Recent SPNT transcripts
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Clare Kerrigan | Corporate Communications and Investor Relations |
Sid Sankaran | Chief Executive Officer and Chairman |
David Junius | Chief Financial Officer |
Good morning, ladies and gentlemen, and welcome to the SiriusPoint Limited Second Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the call over to Ms. Clare Kerrigan, Head of Investor Relations for SiriusPoint. Please go ahead ma'am.
operator. you, Thank SiriusPoint of the call the for Welcome Limited quarter XXXX. second to earnings we quarter announcement Last earnings our on Compre, issued night, second are which and portfolio transaction available supplement all loss of press website, Form financial and a an www.siriuspt.com. on our transfer with release and XX-Q David are Financial Officer. Chief today here Chairman me our Sankaran, our and Junius, Chief With Sid Executive Officer; and
based ended will release XX-Q result materially on projected where you March the you Before earnings expectations. the that public other we will that remind contain recent begin, forward-looking find and Please risk and filings, remarks the as risks to may cause statements I results differ XX-Q Form Form to uncertainties. many factors actual today current results including statements. period those Actual XX, to differ of would of press the could from from the refer and XXXX, like materially company's certain the forward-looking those for a
addition, of the GAAP release non-GAAP our allow to the complete is non-GAAP comparable will to call more measures, presented results. is At a website. for which press time, management understanding over believe Sid. measures In to company's turn reconciliation this financial of the refer most A company's these on financial earnings will measure in the certain that management available I
Sirius sustained a reserves, We with David high-level and our our and including an announce a work our loss million. Claire, which approval legacy associated the our million Sirius legacy you, underwriting specialist, premium establish of Compre, second business, covers $XXX loss reserves. a with is including between of of update quarter the subsidiary for other portfolio Bermuda SiriusPoint's America of of eliminates On detail. with palacry, of on progress and were today's pleased better also Thank to bulk overview the our as subject X-pillar exposure Compre transaction, legacy Asbestos to executing good risk including segment, transaction review specialists Environmental yesterday provide $XXX long-tail in deal Runoff on the transfer, of which our morning, Runoff a will quarter the a Group runoff profitability. A&E The of The we subject transfer closing I'll highest-risk and results much to or conditions, and in then more on financial call, to second strategy, results Sirius most reserves the provide able blocks. runoff these to regulatory covers focus economic to everyone.
Assuming results. we receive third reflected transaction quarter timely our this approvals, in be will regulatory
capital will Importantly, of growth rating higher providing insurance and optimize rebalancing up business, free SiriusPoint's toward we allowing more of allocation $XXX us into capital further to lines on and to clarity profitable focus higher and and while margin million levels, reserve agency position. approximately deploy growth on
XXXX, of an team's combined quarter full Turning results. keeps delivery XX.X% with achieved track to late on profit a years or pleased first multiple well companies. strong predecessor I'm to our combined the losses in Catastrophe from us were on at X.X underwriting in European a of reported which the June which in On windstorms. $XX.X our XXXX execution quarter. of ratio, underwriting percentage deliver after losses primarily were ratio basis, our and very We our million points company's second
in members safety quarter our needs in and office clients ability actively as paramount has the team of serve well-being though local the monitoring a concern European In as region. Belgium Liege, not impacted, to of our devastating ensuring is Even of third addition, event. July, was the team the our our impact well our in been floods the the
shares information clients and catastrophe they XXXX, our additional losses our we colleagues to with as in proven taken industry be a reinsurance Based and we exposure Our existing the estimates. reduce quarter event on and actions have in this January estimate That capped European approximately disaster Through today, boosting the $XX navigate purchases. have to rates the in repair this increase from quota out. dramatic our million, loss said, at work and reduction PMLs, absent thoughts on to of participation X, third rebuild. initial are our the
million or delivered diluted March we X.X% net tangible $X.XX since and For quarter share XX. common of the value $XX.XX second $XX to $X.XX diluted per or income of grew XXXX, of book share per
our We which value to of we on growth to quarter. of and generate this ability the book our underwriting returns KPIs through equity, all delivered execution measure continue will profitability, tangible double-digit
investment million quarter earned income. investment second million. XXXX, compares of quarter to $XX which year to in Turning prior income $XXX We the net of second
of in income. investment Enhanced the on a focus insurance its quarter Point contributed target Our with classes. and reinsurance and Third quarter reunderwriting return remediation, this investment Underwriting growth fund our for earned X.X% along and million in continued $XX the
that the more on into lines as specialized do hurdles, to our as we continue portfolio made return property. not well diversify expand exiting risks meet have to We progress beyond as rebalancing
targets appetite. We growth be expect with will underwriting our in line the and revised
entire QX review be which XXXX results. XXXX updated year-to-date and our high-quality partially applied will We to appetite across QX and results level emerge executed conducted is renewals. our the fully business, portfolio, in in This changes reflected financial have continue with on and a underwriting focus policy expect our to
cumulatively the XX%. non-renew remediated of quarters have XX% in remediate or additional the portfolio to last two We and an expect
among to to As and which Re-portfolio, a were that transactions number quarter is growth This premiums we been book, grow accessing in particular, the had through our channels a remain are we've we distribution margins large reinsurance of existing growing of our well million partnerships, appetite. small Banyan, of are our stabilize from in array the with Many legacy aggressively for our and our risk the as our contribution risk, our these with Kind no to longer both to Rhino growing strong balance others. and reinsurance as second Outdoorsy, XXXX. of of where that are attractive insurance Joyn, to transactions portfolios, headwind net premium areas they on earned partnerships within $XXX has reinsurance be including reshaping our Point insurance. Third portfolio announced core insurance strategy Arcadian, focused execute Hestia, proved
with these we XXXX While more strong reinsurance few, these lines, growth is decelerating the majority reinsurance pricing pricing peak. to we we premium be have expect to to Across of absent beyond, for year-to-date in volume in which and the market adequate passed detail increases. remain In global and I'll believe modest for casualty, positive refer across a later. specialty albeit with portfolio, conditions our XXXX activities, rate contributors the property, ventures
recent allocate not dislocation and believe focus navigate conditions, where strong growth and as the we move are services we reliant market we good and on intend evolve. we see and to positive on assets but three believe market. As well We opportunities. have quickly to changes all pillars on they of in capital of placed capitalize market conditions we're advantage We strategy, our take hardening we our portfolio
access us strong space Omada, managing owned and and MGAs, SiriusPoint quarter. travel has market licenses new United participate founded commission-based by including led start-ups driven innovative has the underwriters, macroeconomic both on on IV healthcare. by source have States, entities, already premiums the of these We to an cycles. We primary offer COVID entrepreneurs. significant with seen business, They by up of opportunities our travel years in model. agents, is on The travel inbound MGA generate to reduced the MGAs with to tech-native business branch fee provide increase MGA Our specialty MGAs a impacted services MGAs. amount insurance Lloyd's tailwinds, of travelers EBITDA network traditional international ago. Outposts. to our in nonrisk-bearing XXXX, versus huge insurers coming in the serious elsewhere particularly a grow incumbent to seeing MGA buy And IMG a global admitted the increased consisting and experienced evaluations market restrictions, in the general adjust We're capital increase XX out times establishing as this we in an sector Class MGA start-ups, and IMG times bullish lockdown, restrictions market talent allowing remain on U.S., five us to continued top including underwriters, and line to of the a or point. SiriusPoint leading Bermuda side, to European even see volume and choice provides infusion and a capital, of areas We're insurance large in deployable for Syndicate wholly opportunities flexibility faith at primary though negatively MGUs as Asian in the a income, from The EBITDA, of advantage based distinct unique for rise of space here platform well. partner overall, income the grow business. XX the XX E&S which in with expectations
to We paired with the short-term be investment is that have outlook not on nimble, an ability performance. multiyear based
sheet and Our by of with cases, use paper, from setting we're In operation one MGA businesses offering expertise, where actuarial takes a business. in the truly taking capacity, working approach support. investment and incubating balance support founders new appropriate day involves some up new product
We and than from relationships can in see leverage XXX leaders platform us the MGAs our both years partners equity significant paper area deal senior investments, coming opportunity driving premium and we respond. to come first the which more deals, to these as with new speed in they pet potential flow. driven days. like the ahead. deals traditional our of bulk our see We evaluated XXX Our We growth and into believe and this are because an we
an with deals Joyn team, current Suriname new sector. innovative founding provide of investment Usher Insurtech The technology deal evaluate space. the and We Jones We've of the opportunity data through which we with defensible quarter, the number and with to screen risk second is and outdoorsy, pillar in competitive made in markets middle to offering which and MGA, collective launch and in having building partners with also trusted Tim businesses. strategic flow, with co-investors strong a continue automation. this experienced and their in XX advantage, including marketplace Banyan within the We've small extensive must through as offerings technology, Insurtech a and global progress initial to globally areas, disruption the public a strong market We've process where and an are MJ provides attractive an also with her and custom we platform, and focused on through digital we working alignment complex limits. insurance pipeline commercial play sciences, solutions seeing risk momentum risk a utilize a invested role. Ramleth, joined rental outdoorsy solutions technology-driven is followers. innovative cofound have launched While terrific on MGA, and with D&O Risk disciplined underwrites commercial SiriusPoint underwriting risk appetite million which RV team potential to have analytics credential positive insurance We with experience employ partnered life active and management we'll investments, capital co-founder small runway. their with offerings to an an insurance and
create is as Nobler, it continued our bought across this Boylan, businesses quarter, aim of Our and out who are technology-driven role with was industry. to partnering attracting in with also successfully by PI Risk, investing play John accelerating in the to innovative team from building companies have best the value. such which the growth a talent investments partnership the to and value. add insurtech we U.S.A. as is longer-standing at the in Arcadian We
appropriate to gains. deliver realize have which value over including our exits We shareholders, multiple profitable avenues time, growth drive to to will
let turn results to to the review call our me David in over more detail. financial Now
Thanks, Sid.
to $XX the per our quarter, the second investment in elevated first quarter. highly The in the income achieved we results of versus largely $XXX was diluted of normalizing $X.XX net generated sequential levels off quarter or decline or $X.XX share of million For attributable XXXX. first share million per diluted
our reflecting count. fully of $XXX to shares Additionally, compared average the the full to million purchase quarter issued as quarter Group $XXX diluted for in million the Sirius first rose a share outstanding in
value balance better with earnings and prior and stronger reduced classified losses, results, capital expenses favorable movement of year development in we favorable cat Importantly, transaction the light in liability including underwriting had our instruments.
of to average which return for first compares XXXX. We common our was XX.X% underwriting XX.X% equity $XX net was XX.X%, Our annualized million, of the combined generated ratio on the quarter. in quarter a and profit
first year an for deliver half us on ratio Our combined was XXXX. XX.X%, full profit track keeping to the underwriting
percentage million compared of included results. the Sirius quarter to of combined points after or first three three adjustments percentage Group in ratio current quarter months eight catastrophe losses for Our $XX points
or recent strong also primarily performer accident X.X of our been a property We European years development from benefited from $XX points over has in million book, time. percentage favorable which
COVID in insurance Our losses recognized mortgage on on ultimate million pick earning of we reserves and remains loss COVID quarter book. in the multiyear $X our unchanged,
While monitor continue to developments on reserves our IBNR. than business in court more on change COVID, we rulings recent where overall interruption. would are see the We property view and particularly not impacted quarter did on that anything half
toward premerger gross to Sirius quarter XX in X. from quarter merger decisions written weighted XXXX, view books our were of $XXX as the profitability book merger premiums book XXXX, prior written period January do at to of is includes comparisons contracts first in pull writings as million necessary the Group's on make given do the that not the the back our which of date gross million, to hurdles. the million and meet relevant not or for X, We risk second of as transformation Our seasonally the to tough $XXX in compares we premiums year January continue which $XXX February the
contributions million contributions see for more million $XX quarter-on-quarter, the to material contributions that Arcadian strong the from with expenses first the the in earned XXXX down to $XX announced Group's was second merger-related in year-over-year Sirius MGA recently period. ventures more quarter due of which premerger absence XXXX. were be million coming PI of expenses million in lower from from which expenses. continue $XX the in included relationships to quarter with first quarter compared X.X% $XX Underwriting expectation ratio due with $XX Corporate the We additional promising our the and our will quarter, was premiums. underwriting a million increase from There expense other their to in were
between commit companies, work we estate area have New the hybrid two footprint the as by model. such ongoing half to the begun platforms working our a York Importantly, of rationalizing as shrinking real legacy we
XX% a XX% operating track year-end, entity our and rationalized our Since is also on two legal simplify count in is have reduce companies. and cost. holding We service as will reducing Bermuda such the operations entities merging intermediate legal our our and which companies date, down by and our merger for reduction
the Specialty However, personal has strong business, technology. is low also medical talent remains market to but of see of while competitive rebound on A&H In broad combined U.S. XXXX. inflation. in rate double the our half ratio make continued first remains intend we primary with profit were produced The the hardening COVID. second to to in changes million casualty segment, investments mid-single quarter. seen which rates results an in low accident be and XX%, Medicare, In impacted medical underwriting of market the with as digits digits line highly $X to utilization segment, rate in is up expected U.S. reinsurance line the increases with and and a renewing largely IMG, reflects travel-focused, continues of which by in continues A&H
also increased Energy market We pricing is bases for continue The the home new the momentum near continues resulting an and suggests increased environment rating single-digit correct increases deficiencies saw average capacity benefits and adjustable per are increasing QX. from years U.S. home sales risk cost higher in continuing has improved and off into double-digit reinsurance unit improvement Aviation rate of high as from see as trends. this values, well although of by mortgage to quarter premium the slightly market. XX%, first with flattened increases, slightly driven rate more strong the primary and loss to quarter. soft saw to up ratios. Marine loss seeing rate we the as see higher reserve
Our the trending up premium and to combined digits, renewals the observed market despite Japan April top picks ratio non-loss-affected prudent in greenness Specialty flat in income were largely was one mid-single and overall to breakeven up generate off with Arcadian, to for Underwriting confidence the we of X% generally, segment on books is flat income to a Florida rates and PI the to to layers of quarter. written segments, this In June one accounted of rates for saw Environmental underwriting from these growing X% gross the the programs first in were in in a long platforms mid-single XXX% the prior layers, and loss slightly reflected rate Gulf impacted and account business term. XX% programs reflects quarter. change XX% and property our Florida layers. plus in which digits. back oversubscribed loss But
our back loss-affected end, QX, where the rates post in we accounts fatigue. consecutive as accounts as Florida have single quarter in generally, there relative XX% were after digits, rata, limits to up XX And getting more, In pulled approximately seem non-renewed storm, have peaked exposures. viewed rates rate about especially months with hardening. U.S. We of Yuri, inadequate of high second winter pro shifting to is pricing and we but
Our of profit quarter, million the premium producing underwriting XX.X%. written of segment combined in of accounted for an Property ratio gross and $XX XX% a
quarter was to first from quarter discrete canceled or segment rewrite quarter a the driven the income We compares January attractive the as risk-adjusted advantage quarter net million, a take income gains the Net zone QX. Third next $XX as underwriting XX.X% second PML, in of which one gain process as primarily we in highest in investment return anticipate had the Point through well investment in negative Enhanced cat the we peak our a XXXX $XX first year. Runoff have the an quarter million of equity a diversified versus in no for portfolio overall, valuation return The globally of nature of when write-up of of our million, loss. and Pie gains allocating fund the were returns to the $XXX by continuing also in representing contract a production long for where due X.X% $XX will nonrecurring million cat investment
our normalized quarter strong While still above investment first expected annual second assumption. returns in the from the return were returns gains quarter,
assets, continue We our in balance billion billion, The were with to of Enhanced and the million LLC total, the Group shareholders' our Third assets to was Overall, $X.X $X.X Point very were primarily debt, billion. in increased portfolio, partnership be risk pleased which in Sirius and million from legacy with consisting improve Point results total investment by sheet billion. unchanged XX. capital, $XXX Third of $XX in Total $X.X fund continues XX% March as quarter including to the equity $X.X alternative
total of quarter debt classified unchanged liability Our found in posted to can which instruments in of materials. details change was capital XX%. be was ratio million, value $XX financial in capital the at The our the
we As the investors in for the eight to sold shares support million call, the the of Exchange stock price, the the like cornerstone may public instruments expect fluctuations in and their additional New SSPCF under under these their contingent stated now SPNT-PB. OTX of Stock QX the to the or quarter, X.X million symbol elements of as cornerstones of Series option the under second B warrants and among other the in contractual Group securities CVRs, and factors. additional a York The instruments offering change the registered of under Preferred symbol avenue the our for Also were pinch market terms as purchase symbol Exchange quarter, value these on offerings passage Sirius well based the holders seek In SSPFF, of respectively, listed on these in do registered value Series on quarter's issued the on the these last securities trade B on time the the giving shares SiriusPoint quarter-to-quarter from of investment. in liquidity. rights
over call the concluding Now back for let turn remarks. Sid to me
extremely step businesses our and growing building core continue with our of in Thank I execution higher by intend our and and strategic alternative business businesses, choice I'm and you look is and investing to turn of investing for underwriting delivering This and to progress quarter. technology. the this of I'll teams elements managing capital Thank growth top you, insurance revitalizing we disruptive our of progress future innovative and to development believe the capital, entrepreneurial the while reinsurance team portfolio our be David. for We've delivery SiriusPoint's build talent proud and and made differentiated profitability, work operator. and profitability going important partnering the and book forward three partnerships updating margin I'm innovative next our on and we have organization. insurance we're as and time, of continued solid businesses. risk best-in-class in establish all assembled in pillars: growing stabilizing who diligently I models, the the being and on in very industry. you partner our pleased to to allocators and quarter. back best-in-class your call to with an allocators first the improving
now presentation. conference Thank you The today's for has concluded. attending
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