Fitch Ratings has affirmed the ratings of SiriusPoint Ltd, including its long-term issuer default rating at “BBB”, its senior debt rating at “BBB-” and its insurer financial strength rating at “A-” (Strong) of SiriusPoint’s subsidiaries.

It has also revised the firm’s outlook to positive from stable.

Fitch said: “The positive outlook reflects significant underwriting performance improvement in 2024 and 2023 as a result of repositioning the reinsurance portfolio and exiting noncore lines in order to improve profitability and reduce overall volatility.”

Key drivers of the ratings included the completed transaction for the full repurchase of all outstanding shares and warrants from CM Bermuda Limited, as well as solid underwriting results in both 2024 and 2023.

Fitch anticipated the favourable underwriting results would continue while the company expected to grow its business, particularly in primary insurance.

The ratings agency also recognised SiriusPoint’s strong financial performance of $184 million in net income for 2024, while citing its “strong operating income from underwriting profits, increased investment income and a gain of $9 million on the deconsolidation of a managing general agency”.

SiriusPoint chief executive Scott Egan said Fitch’s decision to improve SiriusPoint’s outlook to positive followed nine consecutive quarters of strong operating performance.

“The outlook revision validates the measurable progress we have made in repositioning our business, building out a successful underwriting platform, and growing a track record of performance, while also strengthening and simplifying our capital structure,” Mr Egan said.

He said this decision was a reflection of the contribution and hard work of the global team.

“We look forward to continuing our momentum towards additional favourable outcomes for the company and its stakeholders,” he said.