Investment losses overshadowed positive underwriting results as Bermudian-based global re/insurer SiriusPoint Ltd reported a net loss of $217 million in the first quarter of the year.

That compared with net income of $168.4 million in the prior year first quarter.

A net investment loss of $205 million included a minus 15.3 per cent return from the company’s investment in the Third Point Enhanced Fund.

Consolidated underwriting income for the quarter was $33.5 million compared with underwriting income of $8.5 million for the first three months of 2021.

The change in underwriting results was due to higher earned premiums of $529.3 million for the quarter with a 93.7 per cent combined ratio compared with earned premiums of $245.2 million with a combined ratio of 96.5 per cent for the prior year first quarter.

Tangible diluted book value per share decreased $1.39, or 10.5 per cent, from the fourth quarter of 2021 to $11.88.

Catastrophe losses were $7 million or one percentage point on the combined ratio.

Russia/Ukraine losses were $19 million or four percentage points on the combined ratio.

First-quarter gross premiums written of $1 billion were evenly split between insurance and reinsurance on execution of a strategic shift towards insurance & services.

The annualised return on average common equity was minus 39.5 per cent.

Sid Sankaran, chairman and chief executive officer, said: “Our underwriting results showed positive progress in the first quarter of 2022, with a 93.7 per cent combined ratio, reflecting the diligent execution of our strategic priorities to transform our business.

“Our focus on shifting our business mix towards our promising insurance and services segment and strategic partnerships approach gained further traction this quarter, with premiums split almost equally between insurance & services and reinsurance, compared to approximately 60 per cent reinsurance and 40 per cent insurance & services in 2021.

“Our fee business has strong double-digit sequential growth in revenue and income. We also saw progress in our reinsurance segment, where we achieved profitable underwriting performance, reflective of the discipline with which we have approached the renewal of attractive business within the scope of our risk appetite.

“Our investment results were disappointing and reducing volatility in our investment portfolio remains a strategic priority.

“We redeemed $100 million from the Third Point Enhanced Fund during the quarter following $450 million of redemptions in the fourth quarter of 2021. We intend to continue the redemption of funds from the Third Point Enhanced Fund.

“We see significant intrinsic value in our share price following the meaningful restructuring work we have undertaken, and we repurchased $5 million of common stock in the first quarter.

“We see positive momentum in our performance as we move towards the midpoint of the year. The capital position of the company is strong, and we have a high degree of financial flexibility that allows for a responsive and nimble approach to market opportunities as we continue to grow insurance & services and our MGA relationships.”

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SiriusPoint Ltd Reports First Quarter Results.pdf