AM Best has reaffirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) for the rated operating subsidiaries of SiriusPoint Ltd. (SiriusPoint) (Bermuda) [NYSE: SPNT]. Additionally, the Long-Term ICR of “bbb-” (Good) of SiriusPoint, a non-operating holding company, has also been affirmed. These ratings maintain a stable outlook. The listed companies and ratings are detailed below.
The ratings reflect SiriusPoint’s robust consolidated balance sheet strength, rated as very strong by AM Best, alongside its satisfactory operating performance, neutral business profile, and effective enterprise risk management. The ratings of the group’s operating subsidiaries consider their strategic significance to SiriusPoint.
SiriusPoint’s strong balance sheet is supported by its risk-adjusted capitalization, which stood at its strongest level as of year-end 2023, measured by Best’s Capital Adequacy Ratio (BCAR). This evaluation also acknowledges the substantial reduction of risk in SiriusPoint’s asset base throughout 2022 and 2023, achieved through the redemption of over USD 600 million from related party investment funds and reinvestment into high-quality fixed income securities. Consequently, cash and fixed income securities constituted 94% of SiriusPoint’s investment portfolio by year-end 2023, up from 79% in 2021. A partially offsetting factor is the group’s limited capital fungibility due to a significant, although diminishing, portion of consolidated available capital being held as a safety reserve in the group’s Sweden subsidiary.
As of year-end 2023, SiriusPoint recorded a profitable underwriting result, with a 93% combined ratio (as calculated by AM Best), a significant improvement from the previous year’s 107%. AM Best anticipates SiriusPoint’s future underwriting results to remain profitable with reduced volatility as its management continues to adjust the business mix away from catastrophe-exposed property business toward less volatile accident and health and specialty lines. SiriusPoint reported a robust pre-tax profit of USD 319 million in 2023, benefiting from improved underwriting and investment income, the release of USD 105 million of reserves following the completion of a loss portfolio transfer, and a one-time deferred tax benefit of USD 101 million attributable to the enactment of the Bermuda corporate income tax.
SiriusPoint’s neutral business profile reflects its position as a mid-tier global (re)insurer, operating from platforms in Europe, the United States, Bermuda, and at Lloyd’s. The group boasts a good level of diversification by line of business, expected to enhance further as it executes its business plan.
The FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) have been affirmed, with stable outlooks for the following subsidiaries of SiriusPoint Ltd.:
- SiriusPoint America Insurance Company
- SiriusPoint Bermuda Insurance Company Ltd.
- SiriusPoint International Insurance Corporation (publ)
- SiriusPoint Specialty Insurance Corporation
This press release pertains to Credit Ratings published on AM Best’s website. For comprehensive rating information and relevant disclosures, including details of the office responsible for issuing each rating, please refer to AM Best’s Recent Rating Activity web page. For additional details on the utilization and limitations of Credit Rating opinions, please consult Guide to Best’s Credit Ratings. For guidance on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments, and AM Best press releases, please refer to Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company operates in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore, and Mexico City. For more information, visit www.ambest.com
