SiriusPoint Ltd. has reported a strong start to 2024, with a core combined ratio of 91.4%, representing a 5% improvement over the prior year, excluding the loss portfolio transfer, and a 2.2% growth in book value per diluted share to $13.64. The company also saw improvements in net investment income, which was strong at $78.8 million, and net service fee income from consolidated MGAs increased by 8.2% with an improved service margin of 30.1%.
The first quarter of 2024 saw net income available to SiriusPoint common shareholders at $90.8 million, or $0.49 per diluted common share, with core income of $62.4 million, including underwriting income of $44.3 million and a core combined ratio of 91.4%. The return on average common equity was reported at 15.4%.
The company has successfully completed debt restructuring, reducing its financial leverage by approximately 2.5 points, which is expected to further improve the Q4’23 BSCR estimate of 255% by around 20 points. Furthermore, SiriusPoint has provided a medium-term return on equity (ROE) guidance of 12-15%, and the first quarter performance appears on track to meet this improved ROE guidance.
In terms of specific financial metrics, the following key figures for the three months ended March 31, 2024, and 2023 were reported: Combined ratio: 84.9% in 2024, compared to 73.8% in 2023 Core underwriting income: $44.3 million in 2024, down from $107.4 million in 2023 Core net services income: $18.1 million in 2024, compared to $16.7 million in 2023 Core income: $62.4 million in 2024, down from $124.1 million in 2023 Core combined ratio: 91.4% in 2024, up from 80.5% in 2023 Annualized return on average common shareholders’ equity: 15.4% in 2024, down from 27.0% in 2023 * Book value per diluted common share: $13.64 in 2024, compared to $13.35 in 2023
The company's reportable segments consist of reinsurance and insurance & services. Reinsurance generated underwriting income of $39.9 million (84.2% combined ratio) in the first quarter of 2024, down from $79.7 million (69.3% combined ratio) in the same period of 2023. The insurance & services segment generated segment income of $22.5 million in 2024, compared to $44.2 million in 2023.
In terms of core premium volume, gross premiums written decreased by $179.5 million, or 16.9%, to $880.7 million for the three months ended March 31, 2024, compared to $1,060.2 million for the same period in 2023. Net premiums earned decreased by $32.9 million, or 6.0%, to $517.8 million in 2024, compared to $550.7 million in 2023.
Today the company's shares have moved -1.9% to a price of $11.78. If you want to know more, read the company's complete 8-K report here.
