AM Best has revised its outlook to ‘positive’ from stable for SiriusPoint and its subsidiaries, while affirming their financial strength rating of ‘A-’ (Excellent) and long-term issuer credit ratings of ‘a-’ (Excellent).
The ratings reflect SiriusPoint’s very strong consolidated balance sheet strength, adequate operating performance, neutral business profile, and appropriate enterprise risk management.
The revised outlook is based on improvements to SiriusPoint’s balance sheet fundamentals, following management actions including the derisking of its investment portfolio, a reduction in catastrophe exposure, and the buy-back of shares and warrants previously held by CM Bermuda.
AM Best expects SiriusPoint to maintain risk-adjusted capitalisation at the strongest level, supported by prudent capital management, effective underwriting exposure controls and positive operating results.
SiriusPoint’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which remained at the strongest level at the end of 2024, according to Best’s Capital Adequacy Ratio (BCAR).
The group’s investment portfolio, composed mainly of cash and high-quality fixed income securities at the end of 2024, supports its balance sheet strength.
A partially offsetting factor is SiriusPoint’s limited capital fungibility, as a significant portion of its capital is held as a safety reserve within its Swedish subsidiary, though this reliance is gradually decreasing.
SiriusPoint achieved positive underwriting results in 2023 and 2024, a notable turnaround compared to earlier years when net combined ratios were consistently above 100 per cent.
AM Best anticipates that underwriting profitability will continue, with reduced volatility as SiriusPoint shifts its business mix away from catastrophe-exposed property towards less volatile accident, health, and specialty lines.
The group posted a pre-tax profit of US$233 million in 2024, driven by underwriting gains, reserve releases of around US$108 million, and strong investment income, partially offset by one-off costs from the share buyback and asset sales.
SiriusPoint’s neutral business profile reflects its position as a mid-sized global (re)insurer operating across Europe, US, Bermuda, and Lloyd’s.
The group reported gross written premiums of US$3.2 billion in 2024, maintaining a good level of diversification across its lines of business.
The subsidiaries with affirmed ratings and revised outlooks include SiriusPoint America Insurance Company, SiriusPoint Bermuda Insurance Company, SiriusPoint International Insurance Corporation, and SiriusPoint Specialty Insurance Corporation.
