Bermuda-headquartered SiriusPoint Ltd has declared reduced first quarter profits of nearly $91 million compared to nearly $132 million for the three months to March last year.

The company reported the net income and sixth consecutive quarter of underwriting profits, along with significant progress in further optimising the balance sheet.

Gross premiums written were $906.6 million (2023 Q1:$1.1 billion)

The core combined ratio was 91.4 per cent, a 5 per cent improvement over the prior year period, excluding the loss portfolio transfer.

Highlights also included the completion of debt restructuring, reducing the financial leverage and a 2.2 per cent growth in book value per diluted share to $13.64.

Scott Egan, chief executive officer, said: “Building on the momentum from 2023, we report our sixth consecutive quarter of positive underwriting result. Combined ratio for the core operations is 91.4 per cent, a 5 per cent improvement over prior year, while net income is $90.8 million for the quarter.

“We also saw improvement in our investment and fee results. Net investment income was strong at $78.8 million and tracking higher than our FY 2024 guidance.

“Net service fee income from our consolidated (Managing General Agents) increased by 8.2 per cent with an improved service margin of 30.1 per cent.

“We continued to rationalise our equity stakes in MGAs which are now down to 24, compared to 36 at the start of 2023. We have also added five new distribution partnerships since the start of 2024 providing further evidence of our intent to grow in our targeted areas during the year and into 2025.

“During the quarter we made significant progress in further optimising our balance sheet. We refinanced $400 million of legacy senior notes and redeemed $115 million of legacy senior notes. Together these transactions will reduce our financial leverage by approximately 2.5 points and improve our 2023 Q4 (Bermuda Solvency Capital Requirement) estimate of 255 per cent by a further c.20 points. This will make our balance sheet even stronger.

“Overall, we are seeing good progress as we continue to execute strongly against our strategic priorities. Our first quarter performance is on track to meet our improved (return on equity) guidance of 12 per cent-15 per cent. Our focus is to maintain this momentum and continue to improve our performance throughout the year.”

The consolidated underwriting income for the three months was down to $89.6 million compared to $156.5 million for the three months ended March 31, 2023.

The company said the decrease was driven by lower favourable prior year loss reserve development. Favourable prior year loss reserve development for last year’s first quarter included $101.6 million driven by reserving analyses performed in connection with the 2023 loss portfolio transfer.

Excluding that, net underwriting income increased by $33.9 million over the comparative period primarily driven by a lower other underwriting expense ratio resulting from the cost savings programme and lower attritional losses, as well as no catastrophe losses for this year’s first quarter compared to $12.9 million for the three months ended March 31, 2023.

The full earnings statement is here.