SiriusPoint Q2 2025 Earnings Report

SiriusPoint EPS Results

• Actual EPS: $0.66
• Consensus EPS: $0.56
• Beat/Miss: Beat by +$0.10
• One Year Ago EPS: N/A

SiriusPoint Revenue Results

• Actual Revenue: $948.20 million
• Expected Revenue: $720.10 million
• Beat/Miss: Beat by +$228.10 million
• YoY Revenue Growth: N/A

SiriusPoint Announcement Details

• Quarter: Q2 2025
• Date: 8/4/2025
• Time: Before Market Opens
• Conference Call Date: Monday, August 4, 2025
• Conference Call Time: 8:30AM ET

SiriusPoint (NYSE:SPNT) provides multi-line insurance and reinsurance products and services worldwide. The company operates through two segments, Reinsurance, and Insurance & Services. The Reinsurance segment provides aviation and space, accident and health, casualty, credit, marine and energy, property to insurance and reinsurance companies, government entities, and other risk bearing vehicles. This segment offers medical insurance products, trip cancellation programs, medical management services, and 24/7 emergency medical and travel assistance services. The Insurance & Services segment provides accident and health, marine and energy, property and casualty, mortgage, environmental, workers' compensation, commercial auto lines, professional liability, and other lines of business. The company was formerly known as Third Point Reinsurance Ltd. and changed its name to SiriusPoint Ltd. in February 2021. SiriusPoint Ltd. was incorporated in 2011 and is headquartered in Pembroke, Bermuda.

SiriusPoint Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: In Q2, SiriusPoint delivered a 17% underlying return on equity, two points above its 12–15% target range, driven by strong underwriting and targeted growth.
• Positive Sentiment: Gross written premiums grew by 10% and net premiums by 8% in Q2, marking the fifth consecutive quarter of double‐digit gross premium growth and reflecting disciplined capital allocation into attractive markets.
• Positive Sentiment: The Q2 core combined ratio improved by 3.8 points to 89.5%, contributing to the eleventh straight quarter of underwriting profit and highlighting effective risk and expense management.
• Positive Sentiment: SiriusPoint achieved its 17th consecutive quarter of favorable prior year reserve development, underscoring its prudent reserving practices and strong loss estimate accuracy.
• Negative Sentiment: First‐half results included elevated losses from the Air India crash and California wildfires, although Q2 had no catastrophe losses.

Presentation

[Operator]

Good morning, ladies and gentlemen, and welcome to SiriusPoint's Second Quarter twenty twenty five Earnings Conference Call. During today's presentation, all parties will be in a listen only mode. Following the conclusion of prepared remarks, management will host a question and answer session and instructions will be given at that time. As a reminder, this conference call is being recorded and a replay is available through 11:59PM Eastern Time until 08/18/2025. With that, I would like to turn the call over to Liam Blackledge, Investor Relations and Strategy Manager. Please go ahead.

[Liam Blackledge, IR & Strategy Manager at SiriusPoint]

Thank you, operator, and good morning or good afternoon to everyone listening. I welcome you to the SiriusPoint earnings call for the twenty twenty five second quarter and half year results. Earlier this morning, we released our earnings press release, 10 Q and financial supplement, which are available on our website, www.syriaspt.com. Additionally, a webcast presentation will coincide with today's discussion and is available on our website. Joining me on the call today are Scott Tegan, our Chief Executive Officer and Jim McKinney, our Chief Financial Officer.

[Liam Blackledge, IR & Strategy Manager at SiriusPoint]

Before we start, I would like to remind you that today's remarks contain forward looking statements based on management's current expectations. Actual results may differ. Certain non GAAP financial measures will also be discussed. Management uses the non GAAP financial measures in its internal analysis of our results or operations and believes that they may be informative to investors engaging the quality of our financial performance and identifying trends in our results. However, these measures should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with GAAP.

[Liam Blackledge, IR & Strategy Manager at SiriusPoint]

Please refer to Page two of our investor presentation and the company's latest public filings with the Securities and Exchange Commission for additional information. I will now turn the call over to Scott.

[Scott Egan, CEO & Board of Director at SiriusPoint]

Thanks, Liam, and good morning, good afternoon, everyone. Thanks for joining our second quarter and half year twenty twenty five results call. The second quarter has seen Sirius Point deliver continued strong performance. Our underlying return on equity for the quarter was 17%, two points ahead of our across the cycle 12% to 15% target range, driven by strong underwriting and targeted growth. Year to date, our underlying return on equity of 15.4% is at the upper end of our target range despite heightened first half losses in aviation and first quarter losses from California wildfires.

[Scott Egan, CEO & Board of Director at SiriusPoint]

The second quarter core combined ratio of 89.5% is a 3.8 improvement year over year, further evidence of our focus on producing consistently strong and improving results. This marks our eleventh consecutive quarter of underwriting profit. We also grew our gross written premiums by 10%, representing our fifth straight quarter of double digit gross premium growth as we continue to allocate capital selectively towards attractive opportunities in the markets that we operate within. Premium growth is strong on a net basis as well, increasing 8% in the quarter and 14% in the first half of the year. Within our insurance and services business, we saw net premium growth of 15% in the quarter.

[Scott Egan, CEO & Board of Director at SiriusPoint]

This is at a faster pace than gross premiums as we deliberately retain more premiums on our own balance sheet from our NGA partners. This is in line with the prudent strategy of increasing our retention as these relationships season and mature and as we get increasing confidence with the performance and underwriting margin. This approach is an important proof point of our underwriting discipline. In the first half, we've seen double digit growth in accident and health, property, and other specialties lines of business whilst decreasing our premiums within casualty as we remain deliberately cautious. We continue to expect our insurance business to grow more than reinsurance.

[Scott Egan, CEO & Board of Director at SiriusPoint]

In the quarter, we entered four new MGA partnerships. Three of the four new opportunities were expansions with existing long term partners who we know well and share a commitment to underwriting excellence with. Deepening long term proven relationships is a key part of our MGA strategy. Our selection of new partners is also a key part of our process and we continue to reject over 80% of all opportunities we see in this distribution channel. We're excited by the pipeline of opportunities we see and are proud of our increasingly strengthening reputation as a partner of choice for MGAs.

[Scott Egan, CEO & Board of Director at SiriusPoint]

This was recognized during the quarter at the program manager awards in New York where supported by our partners, we won program insurer of the year. Turning now to our underwriting performance, we delivered a combined ratio for our core business of 89.5 for the second quarter, contributing to our year to date core combined ratio of 92.4%. As I said, our second quarter result is a 3.8 improvement year over year and of this improvement, 1.8 comes from improvement in our attritional loss ratio in line with our recent trend, marking the sixth consecutive quarter of year over year attritional loss ratio improvement. The quarter's results contain no catastrophe losses versus one point in the second quarter of last year, whilst favorable prior year development continued to be strong. Looking at reserve development on a consolidated basis, which includes the development of a runoff business, this marked our seventeenth consecutive quarter of favorable releases.

[Scott Egan, CEO & Board of Director at SiriusPoint]

Turning briefly to our fee driven profits from our consolidated MGAs. Service revenues from our 2100% owned A and H MGAs increased by 16% in the quarter with year to date revenues up 13%. For the half year, the service margin is a healthy and improved 23.6%, which is generating net service fee income of $28,000,000 Touching on investments, which Jim will cover in more detail, net investment income for the quarter was $68,000,000 and is tracking in line with the full year guidance of $265,000,000 to $275,000,000 There were no significant movements on the valuations in our strategic MGA investments in the quarter. Finally, our capital remains strong and our second quarter BSCR ratio was 223% and within our target range as we continue to deploy our capital to support the organic growth opportunities of the business. Before I conclude, I wanted to take a moment to talk about our people, the real engine of our business.

[Scott Egan, CEO & Board of Director at SiriusPoint]

During the quarter, we undertook our annual engagement survey which showed another year of significant improvements across the metrics. We've included some of the details in appendix four of our presentation. Our net promoter score increased by 16 points year over year and 53 points over the past two years. We now sit in the very good category. I highlight this because this business has always been about our people and our culture, and I'm incredibly proud and immensely grateful for the job that they do for our customers and shareholders every single day.

[Scott Egan, CEO & Board of Director at SiriusPoint]

The survey highlights that there is a feel good factor within the company with staff turnover down to 15%. This is a key ingredient for our continued future success. It is also helping us attract talent to the company, and the quarter saw us again attract top talent from across the industry, including two new members of my executive leadership team. To end, I'll go back to where I started. This quarter provided us another opportunity to show our progress to becoming a best in class specialty underwriter.

[Scott Egan, CEO & Board of Director at SiriusPoint]

We continue to consistently deliver strong underwriting profits, targeted and disciplined premium growth and stable investment results. We are committed to and relentlessly focus on value creation. Book value per diluted share has increased 4% in the quarter and 10% year to date. Our underlying earnings per share for the quarter of $0.66 represents an increase of over 100% versus prior year. And our year to date underlying return on equity is at the top end of our 12 to 15% target range.

[Scott Egan, CEO & Board of Director at SiriusPoint]

We've made great progress in the first half of this year, but it's only half time in 2025, all to play for in the second half. We're more than ready. With that, I'll pass across to Jim who will take you through the financials in more detail.

[Jim McKinney, CFO at SiriusPoint]

Thank you, Scott. Turning to our second quarter results on Slide 13. Let me begin by saying we are pleased with our financial results this quarter and for the half year. We meaningfully improved both the reported and core combined ratios. In addition, we generated higher gross and net written and earned premiums.

[Jim McKinney, CFO at SiriusPoint]

At 89.5%, the core combined ratio improved 3.8 points versus the prior year. The combination of higher premiums, a strong core attritional loss ratio and favorable prior year development produced core underwriting income of $68,000,000 This is an 83% increase from the 2024 and our eleventh consecutive quarter of positive income. These items are a testament to the team's strong execution, disciplined underwriting and focused capital management. Moving to net service fee income. As a reminder, following the deconsolidation of Arcadian in the 2024, our share of Arcadian's profits are reported through other revenues.

[Jim McKinney, CFO at SiriusPoint]

To normalize for this change, we focus comparison to the 100% owned A and H consolidated MGA businesses. This view highlights a 16% increase in year over year service revenues as well as net service fee income increasing 6% to $9,000,000 The investment result is $69,000,000 It includes the full impact of the actions taken during the first quarter to support our repurchase activities. Net investment income continues to benefit from a supportive yield environment. We continue to see reinvestment rates greater than 4.5%. Underlying net income is $78,000,000 This excludes non recurring items such as foreign exchange losses.

[Jim McKinney, CFO at SiriusPoint]

Year over year, this is up 35%. Net income for the quarter is $59,000,000 resulting in diluted earnings per share of $0.50 This includes $17,000,000 in foreign exchange losses, a significant portion of which are noncash items related to period over period valuation changes with corresponding offsets within our investment portfolio that are recognized through other comprehensive income. These items are recognized in our income statement when realized. This is consistent with our approach to economically hedge exposures. In summary, our second quarter results demonstrate our ability to profitably grow and create value for our shareholders.

[Jim McKinney, CFO at SiriusPoint]

Moving to our half year results on Slide 14. Deems are consistent with the second quarter. Strong execution, disciplined underwriting and focused capital management produced profitable growth. Underwriting income for the period is 96,000,000 This includes solid gross premiums written, net premiums written, and net premiums earned growth of 11%, 14%, and 19%, respectively. The core combined ratio was 92.4%.

[Jim McKinney, CFO at SiriusPoint]

This represents a slight year on year improvement despite elevated catastrophe losses incurred within the first quarter. Net service fee income was $28,000,000 representing a slight decrease from the prior year period. Our 100% owned A and H consolidated MGAs produced $28,000,000 of net service fee income, which is up 14% versus half year twenty twenty four. Net investment income for the first half of the year was 139,000,000 down slightly from the prior year period as a result of the lower asset base. Lastly, Comet shareholders' equity increased $168,000,000 to $1,900,000,000 resulting in diluted book value per share ex AOCI growing 7% or $1 to $15.64 Moving to Slide 15 and double clicking into our underlying earnings quality.

[Jim McKinney, CFO at SiriusPoint]

Our underwriting first focus continues to deliver strong underlying margin improvement. The attritional combined ratio chart on the left hand side of the page strips out the impact from catastrophe losses and prior year development as these inherently vary over time. We believe this metric is useful to examine the quality of our underwriting income. Our 90.9% core attritional combined ratio in the first half of the year represents a 2.3 improvement versus the prior year period of 93.2%. All facets of the ratio improved.

[Jim McKinney, CFO at SiriusPoint]

The attritional loss ratio improved 1.1 points, the acquisition costs improved 0.6 points and the OUE ratio improved 0.6 points. Important to note, we continue to benefit from scale from our earned premium growth. For the full year, we remain comfortable with an expense ratio expectation of 6.5% to 7%. The right hand side provides a bridge from our underlying earnings quality to our core combined ratio. This displays 3.8 points of favorable prior year development in the first half, partially offsetting 5.3 points of catastrophe losses that relate entirely to California wildfires.

[Jim McKinney, CFO at SiriusPoint]

Turning to our Insurance and Services segment results on Slide 16. Gross written premiums increased $70,000,000 or 14% to $560,000,000 in the quarter, driven by strong growth within our A and H, other specialties and property lines. For the half year, gross written premiums increased $181,000,000 or 18 percent to $1,200,000,000 We expect to see existing growth trends persist throughout the remainder of the year. The Insurance and Services segment achieved a combined ratio of 89.3%, a 6.7 improvement from the prior year quarter. This was driven by an eight point decrease in the loss ratio, partly offset by a one point increase in the acquisition cost ratio and a 0.3 increase in the other underwriting expenses.

[Jim McKinney, CFO at SiriusPoint]

The improvement in the loss ratio is largely due to a four point improvement in the attritional loss ratio from our North American P and C business. The quarter also saw no catastrophe losses, representing a 0.9 improvement year over year and favorable prior year development of $10,000,000 representing a 3.1 improvement year over year. The half year result is strong with the combined ratio improving 5.5 points to 91.6%. This result was driven by a 6.3 decrease in the loss ratio and a 0.4 decrease in the OUE ratio, partially offset by a 1.2 increase in the acquisition cost ratio. Similar for the second quarter, attritional losses for the half year represent the majority of the improvement, down 4.1 points versus prior year, largely driven by our North American business.

[Jim McKinney, CFO at SiriusPoint]

Favorable prior year development represented 6.3 points of the combined ratio compared to 3.3 points in the first half of last year and was driven largely by favorable movement within Accident and Health. Our Accident and Health book of business has provided us with a stable source of underwriting profit through the cycle and is a key offering that adds diversification to our portfolio and produces consistently strong results. Premium in this specialism are up 14% in the first half of the year and represent roughly half of the business mix in insurance and services. Rates in U. S.

[Jim McKinney, CFO at SiriusPoint]

Medical continue to rise at or above loss trend, while personal accident lines continue to see single digit softening. Pricing in life reinsurance continues to trend back towards pre COVID pricing. The pricing environment within A and H continues to meet our risk and return profile, and we continue to see growth opportunities within this specialism. Within casualty, premiums for the first half of the year have decreased by 10% as we continue to allocate capital towards opportunities that have more attractive underlying margin. The book continues to benefit from positive rate movements exceeding trend, particularly in excess casualty that has seen mid double digit rate increases.

[Jim McKinney, CFO at SiriusPoint]

Rates continue to hold firm due to lost cost trends with industry wide reserve strengthening, litigation financing and nuclear verdict pressures. We are never afraid to take decisive action to protect the bottom line. Within our auto book, we continue to reduce underwritings and exit businesses where rate is not keeping pace with lost cost trends. Other specialties continue to see strong growth, with surety and environmental both seeing strong year over year increases in premiums. Within aviation, major airline renewals continue to see 5% to 10% increases with performance mix between sub segments.

[Jim McKinney, CFO at SiriusPoint]

Most airline renewals are not due until the fourth quarter, at which point the Air India incident will be better reflected in pricing. Space continued to see double digit price increases given the significant losses experienced in the market in 2023 and resultant capacity exits. Within energy, rates are a bit of a mixed bag. Energy liability rates remain positive and average 5%. Power rates are experiencing mid to low single digit rate pressures.

[Jim McKinney, CFO at SiriusPoint]

Despite this, we believe power remains rate adequate. Within upstream energy, small to medium risk pricing is roughly flat to down single digit. Rate decreases for larger risk are down by around 10%. Turning to marine. Rates continue to soften across the board.

[Jim McKinney, CFO at SiriusPoint]

Cargo and haul generally saw single digit rate decreases. Rates for marine liability and ports and terminals remained firmer with a range of low single digit rises to low single digit reductions. Premiums from our property specialism grew double digit in the quarter and first half. This is driven by growth from MGA programs within our international business and from partnerships entered in 2023 and 2024. Our primary property portfolio is predominantly non catastrophe and continues to experience rate adequacy.

[Jim McKinney, CFO at SiriusPoint]

Moving to our Reinsurance segment results on Slide 17. This quarter, the segment saw gross premiums written increase $17,000,000 or 5% to $370,000,000 Double digit growth in other specialties was partially offset by reductions in property reinsurance premiums. On a half year basis, gross premiums written increased by 2%. On a net basis, premiums written decreased by 1% in the quarter and 4% in the first half. The combined ratio for the quarter improved 0.4 points to 89.8%.

[Jim McKinney, CFO at SiriusPoint]

The result was driven by a 0.7 improvement in the acquisition cost ratio and a 0.2 improvement in the OUE ratio, partly offset by a 0.5 increase in the loss ratio. The loss ratio increased to 56.6% partly as a result of a $9,000,000 large loss from the Air India crash, driving attritional losses up 0.9 points versus the prior year. The half year combined ratio of 93.5% contains 2.6 points of improvement in the acquisition cost ratio and 0.6 points of improvement in the OUE ratio. The loss ratio increased 9.5 points from the prior year period, driven largely by the California wildfires from the first quarter. Other specialties saw 22% gross premiums written growth this quarter and 6% growth in net premiums written.

[Jim McKinney, CFO at SiriusPoint]

Within credit and bond pricing, it's under pressure stemming from strong performance and ample capacity. The second quarter saw credit spread tightening, which impacted premium levels while terms remained firm. Within aviation reinsurance, pricing within excess of loss and pro rata was generally flat, although it is worth noting that Air India incident is not yet reflected in pricing as the majority of sevenone renewals were already priced when the incident occurred. For casualty reinsurance, gross premiums written increased by a modest 2% in the quarter but are down 6% at the half year. Casualty reinsurance continued to benefit from positive rate that exceeded trend, but as we guided since the 2024, we reduced exposures on structured deals and certain casualty classes at oneone, such as commercial auto, as underwriting discipline led us to reallocate capital to protect underwriting margins.

[Jim McKinney, CFO at SiriusPoint]

Within property reinsurance, premiums decreased 5% in the quarter, in line with the tougher market conditions in this specialism. For the first half, premiums are roughly flat, driven by reinstatement premiums from the California wildfires. We continue to monitor rate adequacy and property reinsurance, particularly following the heightened catastrophe activity in the last twelve months. Important to note, we will only grow premiums where we believe the margins are within our risk and profitability profile with competitive pressures persisting across reinsurance markets. Catastrophe excess of loss placements have seen the greatest pressure with double digit decreases across nonloss impacted placements.

[Jim McKinney, CFO at SiriusPoint]

These accounts had previously seen the greatest rate increases over the prior few years. Proportional business is also competitive but has seen opportunities particularly for structured deals. Margins are tightening. However, there is still potential in loss affected segments as improved rate adequacy, legal changes and increased reinsurance availability support both new and existing carriers entering the market. Slide 18 shows our catastrophe losses versus peers and the reduction in volatility of our portfolio.

[Jim McKinney, CFO at SiriusPoint]

Following portfolio actions taken in 2022, we have materially decreased our catastrophe exposure in order to deliver more consistent returns to our shareholders. The charts show how we reduced our catastrophe losses in 2023 and 2024 and have continued on this path in 2025. Catastrophe losses in the first half represent 5.3 points of our combined ratio and were driven by the California wildfires in the first quarter with no losses in the second quarter. During the second quarter, our loss estimate for California wildfires decreased by less than $1,000,000 Of course, it is more useful to view the loss ratios on an annual basis, but our half year 2025 figure already shows a comparatively low loss ratio amongst peers and demonstrates the benefits of our highly diversified portfolio. Moving to reserving.

[Jim McKinney, CFO at SiriusPoint]

Our strong history of prudence is shown on Slide 19. Favorable prior year development in the quarter stood at $14,000,000 for the core business versus $4,000,000 in the prior year quarter. It is important to consider our consolidated result here as this includes the business we have put into runoff. We have favorable prior year development on a consolidated basis of $9,000,000 marking the seventeenth consecutive quarter of favorable prior year development. Our track record of consecutive favorable releases well exceeds the average duration of our insurance liabilities of three point one years, highlighting our prudent approach to reserving.

[Jim McKinney, CFO at SiriusPoint]

Additionally, we show here the strong level of protection we have on each of our three loss portfolio transfers that were completed in twenty twenty one, twenty twenty three and 2024. Turning our strong investment result on Slide 20. Net investment income for the first half of the year was $139,000,000 down slightly from the prior year period as a result of lower asset base following the settlement of the Centimeters Bermuda transaction in the first quarter. We reinvested over $300,000,000 this quarter with new money yields in excess of 4.5%. The portfolio continues to perform well, and there were no defaults across our fixed income portfolio.

[Jim McKinney, CFO at SiriusPoint]

We remain committed to our investment strategy, which focuses on high quality fixed income securities. 79% of our investment portfolio is fixed income, of which 97% is investment grade with an average credit rating of AA-. Our overall portfolio duration remained at three years, while assets backing loss reserves remain fully matched and are at three point one years. Moving on to our Slide 21, looking at our strong and diversified capital base. Our second quarter estimated DSCR ratio stands at 223%, decreasing by two points versus the end of the first quarter.

[Jim McKinney, CFO at SiriusPoint]

Our capital position continues to be robust and contains sufficient prudence as shown by the stress test scenario of a one in-two fifty year PML event. Moving on to our balance sheet on Slide 22. We continue to have a strong balance sheet with ample capital and liquidity. During the quarter, the debt to capital ratio fell again to 24.4%, driven by an increase in shareholders' equity from the level of retained earnings partially offset by weakening of the U. S.

[Jim McKinney, CFO at SiriusPoint]

Dollar Swedish krona exchange rate, increasing the value of our debt issued in Corona. Our debt to capital levels remain within our targets. We continue to have strong liquidity levels, including $682,000,000 of liquidity available to the HoldCo following the final payment of $483,000,000 to CN Bermuda in the first quarter. As a reminder, in the first half of the year, both A. Best and Fitch revised our outlook to positive from stable, whilst Moody's and S and P affirmed our ratings.

[Jim McKinney, CFO at SiriusPoint]

Fitch highlighted the significant underwriting improvement in 2023 and 2024 and the completion of the CN Bermuda buyback, while A and BEST called out the strength of our balance sheet when making their upgrade. We believe our balance sheet continues to be undervalued. There remains significant off balance sheet value in the consolidated MGAs, which we own. This was demonstrated when we deconsolidated our Acadian last year and generated almost $100,000,000 of book value. The carrying value on our balance sheet of the three remaining MGAs is $83,000,000 with net service fee income for the trailing twelve months of $45,000,000 This equates to an earnings multiple just over 2x the earnings versus the double digit earnings multiple used by the market.

[Jim McKinney, CFO at SiriusPoint]

With this, we conclude the financial section of our presentation. This quarter saw a continuation of strong double digit growth in our top line while delivering a 3.8 improvement in our core combined ratio, of which 1.8 points came from attritional loss ratio improvement. Underlying return on equity for the quarter of 17% contributes to a first half underlying return on equity of 15.4%. This delivery at half year means we are on track to deliver another year with return on equity within our 12% to 15% across the cycle target. We have built a strong track record of delivery, and this quarter's result further validates the significant progress we have made on our journey to becoming a best in class specialty underwriter.

[Jim McKinney, CFO at SiriusPoint]

And with that, I will hand the call back over to the operator, and we can now open the lines for any questions.

[Operator]

Thank you. We will now be conducting a question and answer session. The confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key.

[Operator]

One moment please while we poll for your questions. Our first questions come from the line of Michael Phillips with Oppenheimer and Company.

[Michael Phillips, MD & Senior Analyst at Oppenheimer & Co. Inc.]

First question is on kind of the new programs you've done, I guess, this year, not just this quarter, but this year. Thinking about the impact of those on the top line over the next maybe eighteen months of those specific programs on a difference between the growth and the net premiums. And I think it sort of goes to your philosophy, but also some of the comments that Scott's made about that difference between taking the net over time. But can you can you speak to the impact of those specific programs this year might have on both the gross and net premiums over the next eighteen months?

[Scott Egan, CEO & Board of Director at SiriusPoint]

Yeah. Thanks, Mike. Thanks for the question. Appreciate it. Nice to speak to you.

[Scott Egan, CEO & Board of Director at SiriusPoint]

Look, Mike, I I would say we we sort of take them on a program by program basis, which I know isn't a helpful comment for you. But I think, you know, we don't sort of forecast ahead. So number one, we choose very carefully, which I know is not the question you're asking, but but we keep reinforcing that point. We reject sort of 80% of the the opportunities that present themselves. And I think our philosophy is very much we take gross and then lean into net.

[Scott Egan, CEO & Board of Director at SiriusPoint]

And so if you look at the pipeline of opportunities, and I would say not just this year, I would go back into sort of last year as well, We reported quite a lot of new partnerships coming on. I think the way that we look at that is we season them, yeah, in terms of leaning into the net as and when we feel comfortable. So there isn't really a ready made formula per se, but but I think our direction of travel is we want to take more risk risk net risk with partners who we feel more comfortable with. So so, you know, I I would say we've got a strong tailwind of overall growth as evidenced by our sort of, you know, performance over the last five quarters in particular. And I think that trend of sort of net potentially outstripping growth might be something that emerges.

[Scott Egan, CEO & Board of Director at SiriusPoint]

But as I say, we don't predict it per se, and we take it as it comes. So so, Jim, anything you wanna add to that?

[Jim McKinney, CFO at SiriusPoint]

Yeah. I think that was well said. I do think on both sides, it'll be a tailwind in terms of total growth, but it'll really depend on the partnerships, kind of the seasoning at each of those levels, some seasonality with each of those things. So it won't be an exact linear component, but it is, like, a tailwind to further growth on both, you know, the gross and the net through time.

[Michael Phillips, MD & Senior Analyst at Oppenheimer & Co. Inc.]

Okay. No. No. Thank you. Appreciate that.

[Michael Phillips, MD & Senior Analyst at Oppenheimer & Co. Inc.]

On your insurance segment, I think of pieces of that that help your growth over time despite what's happening in the external PNC market because they're kinda noncyclical? And when I think of that, I think of the biggest one would be a and h. I guess I'm gonna make sure that's accurate. And then if so, could you maybe highlight some others within there that might have the similar characteristics besides A H?

[Scott Egan, CEO & Board of Director at SiriusPoint]

Yeah. So so you're right to think of it that way, Mike. So so let me just kinda step back and position A and H properly. So, obviously, we've seen growth in A and H. 25% of that comes from one of our wholly owned MGAs, which is which is IMG.

[Scott Egan, CEO & Board of Director at SiriusPoint]

So, actually, when we see growth in revenue from A and H owned sort of NGAs, then ultimately, that that manifests itself as well in our in our sort of in our premium levels. Look. Look. For me, A and H, the way that we think about that within the portfolio is obviously it's a volatility shock absorber. I think that's a phrase I've used across the market before.

[Scott Egan, CEO & Board of Director at SiriusPoint]

So if ANH is growing, it allows us to take more risk in other areas of the business and still maintain our overall lower volatility approach to the portfolio. And that's something that we manage sort of very carefully and very well. And as I say, we feel very confident in the positioning of our A and H business. I would say if you look across other areas, I think we are happy, Mike, to take on risk as long as it aligns with our areas of expertise and specialism. I think, obviously, each one has a slightly different dynamic, so just to try and be helpful to you.

[Scott Egan, CEO & Board of Director at SiriusPoint]

I think on property, obviously, we manage our approach to payroll quite tightly. Obviously, that's important when we have a sort of lower volatility aspiration. So property, depending on where we're at on our kind of PML allocations to payroll, means that we will toggle up, toggle down. I think casualty, we are we are thoughtful and and sort of cautious about, not not because of any specific reason, just because I I think that's a sort of prudent approach to casualty. We're not scared of it.

[Scott Egan, CEO & Board of Director at SiriusPoint]

We've got some very good lines that we write, but but I think we are very thoughtful and and, you know, careful about it. And then in our other specialties, like, whether it be surety, whether it be marine and energy, whether it be credit, I think these are opportunities that we can lean into both in sort of general market space, but also through MGA partners as well. So yeah. Look. For for for me, I think we feel very positive.

[Scott Egan, CEO & Board of Director at SiriusPoint]

There are certain areas that we probably wouldn't lean into. So commercial auto would be a good example of that at the moment for us where we just don't think the environment out there is something that we would feel that excited about. I think some program and NGA partnerships give us the opportunity to have an edge there, but in general terms, that might be one that we would be sort of dialing back, dialing down. But but the rest, I would say, on balance, we feel reasonably positive about. So a a long answer to your question. But, Jim, anything you wanna add?

[Jim McKinney, CFO at SiriusPoint]

Yeah. Mike, one thing I would add is really what you've seen from a pipeline growth perspective within, you know, our North American franchise. We've obviously established a bunch of strategic partnerships over the last couple of years, and the result of those partnerships is that there's going to be a good tailwind of prudent, you know, profitable growth that we would expect to come through there similar to what your kind of, you know, the stability that ANA provides. And that's something that's a little bit unique in terms of where we're at from a franchise perspective. It's not that we're not subject to some of the market trends or other, but just from where that segment of our business or that line of business subsegment, if you will, is within our overall franchise and its life cycle kind of growth maturity perspective, that's going to be a nice stable force or I would expect it to be a nice stable force from a growth and from a profitability perspective as we look forward.

[Michael Phillips, MD & Senior Analyst at Oppenheimer & Co. Inc.]

Okay. Thank you, both. Last one for me for now, a little bit higher level actually, is in your press release, you've talked about international business and specifically the London MGAs. Could you characterize the difference between MGAs and London versus what we see here in The United States?

[Scott Egan, CEO & Board of Director at SiriusPoint]

Hey. And asked because because you

[Michael Phillips, MD & Senior Analyst at Oppenheimer & Co. Inc.]

called them out specifically there. So, you know, kinda what is the difference and why they're more growth than what you see in The US? That's why I'm asking.

[Scott Egan, CEO & Board of Director at SiriusPoint]

Yeah. No. No. Well, look. Let let me step back.

[Scott Egan, CEO & Board of Director at SiriusPoint]

I mean, obviously, in in London, Mike, if you go back a few years, strategically, when I came here, that London was declining overall for us. And given the assets that we hold there, I e, Lloyd's syndicate, managing general agent, etcetera, etcetera, we decided to invest in Lloyd's. We don't obviously just access business in the London market versus Lloyd. We've also got our own paper. And because we've got our own paper, that also makes us attractive to sort of NGAs in the sort of London space.

[Scott Egan, CEO & Board of Director at SiriusPoint]

And given the wider expertise that we've got across the group, we can leverage that from US into London. And in one sense, the the the hallmarks are not that different, but what we are actually seeing is the pickup as we win as we win business in the London space, which is obviously an area of the business that we would like to invest in and grow, and that's exactly what we're doing, Mike, to be honest. So hopefully, that answers your question.

[Michael Phillips, MD & Senior Analyst at Oppenheimer & Co. Inc.]

Yes. Does. No. Thank you very much, and congrats.

[Scott Egan, CEO & Board of Director at SiriusPoint]

Okay. Super. Thanks for your questions. Okay. Operator, next.

[Operator]

Thank you. Our next questions come from the line of Randy Binner with B. Riley Securities. Please proceed with your questions.

[Randy Binner, Managing Director at B.Riley Securities]

Hey. Good morning. Thank you. I just have a couple. I I think the first one for me is just on net investment income.

[Randy Binner, Managing Director at B.Riley Securities]

It it's trending ahead of your full year guide, I believe. And and I think you you're putting money to work at at a higher rate as as the year goes on. Is there is there just some conservatism in keeping the guide for the year? You know, can you just share kind of where you're putting new money work so we can just understand that line item a little bit better?

[Scott Egan, CEO & Board of Director at SiriusPoint]

Yep. Do wanna take that off? I'm happy to

[Jim McKinney, CFO at SiriusPoint]

yep. Thanks, Randy. I would say slightly. We're largely online with the plan that we had at the beginning of the year. It does include potential, you know, an interest rate cut in the back half to two cuts.

[Jim McKinney, CFO at SiriusPoint]

So at the moment, I think we're largely in the past. I would have expected the front part of the year to be a little bit above kind of the back half if effectively some of the Federal Reserve, projected kind of market cuts were to come through. And so really no change from that perspective. We do tend to be if we think about our range, we do tend to have a range, in particular for this item. And to the extent that, you know, there's something that would take us outside of that range or that we would see that coming down, we would then update our guidance, at that stage.

[Jim McKinney, CFO at SiriusPoint]

But I think it's fair to say at this point, you know, as you've noticed, we're kind of at the midpoint, if not slightly higher than that from a range perspective, and, you know, we'll continue to work through what is really largely a favorable environment with, again, items kind of being replaced with a yield greater than four and a half percent. So I feel pretty good about that.

[Randy Binner, Managing Director at B.Riley Securities]

Okay. Great. That's helpful. And then I have one on reserves. So clearly, the reserve profile is is is looking good with the continued redundancies.

[Randy Binner, Managing Director at B.Riley Securities]

On A and H, I guess it'd be helpful just maybe to learn a little bit more about how the tail on that book develops because it seems like you're getting the majority of the reserve development from there and kind of going through the queue. I'm not seeing that broken out specifically for the quarter, and and maybe I'm just not catching it yet. But, like, how, you know, how long does a bull you know, a reserve there season kind of versus, like, casualty lines? Because mostly what we look at when we look at reserves as analysts. Do you have that dynamic of how that's developing?

[Scott Egan, CEO & Board of Director at SiriusPoint]

Yeah. Good question, Randy, and and thanks for it. So so look. The the let's step back on A and H. It's it's our, I would say, most seasoned business.

[Scott Egan, CEO & Board of Director at SiriusPoint]

It has a long track record of of growth profitable growth. So it's got an eight year track record of of delivering strong returns. That's not perfect in every single year. Of course not. But it really, therefore, points towards our philosophy in A and H.

[Scott Egan, CEO & Board of Director at SiriusPoint]

So A and H is the business that we write is pretty short tail. And therefore, you know, sort of on average sort of couple of years, two or three years is really what we're looking at. When we look at it, Randy, we tend to on the side of caution for the current year. So we would tend to reserve slightly higher for the for the current year and let the older year season. And so what you'll see in our a and h portfolio, if you embark through time, is a pretty stable and solid track record of continued prior year releases given the profile as I've just described it.

[Scott Egan, CEO & Board of Director at SiriusPoint]

And and as I say, that's all because it's a, you know, largest area of our business. It obviously operates within our portfolio really importantly in terms of volatility, risk management, as I outlined earlier on. But but I think we feel very confident about the quality of that business and and the way that we reserve for it. But, Jim, anything you wanna add to that?

[Jim McKinney, CFO at SiriusPoint]

Yeah. So, you know, building on what Scott said, we tend to know the ANH portfolio results or have, you know, a large degree of conclusion within a two to three year time frame, which means that, you know, from an eighteen to twenty four month perspective, we generally have reasonably seasoned trends that, obviously, we continue to kind of follow through there, but that highlights, a component where we would you know, once we're more confident at that point in time, then we can begin to kind of think about that from a perspective of essentially enhancing kind of our estimates at that point in time. The casualty areas tend to be more four to five years. And so we're really thinking about components when you're looking at that just mechanically. You're not really generally looking, at updates, unless you're seeing something either negative or other, within kind of a three to four year time period.

[Jim McKinney, CFO at SiriusPoint]

So just from a natural course of business, you're gonna see, as Scott noted, you know, an initial reaction or an earlier reaction from an a and h just because of when, you kinda have a real solid indication and kinda know, you know, the answer where it's a little bit longer, again, for those casualty, and then, you know, we'll begin to react through time. Either way, what I would take away from it is that we have a prudent reserving philosophy as demonstrated by the 17 quarters of favorable prior year development and highlighting kind of the nature. Nothing has changed in relation to that, and know, that would be something that I think you'll find as a hallmark of us and and something that would be, when you think about how we look at it, we try to be prudent and thoughtful, both on the initial setup of picks and then, the picks that we have as we go through time.

[Randy Binner, Managing Director at B.Riley Securities]

Okay. Great. That's that's really helpful. Appreciate the answers.

[Scott Egan, CEO & Board of Director at SiriusPoint]

Super. Thanks for your questions, Randy.

[Operator]

Thank you. Our next questions come from the line of Andrew Anderson with Jefferies. Please proceed with your questions.

[Andrew Andersen, VP - Equity Research at Jefferies Financial Group]

Hey. Good morning. Just on the casualty within insurance, I think it's about 25% of the the premium mix there, and you mentioned it was down 10%. But at the same time, you're getting rate in excess of trend, and it sounds like the pricing environment is good there. So can you maybe just talk about the decision to to write less business there and perhaps remind us when this started so we can think about when we lap the nonrenewal here?

[Scott Egan, CEO & Board of Director at SiriusPoint]

Yeah. We're not thanks, Andrew. Thanks for the questions. Nice to speak. Look.

[Scott Egan, CEO & Board of Director at SiriusPoint]

We're not uncomfortable with casualty. We're we're just cautious on casualty, and so we've got some very mature MGA relationships. You know, Arcadian being a great example of that. We're you know, we feel very confident in both the rating and the performance. I think for us, you know, there are certain segments of casualty.

[Scott Egan, CEO & Board of Director at SiriusPoint]

I I highlighted commercial auto earlier on where, you know, for us, I'm we're we're probably just just not really signaling as a as a sort of go forward trend for us. I don't think we are signaling here any big sort of rectifications in casualty. There's nothing that's not what we're flagging. We're just, in general, saying that we're cautious, and where we're cautious, we'll we'll trim at the edges if we feel we have to. But, Jim, anything you wanna add on casualty in general?

[Jim McKinney, CFO at SiriusPoint]

No. I think, what I would highlight is, some of you, that we remain disciplined, and, you know, this is an indication more of how we're allocating capital to what we see as the most profitable areas in the market that are within our volatility quarters. And as we've kind of moved forward over the last twelve, eighteen months, We've seen opportunities in other areas of the book and have appropriately allocated capital to those areas. And, again, if we were to see, you know, trends or other components in particular that are attractive, we'll obviously, you know, allocate capital accordingly. And so I'd really view it as, you know, us looking at the market, seeing what we think is attractive, and being disciplined about that and not simply, you know, saying, hey.

[Jim McKinney, CFO at SiriusPoint]

We have x amount allocated, so we're gonna allocate, you know, that much going forward. It's really an indication of how, we are committed to, you know, writing profitable business and and allocating our capital to the areas that we think will produce the best returns for our stakeholders.

[Andrew Andersen, VP - Equity Research at Jefferies Financial Group]

And then sticking with primary insurance, I think you mentioned double digit growth in property. Can maybe just give us some more color on what the primary property book consists of? Because, I guess, I'm a little surprised to hear double digit growth just given the the rating environment there, but perhaps this is not, you know, E and S. It's not cat exposed, but just maybe any color would be helpful.

[Scott Egan, CEO & Board of Director at SiriusPoint]

Yeah. So so back to the earlier question on London as well, Andrew. So we've obviously picked up some NGAs in London as well. So it's not all US exposed business, so some of it will be exposed to other sort of pedals in Europe, like European wind, flood, etcetera. But it's back to what I said earlier on, we manage sort of pedal exposures very tightly and and obviously want to make sure that we don't overexpose to any of them in particular.

[Scott Egan, CEO & Board of Director at SiriusPoint]

We're also looking at property MGAs, which potentially don't have that type of exposure, but where we can exclude certain exposures from from those. So look, I I would say in general, it's more of a diversification play as opposed to anything specific, and and it's something we manage, you know, very, very tightly given our ambition to be lower volatility. But but, Jim, do you wanna add anything on the NGAs?

[Jim McKinney, CFO at SiriusPoint]

No. I think, that just represents, as you've highlighted, a little bit of a smaller base, but also just where, again, from an opportunity perspective and, you know, as we've kind of further developed our presence in market in the London MGA space that, you know, we've had a benefit there that has come through from a property perspective in terms of, you know, an area where we think that there's attractive returns on capital and and that, you know, is good for our franchise.

[Andrew Andersen, VP - Equity Research at Jefferies Financial Group]

Thanks. And maybe lastly, just any change in PML that at midyear renewals we should be thinking about into kind of hurricane season here?

[Scott Egan, CEO & Board of Director at SiriusPoint]

No. Nothing. Not nothing at all. We've been pretty stable, Andrew, since we went through the restructuring, a while ago, very stable. And, obviously, key will be, I think, one one renewals next year in property, which I guess everyone is is looking at, but nothing of any significance in terms of what we do, just sort of normal BAU.

[Andrew Andersen, VP - Equity Research at Jefferies Financial Group]

Thank you.

[Scott Egan, CEO & Board of Director at SiriusPoint]

Yep.

[Operator]

Thank you. Our next questions come from the line of Anthony Modulis with Dowling and Partners. Please proceed with your questions.

[Anthony Mottolese, Analyst at Dowling & Partners]

Hey. Good morning, Scott and Jim. Thanks for the answers so far with all these questions. I did have a follow-up on the insurance and services, seeing that net growth outpacing relative to that gross basis. Could you elaborate on what sort of performance you need to see or needs to be achieved for that decision to retain more on that partnership business?

[Anthony Mottolese, Analyst at Dowling & Partners]

And then were there any particular partnerships worth calling out that would have seen this note notable success and contribute to the net growth?

[Scott Egan, CEO & Board of Director at SiriusPoint]

Yeah. So it's a really important question I'm saying. Thanks thanks for it. Look. The the I think I said earlier on, there's no sort of ready made formula, but let me be really simplistic.

[Scott Egan, CEO & Board of Director at SiriusPoint]

If it doesn't have our ROE targets, don't expect us to to lean in. Right? I think that's very clear. And and I know that sounds potentially clipping, but but, ultimately, that's what we're managing our overall return profile too. So, you know, if we feel like the financial profile is able to sort of get into that space with a degree of confidence, then then that's what we aim for.

[Scott Egan, CEO & Board of Director at SiriusPoint]

But I think the confidence part of that is also really important because for us, we won't just jump there because someone has told us that. I think for us, we wanna get really comfortable with the data flows. We wanna get really comfortable with the data. We wanna get to know people over time. And so it's very rare that we jump to a sort of, let's call it, aggressive net position.

[Scott Egan, CEO & Board of Director at SiriusPoint]

Perhaps that's the wrong phraseology, but an aggressive net position too quickly. And and we don't feel under any pressure to do that, to be frank, which is also really important. We will only grow, and I think Jim said it later on, like, we'll only grow where we believe we feel confident to grow. And it's a function of, you how the partnership's working, how the data's flowing, how the chemistry between the underwriters, the philosophy's working, etcetera, etcetera. And remember that for the majority of our NGA relationships, we actually have profit share arrangements in place.

[Scott Egan, CEO & Board of Director at SiriusPoint]

And so there's actually skin in the game for them as well. We think that's a really important part of the overall sort of mix and formula. It's not the only part, but but really important part as well. So, you know, for us, that's how we think of it. And and back to what Jim was alluding to and I was alluding to as well, we've brought on a lot of new NGA relationships over the past, let's call it, eighteen months or so.

[Scott Egan, CEO & Board of Director at SiriusPoint]

We feel really positive that there's a good strong tailwind behind us, but we feel no pressure to do that. And I think, you know, in terms of your specific on on lines, I think in the first half of this year, we've lent into surety, right, with one particular partner, just to use that as an example. And, actually, for the first I probably get this slightly wrong, but for the first sort of year to two years of that relationship, we took a very, very small net position. And, therefore, it was sort of two years of of almost getting used to seasoning, etcetera, before we started to lean into the net. So a a pretty fulsome answer, but it's the heart of our philosophy, Anthony, in how we approach these.

[Scott Egan, CEO & Board of Director at SiriusPoint]

And it's a really important part where I think people need to need to get confidence in our approach to the that distribution channel.

[Anthony Mottolese, Analyst at Dowling & Partners]

Yeah. I appreciate all the color there. And then I just one other question, bigger picture. We've seen sort of an emerging trend of consolidation of MGAs. And I'm just curious, has this trend had any impact on SiriusPoint's model partnering with MGAs or any effect to that pipeline of potential partnerships that you've seen?

[Scott Egan, CEO & Board of Director at SiriusPoint]

Nothing. Nothing material Okay. Anthony. No. No.

[Liam Blackledge, IR & Strategy Manager at SiriusPoint]

Great. No.

[Scott Egan, CEO & Board of Director at SiriusPoint]

Nothing material.

[Anthony Mottolese, Analyst at Dowling & Partners]

Alright. Thank you.

[Scott Egan, CEO & Board of Director at SiriusPoint]

Thank you.

[Operator]

Thank you. We have reached the end of our question and answer session. I would now now like to hand the call back over to Liam Blackledge for any closing comments.

[Liam Blackledge, IR & Strategy Manager at SiriusPoint]

Thank you, everyone, for joining us today. If you have any follow-up questions, we will be around to take your call, or you can email us on investor.relations@SiriusBT.com. Thank you for your ongoing support, and I hope you enjoy the remainder of the day. I will now turn the call back over to operator.

[Operator]

Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your

[Scott Egan, CEO & Board of Director at SiriusPoint]

day.

Participants

Executives

• Liam Blackledge, IR & Strategy Manager
• Scott Egan, CEO & Board of Director
• Jim McKinney, CFO

Analysts

• Michael Phillips, MD & Senior Analyst at Oppenheimer & Co. Inc.
• Randy Binner, Managing Director at B.Riley Securities
• Andrew Andersen, VP - Equity Research at Jefferies Financial Group
• Anthony Mottolese, Analyst at Dowling & Partners