Interim CEO Malloy says the firm is continuing to ”prioritise the improvement of its Reinsurance underwriting results”

SiriusPoint has reported a net loss of $61m for the second quarter of 2022 and a net loss of $278m for the first half of the year. Its combined ratio was 93.4% for H1.

Interim CEO, Dan Malloy, said: “Our performance this quarter reflects the strides we are making to transform our business. We continue to prioritise the improvement of our Reinsurance underwriting results and the growth of our Insurance & Services segment, which was a strong contributor to our underwriting profit this quarter.

While the economic environment impacted our investment returns this quarter, we have made significant progress de-risking our investment portfolio to reduce volatility going forward. We have a strong and stable balance sheet and we believe we are in a good position to capitalise on a rising rate environment.

I am excited by the opportunity ahead for SiriusPoint and proud to oversee our work and the progress we have achieved. I am confident that SiriusPoint remains on the right path to deliver long-term, sustainable and profitable growth.”

Cat losses dent reinsurance returns

For the group’s reinsurance segment, segment income was $2.9 million (99.6% combined ratio) for the six months of 2022, compared to segment income of $45.3 million (91.6% combined ratio) for the six months of 2021.

The change in net underwriting results was due to higher catastrophe losses, higher prior period adverse loss development, and a business mix shift to casualty lines, which carry higher attritional loss ratios than property lines excluding catastrophe losses.

Total realised and unrealised investment gains (losses) and net investment income was $(346.6) million for the six months, compared to $263.9 million for the six months ended June 30, 2021.

Investment results for the six months ended June 30, 2022 were primarily attributable to a net investment loss of $185.6 million from the company’s investment in the TP Enhanced Fund. The losses were partially offset by contribution from interest rate hedges and single name short equity positions. 

In May, SiriusPoint announced that Siddhartha (Sid) Sankaran, chairman and CEO, had resigned from the company to pursue other opportunities.

The board named Daniel Malloy as interim chief executive officer while it initiates a search for a permanent successor, and current director Sharon Ludlow as interim chair of the board of directors.