SiriusPoint : 4.600% Senior Notes due 1 November 2026 - 2025 Financials - Q1 Interim Report -Form 10-Q

Published: 2025-05-08 08:17:11 ET SPNT

Published on 05/08/2025 at 08:17

☒ SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025 OR

For the transition period from to

(Exact name of registrant as specified in its charter)

Bermuda 98-1599372

(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)

Point Building 3 Waterloo Lane

Pembroke HM 08, Bermuda

+1 441 542-3300

(Address of Principal Executive Offices) (Registrant's Telephone Number, Including Area Code) Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading symbol(s) Name of each exchange on which registered Common Shares, $0.10 par value SPNT New York Stock Exchange

8.00% Resettable Fixed Rate Preference Shares,

Series B, $0.10 par value,

$25.00 liquidation preference per share

SPNT PB New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐

Non-accelerated filer ☐ Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐

As of May 1, 2025, the registrant had 116,588,957 common shares issued and outstanding.

Page

PART I. FINANCIAL INFORMATION 1

Item 1. Financial Statements 1

Consolidated Balance Sheets as of March 31, 2025 (unaudited) and December 31, 2024 1

Consolidated Statements of Income for the three months ended March 31, 2025 and 2024 (unaudited) 2

Consolidated Statements of Comprehensive Income for the three months ended March 31, 2025 and 2024 (unaudited)

Consolidated Statements of Shareholders' Equity for the three months ended March 31, 2025 and 2024 (unaudited)

Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024 (unaudited)

Notes to the Consolidated Financial Statements

Note 1. Organization 6

Note 2. Significant accounting policies 6

Note 3. Segment reporting 6

Note 4. Cash, cash equivalents, restricted cash and restricted investments 11

Note 5. Fair value measurements 11

Note 6. Investments 16

Note 7. Total net investment income and net realized and unrealized investment gains 20

Note 8. Derivatives 22

Note 9. Variable and voting interest entities 23

Note 10. Loss and loss adjustment expense reserves 25

Note 11. Allowance for expected credit losses 26

Note 12. Debt and letter of credit facilities 27

Note 13. Income taxes 28

Note 14. Shareholders' equity 29

Note 15. Earnings per share available to SiriusPoint common shareholders 30

Note 16. Related party transactions 30

Note 17. Commitments and contingencies 31

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 33

Item 3. Quantitative and Qualitative Disclosures About Market Risk 50

Item 4. Controls and Procedures 52

PART II. OTHER INFORMATION 52

Item 1. Legal Proceedings 52

Item 1A. Risk Factors 52

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 53

Item 3. Defaults Upon Senior Securities 53

Item 4. Mine Safety Disclosures 53

Item 5. Other Information 53

Item 6. Exhibits 54

March 31,

2025

December 31,

2024

Assets

Debt securities, available for sale, at fair value, net of allowance for credit losses of $0.0 (2024 - $1.1) (cost - $4,617.0; 2024 -

$5,143.8)

$ 4,635.2

$ 5,131.0

Debt securities, trading, at fair value (cost - $140.9; 2024 - $187.3)

117.6

162.2

Short-term investments, at fair value (cost - $48.2; 2024 - $95.3)

48.2

95.8

Other long-term investments, at fair value (cost - $437.9; 2024 - $438.2) (includes related party investments at fair value of $220.1 (2024 - $217.2))

317.7

316.5

Total investments

5,118.7

5,705.5

Cash and cash equivalents

740.3

682.0

Restricted cash and cash equivalents

184.9

212.6

Due from brokers

18.8

11.2

Interest and dividends receivable

42.1

44.0

Insurance and reinsurance balances receivable, net

2,240.8

2,054.4

Deferred acquisition costs, net

369.3

327.5

Unearned premiums ceded

514.3

463.9

Loss and loss adjustment expenses recoverable, net

2,335.7

2,315.3

Deferred tax asset

293.3

297.0

Intangible assets

137.9

140.8

Other assets

284.4

270.7

Total assets

$ 12,280.5

$ 12,524.9

Liabilities

Loss and loss adjustment expense reserves

$ 5,762.6

$ 5,653.9

Unearned premium reserves

1,816.8

1,639.2

Reinsurance balances payable

1,707.5

1,781.6

Deposit liabilities

15.6

17.4

Deferred gain on retroactive reinsurance

6.6

8.5

Debt

663.5

639.1

Due to brokers

6.6

18.0

Deferred tax liability

94.2

76.2

Share repurchase liability

483.0

Other liabilities

180.4

269.2

Total liabilities

10,253.8

10,586.1

Commitments and contingent liabilities

Shareholders' equity

Series B preference shares (par value $0.10; authorized and issued: 8,000,000)

200.0

Common shares (issued and outstanding: 116,020,526; 2024 - 116,429,057)

11.6

Additional paid-in capital

944.7

945.0

Retained earnings

842.5

784.9

Accumulated other comprehensive income (loss), net of tax

26.4

(4.1)

Shareholders' equity attributable to SiriusPoint shareholders

2,025.2

1,937.4

Noncontrolling interests

1.5

1.4

Total shareholders' equity

2,026.7

1,938.8

Total liabilities, noncontrolling interests and shareholders' equity

$ 12,280.5

$ 12,524.9

2025

2024

Revenues

Net premiums earned

626.7

593.8

Net investment income

71.2

78.8

Net realized and unrealized investment gains (losses)

(0.3)

1.0

Net investment income and net realized and unrealized investment gains (losses)

70.9

79.8

Other revenues

29.7

27.8

Loss on settlement and change in fair value of liability-classified capital instruments

(15.9)

Total revenues

727.3

685.5

Expenses

Loss and loss adjustment expenses incurred, net

401.8

317.5

Acquisition costs, net

129.7

144.9

Other underwriting expenses

41.1

41.8

Net corporate and other expenses

60.6

56.0

Intangible asset amortization

2.9

Interest expense

18.1

20.5

Foreign exchange gains

(2.2)

(3.7)

Total expenses

652.0

579.9

Income before income tax expense

75.3

105.6

Income tax expense

(13.3)

(9.7)

Net income

62.0

95.9

Net income attributable to noncontrolling interests

(0.4)

(1.1)

Net income available to SiriusPoint

61.6

94.8

Dividends on Series B preference shares

(4.0)

Net income available to SiriusPoint common shareholders

57.6

90.8

Earnings per share available to SiriusPoint common shareholders

Basic earnings per share available to SiriusPoint common shareholders

0.50

Diluted earnings per share available to SiriusPoint common shareholders

0.49

Weighted average number of common shares used in the determination of earnings per share

Basic

115,975,961

168,934,114

Diluted

118,555,166

174,380,963

2025

2024

Comprehensive income

Net income

62.0

95.9

Other comprehensive income (loss), net of tax

Change in foreign currency translation adjustment

(0.2)

(1.8)

Unrealized gains (losses) from debt securities held as available for sale investments

32.7

(18.4)

Reclassifications from accumulated other comprehensive loss

(2.0)

(0.3)

Total other comprehensive income (loss)

30.5

(20.5)

Comprehensive income

92.5

75.4

Net income attributable to noncontrolling interests

(0.4)

(1.1)

Comprehensive income available to SiriusPoint

92.1

74.3

2025

2024

Series B preference shares

Balance, beginning of period

200.0

Issuance of preference shares, net

Balance, end of period

200.0

Common shares

Balance, beginning of period

11.6

16.8

Issuance of common shares, net

0.1

Exercise of options

0.2

Common shares repurchased and retired

(0.1)

Balance, end of period

11.6

17.0

Additional paid-in capital

Balance, beginning of period

945.0

1,693.0

Issuance of common shares, net

(0.2)

Share compensation

7.6

2.6

Exercise of options

15.6

Common shares repurchased and retired

(7.7)

Balance, end of period

944.7

1,711.2

Retained earnings

Balance, beginning of period

784.9

601.0

Net income

62.0

95.9

Net income attributable to noncontrolling interests

(0.4)

(1.1)

Dividends on preference shares

(4.0)

Balance, end of period

842.5

691.8

Accumulated other comprehensive income (loss), net of tax

Balance, beginning of period

(4.1)

3.1

Change in foreign currency translation adjustment

Balance, beginning of period

(3.0)

(4.1)

Change in foreign currency translation adjustment

(0.2)

(1.8)

Balance, end of period

(3.2)

(5.9)

Unrealized gains (losses) from debt securities held as available for sale investments

Balance, beginning of period

(1.1)

7.2

Unrealized gains (losses) from debt securities held as available for sale investments

32.7

(18.4)

Reclassifications from accumulated other comprehensive loss

(2.0)

(0.3)

Balance, end of period

29.6

(11.5)

Balance, end of period

26.4

(17.4)

Shareholders' equity attributable to SiriusPoint shareholders

2,025.2

2,602.6

Noncontrolling interests

1.5

17.8

Total shareholders' equity

$ 2,026.7

$ 2,620.4

2025

2024

Operating activities

Net income

62.0

95.9

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Share compensation

7.6

4.1

Net realized and unrealized loss on investments and derivatives

0.3

4.7

Change in fair value of liability-classified capital instruments

15.9

Amortization of premium and accretion of discount, net

(9.3)

(18.3)

Amortization of intangible assets

2.9

Other items, net

16.8

(17.4)

Changes in assets and liabilities:

Insurance and reinsurance balances receivable, net

(187.3)

(160.1)

Deferred acquisition costs, net

(41.8)

(11.9)

Unearned premiums ceded

(50.4)

(45.6)

Loss and loss adjustment expenses recoverable, net

(20.4)

61.3

Deferred tax asset/liability

20.0

(16.9)

Other assets

(12.7)

1.3

Interest and dividends receivable

1.9

(2.2)

Loss and loss adjustment expense reserves

108.7

(42.8)

Unearned premium reserves

177.6

88.4

Deferred gain on retroactive reinsurance

(1.9)

(2.1)

Reinsurance balances payable

(74.1)

43.8

Other liabilities

(88.8)

57.8

Net cash provided by (used in) operating activities

(88.9)

58.8

Investing activities

Purchases of debt securities, available-for-sale

(487.2)

(672.7)

Purchases of short-term investments

(27.6)

(298.5)

Purchases of other investments

(8.0)

(5.9)

Proceeds from sales and maturities of debt securities, available-for-sale

1,028.2

361.0

Proceeds from sales and maturities of debt securities, trading and short-term investments

120.8

474.2

Proceeds from sales and maturities of other investments

3.7

17.4

Change in due to/from brokers, net

(19.0)

43.7

Net cash provided by (used in) investing activities

610.9

(80.8)

Financing activities

Purchases of SiriusPoint common shares under share repurchase program

(490.8)

Net proceeds (payments) on deposit liability contracts

3.9

(3.0)

Net proceeds from exercise of options

15.6

Cash dividends paid to preference shareholders

(4.0)

Taxes paid on withholding shares

(0.2)

(1.5)

Change in total noncontrolling interests, net

(0.3)

Net cash provided by (used in) financing activities

(491.4)

7.1

Net increase (decrease) in cash, cash equivalents and restricted cash

30.6

(14.9)

Cash, cash equivalents and restricted cash at beginning of period

894.6

1,101.3

Cash, cash equivalents and restricted cash at end of period

$ 925.2

$ 1,086.4

(Expressed in U.S. Dollars)

SiriusPoint Ltd. (together with its consolidated subsidiaries, "SiriusPoint" or the "Company") was incorporated under the laws of Bermuda on October 6, 2011. Through its subsidiaries, the Company is a provider of global multi-line reinsurance and insurance products and services.

These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 in Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete annual financial statements. In addition, the year-end consolidated balance sheet was derived from audited financial statements. It does not include all disclosures required by U.S. GAAP. This Quarterly Report on Form 10-Q ("Form 10-Q") should be read in conjunction with the audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 (the "2024 Form 10-K") filed with the U.S. Securities and Exchange Commission on February 29, 2024.

In the opinion of management, these unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of the Company's financial position and results of operations as at the end of and for the periods presented. All significant intercompany accounts and transactions have been eliminated.

The results for the three months ended March 31, 2025 are not necessarily indicative of the results expected for the full calendar year. Tabular amounts are in U.S. Dollars in millions, except share amounts, unless otherwise noted.

There have been no material changes to the Company's significant accounting policies as described in its 2024 Form 10-K.

Issued but not yet effective as of March 31, 2025

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2023-09, Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 023-09"). The amendment enhances the transparency and decision usefulness of income tax disclosures. ASU 2023-09 is effective for public business entities for annual periods beginning after December 15, 2024. This new pronouncement did not have a material impact on the Company's consolidated financial statements.

Additional accounting pronouncements issued during the three months ended March 31, 2025 were either not relevant to the Company or did not impact the Company's consolidated financial statements.

Certain comparative figures have been reclassified to conform to the current year presentation.

The determination of the Company's business segments is based on the manner in which management monitors the performance of its operations. The Company reports two operating segments: Reinsurance and Insurance & Services. The Company's segments each have managers who are responsible for the overall profitability of their segments and who are directly accountable to the Company's chief operating decision maker, the Chief Executive Officer ("CEO"). The CEO assesses segment operating performance, allocates capital, and makes resource allocation decisions based on Segment income (loss). The Company does not manage its assets by segment; accordingly, total assets are not allocated to the segments.

In the Reinsurance segment, the Company provides reinsurance products to insurance and reinsurance companies, government entities, and other risk bearing vehicles on a treaty or facultative basis. For reinsurance assumed, the Company participates in the reinsurance market with a global focus through the broker market distribution channel. The Company primarily writes treaty reinsurance, on both a proportional and excess of loss basis, and provides facultative reinsurance in some of its business lines. In the United States and Bermuda, the Company's core focus is on distribution, risk and clients located in North America, while our international operation is focused primarily on distribution, risks and clients located in Europe.

The Reinsurance segment predominantly underwrites Casualty, Property and Other Specialties lines of business on a worldwide basis.

Casualty - the Company provides reinsurance to casualty insurers who underwrite a diverse range of casualty classes. The Company works with clients all over the world, including multi-national, nationwide and regional carriers, as well as risk retention groups and captives. The Company also partners with managing general agents ("MGAs") and sponsoring cover holders. The Company's underwriting focus is on proportional transactions covering all major commercial casualty lines, as well as professional liability with an emphasis on specialty niche classes of business, including personal lines.

Property - the Company works with leading global brokers as well as large national writers and regional companies. Underwriting is focused on providing critical catastrophe protection and worldwide coverage for natural perils, underwriting residential, commercial, and industrial risks in the United States, Europe and Asia. The Company's property reinsurance offering includes: property catastrophe protection, risk excess of loss, cannabis - pro rata, where permitted, building risk and structured property specifically in the United States.

Other Specialties - the Company's business encompasses a broad range of worldwide reinsurance coverages, including proportional and excess of loss, treaty and facultative. Other Specialties business lines in the Reinsurance segment include Aviation & Space, Marine & Energy and Credit.

Through the Insurance & Services segment, the Company underwrites primary insurance in a number of sectors. The Insurance & Services segment includes Accident & Health, Casualty, and Other Specialties.

Accident and Health ("A&H") - the Company provides flexible insurance products to meet the risk management needs of diverse populations in select markets. This includes employer groups, associations, affinity groups, higher education and other niche markets. The Company also owns 100% of International Medical Group, Inc. ("IMG") and ArmadaCorp Capital, LLC ("Armada"), who receive fees for services provided within Insurance & Services and to third parties. IMG offers a full line of international medical insurance products, trip cancellation programs, medical management services and 24/7 emergency medical and travel assistance. Armada operates as a supplemental medical insurance MGA.

Property & Casualty - the Company is a leading carrier for program administrators and MGAs. The majority of its insurance business is written through partners in the property and casualty space, covering professional liability, workers' compensation, and commercial auto lines in Bermuda, London, Europe, North America and around the world.

Other Specialties - the Company's business encompasses a broad range of worldwide insurance coverages. Other Specialties business lines in the Insurance & Services segment include Aviation & Space, Credit, Surety, Marine & Energy and Mortgage.

Management uses segment income (loss) as the primary basis for assessing segment performance. Segment income (loss) is comprised of two components, underwriting income (loss) and net services income (loss). The Company calculates underwriting income (loss) by subtracting loss and loss adjustment expenses incurred, net, acquisition costs, net, and other underwriting expenses from net premiums earned. Net services income (loss) consists of services revenues (fees for services revenues), services expenses, and services non-controlling (income) loss. This definition of segment income (loss) aligns with how business performance is managed and monitored. We continue to evaluate our segments as our business evolves and may further refine our segments and segment income (loss) measures. Certain items are presented in a different manner for segment reporting purposes than in the consolidated statements of income. These items are reconciled to the consolidated presentation in the segment measure reclass column below. Included in Insurance & Services segment income (loss) are

services noncontrolling loss (income) attributable to minority shareholders on non-wholly-owned subsidiaries. In addition, services revenues and services expenses are reconciled to other revenues and net corporate and other expenses, respectively.

Segment results are shown prior to corporate eliminations. Corporate eliminations are included in the elimination column below as necessary to reconcile to underwriting income (loss), net services income (loss), and segment income (loss) to the consolidated statements of income.

Corporate includes the results of all runoff business, which represents certain classes of business that we no longer actively underwrite, including the effect of the restructuring of the underwriting platform announced in 2022 and certain reinsurance contracts that have interest crediting features. Corporate results also include asbestos and environmental and other latent liability exposures on a gross basis, which have mostly been ceded, as well as specific workers' compensation and cyber programs which the Company no longer writes. In addition, revenue and expenses managed at the corporate level, including realized and unrealized gains (losses), other investment income, including gains (losses) from strategic investments, non services-related other revenues, non services-related net corporate and other expenses, intangible asset amortization, interest expense, foreign exchange (gains) losses and income tax (expense) benefit are reported within Corporate. The CEO does not manage segment results or allocate resources to segments when considering these items and they are therefore excluded from our definition of segment income (loss).

The following is a summary of the Company's operating segment results for the three months ended March 31, 2025 and 2024:

Reinsurance

Insurance & Services

Core

Eliminations (2)

Corporate

Segment Measure Reclass

Total

Gross premiums written $ 354.8

$ 635.1

$ 989.9

$ -

$ (5.2)

$ -

$ 984.7

Net premiums written 268.5

483.5

752.0

(9.0)

743.0

Net premiums earned 289.6

336.2

625.8

0.9

626.7

Loss and loss adjustment expenses 195.3

209.9

405.2

(2.0)

(1.4)

401.8

Acquisition costs, net 67.1

87.3

154.4

(28.0)

3.3

129.7

Other underwriting expenses 18.8

18.9

37.7

3.4

41.1

Underwriting income (loss)8.4

20.1

28.5

30.0

(4.4)

54.1

Services revenues -

62.1

(30.2)

(31.9)

Services expenses -

43.1

(43.1)

Net services fee income -

19.0

(30.2)

11.2

Services noncontrolling income -

(0.1)

0.1

Net services income -

18.9

(30.2)

11.3

Segment income (loss)8.4

39.0

47.4

(0.2)

(4.4)

11.3

54.1

Net investment income

71.2

Net realized and unrealized investment losses

(0.3)

Other revenues

(2.2)

31.9

29.7

Net corporate and other expenses

(17.5)

(43.1)

(60.6)

Intangible asset amortization

(2.9)

Interest expense

(18.1)

Foreign exchange gains

2.2

Income before income tax expense $ 8.4

$ 39.0

47.4

(0.2)

28.0

0.1

75.3

Income tax expense

(13.3)

Net income

47.4

(0.2)

14.7

0.1

62.0

Net income attributable to noncontrolling interest

(0.3)

(0.1)

(0.4)

Net income available to SiriusPoint

$ 47.4

$ (0.2)

$ 14.4

$ -

$ 61.6

Three months ended March 31, 2025

incurred, net

Attritional losses $ 164.0

$ 207.6

$ 371.6

$ (2.0)

$ (1.5)

$ -

$ 368.1

Catastrophe losses 63.1

4.8

67.9

Prior year loss reserve development (31.8)

(2.5)

(34.3)

0.1

(34.2)

Loss and loss adjustment expenses $ 195.3

incurred, net

Underwriting Ratios: (1)

Attritional loss ratio

56.6 %

61.7 %

59.3 %

58.8 %

Catastrophe loss ratio

21.8 %

1.4 %

10.9 %

10.8 %

Prior year loss development ratio

(11.0)%

(0.7)%

(5.5)%

Loss ratio

67.4 %

62.4 %

64.7 %

64.1 %

Acquisition cost ratio

23.2 %

26.0 %

24.7 %

20.7 %

Other underwriting expenses ratio

6.5 %

5.6 %

6.0 %

6.6 %

Combined ratio

97.1 %

94.0 %

95.4 %

91.4 %

$ 209.9 $ 405.2 $ (2.0) $ (1.4) $ - $ 401.8

Underwriting ratios are calculated by dividing the related expense by net premiums earned.

Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards.

‌Insurance &

Three months ended March 31, 2024

Segment

Reinsurance

Services

Core

Eliminations (2)

Corporate

Measure Reclass

Total

Gross premiums written

$ 356.4

$ 524.3

$ 880.7

$ - $ 25.9

$ - $ 906.6

Net premiums written

290.1

337.1

627.2

- 12.1

- 639.3

Net premiums earned

253.6

264.2

517.8

- 76.0

- 593.8

Loss and loss adjustment expenses incurred, 124.6 176.5 301.1 (1.4) 17.8 - 317.5

net

Acquisition costs, net

69.8

65.2

135.0

(33.2)

43.1

144.9

Other underwriting expenses

19.3

18.1

37.4

4.4

41.8

Underwriting income

39.9

4.4

44.3

34.6

10.7

89.6

Services revenues

65.8

(37.1)

(28.7)

Services expenses

46.0

(46.0)

Net services fee income

19.8

(37.1)

17.3

Services noncontrolling income

(1.7)

1.7

Net services income

18.1

(37.1)

19.0

Segment income

39.9

22.5

62.4

(2.5)

10.7

19.0

89.6

Net investment income

78.8

Net realized and unrealized investment gains

1.0

Other revenues

(0.9)

28.7

27.8

Loss on settlement and change in fair value of liability-classified capital instruments

(15.9)

Net corporate and other expenses

(10.0)

(46.0)

(56.0)

Intangible asset amortization

(2.9)

Interest expense

(20.5)

Foreign exchange gains

3.7

Income before income tax expense

$ 39.9

$ 22.5

62.4

(2.5)

44.0

1.7

105.6

Income tax expense

(9.7)

Net income

62.4

(2.5)

34.3

1.7

95.9

Net (income) loss attributable to noncontrolling interests

0.6

(1.7)

(1.1)

Net income available to SiriusPoint

$ 62.4

$ (2.5)

$ 34.9

$ - $

94.8

Attritional losses $ 134.9

$ 174.2

$ 309.1

$ (1.4)

$ 48.7

$ - $

356.4

Prior year loss reserve development (10.3)

2.3

(8.0)

(30.9)

(38.9)

Loss and loss adjustment expenses incurred, net

$ 124.6

$ 176.5

$ 301.1

$ (1.4) $ 17.8 $ - $ 317.5

Underwriting Ratios: (1)

Attritional loss ratio

53.2 %

65.9 %

59.7 %

60.0 %

Prior year loss development ratio

(4.1)%

0.9 %

(1.6)%

(6.5)%

Loss ratio

49.1 %

66.8 %

58.1 %

53.5 %

Acquisition cost ratio

27.5 %

24.7 %

26.1 %

24.4 %

Other underwriting expenses ratio

7.6 %

6.9 %

7.2 %

7.0 %

Combined ratio

84.2 %

98.4 %

91.4 %

84.9 %

Underwriting ratios are calculated by dividing the related expense by net premiums earned.

The following table provides a summary of cash and cash equivalents, restricted cash and restricted investments as of March 31, 2025 and December 31, 2024:

March 31,

2025

December 31,

2024

Cash and cash equivalents

$ 740.3

$ 682.0

Restricted cash securing letter of credit facilities (1)

23.1

36.5

Restricted cash securing reinsurance contracts (2)

136.8

149.3

Restricted cash held by managing general underwriters

25.0

26.8

Total cash, cash equivalents and restricted cash (3)

925.2

894.6

Restricted investments securing reinsurance contracts and letter of credit facilities (1) (2) (4)

2,210.7

2,215.0

Total cash, cash equivalents, restricted cash and restricted investments

$ 3,135.9

$ 3,109.6

Restricted cash and restricted investments securing letter of credit facilities primarily pertains to letters of credit that have been issued to the Company's clients in support of its obligations under reinsurance contracts. The Company will not be released from the obligation to provide these letters of credit until the reserves underlying the reinsurance contracts have been settled. The time period for which the Company expects each letter of credit to be in place varies from contract to contract but can last several years.

Restricted cash and restricted investments securing reinsurance contracts pertain to trust accounts securing the Company's contractual obligations under certain reinsurance contracts that the Company will not be released from until the underlying risks have expired or have been settled. Restricted investments include certain investments in debt securities, short-term investments and limited partnership interests in Third Point Enhanced LP ("TP Enhanced Fund"). The time period for which the Company expects these trust accounts to be in place varies from contract to contract, but can last several years.

Cash, cash equivalents and restricted cash as reported in the Company's consolidated statements of cash flows.

Restricted investments include required deposits with certain insurance state regulatory agencies in order to maintain insurance licenses.

U.S. GAAP disclosure requirements establish a framework for measuring fair value, including a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. The three-level hierarchy of inputs is summarized below:

Level 1 - Quoted prices available in active markets/exchanges for identical investments as of the reporting date.

Level 2 - Observable inputs to the valuation methodology other than unadjusted quoted market prices for identical assets or liabilities in active markets. Level 2 inputs include, but are not limited to, prices quoted for similar assets or liabilities in active markets/exchanges, prices quoted for identical or similar assets or liabilities in markets that are not active and fair values determined through the use of models or other valuation methodologies.

Level 3 - Inputs are based all or in part on significant unobservable inputs for the investment, and include situations where there is little, if any, market activity for the investment. The inputs applied in the determination of fair value require significant management judgment and estimation.

Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. For example, the risk inherent in a particular valuation technique used to measure fair value including such a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable.

Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources other than those of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment and considers factors specific to the investment.

The following tables present the Company's investments, categorized by the level of the fair value hierarchy as of March 31, 2025 and December 31, 2024:

March 31, 2025

Quoted prices in active markets

Significant other observable inputs

Significant unobservable inputs

(Level 1)

(Level 2)

(Level 3)

Total

Assets

Asset-backed securities

$ -

$ 1,007.8

$ -

$ 1,007.8

Residential mortgage-backed securities

931.0

Commercial mortgage-backed securities

174.0

Corporate debt securities

1,618.3

U.S. government and government agency

881.4

Non-U.S. government and government agency

22.7

Total debt securities, available for sale

881.4

3,753.8

4,635.2

Asset-backed securities

19.1

Residential mortgage-backed securities

47.9

Commercial mortgage-backed securities

42.7

Corporate debt securities

3.8

U.S. government and government agency

4.1

Total debt securities, trading

4.1

113.5

117.6

Short-term investments

48.2

Other long-term investments

0.3

5.1

87.0

92.4

Derivative assets

27.8

$ 934.0

$ 3,872.4

$ 114.8

4,921.2

Cost and equity method investments

65.1

Investments in funds valued at NAV

160.2

Total assets

$ 5,146.5

Liabilities

Derivative liabilities

$ -

$ 6.1

Total liabilities

$ -

$ 6.1

Quoted prices in active markets

Significant other observable inputs

Significant unobservable inputs

(Level 1)

(Level 2)

(Level 3)

Total

Assets

Asset-backed securities

$ -

$ 1,149.7

Residential mortgage-backed securities

973.8

Commercial mortgage-backed securities

224.5

Corporate debt securities

1,899.9

U.S. government and government agency

859.0

Non-U.S. government and government agency

24.1

Total debt securities, available for sale

859.0

4,272.0

5,131.0

Asset-backed securities

53.1

Residential mortgage-backed securities

48.7

Commercial mortgage-backed securities

51.8

Corporate debt securities

4.6

U.S. Government and government agency

4.0

Total debt securities, trading

4.0

158.2

162.2

Short-term investments

73.6

22.2

95.8

Other long-term investments

0.3

3.0

86.6

89.9

Derivative assets

0.9

$ 936.9

$ 4,455.4

87.5

5,479.8

Cost and equity method investments

64.7

Investments in funds valued at NAV

161.9

Total assets

$ 5,706.4

Liabilities

Derivative liabilities

$ -

14.3

$ 14.3

Total liabilities

$ -

14.3

$ 14.3

December 31, 2024

During the three months ended March 31, 2025, the Company did not reclassify its assets or liabilities between Levels 2 and 3 (December 31, 2024 - no reclassifications).

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

The techniques and inputs specific to asset classes within the Company's debt securities and short-term investments for Level 2 securities that use observable inputs are as follows:

Asset-backed and mortgage-backed securities

The fair value of mortgage and asset-backed securities is primarily priced by independent pricing services using a pricing model that uses information from market sources and leveraging similar securities. Key inputs include benchmark yields, reported trades, underlying tranche cash flow data, collateral performance, plus new issue data, as well as broker-dealer

quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including issuer, vintage, loan type, collateral attributes, prepayment speeds, default rates, recovery rates, cash flow stress testing, credit quality ratings and market research publications.

Corporate debt securities

Corporate debt securities consist primarily of investment-grade debt of a wide variety of U.S. and non-U.S. corporate issuers and industries. The corporate fixed maturity investments are primarily priced by independent pricing services. When evaluating these securities, the independent pricing services gather information from market sources regarding the issuer of the security and obtain credit data, as well as other observations, from markets and sector news. Evaluations are updated by obtaining broker dealer quotes and other market information including actual trade volumes, when available. The independent pricing services also consider the specific terms and conditions of the securities, including any specific features which may influence risk.

U.S. government and government agency

U.S. government and government agency securities consist primarily of debt securities issued by the U.S. Treasury and mortgage pass-through agencies such as the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the Government National Mortgage Association. Fixed maturity investments included in U.S. government and government agency securities are primarily priced by independent pricing services. When evaluating these securities, the independent pricing services gather information from market sources and integrate other observations from markets and sector news. Evaluations are updated by obtaining broker dealer quotes and other market information including actual trade volumes, when available. The fair value of each security is individually computed using analytical models which incorporate option adjusted spreads and other daily interest rate data.

Non-U.S. government and government agency

Non-U.S. government and government agency securities consist of debt securities issued by non-U.S. governments and their agencies along with supranational organizations (also known as sovereign debt securities). Securities held in these sectors are primarily priced by independent pricing services who employ proprietary discounted cash flow models to value the securities. Key quantitative inputs for these models are daily observed benchmark curves for treasury, swap and high issuance credits. The independent pricing services then apply a credit spread for each security which is developed by in-depth and real time market analysis. For securities in which trade volume is low, the independent pricing services utilize data from more frequently traded securities with similar attributes. These models may also be supplemented by daily market and credit research for international markets.

U.S. states, municipalities, and political subdivisions

The U.S. states, municipalities and political subdivisions portfolio contains debt securities issued by U.S. domiciled state and municipal entities. These securities are generally priced by independent pricing services using the techniques for U.S. government and government agency securities.

Short-term investments

Short-term investments consist of U.S. treasury bills, certificates of deposit and other securities, which, at the time of purchase, mature within a period of greater than three months but less than one year. These investments are generally priced by independent pricing services using the techniques described for U.S. government and government agency securities and Corporate debt securities described above.

The Company values its investments in limited partnerships, including its investments in related party investment funds, at fair value. The Company has elected the practical expedient for fair value for these investments which is estimated based on the Company's share of the net asset value ("NAV") of the limited partnerships, as provided by the independent fund administrator, as the Company believes it represents the most meaningful measurement basis for the investment assets and liabilities. The NAV represents the Company's proportionate interest in the members' equity of the limited partnerships.

The fair value of the Company's investments in certain hedge funds and certain private equity funds are also determined using NAV. The hedge fund's administrator provides quarterly updates of fair value in the form of the Company's proportional interest in the underlying fund's NAV, which is deemed to approximate fair value, generally with a three month delay in

valuation. The private equity funds provide monthly, quarterly, or semi-annual partnership capital statements primarily with a one or three month delay which are used as a basis for valuation. These private equity investments vary in investment strategies and are not actively traded in any open markets. Due to a lag in reporting, some of the fund managers, fund administrators, or both, are unable to provide final fund valuations as of the Company's reporting date. This includes utilizing preliminary estimates reported by its fund managers and using other information that is available to the Company with respect to the underlying investments, as necessary.

In order to assess the reasonableness of the NAVs, the Company performs a number of monitoring procedures on a monthly, quarterly and annual basis, to assess the quality of the information provided by the investment manager and fund administrator underlying the preparation of the NAV. These procedures include, but are not limited to, regular review and discussion of the fund's performance with the investment manager.

These investments are included in investment in funds valued at NAV and excluded from the presentation of investments categorized by the level of the fair value hierarchy.

Level 3 valuations are generated from techniques that use assumptions not observable in the market. These unobservable assumptions reflect the Company's assumptions, that market participants would use in valuing the investment. Generally, certain securities may start out as Level 3 when they are originally issued but as observable inputs become available in the market, they may be reclassified to Level 2.

The Company employs a number of procedures to assess the reasonableness of the fair value measurements for its other long-term investments, including obtaining and reviewing the audited annual financial statements of hedge funds and private equity funds and periodically discussing each fund's pricing with the fund manager. However, since the fund managers do not provide sufficient information to evaluate the pricing inputs and methods for each underlying investment, the inputs are considered to be unobservable.

The fair values of the Company's investments in private equity securities, private debt instruments, certain private equity funds, and certain hedge funds have been classified as Level 3 measurements. Private equity securities and private debt instruments are initially valued based on transaction price and their valuation is subsequently estimated based on available evidence such as a market transaction in similar instruments and other financial information for the issuer.

For strategic investments carried at fair value, management either engages a third-party valuation specialist to assist in determination of the fair value based on commonly accepted valuation methods (i.e., income approach, market approach) as of the valuation date or performs valuation internally. In addition, investors fair value analyses prepared by third party valuation specialists working with strategic investment operating management are referenced where available. Where criteria to be accounted for under the equity method is not met, we have elected to value our strategic investments at the cost adjusted for market observable events less impairment method, a measurement alternative in which the investment is measured at cost and remeasured to fair value when determined to be impaired or upon observable transactions prices becoming available.

See Note 8 for additional information on the fair values of derivative financial instruments used for both risk management and investment purposes.

Underwriting-related derivatives

Underwriting-related derivatives include reinsurance contracts that are accounted for as derivatives. These derivative contracts are initially valued at cost which approximates fair value. In subsequent measurement periods, the fair values of these derivatives are determined using internally developed discounted cash flow models. As the significant inputs used to price these derivatives are unobservable, the fair values of these contracts are classified as Level 3.

The following tables present the reconciliation of all investments measured at fair value using Level 3 inputs for the three months ended March 31, 2025 and 2024:

Realized and

January 1,

Transfers in to

Sales &

Unrealized Gains

March 31,

2025

(out of) Level 3

Purchases

Settlements

(Losses)(1)

2025

Assets

Other long-term investments

$ 86.6

$ - $ - $ -

$ 0.4

$ 87.0

Derivative assets

0.9

- - -

26.9

27.8

Total assets

$ 87.5

$ - $ - $ -

$ 27.3

$ 114.8

Liabilities

Derivative liabilities

$ (14.3)

$ - $ - $ 5.4

$ 2.8

$ (6.1)

Total liabilities

$ (14.3)

$ - $ - $ 5.4

$ 2.8

$ (6.1)

Realized and

January 1,

Transfers in to (out

Sales &

Unrealized Gains

March 31,

2024

of) Level 3

Purchases

Settlements

(Losses)(1)

2024

Assets

Other long-term investments

$ 169.7

$ - $ - $ -

$ 0.9

$ 170.6

Derivative assets

15.7

- - (4.6)

(9.7)

1.4

Total assets

$ 185.4

$ - $ - $ (4.6)

$ (8.8)

$ 172.0

Liabilities

Liability-classified capital instruments

$ (67.3)

$ - $ - $ -

$ (15.9)

$ (83.2)

Derivative liabilities

(6.4)

- - (1.1)

(13.1)

(20.6)

Total liabilities

$ (73.7)

$ - $ - $ (1.1)

$ (29.0)

$ (103.8)

(1) Total change in realized and unrealized gains (losses) recorded on Level 3 financial instruments is included in total net investment income and realized and unrealized investment gains in the consolidated statements of income. Realized and unrealized gains (losses) on liability-classified capital instruments are included in loss on settlement and change in fair value of liability-classified capital instruments, in the consolidated statements of income. See Note 8 for classifications of gains (losses) on derivatives.

For assets and liabilities that were transferred into Level 3 during the period, gains (losses) are presented as if the assets or liabilities had been transferred into Level 3 at the beginning of the period; similarly, for assets and liabilities that were transferred out of Level 3 during the period, gains (losses) are presented as if the assets or liabilities had been transferred out of Level 3 at the beginning of the period.

The following table includes financial instruments for which the carrying value differs from the estimated fair values as of March 31, 2025 and December 31, 2024. The fair values of the below financial instruments are based on observable inputs and are considered Level 2 measurements.

March 31, 2025 December 31, 2024

Fair Value

Carrying Value

Fair Value

Carrying Value

2024 Senior Notes

$ 417.2

$ 395.1

411.2

394.8

2017 SEK Subordinated Notes

251.8

268.4

228.7

244.3

Series B preference shares

$ 201.3

$ 200.0

$ 206.0

$ 200.0

‌6. Investments

The Company's invested assets consist of investment securities and other long-term investments held for general investment purposes. The portfolio of investment securities includes debt securities available for sale, debt securities held for trading, short-term investments, and other long-term investments which are classified as trading securities with the exception of debt securities held as available for sale. Realized investment gains and losses on debt securities are reported in pre-tax revenues. Unrealized investment gains and losses on debt securities are reported based on classification. Trading securities flow through pretax revenues, whereas securities classified as available for sale ("AFS") flow through other comprehensive income.

For debt securities classified as AFS for which a decline in the fair value between the amortized cost is due to credit-related factors, an allowance is established for the difference between the estimated recoverable value and amortized cost with a corresponding impact to the consolidated statements of income. The allowance is limited to the difference between amortized cost and fair value. A credit loss impairment assessment is performed on securities using both quantitative and qualitative factors. Qualitative factors include significant declines in fair value below amortized cost. Additionally, a qualitative assessment is also performed over debt securities to evaluate potential credit losses. Examples of qualitative indicators include issuer credit downgrades as well as changes to credit spreads.

Declines in fair value related to a debt security that do not relate to a credit loss are recorded as a component of accumulated other comprehensive income.

The following tables provide the cost or amortized cost, gross unrealized investment gains (losses), net foreign currency losses, and fair value of the Company's debt securities as of March 31, 2025 and December 31, 2024:

March 31, 2025

Cost or amortized cost

Gross unrealized gains

Gross unrealized losses

Net foreign currency losses

Fair value

Asset-backed securities $ 1,001.5 $ 9.6 $ (3.3) $ - $ 1,007.8

Residential mortgage-backed securities 930.1 11.8 (10.9) - 931.0

Corporate debt securities 1,615.3 15.9 (5.4) (7.5) 1,618.3

Commercial mortgage-backed securities 172.2 2.3 (0.5) - 174.0

U.S. government and government agency 875.4 7.4 (1.4) - 881.4

4,617.0 $

47.2 $

(21.5) $

(7.5) $

4,635.2

Asset-backed securities

20.0 $

- $

(0.9) $

- $

19.1

Commercial mortgage-backed securities

46.3

0.3

(3.9)

42.7

U.S. government and government agency

4.3

(0.2)

4.1

Corporate debt securities 15.5 - (11.7) - 3.8

Residential mortgage-backed securities 54.8 0.1 (7.0) - 47.9

Non-U.S. government and government agency 22.5 0.2 - - 22.7

December 31, 2024

Cost or amortized cost

Gross unrealized gains

Gross unrealized losses

Net foreign currency losses

Fair value

Residential mortgage-backed securities 985.8 8.3 (20.3) - 973.8

Asset-backed securities $ 1,142.7 $ 11.2 $ (4.2) $ - $ 1,149.7

Corporate debt securities 1,905.2 9.1 (10.4) (4.0) 1,899.9

Commercial mortgage-backed securities 224.2 1.4 (1.1) - 224.5

U.S. government and government agency 861.0 2.2 (4.2) - 859.0

5,143.8 $

32.3 $

(40.2) $

(4.9) $

5,131.0

Asset-backed securities

54.7 $

- $

(1.6) $

- $

53.1

Commercial mortgage-backed securities

56.8

0.5

(5.5)

51.8

U.S. government and government agency

4.3

(0.3)

4.0

Corporate debt securities 15.1 0.1 (10.6) - 4.6

Residential mortgage-backed securities 56.4 - (7.7) - 48.7

Non-U.S. government and government agency 24.9 0.1 - (0.9) 24.1

(1) As of March 31, 2025, the Company the company did not record an allowance for credit losses on the AFS portfolio (December 31, 2024 - $1.1 million).

As of March 31, 2025, 461 unique debt securities classified as AFS were in a gross unrealized loss position for greater than 12 months (December 31, 2024 -518 unique debt securities). Refer to the tables below for the Company's breakdown of AFS debt securities in a gross unrealized loss position as of March 31, 2025 and December 31, 2024.

March 31, 2025

12 Months or Less Greater than 12 Months Total

Fair value

Gross unrealized losses

Fair value

Gross unrealized losses

Fair value

Gross unrealized losses

Debt securities, available for sale

Asset-backed securities

$ 246.2

$ (1.1)

$ 37.6

$ (2.2)

$ 283.8

$ (3.3)

Residential mortgage-backed securities

195.7

(2.1)

223.2

(8.8)

418.9

(10.9)

Commercial mortgage-backed securities

45.1

(0.2)

6.0

(0.4)

51.1

(0.6)

Corporate debt securities

312.4

(5.2)

25.1

(0.2)

337.5

(5.4)

U.S. government and government agency

112.4

(0.7)

43.5

(0.6)

155.9

(1.3)

Total debt securities, available for sale

$ 911.8

$ (9.3)

$ 335.4

$ (12.2)

$ 1,247.2

$ (21.5)

December 31, 2024

12 Months or Less Greater than 12 Months Total

Fair value

Gross unrealized losses

Fair value

Gross unrealized losses

Fair value

Gross unrealized losses

Debt securities, available for sale

Asset-backed securities

$ 180.4

$ (1.8)

$ 23.8

$ (2.4)

$ 204.2

$ (4.2)

Residential mortgage-backed securities

437.4

(7.9)

223.9

(12.4)

661.3

(20.3)

Commercial mortgage-backed securities

67.4

(0.7)

7.5

(0.4)

74.9

(1.1)

Corporate debt securities

738.5

(10.0)

46.8

(0.4)

785.3

(10.4)

U.S. government and government agency

247.2

(3.0)

62.7

(1.2)

309.9

(4.2)

Total debt securities, available for sale

$ 1,670.9

$ (23.4)

$ 364.7

$ (16.8)

$ 2,035.6

$ (40.2)

The weighted average duration of the Company's debt securities, net of short positions in U.S. treasuries, as of March 31, 2025 was approximately 3.0 years, including short-term investments (December 31, 2024 - approximately 3.1 years).

Disclaimer

SiriusPoint Ltd. published this content on May 08, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2025 at 12:16 UTC.