
Underwriting income (loss) | 127.3 | 38.8 | 283.8 | 72.3 |
Services revenues | (1.7) | 45.8 | 14.1 | 83 |
Services expenses | 70.3 | 72 | 130.3 | 149.4 |
Services noncontrolling income | (2) | (0.7) | (4.4) | (0.4) |
Net realized and unrealized investment gains (losses) | (1.8) | (98.4) | 9.5 | (180.3) |
Segment income (loss) | 127.3 | 38.8 | 283.8 | 72.3 |
Net realized and unrealized investment losses from related party investment funds | (0.9) | (60.5) | (0.1) | (191.5) |
Net investment income | 68.5 | 17.4 | 130.2 | 25.2 |
Intangible asset amortization | (2.9) | (2) | (5.3) | (3.9) |
Interest expense | (11.7) | (9.4) | (24.5) | (18.7) |
Foreign exchange gains (losses) | (17.4) | 56.5 | (17.5) | 75.9 |
Income (loss) before income tax (expense) benefit | 89.1 | (83.8) | 259.9 | (287.4) |
Income tax (expense) benefit | (16.8) | 27.7 | (42.6) | 18 |
Net income (loss) | 72.3 | (56.1) | 217.3 | (269.4) |
Net income (loss) available to SiriusPoint | $ 70.3 | $ (56.8) | $ 212.9 | $ (269.8) |
Underwriting Ratios: | ||||
Loss ratio | 57.80% | 63.30% | 51.90% | 63.80% |
Acquisition cost ratio | 17.90% | 21.70% | 18.90% | 21.10% |
Other underwriting expenses ratio | 6.20% | 8.10% | 7.40% | 8.50% |
Combined ratio | 81.90% | 93.10% | 78.20% | 93.40% |
Services | ||||
Segment Reporting Information [Line Items] | ||||
Services noncontrolling income | $ 0 | |||
Net realized and unrealized investment gains (losses) | 0 | |||
Net income (loss) available to SiriusPoint | 0 | |||
Core | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | 849.8 | $ 812.2 | $ 1,910 | $ 1,819.9 |
Net premiums written | 632.9 | 622.9 | 1,396.5 | 1,335.3 |
Net premiums earned | 660.3 | 563.8 | 1,211 | 1,084.2 |
Loss and loss adjustment expenses incurred, net | 394.7 | 359.5 | 652.8 | 688 |
Acquisition costs, net | 146.4 | 150.2 | 284.1 | 283.6 |
Other underwriting expenses | 37.5 | 44.5 | 85 | 90.3 |
Underwriting income (loss) | 81.7 | 9.6 | 189.1 | 22.3 |
Services noncontrolling income | 0 | 0 | 0 | 0 |
Segment income (loss) | 85.3 | 20.2 | 205.5 | 46.9 |
Income (loss) before income tax (expense) benefit | 85.3 | 20.2 | 205.5 | 46.9 |
Income tax (expense) benefit | 0 | 0 | 0 | 0 |
Net income (loss) | 85.3 | 20.2 | 205.5 | 46.9 |
Net income (loss) available to SiriusPoint | $ 85.3 | $ 20.2 | $ 205.5 | $ 46.9 |
Underwriting Ratios: | ||||
Loss ratio | 59.80% | 63.80% | 53.90% | 63.50% |
Acquisition cost ratio | 22.20% | 26.60% | 23.50% | 26.20% |
Other underwriting expenses ratio | 5.70% | 7.90% | 7% | 8.30% |
Combined ratio | 87.70% | 98.30% | 84.40% | 98% |
Core | Services | ||||
Segment Reporting Information [Line Items] | ||||
Services revenues | $ 59.4 | $ 56.6 | $ 123.2 | $ 113.4 |
Services expenses | 50 | 44.8 | 95.5 | 88.1 |
Net services fee income (loss) | 9.4 | 11.8 | 27.7 | 25.3 |
Services noncontrolling income | (1.7) | (0.7) | (3.3) | 0.1 |
Net realized and unrealized investment gains (losses) | (4.1) | (0.5) | (8) | (0.8) |
Net income (loss) available to SiriusPoint | 3.6 | 10.6 | 16.4 | 24.6 |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | 0 | 0 | 0 | 0 |
Net premiums written | 0 | 0 | 0 | 0 |
Net premiums earned | 0 | 0 | 0 | 0 |
Loss and loss adjustment expenses incurred, net | (1.5) | (1.1) | (2.8) | (2.3) |
Acquisition costs, net | (35.9) | (26.8) | (68.4) | (52.4) |
Other underwriting expenses | 0 | 0 | 0 | 0 |
Underwriting income (loss) | 37.4 | 27.9 | 71.2 | 54.7 |
Services noncontrolling income | 0 | 0 | 0 | 0 |
Segment income (loss) | 0.4 | (8.8) | (0.1) | (12.8) |
Income (loss) before income tax (expense) benefit | 0.4 | (8.8) | (0.1) | (12.8) |
Income tax (expense) benefit | 0 | 0 | 0 | 0 |
Net income (loss) | 0.4 | (8.8) | (0.1) | (12.8) |
Net income (loss) available to SiriusPoint | 0.4 | (8.8) | (0.1) | (12.8) |
Eliminations | Services | ||||
Segment Reporting Information [Line Items] | ||||
Services revenues | (37) | (36.7) | (71.3) | (67.5) |
Services expenses | 0 | 0 | 0 | 0 |
Net services fee income (loss) | (37) | (36.7) | (71.3) | (67.5) |
Services noncontrolling income | 0 | 0 | 0 | 0 |
Net realized and unrealized investment gains (losses) | 0 | 0 | 0 | 0 |
Net income (loss) available to SiriusPoint | (37) | (36.7) | (71.3) | (67.5) |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | 37.3 | 0.4 | 87.6 | 2.4 |
Net premiums written | 37.3 | 0.1 | 65.4 | 1.6 |
Net premiums earned | 43.5 | 5 | 88.3 | 13.9 |
Loss and loss adjustment expenses incurred, net | 13.8 | 1.9 | 24.1 | 14.7 |
Acquisition costs, net | 15.7 | 0.2 | 30.2 | 0.9 |
Other underwriting expenses | 5.8 | 1.6 | 10.5 | 3 |
Underwriting income (loss) | 8.2 | 1.3 | 23.5 | (4.7) |
Services revenues | (24.1) | 25.9 | (37.8) | 37.1 |
Services expenses | 20.3 | 27.2 | 34.8 | 61.3 |
Services noncontrolling income | (0.3) | 0 | (1.1) | (0.5) |
Net realized and unrealized investment gains (losses) | 2.3 | (97.9) | 17.5 | (179.5) |
Segment income (loss) | 8.2 | 1.3 | 23.5 | (4.7) |
Net realized and unrealized investment losses from related party investment funds | (0.9) | (60.5) | (0.1) | (191.5) |
Net investment income | 68.5 | 17.4 | 130.2 | 25.2 |
Intangible asset amortization | (2.9) | (2) | (5.3) | (3.9) |
Interest expense | (11.7) | (9.4) | (24.5) | (18.7) |
Foreign exchange gains (losses) | (17.4) | 56.5 | (17.5) | 75.9 |
Income (loss) before income tax (expense) benefit | 1.7 | (95.9) | 51.2 | (321.4) |
Income tax (expense) benefit | (16.8) | 27.7 | (42.6) | 18 |
Net income (loss) | (15.1) | (68.2) | 8.6 | (303.4) |
Net income (loss) available to SiriusPoint | (15.4) | (68.2) | 7.5 | (303.9) |
Segment Measure Reclass | ||||
Segment Reporting Information [Line Items] | ||||
Services revenues | 22.4 | 19.9 | 51.9 | 45.9 |
Services expenses | 50 | 44.8 | 95.5 | 88.1 |
Services noncontrolling income | (1.7) | (0.7) | (3.3) | 0.1 |
Net realized and unrealized investment gains (losses) | (4.1) | (0.5) | (8) | (0.8) |
Segment income (loss) | 33.4 | 26.1 | 54.9 | 42.9 |
Income (loss) before income tax (expense) benefit | 1.7 | 0.7 | 3.3 | (0.1) |
Income tax (expense) benefit | 0 | 0 | 0 | |
Net income (loss) | 1.7 | 0.7 | 3.3 | (0.1) |
Net income (loss) available to SiriusPoint | 0 | 0 | 0 | 0 |
Segment Measure Reclass | Services | ||||
Segment Reporting Information [Line Items] | ||||
Services revenues | (22.4) | (19.9) | (51.9) | (45.9) |
Services expenses | (50) | (44.8) | (95.5) | (88.1) |
Net services fee income (loss) | 27.6 | 24.9 | 43.6 | 42.2 |
Services noncontrolling income | 1.7 | 0.7 | 3.3 | (0.1) |
Net realized and unrealized investment gains (losses) | 4.1 | 0.5 | 8 | 0.8 |
Net income (loss) available to SiriusPoint | 33.4 | 26.1 | 54.9 | 42.9 |
Reinsurance | Core | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | 387.1 | 378.3 | 783.3 | 902.5 |
Net premiums written | 341.3 | 321.5 | 652.3 | 696.4 |
Net premiums earned | 320.7 | 319.5 | 580.2 | 627.1 |
Loss and loss adjustment expenses incurred, net | 167 | 204.7 | 252.6 | 399.2 |
Acquisition costs, net | 62.4 | 86.3 | 128.4 | 166.2 |
Other underwriting expenses | 12 | 28.7 | 40.2 | 58.8 |
Underwriting income (loss) | 79.3 | (0.2) | 159 | 2.9 |
Segment income (loss) | 76.5 | (0.2) | 156.4 | 2.9 |
Income (loss) before income tax (expense) benefit | $ 76.5 | $ (0.2) | $ 156.4 | $ 2.9 |
Underwriting Ratios: | ||||
Loss ratio | 52.10% | 64.10% | 43.50% | 63.70% |
Acquisition cost ratio | 19.50% | 27% | 22.10% | 26.50% |
Other underwriting expenses ratio | 3.70% | 9% | 6.90% | 9.40% |
Combined ratio | 75.30% | 100.10% | 72.50% | 99.60% |
Reinsurance | Core | Services | ||||
Segment Reporting Information [Line Items] | ||||
Services revenues | $ (2.8) | $ 0 | $ (2.6) | $ 0 |
Services expenses | 0 | 0 | 0 | 0 |
Net services fee income (loss) | (2.8) | 0 | (2.6) | 0 |
Services noncontrolling income | 0 | 0 | 0 | 0 |
Net realized and unrealized investment gains (losses) | 0 | 0 | 0 | 0 |
Net income (loss) available to SiriusPoint | (2.8) | 0 | (2.6) | 0 |
Insurance & Services | Core | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | 462.7 | 433.9 | 1,126.7 | 917.4 |
Net premiums written | 291.6 | 301.4 | 744.2 | 638.9 |
Net premiums earned | 339.6 | 244.3 | 630.8 | 457.1 |
Loss and loss adjustment expenses incurred, net | 227.7 | 154.8 | 400.2 | 288.8 |
Acquisition costs, net | 84 | 63.9 | 155.7 | 117.4 |
Other underwriting expenses | 25.5 | 15.8 | 44.8 | 31.5 |
Underwriting income (loss) | 2.4 | 9.8 | 30.1 | 19.4 |
Segment income (loss) | 8.8 | 20.4 | 49.1 | 44 |
Income (loss) before income tax (expense) benefit | $ 8.8 | $ 20.4 | $ 49.1 | $ 44 |
Underwriting Ratios: | ||||
Loss ratio | 67% | 63.40% | 63.40% | 63.20% |
Acquisition cost ratio | 24.70% | 26.20% | 24.70% | 25.70% |
Other underwriting expenses ratio | 7.50% | 6.50% | 7.10% | 6.90% |
Combined ratio | 99.20% | 96.10% | 95.20% | 95.80% |
Insurance & Services | Core | Services | ||||
Segment Reporting Information [Line Items] | ||||
Services revenues | $ 62.2 | $ 56.6 | $ 125.8 | $ 113.4 |
Services expenses | 50 | 44.8 | 95.5 | 88.1 |
Net services fee income (loss) | 12.2 | 11.8 | 30.3 | 25.3 |
Services noncontrolling income | (1.7) | (0.7) | (3.3) | 0.1 |
Net realized and unrealized investment gains (losses) | (4.1) | (0.5) | (8) | (0.8) |
Net income (loss) available to SiriusPoint | $ 6.4 | $ 10.6 | $ 19 | $ 24.6 |
Cash, cash equivalents, restr_3
Cash, cash equivalents, restricted cash and restricted investments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 676.2 | $ 705.3 | ||
Restricted cash | 95.2 | 208.4 | ||
Total cash, cash equivalents and restricted cash | 771.4 | 913.7 | $ 1,377.2 | $ 1,948.4 |
Restricted investments securing reinsurance contracts and letter of credit facilities | 2,517.5 | 2,202.2 | ||
Total cash, cash equivalents, restricted cash and restricted investments | 3,288.9 | 3,115.9 | ||
Managing general underwriters | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 25.2 | 25.2 | ||
Letter of credit facilities | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 31.9 | 34.3 | ||
Reinsurance contracts | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $ 38.1 | $ 148.9 |
Fair value measurements - Inves
Fair value measurements - Investments categorized by the level of the fair value hierarchy (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Debt securities, available-for-sale | $ 4,172.1 | $ 2,635.5 |
Debt securities, trading | 753.2 | 1,526 |
Equity securities | 1.6 | 1.6 |
Short-term investments | 559.2 | 984.6 |
Other long-term investments | 355.4 | 377.2 |
Cost and equity method investments | 88.2 | 104.8 |
Total assets | 5,956.9 | 5,663.2 |
Liabilities | ||
Securities sold, not yet purchased | 0 | 27 |
Securities sold under an agreement to repurchase | 11 | 18 |
Liability-classified capital instruments | 65.4 | 60.4 |
Derivative liabilities | 26.6 | 8.6 |
Total liabilities | 103 | 114 |
Asset-backed securities | ||
Assets | ||
Debt securities, available-for-sale | 704.8 | 230.7 |
Debt securities, trading | 358.7 | 553.7 |
Residential mortgage-backed securities | ||
Assets | ||
Debt securities, available-for-sale | 684.4 | 340.7 |
Debt securities, trading | 80.6 | 133.6 |
Commercial mortgage-backed securities | ||
Assets | ||
Debt securities, available-for-sale | 133.7 | 61.2 |
Debt securities, trading | 72.7 | 113.4 |
Corporate debt securities | ||
Assets | ||
Debt securities, available-for-sale | 1,483.6 | 415.7 |
Debt securities, trading | 101.3 | 363.5 |
U.S. government and government agency | ||
Assets | ||
Debt securities, available-for-sale | 1,083.5 | 1,550.6 |
Debt securities, trading | 109 | 270.4 |
Non-U.S. government and government agency | ||
Assets | ||
Debt securities, available-for-sale | 82.1 | 36.6 |
Debt securities, trading | 30.9 | 88.2 |
Preferred stocks | ||
Assets | ||
Debt securities, trading | 3.2 | |
Fair Value, Inputs, Level 1, 2 and 3 | ||
Assets | ||
Debt securities, available-for-sale | 4,172.1 | 2,635.5 |
Debt securities, trading | 753.2 | 1,526 |
Equity securities | 1.6 | 1.6 |
Short-term investments | 559.2 | 984.6 |
Other long-term investments | 235 | 227.3 |
Derivative assets | 4.1 | 9.5 |
Total assets | 5,725.2 | 5,384.5 |
Fair Value, Inputs, Level 1, 2 and 3 | Asset-backed securities | ||
Assets | ||
Debt securities, available-for-sale | 704.8 | 230.7 |
Debt securities, trading | 358.8 | 553.7 |
Fair Value, Inputs, Level 1, 2 and 3 | Residential mortgage-backed securities | ||
Assets | ||
Debt securities, available-for-sale | 684.4 | 340.7 |
Debt securities, trading | 80.5 | 133.6 |
Fair Value, Inputs, Level 1, 2 and 3 | Commercial mortgage-backed securities | ||
Assets | ||
Debt securities, available-for-sale | 133.7 | 61.2 |
Debt securities, trading | 72.7 | 113.4 |
Fair Value, Inputs, Level 1, 2 and 3 | Corporate debt securities | ||
Assets | ||
Debt securities, available-for-sale | 1,483.5 | 415.7 |
Debt securities, trading | 101.4 | 363.5 |
Fair Value, Inputs, Level 1, 2 and 3 | U.S. government and government agency | ||
Assets | ||
Debt securities, available-for-sale | 1,083.5 | 1,550.6 |
Debt securities, trading | 108.9 | 270.4 |
Fair Value, Inputs, Level 1, 2 and 3 | Non-U.S. government and government agency | ||
Assets | ||
Debt securities, available-for-sale | 82.2 | 36.6 |
Debt securities, trading | 30.9 | 88.2 |
Fair Value, Inputs, Level 1, 2 and 3 | Preferred stocks | ||
Assets | ||
Debt securities, trading | 3.2 | |
Quoted prices in active markets (Level 1) | ||
Assets | ||
Debt securities, available-for-sale | 1,082.5 | 1,551.2 |
Debt securities, trading | 110.6 | 272.8 |
Equity securities | 1.6 | 1.6 |
Short-term investments | 540.4 | 972.8 |
Other long-term investments | 0 | 0 |
Derivative assets | 0 | 0 |
Total assets | 1,735.1 | 2,798.4 |
Liabilities | ||
Securities sold, not yet purchased | 27 | |
Securities sold under an agreement to repurchase | 0 | 0 |
Liability-classified capital instruments | 0 | 0 |
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 27 |
Quoted prices in active markets (Level 1) | Asset-backed securities | ||
Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Debt securities, trading | 0 | 0 |
Quoted prices in active markets (Level 1) | Residential mortgage-backed securities | ||
Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Debt securities, trading | 0 | 0 |
Quoted prices in active markets (Level 1) | Commercial mortgage-backed securities | ||
Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Debt securities, trading | 0 | 0 |
Quoted prices in active markets (Level 1) | Corporate debt securities | ||
Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Debt securities, trading | 0 | 0 |
Quoted prices in active markets (Level 1) | U.S. government and government agency | ||
Assets | ||
Debt securities, available-for-sale | 1,079.3 | 1,546.2 |
Debt securities, trading | 108.9 | 264.1 |
Quoted prices in active markets (Level 1) | Non-U.S. government and government agency | ||
Assets | ||
Debt securities, available-for-sale | 3.2 | 5 |
Debt securities, trading | 1.7 | 8.7 |
Quoted prices in active markets (Level 1) | Preferred stocks | ||
Assets | ||
Debt securities, trading | 0 | |
Significant other observable inputs (Level 2) | ||
Assets | ||
Debt securities, available-for-sale | 3,089.6 | 1,084.3 |
Debt securities, trading | 642.6 | 1,250 |
Equity securities | 0 | 0 |
Short-term investments | 18.8 | 11.8 |
Other long-term investments | 0 | 0 |
Derivative assets | 0 | 0 |
Total assets | 3,751 | 2,346.1 |
Liabilities | ||
Securities sold, not yet purchased | 0 | |
Securities sold under an agreement to repurchase | 11 | 18 |
Liability-classified capital instruments | 0 | 39 |
Derivative liabilities | 0 | 0 |
Total liabilities | 11 | 57 |
Significant other observable inputs (Level 2) | Asset-backed securities | ||
Assets | ||
Debt securities, available-for-sale | 704.8 | 230.7 |
Debt securities, trading | 358.8 | 553.7 |
Significant other observable inputs (Level 2) | Residential mortgage-backed securities | ||
Assets | ||
Debt securities, available-for-sale | 684.4 | 340.7 |
Debt securities, trading | 80.5 | 133.6 |
Significant other observable inputs (Level 2) | Commercial mortgage-backed securities | ||
Assets | ||
Debt securities, available-for-sale | 133.7 | 61.2 |
Debt securities, trading | 72.7 | 113.4 |
Significant other observable inputs (Level 2) | Corporate debt securities | ||
Assets | ||
Debt securities, available-for-sale | 1,483.5 | 415.7 |
Debt securities, trading | 101.4 | 363.5 |
Significant other observable inputs (Level 2) | U.S. government and government agency | ||
Assets | ||
Debt securities, available-for-sale | 4.2 | 4.4 |
Debt securities, trading | 0 | 6.3 |
Significant other observable inputs (Level 2) | Non-U.S. government and government agency | ||
Assets | ||
Debt securities, available-for-sale | 79 | 31.6 |
Debt securities, trading | 29.2 | 79.5 |
Significant other observable inputs (Level 2) | Preferred stocks | ||
Assets | ||
Debt securities, trading | 0 | |
Significant unobservable inputs (Level 3) | ||
Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Debt securities, trading | 0 | 3.2 |
Equity securities | 0 | 0 |
Short-term investments | 0 | 0 |
Other long-term investments | 235 | 227.3 |
Derivative assets | 4.1 | 9.5 |
Total assets | 239.1 | 240 |
Liabilities | ||
Securities sold, not yet purchased | 0 | |
Securities sold under an agreement to repurchase | 0 | 0 |
Liability-classified capital instruments | 65.4 | 21.4 |
Derivative liabilities | 26.6 | 8.6 |
Total liabilities | 92 | 30 |
Significant unobservable inputs (Level 3) | Asset-backed securities | ||
Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Debt securities, trading | 0 | 0 |
Significant unobservable inputs (Level 3) | Residential mortgage-backed securities | ||
Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Debt securities, trading | 0 | 0 |
Significant unobservable inputs (Level 3) | Commercial mortgage-backed securities | ||
Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Debt securities, trading | 0 | 0 |
Significant unobservable inputs (Level 3) | Corporate debt securities | ||
Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Debt securities, trading | 0 | 0 |
Significant unobservable inputs (Level 3) | U.S. government and government agency | ||
Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Debt securities, trading | 0 | 0 |
Significant unobservable inputs (Level 3) | Non-U.S. government and government agency | ||
Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Debt securities, trading | 0 | 0 |
Significant unobservable inputs (Level 3) | Preferred stocks | ||
Assets | ||
Debt securities, trading | 3.2 | |
Valued at NAV | ||
Assets | ||
Investments in funds valued at NAV | $ 143.5 | $ 173.9 |
Fair value measurements - Recon
Fair value measurements - Reconciliation of investments measured at fair value using Level 3 inputs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 241.9 | $ 243.3 | $ 240 | $ 265.3 |
Transfers in to (out of) Level 3 | 0 | 0 | 0 | 0 |
Purchases | 6.6 | 0.6 | 9.4 | 2.2 |
Sales & Settlements | (13.1) | (1.6) | (15.2) | (22.2) |
Realized and Unrealized Gains (Losses) | 3.7 | 0.2 | 4.9 | (2.8) |
Ending balance | 239.1 | 242.5 | 239.1 | 242.5 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | (55.4) | (46.9) | (30) | (60.4) |
Transfers in to (out of) Level 3 | 0 | 0 | 0 | 0 |
Purchases | 17.4 | 5 | 14.1 | 3.1 |
Sales & Settlements | (7.6) | 0 | (6.2) | 0 |
Realized and Unrealized Gains (Losses) | (46.4) | 26.2 | (69.9) | 41.6 |
Ending balance | (92) | (15.7) | (92) | (15.7) |
Liability-classified capital instruments | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | (47) | (42.1) | (21.4) | (57.2) |
Transfers in to (out of) Level 3 | 0 | 0 | 0 | 0 |
Purchases | 0.6 | 0 | 0.6 | 0 |
Sales & Settlements | 0 | 0 | 0 | 0 |
Realized and Unrealized Gains (Losses) | (19) | 31.4 | (44.6) | 46.5 |
Ending balance | (65.4) | (10.7) | (65.4) | (10.7) |
Derivative liabilities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | (8.4) | (4.8) | (8.6) | (3.2) |
Transfers in to (out of) Level 3 | 0 | 0 | 0 | 0 |
Purchases | 16.8 | 5 | 13.5 | 3.1 |
Sales & Settlements | (7.6) | 0 | (6.2) | 0 |
Realized and Unrealized Gains (Losses) | (27.4) | (5.2) | (25.3) | (4.9) |
Ending balance | (26.6) | (5) | (26.6) | (5) |
Preferred stocks | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 3.2 | 3.3 | 3.2 | 2.8 |
Transfers in to (out of) Level 3 | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales & Settlements | (2.3) | 0 | (2.3) | 0 |
Realized and Unrealized Gains (Losses) | (0.9) | (0.1) | (0.9) | 0.4 |
Ending balance | 0 | 3.2 | 0 | 3.2 |
Other long-term investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 227.4 | 242.4 | 227.3 | 262.1 |
Transfers in to (out of) Level 3 | 0 | 0 | 0 | 0 |
Purchases | 6.3 | 0 | 6.6 | 1.6 |
Sales & Settlements | (0.3) | (0.7) | (0.3) | (19.6) |
Realized and Unrealized Gains (Losses) | 1.6 | 0 | 1.4 | (2.4) |
Ending balance | 235 | 241.7 | 235 | 241.7 |
Derivative assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 11.3 | (2.4) | 9.5 | 0.4 |
Transfers in to (out of) Level 3 | 0 | 0 | 0 | 0 |
Purchases | 0.3 | 0.6 | 2.8 | 0.6 |
Sales & Settlements | (10.5) | (0.9) | (12.6) | (2.6) |
Realized and Unrealized Gains (Losses) | 3 | 0.3 | 4.4 | (0.8) |
Ending balance | $ 4.1 | $ (2.4) | $ 4.1 | $ (2.4) |
Fair value measurements - Finan
Fair value measurements - Financial instruments not measured at fair value (Details) - Level 2 - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value | Series B preference shares | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Series B preference shares | $ 202.4 | $ 186 |
Fair Value | Subordinated Notes | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Long-term debt | 250 | 259 |
Fair Value | Senior Notes | 2016 SIG Senior Notes | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Long-term debt | 332.3 | 343.7 |
Fair Value | Senior Notes | 2015 TPRUSA Senior Notes | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Long-term debt | 107.1 | 112.6 |
Carrying Value | Series B preference shares | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Series B preference shares | 200 | 200 |
Carrying Value | Subordinated Notes | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Long-term debt | 247.1 | 258.6 |
Carrying Value | Senior Notes | 2016 SIG Senior Notes | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Long-term debt | 404.2 | 404.8 |
Carrying Value | Senior Notes | 2015 TPRUSA Senior Notes | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Long-term debt | $ 114.6 | $ 114.6 |
Investments - Summary of debt s
Investments - Summary of debt securities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt securities, available for sale | ||
Cost or amortized cost | $ 4,241.3 | $ 2,678.1 |
Gross unrealized gains | 6 | 4.9 |
Gross unrealized losses | (76.2) | (47.4) |
Net foreign currency gains (losses) | 1 | (0.1) |
Fair value | 4,172.1 | 2,635.5 |
Debt securities, trading | ||
Cost or amortized cost | 802.3 | 1,630.1 |
Gross unrealized gains | 0.1 | 0.9 |
Gross unrealized losses | (48.9) | (100.7) |
Net foreign currency gains (losses) | (0.3) | (4.3) |
Fair value | 753.2 | 1,526 |
Securities sold, not yet purchased | 0 | 27 |
Debt securities, available for sale, allowance for credit losses | 0 | 0 |
Asset-backed securities | ||
Debt securities, available for sale | ||
Cost or amortized cost | 712 | 234.1 |
Gross unrealized gains | 2.7 | 0.9 |
Gross unrealized losses | (9.9) | (4.3) |
Net foreign currency gains (losses) | 0 | 0 |
Fair value | 704.8 | 230.7 |
Debt securities, trading | ||
Cost or amortized cost | 371.1 | 575.5 |
Gross unrealized gains | 0.1 | 0.1 |
Gross unrealized losses | (12.5) | (21.9) |
Net foreign currency gains (losses) | 0 | 0 |
Fair value | 358.7 | 553.7 |
Residential mortgage-backed securities | ||
Debt securities, available for sale | ||
Cost or amortized cost | 700.8 | 354.3 |
Gross unrealized gains | 2 | 0.3 |
Gross unrealized losses | (18.4) | (13.9) |
Net foreign currency gains (losses) | 0 | 0 |
Fair value | 684.4 | 340.7 |
Debt securities, trading | ||
Cost or amortized cost | 93.8 | 155.9 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (13.2) | (22.3) |
Net foreign currency gains (losses) | 0 | 0 |
Fair value | 80.6 | 133.6 |
Commercial mortgage-backed securities | ||
Debt securities, available for sale | ||
Cost or amortized cost | 136.5 | 62.1 |
Gross unrealized gains | 0.1 | 0 |
Gross unrealized losses | (2.9) | (0.9) |
Net foreign currency gains (losses) | 0 | 0 |
Fair value | 133.7 | 61.2 |
Debt securities, trading | ||
Cost or amortized cost | 82.4 | 130.5 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (9.7) | (17.1) |
Net foreign currency gains (losses) | 0 | 0 |
Fair value | 72.7 | 113.4 |
Corporate debt securities | ||
Debt securities, available for sale | ||
Cost or amortized cost | 1,507.8 | 428.5 |
Gross unrealized gains | 1 | 0.5 |
Gross unrealized losses | (25.6) | (13.1) |
Net foreign currency gains (losses) | 0.4 | (0.2) |
Fair value | 1,483.6 | 415.7 |
Debt securities, trading | ||
Cost or amortized cost | 110 | 391.4 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (8.4) | (27.2) |
Net foreign currency gains (losses) | (0.3) | (0.7) |
Fair value | 101.3 | 363.5 |
U.S. government and government agency | ||
Debt securities, available for sale | ||
Cost or amortized cost | 1,101.3 | 1,561.9 |
Gross unrealized gains | 0.2 | 3.2 |
Gross unrealized losses | (18) | (14.5) |
Net foreign currency gains (losses) | 0 | 0 |
Fair value | 1,083.5 | 1,550.6 |
Debt securities, trading | ||
Cost or amortized cost | 112.5 | 278.6 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (3.5) | (8.2) |
Net foreign currency gains (losses) | 0 | 0 |
Fair value | 109 | 270.4 |
Non-U.S. government and government agency | ||
Debt securities, available for sale | ||
Cost or amortized cost | 82.9 | 37.2 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (1.4) | (0.7) |
Net foreign currency gains (losses) | 0.6 | 0.1 |
Fair value | 82.1 | 36.6 |
Debt securities, trading | ||
Cost or amortized cost | 32.5 | 95.8 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (1.6) | (4) |
Net foreign currency gains (losses) | 0 | (3.6) |
Fair value | 30.9 | 88.2 |
Preferred stocks | ||
Debt securities, trading | ||
Cost or amortized cost | 2.4 | |
Gross unrealized gains | 0.8 | |
Gross unrealized losses | 0 | |
Net foreign currency gains (losses) | 0 | |
Fair value | 3.2 | |
U.S. Treasuries | ||
Debt securities, trading | ||
Securities sold, not yet purchased | $ 0 | $ 27 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Feb. 23, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Available-for-sale investment securities in the twelve month or more category | $ 4,300,000 | $ 0 | |
Available-for-sale investment securities in the twelve month or more category, unrealized loss | $ 100,000 | ||
Weighted average duration of debt securities | 2 years 6 months | 1 year 9 months 18 days | |
TPOC Portfolio | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Eligible withdrawal period following a cause event | 120 days | ||
Third Point Enhanced LP | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Unfunded commitments | $ 0 | ||
Third Point Venture Offshore Fund I LP | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Unfunded commitments | $ 9,500,000 | ||
Percentage of net asset value held | 16.80% | ||
Third Point Venture Offshore Fund II LP | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Unfunded commitments | $ 22,500,000 | ||
Percentage of net asset value held | 17.80% | ||
Related Party | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt securities | $ 558,900,000 | $ 530,700,000 | |
Third Point LLC, 2022 IMA | Incentive fees | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Fee percentage | 15% | ||
Third Point LLC, 2022 IMA | Incentive fees | Related Party | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Fee percentage | 15% | ||
Third Point LLC, 2022 IMA | Management fees | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Fee percentage | 0.50% | ||
Third Point LLC, 2022 IMA | Management fees | Related Party | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Fee percentage | 0.50% | ||
Third Point LLC, 2022 IMA | Advisory fees | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Fee amount | $ 1,500,000 | ||
Third Point LLC, 2022 IMA | Advisory fees | Related Party | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Fee amount | $ 1,500,000 | ||
Sub-prime | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt securities | 146,600,000 | 95,300,000 | |
Sub-prime | AAA | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt securities | 85,900,000 | 56,100,000 | |
Sub-prime | AA | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt securities | 28,900,000 | 20,000,000 | |
Sub-prime | BBB | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt securities | 7,400,000 | ||
Sub-prime | Unrated | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt securities | $ 24,400,000 | $ 19,200,000 |
Investments - Debt securities b
Investments - Debt securities by contractual maturity (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt securities, trading - Cost or Amortized cost | ||
Due in one year or less | $ 141.6 | $ 240.4 |
Due after one year through five years | 57.9 | 426.5 |
Due after five years through ten years | 20.6 | 63.4 |
Due after ten years | 34.9 | 35.5 |
Cost or amortized cost | 802.3 | 1,630.1 |
Debt securities, trading - Fair value | ||
Due in one year or less | 141.2 | 230.9 |
Due after one year through five years | 52.9 | 407 |
Due after five years through ten years | 18.4 | 55.7 |
Due after ten years | 28.7 | 28.5 |
Fair value | 753.2 | 1,526 |
Debt securities, AFS - Cost or amortized cost | ||
Due in one year or less | 205.5 | 104.2 |
Due after one year through five years | 2,313.3 | 1,822.7 |
Due after five years through ten years | 170.5 | 95.8 |
Due after ten years | 2.7 | 4.9 |
Cost or amortized cost | 4,241.3 | 2,678.1 |
Debt securities, AFS - Fair value | ||
Due in one year or less | 204.1 | 104 |
Due after one year through five years | 2,275.7 | 1,802 |
Due after five years through ten years | 167 | 92.3 |
Due after ten years | 2.4 | 4.6 |
Fair value | 4,172.1 | 2,635.5 |
Mortgage-backed and asset-backed securities | ||
Debt securities, trading - Cost or Amortized cost | ||
Without single maturity date | 547.3 | 861.9 |
Debt securities, trading - Fair value | ||
Without single maturity date | 512 | 800.7 |
Debt securities, AFS - Cost or amortized cost | ||
Without single maturity date | 1,549.3 | 650.5 |
Debt securities, AFS - Fair value | ||
Without single maturity date | $ 1,522.9 | 632.6 |
Preferred stocks | ||
Debt securities, trading - Cost or Amortized cost | ||
Without single maturity date | 2.4 | |
Cost or amortized cost | 2.4 | |
Debt securities, trading - Fair value | ||
Without single maturity date | 3.2 | |
Fair value | 3.2 | |
Debt securities, AFS - Cost or amortized cost | ||
Without single maturity date | 0 | |
Debt securities, AFS - Fair value | ||
Without single maturity date | $ 0 |
Investments - Ratings and fair
Investments - Ratings and fair value of debt securities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | $ 753.2 | $ 1,526 |
Debt securities, available-for-sale | 4,172.1 | 2,635.5 |
AAA | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 351 | 564.4 |
Debt securities, available-for-sale | 618.1 | 172.8 |
AA | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 238.4 | 523.2 |
Debt securities, available-for-sale | 1,945.2 | 1,907.6 |
A | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 47.6 | 181.1 |
Debt securities, available-for-sale | 911.9 | 188.9 |
BBB | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 54 | 158.1 |
Debt securities, available-for-sale | 380.4 | 149.9 |
Other | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading | 62.2 | 99.2 |
Debt securities, available-for-sale | $ 316.5 | $ 216.3 |
Investments - Summary of equity
Investments - Summary of equity securities and other long-term investments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Equity securities, Cost or amortized cost | $ 1.8 | $ 1.8 |
Equity securities, Gross unrealized gains | 0 | 0 |
Equity securities, Gross unrealized losses | (0.4) | (0.2) |
Equity securities, Net foreign currency gains | 0.2 | 0 |
Equity securities, Fair value | 1.6 | 1.6 |
Other long-term investments, Cost or amortized cost | 377.6 | 392 |
Other long-term investments, Gross unrealized gains | 28.8 | 27.5 |
Other long-term investments, Gross unrealized losses | (50.8) | (41.8) |
Other long-term investments, net foreign currency gains | (0.2) | (0.5) |
Other Long-Term Investments | $ 355.4 | $ 377.2 |
Investments - Equity securities
Investments - Equity securities and other-long term investments at fair value (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Other long-term investments | $ 355.4 | $ 377.2 |
Valued at Level 3 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Other long-term investments | 235 | 227.3 |
Hedge funds and private equity funds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Other long-term investments | 73.1 | 84.9 |
Hedge funds and private equity funds | Valued at NAV | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Other long-term investments | 47.6 | 45.1 |
Hedge funds and private equity funds | Valued at Level 3 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Other long-term investments | 25.4 | 25.1 |
Strategic Investments | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Other long-term investments | 252.1 | 262 |
Other Investments | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Other long-term investments | 30.2 | 30.3 |
Strategic investments and Limited liability companies and private equity securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Unfunded commitments | $ 14.7 | $ 16 |
Investments - Investments in un
Investments - Investments in unconsolidated entities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Other long-term investments | $ 355.4 | $ 377.2 |
Equity method eligible unconsolidated entities, using the fair value option | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Other long-term investments | 153.5 | 147.9 |
Equity method investments | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Other long-term investments | 41.5 | 41.8 |
Other unconsolidated investments, at fair value | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Other long-term investments | 113.7 | 124.5 |
Other Unconsolidated Investments, at cost | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Other long-term investments | $ 46.7 | $ 63 |
Investments - Investment in rel
Investments - Investment in related party investment funds (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Investments in related party investment funds, at fair value | $ 111.3 | $ 128.8 |
Related Party | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Investments in related party investment funds, at fair value | 111.3 | 128.8 |
Third Point Enhanced LP | Related Party | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Investments in related party investment funds, at fair value | 83.9 | 100.3 |
Third Point Venture Offshore Fund I LP | Related Party | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Investments in related party investment funds, at fair value | 25.1 | 26 |
Third Point Venture Offshore Fund II LP | Related Party | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Investments in related party investment funds, at fair value | $ 2.3 | $ 2.5 |
Total realized and unrealized_3
Total realized and unrealized investment gains (losses) and net investment income - Summary of total realized and unrealized investment gains (losses) and net investment income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net Investment Income [Line Items] | ||||
Investment expenses | $ (5.1) | $ (3.4) | $ (10.5) | $ (7.4) |
Net realized and unrealized investment gains (losses) and net investment income | 65.8 | (141.5) | 139.6 | (346.6) |
Debt securities, available for sale | ||||
Net Investment Income [Line Items] | ||||
Realized and unrealized investment gains (losses) and net investment income before investment expenses | 48.5 | 2.9 | 83.6 | 2.9 |
Debt securities, trading | ||||
Net Investment Income [Line Items] | ||||
Realized and unrealized investment gains (losses) and net investment income before investment expenses | 10.5 | (60.9) | 39.6 | (120.2) |
Short-term investments | ||||
Net Investment Income [Line Items] | ||||
Realized and unrealized investment gains (losses) and net investment income before investment expenses | 5.9 | (0.9) | 14.3 | (2.6) |
Other long-term investments | ||||
Net Investment Income [Line Items] | ||||
Realized and unrealized investment gains (losses) and net investment income before investment expenses | (3.8) | (0.6) | 0.6 | (1.6) |
Derivative instruments | ||||
Net Investment Income [Line Items] | ||||
Realized and unrealized investment gains (losses) and net investment income before investment expenses | 3.5 | 0 | 3.5 | 0 |
Equity securities | ||||
Net Investment Income [Line Items] | ||||
Realized and unrealized investment gains (losses) and net investment income before investment expenses | 0 | (0.3) | 0 | (0.4) |
Related party investment funds | ||||
Net Investment Income [Line Items] | ||||
Realized and unrealized investment gains (losses) and net investment income before investment expenses | (0.9) | (60.5) | (0.1) | (191.5) |
Before other investment expenses and investment income (loss) on cash and cash equivalents | ||||
Net Investment Income [Line Items] | ||||
Realized and unrealized investment gains (losses) and net investment income before investment expenses | 63.7 | (120.3) | 141.5 | (313.4) |
Cash and cash equivalents | ||||
Net Investment Income [Line Items] | ||||
Realized and unrealized investment gains (losses) and net investment income before investment expenses | $ 7.2 | $ (17.8) | $ 8.6 | $ (25.8) |
Total realized and unrealized_4
Total realized and unrealized investment gains (losses) and net investment income - Summary of net realized and unrealized gains (losses) on investments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
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 investments | 24.8 | (63.2) | 45.9 | (142.6) |
Net realized and unrealized gains (losses) on investments | (1.8) | (98.4) | 9.5 | (180.3) |
Realized and unrealized gains from related party investments | $ (4.5) | $ 0.3 | $ (2.7) | $ 0.8 |
Total realized and unrealized_5
Total realized and unrealized investment (losses) and net investment income - Summary of net realized investment gains (losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Debt securities, available for sale | $ 2.2 | $ 0.2 | $ 1.6 | $ 0.2 |
Debt securities, trading | (32.5) | (18) | (39.9) | (22.2) |
Short-term investments | (1.2) | 0.1 | (1.4) | (0.1) |
Equity securities | 0 | 0 | 0 | (2.3) |
Other long-term investments | (0.7) | (2.1) | (1.1) | (1.8) |
Net investment income (loss) on cash and cash equivalents | 5.6 | (15.4) | 4.4 | (11.5) |
Net realized (losses) on investments | $ (26.6) | $ (35.2) | $ (36.4) | $ (37.7) |
Total realized and unrealized_6
Total realized and unrealized investment gains (losses) and net investment income - Summary of net unrealized investment gains (losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Debt securities, trading | $ 28.9 | $ (57) | $ 51.9 | $ (121.1) |
Short-term investments | 1.1 | (2.6) | 0.7 | (4.6) |
Derivative instruments | 3.5 | 0 | 3.5 | 0 |
Equity securities | 0 | (0.3) | 0 | 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) |
Total realized and unrealized_7
Total realized and unrealized investment gains (losses) and net investment income - Summary of gains attributable to unrealized investment gains on level 3 investments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net Investment Income [Line Items] | ||||
Debt securities, trading | $ 28.9 | $ (57) | $ 51.9 | $ (121.1) |
Other long-term investments | (4.8) | 0.4 | (7.8) | (2.8) |
Net unrealized investment gains (losses) | 24.8 | (63.2) | 45.9 | (142.6) |
Level 3 | ||||
Net Investment Income [Line Items] | ||||
Debt securities, trading | (0.9) | 0 | (0.8) | 0.5 |
Other long-term investments | 2 | 1.6 | (2.8) | (2.3) |
Net unrealized investment gains (losses) | $ 1.1 | $ 1.6 | $ (3.6) | $ (1.8) |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Foreign exchange contract | ||
Derivative [Line Items] | ||
Collateral held | $ 36.4 | $ 15.2 |
Derivatives - Classification an
Derivatives - Classification and fair value of derivatives (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Derivative liabilities at fair value | $ 26.6 | $ 8.6 |
Derivatives not designated as hedging instruments | Foreign currency forwards | ||
Derivative [Line Items] | ||
Derivative assets at fair value | 0 | 9 |
Derivative liabilities at fair value | 6.4 | 0 |
Notional Value | 311.8 | 425.1 |
Derivatives not designated as hedging instruments | Foreign currency swaps | ||
Derivative [Line Items] | ||
Derivative assets at fair value | 0 | 0 |
Derivative liabilities at fair value | 10.6 | 1.5 |
Notional Value | 254.9 | 264.6 |
Derivatives not designated as hedging instruments | Weather derivatives | ||
Derivative [Line Items] | ||
Derivative assets at fair value | 0 | 0 |
Derivative liabilities at fair value | 5.4 | 4.9 |
Notional Value | 30.6 | 30.6 |
Derivatives not designated as hedging instruments | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative assets at fair value | 4.1 | 0 |
Derivative liabilities at fair value | 0 | 0 |
Notional Value | $ 0 | $ 0 |
Derivatives - Classification _2
Derivatives - Classification and net impact on earnings of derivatives (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Foreign currency forwards | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net impact on earnings | $ (13.3) | $ (5.8) | $ (14.9) | $ (6.8) |
Foreign currency futures contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net impact on earnings | 0 | (24.9) | 0 | (30.8) |
Weather derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net impact on earnings | (0.3) | 0.2 | 3.2 | (0.4) |
Equity warrants | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net impact on earnings | 0 | 0 | 0 | (0.1) |
Foreign currency swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net impact on earnings | (12) | 0 | (13.6) | 0 |
Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net impact on earnings | $ 3.5 | $ 0 | $ 3.5 | $ 0 |
Variable and voting interest _3
Variable and voting interest entities - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended |
Jan. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Variable Interest Entity [Line Items] | |||
Assets | $ 12,622.8 | $ 11,036.3 | |
Liabilities | 10,355.1 | 8,953.7 | |
Alstead Re | |||
Variable Interest Entity [Line Items] | |||
Assets | 18.4 | 14 | |
Liabilities | 12.8 | 9 | |
Arcadian | |||
Variable Interest Entity [Line Items] | |||
Assets | 50 | 32.3 | |
Liabilities | $ 8.3 | 9.7 | |
VIE, ownership percentage | 49% | ||
Maximum financial exposure | $ 18 | ||
Banyan | |||
Variable Interest Entity [Line Items] | |||
Assets | 4.7 | 8 | |
Liabilities | 0.7 | $ 1.1 | |
VIE, ownership percentage | 49% | 100% | |
Alta Signa | |||
Variable Interest Entity [Line Items] | |||
Assets | 7.9 | $ 8 | |
Liabilities | $ 1.6 | $ 2.1 | |
VOE, ownership percentage | 75.10% | ||
TP Enhanced Fund | TP Enhanced Fund | |||
Variable Interest Entity [Line Items] | |||
VIE, ownership percentage | 89.40% | ||
Variable interest entity, primary beneficiary | TP Enhanced Fund | TP GP | |||
Variable Interest Entity [Line Items] | |||
VIE, ownership percentage | 10.60% |
Variable and voting interest _4
Variable and voting interest entities - Reconciliation of noncontrolling interests (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Balance, beginning of period | $ 11.4 | $ (0.7) | $ 7.9 | $ (0.4) |
Business combinations | 0 | 0.8 | 0 | 0.8 |
Net income attributable to noncontrolling interests | 2 | 0.7 | 4.4 | 0.4 |
Contributions (Redemptions) | (0.5) | 0 | 0.6 | 0 |
Balance, end of period | $ 12.9 | $ 0.8 | $ 12.9 | $ 0.8 |
Variable and voting interest _5
Variable and voting interest entities - Total assets and maximum exposure to loss for unconsolidated variable interest entities (Details) - Other long-term investments - Variable Interest Entity, Not Primary Beneficiary, Excluding Investments In Related Party Investment Funds - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Total VIE Assets | ||
Total VIE Assets | $ 215.1 | $ 211.5 |
Maximum Exposure to Loss | ||
On-Balance Sheet | 144 | 144 |
Off-Balance Sheet | 2 | 2 |
Total | $ 146 | $ 146 |
Variable and voting interest _6
Variable and voting interest entities - TP Enhanced Fund summarized financial information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Variable Interest Entity [Line Items] | |||||
Total investment income (loss) | $ 767.9 | $ 473.1 | $ 1,453 | $ 834.5 | |
Net income (loss) | 72.3 | (56.1) | 217.3 | (269.4) | |
Total assets | 12,622.8 | 12,622.8 | $ 11,036.3 | ||
Total liabilities | 10,355.1 | 10,355.1 | 8,953.7 | ||
TP Enhanced Fund | |||||
Variable Interest Entity [Line Items] | |||||
Total investment income (loss) | 0 | (57.9) | 2.1 | (195.6) | |
Total expenses | 0.5 | 4.6 | 1.4 | 10 | |
Net income (loss) | (0.5) | $ (62.5) | 0.7 | $ (205.6) | |
Total assets | 100.5 | 100.5 | 260.6 | ||
Total liabilities | 6.3 | 6.3 | 148.6 | ||
Total partners' capital | $ 94.2 | $ 94.2 | $ 112 |
Loss and loss adjustment expe_3
Loss and loss adjustment expense reserves - Activity in the loss and loss adjustment expense reserves (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
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) | (1.4) | ||
Net reserves for loss and loss adjustment expenses, beginning of period | 3,891.5 | 3,624.7 | ||
Net reserves for loss and loss adjustment expenses disposed | (884.4) | 0 | ||
Increase (decrease) in net loss and loss adjustment expenses incurred in respect of losses occurring in: | ||||
Current year | 812.5 | 712.3 | ||
Prior years | (138.4) | (11.9) | ||
Total incurred loss and loss adjustment expenses | $ 407 | $ 360.3 | 674.1 | 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 translation | 2.1 | (76.6) | ||
Net reserves for loss and loss adjustment expenses, end of period | 3,082.6 | 3,682.1 | 3,082.6 | 3,682.1 |
Plus: loss and loss adjustment expenses recoverable, end of period | 2,276.7 | 1,257.5 | 2,276.7 | 1,257.5 |
Plus: deferred (gains) charges on retroactive reinsurance | (20.5) | 1.2 | (20.5) | 1.2 |
Gross reserves for loss and loss adjustment expenses, end of period | $ 5,338.8 | $ 4,940.8 | $ 5,338.8 | $ 4,940.8 |
Loss and loss adjustment expe_4
Loss and loss adjustment expense reserves - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Insurance [Abstract] | ||
Favorable change in prior loss year reserve development | $ 138.4 | $ 11.9 |
Favorable loss reserve development | $ 118.2 | |
Favorable change in prior loss year reserve development due to change In COVID-19 reserves | $ 22.2 |
Allowance for expected credit_3
Allowance for expected credit losses - Summary of allowance for expected credit losses (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||||
Insurance and reinsurance balances receivable, net | $ 2,252.1 | $ 1,876.9 | ||
Loss and loss adjustment expenses recoverable, net | 2,276.7 | 1,376.2 | $ 1,257.5 | $ 1,215.3 |
Other assets | 76.3 | 52.4 | ||
Total assets in scope | $ 4,605.1 | $ 3,305.5 |
Allowance for expected credit_4
Allowance for expected credit losses - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for expected credit losses | $ 34,300,000 | $ 34,300,000 | $ 34,300,000 | ||
Current expected credit (gains) losses | $ 0 | $ (1,800,000) | $ 0 | $ 10,700,000 | |
Assets within scope of credit losses | Credit concentration risk | AM Best or S&P | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration risk, percentage | 59% | ||||
Assets within scope of credit losses | Credit concentration risk | AM Best or S&P | AM Best or S&P, rated A- or better | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration risk, percentage | 79% |
Debt and letter of credit fac_3
Debt and letter of credit facilities - Summary of debt obligations (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total debt | $ 765.9 | $ 778 |
Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Debt, at face value | 254.9 | 264.3 |
Unamortized discount | (7.8) | (5.7) |
Total debt | $ 247.1 | $ 258.6 |
Effective rate | 7.80% | 6% |
Senior Notes | 2016 SIG Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt, at face value | $ 400 | $ 400 |
Unamortized premium | 4.2 | 4.8 |
Total debt | $ 404.2 | $ 404.8 |
Effective rate | 4.50% | 4.50% |
Senior Notes | 2015 TPRUSA Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt, at face value | $ 115 | $ 115 |
Unamortized issuance costs | (0.4) | (0.4) |
Total debt | $ 114.6 | $ 114.6 |
Effective rate | 7% | 7% |
Debt and letter of credit fac_4
Debt and letter of credit facilities - Summary of letter of credit facilities (Details) - Standby letters of credit | Jun. 30, 2023 USD ($) |
Line of Credit Facility [Line Items] | |
Issued | $ 1,297,000,000 |
Cash and Cash Equivalents | |
Line of Credit Facility [Line Items] | |
Collateral | 31,900,000 |
Debt securities | |
Line of Credit Facility [Line Items] | |
Collateral | 1,379,000,000 |
Committed - Secured letters of credit facilities | |
Line of Credit Facility [Line Items] | |
Committed Capacity | 395,000,000 |
Issued | 310,000,000 |
Committed - Secured letters of credit facilities | Cash and Cash Equivalents | |
Line of Credit Facility [Line Items] | |
Collateral | 17,600,000 |
Committed - Secured letters of credit facilities | Debt securities | |
Line of Credit Facility [Line Items] | |
Collateral | 214,700,000 |
Uncommitted - Secured letters of credit facilities | |
Line of Credit Facility [Line Items] | |
Issued | 987,000,000 |
Uncommitted - Secured letters of credit facilities | Cash and Cash Equivalents | |
Line of Credit Facility [Line Items] | |
Collateral | 14,300,000 |
Uncommitted - Secured letters of credit facilities | Debt securities | |
Line of Credit Facility [Line Items] | |
Collateral | $ 1,164,300,000 |
Debt and letter of credit fac_5
Debt and letter of credit facilities - Narrative (Details) - Revolving Credit Facility - USD ($) | Feb. 26, 2021 | Jun. 30, 2023 |
Debt Instrument [Line Items] | ||
Contractual term | 3 years | |
Maximum borrowing capacity | $ 300,000,000 | |
Extension term | 12 months | |
Outstanding borrowings | $ 0 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Income tax (expense) benefit | $ (16.8) | $ 27.7 | $ (42.6) | $ 18 | |
Pre-tax income (loss) | $ 89.1 | $ (83.8) | $ 259.9 | $ (287.4) | |
Effective tax rate | 18.90% | 16.40% | |||
Unrecognized tax benefits | $ 2.3 | ||||
Unrecognized tax benefits that would impact the effective tax rate | $ 1.6 | $ 1.6 |
Shareholders' equity - Common s
Shareholders' equity - Common shares issued and outstanding (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Movement In Common Stock Outstanding [Roll Forward] | ||||
Common shares issued, beginning of period (in shares) | 162,177,653 | |||
Common shares outstanding, beginning of period (in shares) | 162,177,653 | |||
Common shares issued, end of period (in shares) | 163,200,630 | 163,200,630 | ||
Common shares outstanding, end of period (in shares) | 163,200,630 | 163,200,630 | ||
Common Stock | ||||
Movement In Common Stock Outstanding [Roll Forward] | ||||
Common shares issued, beginning of period (in shares) | 162,177,653 | 161,929,777 | ||
Common shares outstanding, beginning of period (in shares) | 162,177,653 | 161,929,777 | ||
Shares repurchased (in shares) | 0 | (50,000) | 0 | (695,047) |
Common shares issued, end of period (in shares) | 163,200,630 | 162,328,831 | 163,200,630 | 162,328,831 |
Common shares outstanding, end of period (in shares) | 163,200,630 | 162,328,831 | 163,200,630 | 162,328,831 |
Restricted share awards | Common Stock | ||||
Movement In Common Stock Outstanding [Roll Forward] | ||||
Shares issued/granted, net of forfeitures and shares withheld (in shares) | 1,022,977 | 1,094,101 |
Shareholders' equity - Narrativ
Shareholders' equity - Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) period director $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2022 $ / shares shares | |
Class of Stock [Line Items] | |||||
Common shares authorized (in shares) | shares | 300,000,000 | 300,000,000 | |||
Common shares, par value (in dollars per share) | $ / shares | $ 0.10 | $ 0.10 | |||
Dividends paid to common shareholders | $ 0 | $ 0 | |||
Dividends paid to preference shareholders | 8 | 8 | |||
Stock repurchase program, remaining authorized amount | $ 56.3 | $ 56.3 | |||
Common shares repurchased and retired | $ 0.3 | $ 5 | |||
Weighted average cost of common shares repurchased and retired (in dollars per share) | $ / shares | $ 6.02 | $ 7.17 | |||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Common shares repurchased and retired (in shares) | shares | 0 | 50,000 | 0 | 695,047 | |
Common shares repurchased and retired | $ 0 | $ 0 | $ 0 | $ 0.1 | |
Preference shares | |||||
Class of Stock [Line Items] | |||||
Preference shares, shares authorized (in shares) | shares | 30,000,000 | 30,000,000 | |||
Preference shares, par value (in dollars per share) | $ / shares | $ 0.10 | $ 0.10 | |||
Series B preference shares | |||||
Class of Stock [Line Items] | |||||
Preference shares, shares authorized (in shares) | shares | 8,000,000 | 8,000,000 | 8,000,000 | ||
Preference shares, par value (in dollars per share) | $ / shares | $ 0.10 | $ 0.10 | $ 0.10 | ||
Preference shares, shares outstanding (in shares) | shares | 8,000,000 | 8,000,000 | |||
Dividend rate | 8% | ||||
Voting rights triggering event, number of dividend periods not paid | period | 6 | ||||
Voting rights triggered, number of directors eligible to elect | director | 2 | ||||
Dividend rate reset period | 5 years | ||||
Each five-year anniversary triggering event, redemption percentage | 100% | ||||
Rating agency triggering event, redemption percentage | 102% | ||||
Capital disqualification triggering event, redemption percentage | 100% | ||||
Tax triggering event, redemption percentage | 100% | ||||
Dividends paid to preference shareholders | $ 4 | $ 4 | $ 8 | $ 8 | |
Series B preference shares | 5-year U.S. treasury rate | |||||
Class of Stock [Line Items] | |||||
Dividend rate basis spread on variable rate | 7.298% |
Earnings (loss) per share ava_3
Earnings (loss) per share available to SiriusPoint common shareholders - Computation of basic and diluted earnings (loss) per share available to SiriusPoint common shareholders (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Weighted-average number of common shares outstanding: | ||||
Basic number of common shares outstanding (in shares) | 162,027,831 | 160,258,883 | 161,473,011 | 160,064,319 |
Dilutive effect of warrants (in shares) | 1,304,823 | 0 | 951,655 | 0 |
Dilutive effect of Series A preference shares (in shares) | 0 | 0 | 0 | 0 |
Diluted number of common shares outstanding (in shares) | 166,708,932 | 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) | 0 | (15.1) | 0 |
Net income (loss) available to SiriusPoint common shareholders | $ 61.5 | $ (60.8) | $ 189.7 | $ (277.8) |
Basic earnings (loss) per share available to SiriusPoint common shareholders (in dollars per share) | $ 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) | 0 | (15.1) | 0 |
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 (in dollars per share) | $ 0.37 | $ (0.38) | $ 1.14 | $ (1.74) |
Options | ||||
Weighted-average number of common shares outstanding: | ||||
Dilutive effect of share-based payment awards (in shares) | 494,422 | 0 | 307,705 | 0 |
Restricted share awards and units | ||||
Weighted-average number of common shares outstanding: | ||||
Dilutive effect of share-based payment awards (in shares) | 2,881,856 | 0 | 3,264,827 | 0 |
Earnings (loss) per share ava_4
Earnings (loss) per share available to SiriusPoint common shareholders - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted earnings (loss) per share (in shares) | 2,327,965 | 4,019,196 | 2,756,476 | 4,222,338 |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted earnings (loss) per share (in shares) | 27,097,859 | 31,123,755 | 27,097,859 | 31,123,755 |
RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted earnings (loss) per share (in shares) | 20,042 | 397,151 |
Related party transactions - Na
Related party transactions - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Feb. 23, 2022 | Mar. 01, 2021 | Feb. 26, 2021 | Jan. 01, 2019 | |
Related Party Transaction [Line Items] | |||||||||
Gross premiums written | $ 887,100,000 | $ 812,600,000 | $ 1,997,600,000 | $ 1,822,300,000 | |||||
Due to related party | 2,252,100,000 | 2,252,100,000 | $ 1,876,900,000 | ||||||
Due from related party | 1,845,400,000 | 1,845,400,000 | 813,600,000 | ||||||
Management fees | Third Point LLC, 2022 LPA | |||||||||
Related Party Transaction [Line Items] | |||||||||
Fee percentage | 1.25% | ||||||||
Management fees | Third Point LLC, 2020 LPA | |||||||||
Related Party Transaction [Line Items] | |||||||||
Fee percentage | 1.25% | ||||||||
Management fees | Third Point LLC, 2022 Venture II LPA | |||||||||
Related Party Transaction [Line Items] | |||||||||
Fee percentage | 0.75% | 0.75% | |||||||
Management fees | Third Point LLC, TPIPS IMA | |||||||||
Related Party Transaction [Line Items] | |||||||||
Fee percentage | 0.06% | ||||||||
Management fees | Third Point LLC, 2022 IMA | |||||||||
Related Party Transaction [Line Items] | |||||||||
Fee percentage | 0.50% | ||||||||
Advisory fees | Third Point LLC, 2022 IMA | |||||||||
Related Party Transaction [Line Items] | |||||||||
Fee amount | $ 1,500,000 | ||||||||
Performance fees | TP GP | |||||||||
Related Party Transaction [Line Items] | |||||||||
Fee percentage | 20% | ||||||||
Performance fees | TP Venture GP | |||||||||
Related Party Transaction [Line Items] | |||||||||
Fee percentage | 20% | ||||||||
Performance fees | TP Venture GP II | |||||||||
Related Party Transaction [Line Items] | |||||||||
Fee percentage | 20% | 20% | |||||||
Incentive fees | Third Point LLC, 2022 IMA | |||||||||
Related Party Transaction [Line Items] | |||||||||
Fee percentage | 15% | ||||||||
Related Party | |||||||||
Related Party Transaction [Line Items] | |||||||||
Gross premiums written | 79,800,000 | $ 56,800,000 | 147,300,000 | $ 118,000,000 | |||||
Due to related party | 21,000,000 | 21,000,000 | 59,600,000 | ||||||
Due from related party | $ 0 | $ 0 | $ 4,600,000 | ||||||
Related Party | Management fees | Third Point LLC, 2022 IMA | |||||||||
Related Party Transaction [Line Items] | |||||||||
Fee percentage | 0.50% | ||||||||
Related Party | Advisory fees | Third Point LLC, 2022 IMA | |||||||||
Related Party Transaction [Line Items] | |||||||||
Fee amount | $ 1,500,000 | ||||||||
Related Party | Incentive fees | Third Point LLC, 2022 IMA | |||||||||
Related Party Transaction [Line Items] | |||||||||
Fee percentage | 15% |
Related party transactions - In
Related party transactions - Investments managed by related parties (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Investments in related party investment funds, at fair value | $ 111.3 | $ 128.8 |
Total investments managed by related parties | 5,952.8 | 5,653.7 |
Related Party | ||
Related Party Transaction [Line Items] | ||
Investments in related party investment funds, at fair value | 111.3 | 128.8 |
Third Point Optimized Credit Portfolio | 558.9 | 530.7 |
Total investments managed by related parties | 670.2 | 659.5 |
Related Party | Third Point Enhanced LP | ||
Related Party Transaction [Line Items] | ||
Investments in related party investment funds, at fair value | 83.9 | 100.3 |
Related Party | Third Point Venture Offshore Fund I LP | ||
Related Party Transaction [Line Items] | ||
Investments in related party investment funds, at fair value | 25.1 | 26 |
Related Party | Third Point Venture Offshore Fund II LP | ||
Related Party Transaction [Line Items] | ||
Investments in related party investment funds, at fair value | $ 2.3 | $ 2.5 |
Related party transactions - Su
Related party transactions - Summary of related party fees (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Related Party Transaction [Line Items] | ||||
Management, advisory and performance fees to related parties | $ 2.5 | $ 1 | $ 4.2 | $ 3.9 |
Management and advisory fees | ||||
Related Party Transaction [Line Items] | ||||
Management, advisory and performance fees to related parties | 2.5 | 2.5 | 4.2 | 5.2 |
Performance fees | ||||
Related Party Transaction [Line Items] | ||||
Management, advisory and performance fees to related parties | $ 0 | $ (1.5) | $ 0 | $ (1.3) |
Commitments and contingencies -
Commitments and contingencies - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||||
Feb. 26, 2023 | Mar. 07, 2022 | Feb. 26, 2021 | Sep. 16, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Nov. 28, 2018 | |
Other Commitments [Line Items] | ||||||||||
Dividends paid to preference shareholders | $ 8,000,000 | $ 8,000,000 | ||||||||
Liability-classified capital instruments | $ 65,400,000 | $ 65,400,000 | $ 60,400,000 | |||||||
Private warrants exercised (in shares) | 325,530 | 325,530 | ||||||||
Settlement of contingent value rights | $ 38,500,000 | 0 | ||||||||
Operating lease expense | $ 2,600,000 | $ 2,800,000 | 5,100,000 | $ 5,700,000 | ||||||
Private Warrants | ||||||||||
Other Commitments [Line Items] | ||||||||||
Private warrants issued (in shares) | 5,418,434 | |||||||||
Series A preference shares | ||||||||||
Other Commitments [Line Items] | ||||||||||
Liability-classified capital instruments | 15,300,000 | 15,300,000 | ||||||||
Merger warrants | ||||||||||
Other Commitments [Line Items] | ||||||||||
Liability-classified capital instruments | 39,300,000 | 39,300,000 | ||||||||
Private warrants | ||||||||||
Other Commitments [Line Items] | ||||||||||
Liability-classified capital instruments | 11,300,000 | 11,300,000 | ||||||||
Public warrants | ||||||||||
Other Commitments [Line Items] | ||||||||||
Liability-classified capital instruments | 0 | 0 | ||||||||
CVRs | ||||||||||
Other Commitments [Line Items] | ||||||||||
Settlement of contingent value rights | $ 38,500,000 | |||||||||
Liability-classified capital instruments | Series A preference shares | ||||||||||
Other Commitments [Line Items] | ||||||||||
Loss from the change in fair value | 8,200,000 | 13,500,000 | ||||||||
Liability-classified capital instruments | Merger warrants | ||||||||||
Other Commitments [Line Items] | ||||||||||
Loss from the change in fair value | 8,600,000 | 24,600,000 | ||||||||
Liability-classified capital instruments | Private warrants | ||||||||||
Other Commitments [Line Items] | ||||||||||
Loss from the change in fair value | 2,100,000 | 6,400,000 | ||||||||
Liability-classified capital instruments | Public warrants | ||||||||||
Other Commitments [Line Items] | ||||||||||
Loss from the change in fair value | $ 0 | $ 0 | ||||||||
Sirius Group | Series A preference shares | ||||||||||
Other Commitments [Line Items] | ||||||||||
Par value (in dollars per share) | $ 0.10 | |||||||||
Issuance of SiriusPoint common shares (in shares) | 11,720,987 | |||||||||
Sirius Group | Merger warrants | ||||||||||
Other Commitments [Line Items] | ||||||||||
Number of shares in which the warrants can be converted (in shares) | 21,009,324 | 21,009,324 | ||||||||
Sirius Group | Series A preference shares | ||||||||||
Other Commitments [Line Items] | ||||||||||
Dividends paid to preference shareholders | $ 0 | |||||||||
Player's Health | ||||||||||
Other Commitments [Line Items] | ||||||||||
Amount lent under note agreement | $ 8,000,000 | |||||||||
Notes receivable, interest rate | 6% | |||||||||
Related Party | ||||||||||
Other Commitments [Line Items] | ||||||||||
Related party interest rate | 8% | |||||||||
Amount drawn | $ 0 | $ 0 | ||||||||
Related Party | Loan commitment | ||||||||||
Other Commitments [Line Items] | ||||||||||
Maximum commitment | $ 18,000,000 |
Commitments and contingencies_2
Commitments and contingencies - Lease balances (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease right-of-use assets | $ 22.5 | $ 25.9 |
Total lease liability | $ 25.7 | $ 30.3 |
Weighted average lease term (years) | 5 years 4 months 24 days | 5 years 6 months |
Weighted average discount rate | 3.10% | 3.10% |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities |
Commitments and contingencies_3
Commitments and contingencies - Future minimum rental commitments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Remainder of 2023 | $ 4.1 | |
2024 | 5.8 | |
2025 | 4.5 | |
2026 | 3.7 | |
2027 and thereafter | 9.6 | |
Total future annual minimum rental payments | 27.7 | |
Less: present value discount | (2) | |
Total lease liability | $ 25.7 | $ 30.3 |