CORRECTED-Bermuda's SiriusPoint Q4 net income rises

Reuters02-19
CORRECTED-Bermuda's SiriusPoint Q4 net income rises

Corrects Q4 gross premiums to $898.3 mln from $556 mln, and correctly labels net income as operating net income in Key Details; changes net income to $244.1 mln from $240 mln in Overview

Overview

  • Bermuda-based insurance underwriter's Q4 gross written premiums grew 17.6% yr/yr

  • Net income for Q4 rises to $244.1 mln, marking substantial improvement

Outlook

  • SiriusPoint plans to repurchase $100 mln of common shares over the next 12 months

  • Company expects leverage ratio to drop to historic low of 23% post Series B redemption

Result Drivers

  • PREMIUM GROWTH - Gross written premium increased by 17.6% in Q4, driven by expansion in Surety and growth across Accident & Health

  • UNDERWRITING IMPROVEMENT - Q4 underwriting income improved due to decreased catastrophe losses and premium growth, despite lower favorable prior year loss reserve development

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Gross Premiums

$898.3

Q4 Operating Net Income

Beat

$85.80 mln

$62.65 mln (2 Analysts)

Q4 Combined Ratio

90%

Q4 Core Combined Ratio

92.9%

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the reinsurance peer group is "buy"

  • Wall Street's median 12-month price target for Siriuspoint Ltd is $23.50, about 12% above its February 17 closing price of $20.99

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNX3jQJ49

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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