Overview of SiriusPoint’s Achievements in 2024
In a recent interview with Reinsurance News, Scott Egan, CEO of SiriusPoint, emphasized that 2024 was a remarkable year of delivery for the firm, marking the completion of its repositioning as it aims to continue both growing and enhancing performance.
“We have significantly improved our balance sheet and structure to be healthier, less complex and more able to support the future of the business. Our efforts are now focused on both growing the business and continuing to enhance performance,” Egan observed.
Key Accomplishments and Financial Performance
Egan continued, “I take great pride in the accomplishments of the SiriusPoint team, who have worked with commitment and dedication to produce improvements in our underlying results, quarter after quarter. I am immensely grateful for all that they do every day for our customers, partners and shareholders. I’m pleased with the results from 2024, but we are determined to push ourselves to be among the best-in-class operators in our sector.”
Discussing the year’s highlights, SiriusPoint’s CEO underlined the return of more than $1 billion to investors, along with a significant improvement in the quality of earnings. “If 2023 was the turnaround year for our underwriting and investment performance, 2024 was the year of major reshaping for SiriusPoint. We have been focused on repositioning the company for the future, as well as executing on our underwriting first strategy,” Egan explained.
The firm reported a 2024 core income of $244.6 million, including underwriting income of $200 million, with a core combined ratio of 91%.
Future Outlook and Challenges
Egan continued, “The Company is now in great health, and we are stepping into 2025 in a strong position. The test this year will now be to take this performance and do even better – and I know we can achieve more.”
Commenting on the impact of recent catastrophes on SiriusPoint, Egan discussed the California wildfires, noting that one of the firm’s key roles is to assist those affected in rebuilding their lives. “We will be doing our best to ensure we fully support our customers throughout this process, ensuring wildfire claims are paid as quickly as possible. Our thoughts go out to those who have been affected,” Egan said.
He went on, “The California wildfires look set to be the costliest wildfire in history, with industry loss estimates ranging from $30 billion to $50 billion. At present the estimate for our net pre-tax losses relating to wildfires is $60 million to $70 million. These wildfires are a devastating reminder of why the re-rating occurred and was necessary within property catastrophe reinsurance during the 2023 renewals. We expect that the high single digit rate decreases seen at 1/1 will now moderate for the remainder of renewals in 2025.”
MGA Strategy and Future Plans
SiriusPoint’s CEO also gave some insight into the firm’s MGA strategy, which reportedly continues to strengthen, with 19 new or expanded distribution partnerships entered into during 2024, more than double the number in 2023. “We believe our approach and the infrastructure and capabilities we are building in both underwriting and our MGA Centre of Excellence means we are making good progress towards our ambition to become the preferred partner for delegated business,” Egan added.
He concluded, “We continue to rationalize the number of equity stakes we have in MGAs as we believe we don’t need to own distribution to be a good underwriting partner. We have 20 equity stakes remaining in these investments, down from 36 at the start of 2023. We will continue to try and reduce the number further in 2025. In 2022, the value of the non-consolidated MGA investments on our balance sheet was around $265 million – that is now down to $105 million.
“Business being written under delegated authority continues to increase in its market share, as MGAs become an increasingly important link in the Insurance ecosystem. The capabilities we are developing aim to put us firmly front and center to capitalize and benefit from this distribution channel in the underwriting areas where we have expertise.”
