An AM Best ratings upgrade for SiriusPoint, the Bermuda-based insurer and reinsurer, signalled that its improvements were paying off, the company said.

SiriusPoint’s balance sheet received a boost after the company paid $733 million to repurchase all shares and warrants from CM Bermuda Ltd. Although this reduced reported equity to $1.9 billion from $2.5 billion, AM Best expects the company to quickly rebuild its capital through earnings retention.

SiriusPoint also turned around its underwriting performance. After years of net combined ratios above 100 per cent, it posted profits in 2023 and 2024, helped by a move away from catastrophe-prone property business into accident, health and speciality lines.

In 2024, SiriusPoint recorded a pre-tax profit of $233 million, supported by strong underwriting results and reserve releases.

AM Best said the revision reflected SiriusPoint’s “improved balance sheet strength” after management reduced catastrophe risk, derisked its investment portfolio and bought back shares from troubled former shareholder CM Bermuda Ltd.

“This outlook revision is a reflection of our journey towards stability, underwriting profitability and becoming a best-in-class insurer and reinsurer,” said Scott Egan, the chief executive of SiriusPoint. “This is further recognition of SiriusPoint’s achievements and the work we have done to reshape our future.”

AM Best said SiriusPoint’s risk-adjusted capitalisation was at its “strongest level” at the end of 2024 and praised the company’s “prudent capital management, effective underwriting exposure management and positive operating results”.

AM Best concluded: “The ratings reflect SiriusPoint’s consolidated balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.”

AM Best has revised its outlook on SiriusPoint from “stable” to “positive”. The Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" (Excellent) for SiriusPoint’s main subsidiaries were affirmed.

Last month, Fitch Ratings also revised its outlook on SiriusPoint to positive, pointing to similar improvements.