HAMILTON, Bermuda, Aug. 04, 2025 (GLOBE NEWSWIRE) -- SiriusPoint Ltd. (“SiriusPoint” or the “Company”) (NYSE:SPNT) today announced results for its second quarter ended June 30, 2025
- Combined ratio of 89.5% in the second quarter for Core business, representing a 3.8 point improvement from prior year and resulting in a half year Core combined ratio of 92.4%
- Underwriting income growth of 83% year over year in the second quarter to $68 million for Core business
- Strong gross premiums written growth of 10% for Core business in the second quarter, marking the fifth consecutive quarter of double-digit growth
- Second quarter return on equity of 12.7%, with underlying return on equity of 17.0% in the quarter contributing to half year 2025 underlying return on equity of 15.4%, exceeding our 12-15% ‘across the cycle’ target range
- Diluted earnings per common share of $0.50, with underlying earnings per share of $0.66 representing a 120% increase from prior year
- Book value per diluted common share (ex. AOCI) up 3.2% in the quarter to $15.64. Balance sheet remains strong with Q2’25 BSCR estimate at 223%
Scott Egan, Chief Executive Officer, said: “Our second quarter results reflect the strength of our disciplined underwriting strategy. With each quarter, we demonstrate our ability to deliver consistent and stable earnings. Underlying return on equity for the quarter of 17.0%, and 15.4% for half year, both exceed our 12-15% ‘across the cycle’ target.
Our Core combined ratio for the quarter was 89.5%, an improvement of 3.8 points versus last year. Our half year Core combined ratio was flat compared to last year despite increased volatility from aviation losses and first quarter wildfires. We continued to see strong top line growth, with gross premiums written up 10% year over year.
Beyond strong financials, the second quarter marked real and tangible progress in other areas. We were named Program Insurer of the Year in the US, achieved record scores in our employee engagement survey, and we attracted key talent to our business, including two new members of our executive leadership team.
Our momentum continues, and this quarter is another purposeful step towards our goal of becoming a best-in-class underwriter.”
Second Quarter 2025 Highlights
- Net income attributable to SiriusPoint common shareholders of $59.2 million, or $0.50 per diluted common share
- Core income of $76.3 million, including underwriting income of $67.6 million, Core combined ratio of 89.5%
- Core net services fee income of $8.5 million, with service margin of 14.7%
- Net investment income of $68.2 million and total investment result of $68.9 million
- Book value per diluted common share (ex. AOCI) increased $0.49 per share, or 3.2%, from March 31, 2025 to $15.64
- Annualized return on average common equity of 12.7%
Half Year 2025 Highlights
- Net income attributable to SiriusPoint common shareholders of $116.8 million, or $0.98 per diluted common share
- Core income of $123.7 million, including underwriting income of $96.1 million, Core combined ratio of 92.4%
- Core net services fee income of $27.5 million, with service margin of 22.9%
- Net investment income of $139.4 million and total investment result of $139.8 million
- Book value per diluted common share (ex. AOCI) increased $1.00 per share, or 6.8%, from December 31, 2024 to $15.64
- Annualized return on average common equity of 12.8%
Key Financial Metrics
The following table shows certain key financial metrics for the three and six months ended June 30, 2025 and 2024:
| Three months ended | Six months ended | ||||||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | ||||||||||||
| ($ in millions, except for per share data and ratios) | |||||||||||||||
| Combined ratio | 86.1 | % | 89.0 | % | 88.8 | % | 87.0 | % | |||||||
| Core underwriting income (1) | $ | 67.6 | $ | 36.9 | $ | 96.1 | $ | 81.2 | |||||||
| Core net services income (1) | $ | 8.7 | $ | 9.1 | $ | 27.6 | $ | 27.2 | |||||||
| Core income (1) | $ | 76.3 | $ | 46.0 | $ | 123.7 | $ | 108.4 | |||||||
| Core combined ratio (1) | 89.5 | % | 93.3 | % | 92.4 | % | 92.5 | % | |||||||
| Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders | 12.7 | % | 17.9 | % | 12.8 | % | 16.7 | % | |||||||
| Book value per common share (2) | $ | 16.32 | $ | 14.92 | $ | 16.32 | $ | 14.92 | |||||||
| Book value per diluted common share (2) | $ | 16.03 | $ | 14.60 | $ | 16.03 | $ | 14.60 | |||||||
| Book value per diluted common share ex. AOCI (1) (2) | $ | 15.64 | $ | 14.64 | $ | 15.64 | $ | 14.64 | |||||||
| Tangible book value per diluted common share (1) (2) | $ | 14.89 | $ | 13.42 | $ | 14.89 | $ | 13.42 | |||||||
| (1) | Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. See definitions in “Non-GAAP Financial Measures” and reconciliations in “Segment Reporting.” Book value per diluted common share ex. AOCI and tangible book value per diluted common share are non-GAAP financial measures. See definition and reconciliation in “Non-GAAP Financial Measures.” |
| (2) | Prior year comparatives represent amounts as of December 31, 2024. |
Second Quarter 2025 Summary
Consolidated underwriting income for the three months ended June 30, 2025 was $90.2 million compared to $65.1 million for the three months ended June 30, 2024. The improvement was primarily driven by decreased catastrophe losses, as well as increased favorable loss reserve development in Property and A&H businesses, due to lower than expected reported losses for prior years.
Reportable Segments
The determination of our reportable segments is based on the manner in which management monitors the performance of our operations, which consist of two reportable segments - Insurance & Services and Reinsurance.
Collectively, the sum of our two segments, Insurance & Services and Reinsurance, constitute our “Core” results. Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. See reconciliations in “Segment Reporting”. We believe it is useful to review Core results as it better reflects how management views the business and reflects our decision to exit the runoff business. The sum of Core results and Corporate results are equal to the consolidated results of operations.
Three months ended June 30, 2025 and 2024
Core Premium Volume
Gross premiums written increased by $87.4 million, or 10.4%, to $930.1 million for the three months ended June 30, 2025 compared to $842.7 million for the three months ended June 30, 2024. Net premiums earned increased by $92.2 million, or 16.7%, to $645.6 million for the three months ended June 30, 2025 compared to $553.4 million for the three months ended June 30, 2024. The increases in premium volume were primarily driven by our Insurance & Services segment, including expansion of Surety within our Other Specialties business line, growth across A&H, and continued strategic organic and new program growth in our international P&C business.
Core Results
Core results for the three months ended June 30, 2025 included income of $76.3 million compared to $46.0 million for the three months ended June 30, 2024. Income for the three months ended June 30, 2025 consists of underwriting income of $67.6 million (89.5% combined ratio) and net services income of $8.7 million, compared to underwriting income of $36.9 million (93.3% combined ratio) and net services income of $9.1 million for the three months ended June 30, 2024. The improvement in net underwriting results was primarily driven by decreased catastrophe losses, as well as increased favorable prior year loss reserve development.
Effects of catastrophes were limited for the three months ended June 30, 2025, compared to $5.6 million of catastrophe losses for the three months ended June 30, 2024. Losses incurred included $13.8 million of favorable prior year loss reserve development for the three months ended June 30, 2025 primarily driven by favorable development in Property and A&H businesses due to lower than expected reported attritional losses, compared to $4.9 million for the three months ended June 30, 2024 driven by favorable development within A&H.
Net services income remained stable for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Service margin, which is calculated as Net service fee income as a percentage of services revenues, decreased to 14.7% for the three months ended June 30, 2025 from 16.9% for the three months ended June 30, 2024.
Six months ended June 30, 2025 and 2024
Core Premium Volume
Gross premiums written increased by $196.6 million, or 11.4%, to $1,920.0 million for the six months ended June 30, 2025 compared to $1,723.4 million for the six months ended June 30, 2024. Net premiums earned increased by $200.2 million, or 18.7%, to $1,271.4 million for the six months ended June 30, 2025 compared to $1,071.2 million for the six months ended June 30, 2024. The increases in premium volume were primarily driven by our Insurance & Services segment, including growth across A&H, expansion of Surety within our Other Specialties business line, continued strategic organic and new program growth in our international business.
Core Results
Core results for the six months ended June 30, 2025 included underwriting income of $96.1 million compared to $81.2 million for the six months ended June 30, 2024. The improvement in net underwriting results of $14.9 million was primarily driven by premium growth combined with improved attritional and acquisition cost ratios.
Favorable prior year loss reserve development for the six months ended June 30, 2025 was $48.1 million primarily driven by favorable development in Property, mainly from reserve releases relating to prior year’s catastrophe events, as well as favorable development in A&H, due to lower than expected reported losses, compared to $12.9 million for the six months ended June 30, 2024 primarily in Credit business within the Reinsurance segment and A&H.
Catastrophe losses were $67.4 million, or 5.3 percentage points on the combined ratio, for the six months ended June 30, 2025 primarily from the California wildfires, compared to $5.6 million, or 0.5 percentage points on the combined ratio, for the six months ended June 30, 2024.
Insurance & Services Segment
Three months ended June 30, 2025 and 2024
Insurance & Services gross premiums written were $560.4 million for the three months ended June 30, 2025, an increase of $70.2 million, or 14.3%, compared to the three months ended June 30, 2024, primarily driven by expansion of Surety within our Other Specialties business line, growth across A&H, and continued strategic organic and new program growth in our international business, specifically London MGAs.
Insurance & Services generated segment income of $48.2 million for the three months ended June 30, 2025, compared to $21.0 million for the three months ended June 30, 2024. Segment income for the three months ended June 30, 2025 consists of underwriting income of $39.5 million (89.3% combined ratio) and net services income of $8.7 million, compared to underwriting income of $11.9 million (96.0% combined ratio) and net services income of $9.1 million for the three months ended June 30, 2024.
The improvement in underwriting results was primarily driven by a lower attritional loss ratio, as well as net favorable prior year loss reserve development of $9.7 million for the three months ended June 30, 2025, mainly in A&H, compared to net adverse prior year loss reserve development of $1.4 million for the three months ended June 30, 2024.
Six months ended June 30, 2025 and 2024
Insurance & Services gross premiums written were $1,195.5 million for the six months ended June 30, 2025, an increase of $181.0 million, or 17.8%, compared to the six months ended June 30, 2024, primarily driven by expansion of Surety within our Other Specialties business line, growth across A&H, and continued strategic organic and new program growth in our international business, specifically London MGAs.
Insurance & Services generated segment income of $87.2 million for the six months ended June 30, 2025, compared to income of $43.5 million for the six months ended June 30, 2024. Segment income for the six months ended June 30, 2025 consists of underwriting income of $59.6 million (91.6% combined ratio) and net services income of $27.6 million, compared to underwriting income of $16.3 million (97.1% combined ratio) and net services income of $27.2 million for the six months ended June 30, 2024.
The improvement in underwriting income of $43.3 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was primarily driven by growth combined with an improving attritional loss ratio as well as net favorable prior year loss reserve development of $12.2 million for the six months ended June 30, 2025, mainly in A&H, compared to net adverse prior year loss reserve development of $3.7 million for the six months ended June 30, 2024.
Reinsurance Segment
Three months ended June 30, 2025 and 2024
Reinsurance gross premiums written were $369.7 million for the three months ended June 30, 2025, an increase of $17.2 million, or 4.9%, compared to the three months ended June 30, 2024, primarily driven by increased premiums written in credit within the Other Specialties book of business.
Reinsurance generated underwriting income of $28.1 million (89.8% combined ratio) for the three months ended June 30, 2025, compared to underwriting income of $25.0 million (90.2% combined ratio) for the three months ended June 30, 2024. The increase in net underwriting results was the result of premium growth, lower acquisition costs as well as a decrease in catastrophe losses of $3.5 million.
Six months ended June 30, 2025 and 2024
Reinsurance gross premiums written were $724.5 million for the six months ended June 30, 2025, an increase of $15.6 million, or 2.2%, compared to the six months ended June 30, 2024, primarily driven by reduced premiums written in Casualty reflecting a reallocation of capital to support growth of underwriting margins, partially offset by increased reinstatement premiums of $8.9 million related to Property Catastrophe business.
Reinsurance generated underwriting income of $36.5 million (93.5% combined ratio) for the six months ended June 30, 2025, compared to underwriting income of $64.9 million (87.2% combined ratio) for the six months ended June 30, 2024. The decrease in net underwriting results for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, was primarily driven by increased catastrophe losses of $62.6 million or 11.1 percentage points on the combined ratio, primarily from the California wildfires, compared to $3.0 million, or 0.6 percentage points on the combined ratio, for the six months ended June 30, 2024, partially offset by increased favorable prior year loss reserve development of $35.9 million for the six months ended June 30, 2025, primarily driven by favorable development in Property, mainly from reserve releases relating to prior year’s catastrophe events, compared to $16.6 million for the six months ended June 30, 2024 primarily driven by decreased ultimate losses in the Credit reinsurance portfolio.
Investments
Three months ended June 30, 2025 and 2024
Net investment income and net realized and unrealized investment gains (losses) for the three months ended June 30, 2025 increased due to losses on strategic investments in the three months ended June 30, 2024 of $40.6 million resulting from the Company’s recurring valuations of its portfolio. Excluding the losses on strategic investments, the primary components of income for the three months ended June 30, 2025 and June 30, 2024 were $62.4 million and $70.1 million, respectively, on our debt securities and short-term investments. The year over year decrease is a result of the smaller asset base subsequent to the capital transactions executed in the second half of 2024 and the first quarter of 2025.
Six months ended June 30, 2025 and 2024
Net investment income and net realized and unrealized investment gains (losses) for the six months ended June 30, 2025 increased due to losses on strategic investments in the first half of 2024 of $40.6 million resulting from the Company’s recurring valuations of its portfolio. Excluding the losses on strategic investments the primary components of income for the six months ended June 30, 2025 and June 30, 2024 were $125.8 million and $147.0 million, respectively, on our debt securities and short-term investments. The year over year decrease is a result of the smaller asset base subsequent to the capital transactions executed in the second half of 2024 and the first quarter of 2025.
Webcast Details
The Company will hold a webcast to discuss its second quarter 2025 results at 8:30 a.m. Eastern Time on August 4, 2025. The webcast of the conference call will be available over the Internet from the Company’s website at www.siriuspt.com under the “Investor Relations” section. Participants should follow the instructions provided on the website to download and install any necessary audio applications. The conference call will be available by dialing 1-877-451-6152 (domestic) or 1-201-389-0879 (international). Participants should ask for the SiriusPoint Ltd. second quarter 2025 earnings call.
