SiriusPoint (SPNT) Q4 2023 earnings summary

Executive summary

• FY23 Core underwriting income was $250.2m versus a $35m loss in FY22; Core combined ratio was 89.1%, and net income available to common shareholders was $338.8m.

• Net investment income was $283.7m, exceeding guidance; ROE was 16.2%, or 10.2% excluding one-off items.

• Restructuring concluded, cost savings exceeded $50m a year ahead of schedule, and the business emerged more focused on underwriting; medium-term ROE target is 12–15%.

• FY23 marked the fifth consecutive quarter of positive underwriting results, with record underwriting profits, net services fee income and net income.

Financial highlights

• FY23 GPW was $3.311bn, down 3% YoY; NPW was $2.344bn, and common shareholders’ equity ended at $2.314bn, up 23% YoY.

• FY23 net income available to common shareholders was $338.8m, or $1.85 per diluted share; total revenue was $2,737.3m.

• FY23 consolidated underwriting income was $375.9m versus $83.3m in FY22; consolidated combined ratio improved to 84.5% from 96.4%.

• FY23 total investment result was $272.7m versus a $322.7m loss in FY22; net realized and unrealized losses, including related-party funds, were $11m.

• Q4 net income available to common shareholders was $93.5m, or $0.50 per diluted share; FY23 included a $101.6m Bermuda tax-related deferred tax benefit.

Outlook and guidance

• 2024 net investment income guidance is $250m–$265m, based on current forward yield curves, versus $283.7m in FY23.

• Medium-term ROE target is 12–15%; FY23 ROE was 16.2%, or 10.2% excluding one-off items.

• 2024 growth in targeted areas is expected to be offset by final 2023 portfolio actions, including in Workers’ Comp and Cyber; underwriting results remain the priority over premium growth.

• 2024 priorities include building on FY23 profitability and continuing to improve returns following completion of restructuring.