Earnings Document

SiriusPoint Announces Fourth Quarter and Full Year 2021 Earnings Results

HAMILTON, Bermuda, February 24, 2022 - SiriusPoint Ltd. ("SiriusPoint" or the "Company") (NYSE:SPNT) today announced results for its fourth quarter ended December 31, 2021.

Fourth Quarter 2021 Highlights

• Net loss of $140 million, or $0.88 per diluted common share
• Tangible diluted book value per share decreased $0.80, or 5.7%, from the third quarter of 2021 to $13.27
• Core loss of $7 million, which includes underwriting income of $35 million and Core combined ratio of 93.6%, offset by a Core net services loss of $41 million
• Core catastrophe losses were $24 million or 5 percentage points on the Core combined ratio
• Annualized retuon average common equity of (23.7)%
• Net investment loss of $151 million, including (7.5)% retufrom our investment in the TP Enhanced Fund

Full Year 2021 Highlights

• Net income of $45 million, or $0.27 per diluted common share
• Tangible diluted book value per share decreased $3.44, or 20.6%, from December 31, 2020 to $13.27
• Core loss of $163 million, which includes an underwriting loss of $174 million and Core combined ratio of 110.0%, partially offset by Core net services income of $11 million
• Core catastrophe losses were $326 million or 19 percentage points on the Core combined ratio
• Retuon average common equity of 2.3%
• Net investment income of $313 million, including 27.9% retufrom our investment in the TP Enhanced Fund

Sid Sankaran, Chairman and Chief Executive Officer, SiriusPoint, said: "In 2021 we made significant progress in dramatically reshaping our company. Our strategy is focused on a comprehensive re-underwriting of the property and casualty reinsurance portfolio, building value in a newly formed Insurance & Services segment, including our robust and growing MGA platform, and repositioning our capital allocation within our investment portfolio. We believe these actions will reduce our volatility profile and build long-term, differentiated, and sustainable value.

Our underwriting results for the year reflect a historical overexposure to Cat risk and legacy hedge fund re equity exposure. They are not in line with our expectations, but I am pleased with the significant progress we have made towards re -engineering our business. We have cut our Cat exposure dramatically, reallocated capital to more attractive opportunities, and reduced our risk profile. As a result of these changes, we now have a smaller global property book, an improving and differentiated global specialty and casualty business, and a continuing mix shift from reinsurance to insurance.

We enjoyed superior returns from our investment portfolio in the first three quarters of the year. The fourth quarter results reflected poor performance in the broader equity markets, during which we completed a planned reallocation of $450 million from hedge fund exposure to cash and fixed income investments, with an additional $100 million reallocation in Q1 2022. We have amended the investment management agreement with Third Point LLC to facilitate the transformation of our investment portfolio from equity to fixed income that is in line with our risk appetite and the strategic direction of the company. Our plan is to reduce capital intensity and volatility on the asset side. This frees up capital to support the growth of our Insurance & Services business.

Going into 2022, our focus remains on pursuing profitable and sustainable growth, and continuing to shift our business mix as we execute our Insurance & Services strategy. We have financial strength, a flexible underwriting and operating platform, a strong entrepreneurial culture, and a disciplined growth mindset. I am full of enthusiasmfor the year ahead."

Key Financial Metrics

The following table shows certain key financial metrics for the three and twelve months ended December 31, 2021 and 2020:

1. Core underwriting income (loss), Core net services income (loss), Core loss and Core combined ratio are non -GAAP financial measures. See definitions in "Non-GAAP Financial Measures" and reconciliations in "Segment Reporting". Basic book value per share, t angible basic book value per share, diluted book value per share and tangible diluted book value per share are non-GAAP financial measures. See definitions and reconciliations in "Non- GAAP Financial Measures".
2. In the year ended December 31, 2021, we changed the method for calculating the dilutive effect of restricted shares, restricted share units and options to calculate the dilutive impact in a manner similar to how dilution is calculated using the treasury stock method for earnings per share. All prior periods presented have been revised to conform to this new presentation. See "Non-GAAP Financial Measures" for additional information.

Fourth Quarter 2021 Summary

Reportable Segments

As a result of the acquisition of Sirius Group and the subsequent changes in strategy and new executive management team, SiriusPoint reports on two operating segments effective as of the fourth quarter of 2021: Reinsurance and Insurance & Services. Previously, we managed our business in four reportable segments: Specialty, Accident & Health ("A&H"), Property, and Runoff

• Other. This change better reflects the management structure of SiriusPoint, provides greater transparency into the growing contribution from our managing general agents ("MGAs") and other strategic partnerships, and reflectsour decision to exit the runoff business. Where applicable, all prior periods presented have been revised to conform to this new presentation.

Core Results

Collectively, the sum of our two segments, Reinsurance and Insurance & Services, constitute our "Core" results. Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. See reconciliations in "Segment Reporting". We believe it is important to review Core results as it better reflects how management views the business and reflectsour decision to exit the runoff business. The sum of Core results and Corporate results are equal to the consolidated results of operations.

Effective January 1, 2021, the Company changed its accounting policy for assumed written premiums. Previously, the Company estimated ultimate premium written for the entire contract period and recorded this estimate at inception of the contract. The Company changed its accounting policy to recognize premiums written ratably over the term of the related policy or reinsurance treaty. The change in accounting policy had no impact on the previously reported net income (loss) or shareholders' equity attributable to SiriusPoint common shareholders. Prior period segment results have been revised to conform to the current period presentation.

Three months ended December 31, 2021 and 2020

Core results for the three months ended December 31, 2021 were a loss of $6.6 million, compared to a loss of $44.5 million for the three months ended December 31, 2020. The loss for the three months ended December 31, 2021 consists of

underwriting income of $34.7 million (93.6% combined ratio) and a net services loss of $41.3 million, compared to an underwriting loss of $44.8 million (128.2% combined ratio) and net services income of $0.3 million for the three monthsended December 31, 2020. The change in results was primarily driven by moderate catastrophe loss activity in the fourth quarter and favorable prior year loss development, partially offset by net investment losses from our strategic investments valued at fair value.

Catastrophe losses, net of reinsurance and reinstatement premiums, for the three months ended December 31, 2021 were $24.1 million, or 4.5 percentage points on the combined ratio, primarily related to the December tornadoes and other fourth quarter catastrophes. Catastrophe losses, net of reinsurance and reinstatement premiums, for the three months ended December 31, 2020 were $7.0 million, or 4.4 percentage points on the combined ratio, primarily related to Hurricane Delta and Hurricane Zeta.

Year ended December 31, 2021 and 2020

Core results for the year ended December 31, 2021 were a loss of $162.6 million for the year ended December 31, 2021, compared to a loss of $68.3 million for the year ended December 31, 2020. The loss for the year ended December 31, 2021 consists of an underwriting lossof $173.6 million (110.0% combined ratio) and net services income of $11.0 million, compared to an underwriting loss of $68.7 million (111.9% combined ratio) and net services income of $0.4 million for the year ended December 31, 2020. The change in results was primarily driven by catastrophe losses from the European floods and Hurricane Ida and a change in mix of business as a result of the acquisition of Sirius Group, partially offset by net favorable prior year loss reserve development.

Catastrophe losses, net of reinsurance and reinstatement premiums, for the year ended December 31, 2021 were $326.0 million, or 18.8 percentage points on the combined ratio, including $133 million for the European floods and $97 million for Hurricane Ida, based on our ground-up assessment of client exposed business to each event and a top -down estimate, based on industry loss for each event and an estimate of our market share, and other 2021 catastrophe events. Catastrophe losses, net of reinsurance and reinstatement premiums, for the year ended December 31, 2020 were $36.6 million, or 6.3 percentage points on the combined ratio, related to Hurricane Laura and other 2020 catastrophe events.

Reinsurance Segment

Three months ended December 31, 2021 and 2020

Reinsurance generated segment income of $30.9 million (91.2% combined ratio) for the three months ended December 31, 2021, compared to a segment loss of $46.0 million (129.4% combined ratio) for the three months ended December 31, 2020. The change in segment results was primarily driven by moderate catastrophe loss activity in the fourth quarter, a change in the mix of business as a result of the acquisition of Sirius Group and favorable prior year loss development of $11.9 million. The three months ended December 31, 2020 included net adverse prior year loss reserve development of $40.4 million as a result of increased casualty reserves in response to accumulated loss experience and cedent reserving increases.

Reinsurance gross premiumswritten were $418.8 million for the three monthsended December 31, 2021, an increase of $275.3 million compared to the three months ended December 31, 2020, primarily driven by an increase in premiumsof $305.4 million as a result of new premiums from the legacy Sirius Group companies.

Year ended December 31, 2021 and 2020

Reinsurance generated a segment loss of $196.6 million (116.3% combined ratio) for the year ended December 31, 2021, compared to a segment loss of $68.3 million (111.9% combined ratio) for the year ended December 31, 2020. The change in segment results was primarily driven by increased catastrophe losses from the European floods and Hurricane Ida, partially offset by favorable prior year loss development of $18.6 million.

Reinsurance gross premiums written were $1,350.4 million for the year ended December 31, 2021, an increase of $816.3 million compared to the year ended December 31, 2020, primarily driven by an increase in premiums of $928.7 million as a result of new premiums from the legacy Sirius Group companies from the date of acquisition. Excluding the premiums from the Sirius Group legacy companies, the decrease in gross premiums written was due to a reduction in property catastrophe excess reinsurance premiums to reduce catastrophic risk exposures in anticipation of the Sirius Group acquisition.

Insurance & Services Segment

Three months ended December 31, 2021 and 2020

Insurance & Services generated a segment loss of $37.5 million for the three months ended December 31, 2021, compared to segment income of $1.5 million for the three months ended December 31, 2020. The segment loss for the three months ended December 31, 2021 consists of underwriting income of $3.8 million (98.0% combined ratio) and a net services loss of $41.3 million, compared to underwriting income of $1.2 million (55.5% combined ratio) and net services income of $0.3 million for the three months ended December 31, 2020. The change in underwriting results was primarily driven by a change in mix of business from the growth in our strategic partnerships, and the net services loss was driven by investment losses from our strategic investments valued at fair value.

Insurance & Services gross premiums written were $269.9 million for the three monthsended December 31, 2021, an increase of $249.0 million compared to the three months ended December 31, 2020, primarily driven by an increase in premiums of $168.2 million as a result of new premiumsfrom the legacy Sirius Group companies and due to an increase in premiums written from our new MGA partnerships, in which we invest capital and expertise.

Year ended December 31, 2021 and 2020

Insurance & Services generated segment income of $34.0 million for the year ended December 31, 2021, compared to segment income of $nil for the year ended December 31, 2020. The segment income for the year ended December 31, 2021 consistsof underwriting income of $23.3 million (95.5% combined ratio) and net services income of $10.7 million, compared to a underwriting loss of $0.4 million (105.6% combined ratio) and net services income of $0.4 million for the year ended December 31, 2020. The change in underwriting results was primarily driven by underwriting and net services income from the legacy Sirius Group companiesfrom the date of acquisition and favorable prior year loss development of $13.5 million. The Accident

• Health line continues to benefit from favorable loss ratio trends in its healthcare products due to the recognition of lower healthcare utilization rates that we attribute to the COVID-19 pandemic.

Insurance & Services gross premiums written were $897.9 million for the year ended December 31, 2021, an increase of $872.4 million compared to the year ended December 31, 2020, primarily driven by an increase in premiums of $620.8 million as a result of new premiums from the legacy Sirius Group companies from the date of acquisition, and due to an increase in premium written from our new MGA partnerships.

Investments

Total realized and unrealized investment gains (losses) and net investment income (loss) was $(151.2) million for the three months ended December 31, 2021, compared to $204.8 million for the three months ended December 31, 2020.

Investment results for the three months ended December 31, 2021 were primarily due to a net investment loss of $100.4 million from our investment in the TP Enhanced Fund, corresponding to a (7.5)% return. The retuwas primarily attributable to long event/fundamental equities, led by financials, and in particular fintech positions. In addition, we also recognized $38.2 million of losses on alternative investments within our other long term investment portfolio.

Investment results for the three months ended December 31, 2020 were primarily attributable to net investment income of $186.6 million from our investment in the TP Enhanced Fund, corresponding to a 21.5% return.

For the year ended December 31, 2021, net investment income from the TP Enhanced Fund totaled $298.5 million, corresponding to a 27.9% return. The retuwas primarily attributable to long event/fundamental equities, in particular from private positions that executed well-received initial public offerings.

Loss Portfolio Transferwith the Compre Group

On October 29, 2021, we closed a loss portfolio transfer transaction ("LPT") with Pallas Reinsurance Company Ltd., a subsidiary of the Compre Group, an insurance and reinsurance legacy specialist. The LPT covers $362 million of our loss reserves for the subject business, including much of the legacy Sirius Group runoff portfolio, including asbestos and environmental lines, for a premium of $381 million. We recognized a net Corporate charge of $23 million, including $4 million of federal excise tax expense, in the fourth quarter of 2021 related to this transaction.

Our transaction with the Compre Group underscores the ongoing transformation of SiriusPoint, our focus on optimizing capital allocation and rebalancing towards insurance and higher margin and growth lines, and provides further certainty on SiriusPoint's reserve position. Following the completion of the LPT, our net loss reserves from Runoff business were reduced by 48%. This transaction transfers the risk of the subject reserves developing adversely to Compre Group in exchange for the premium payment, and reduces statutory and rating agency capital charges on the subject reserves.

Acquisition of Sirius Group

Results for the three months ended March 31, 2021 were revised due to an increase in the total identifiable net assets acquired as part of the SiriusGroup acquisition. This resulted in an additional bargain gain of $37.5 million recognized in other revenues in full year 2021 results. Net income available to SiriusPoint common shareholders increased by a corresponding amount; however, there was no impact on total shareholders'equity as the offsetting entry was recognized in additional paid -in capital. There was no impact from this adjustment to underwriting results, segments results or key performance indicators, including book value per share metrics, except for retuon average common shareholders' equity attributable to SiriusPoint common shareholders.

Conference Call Details

The Company will hold a conference call to discuss its fourth quarter 2021 results at 8:30 a.m. EasteTime on February 25, 2022. The call will be webcast live over the Internet from the Company's website at www.siriuspt.com under the "Investor Relations" section. Participants should follow the instructions provided on the website to download and install any necessary audio applications. The conference call will also be available by dialing 1-877-451-6152 (domestic) or 1-201-389-0879 (international). Participants should ask for the SiriusPoint Ltd. fourth quarter 2021 earnings call.

A replay of the live conference call will be available approximately two hours after the call. The replay will be available on the Company's website at www.siriuspt.com under the "Investor Relations" section.

Safe Harbor Statement Regarding Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding optimizing capital allocation, rebalancing towards Insurance & Services and reducing our risk profile, creating a sustainable long-term franchise and future profitability. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the Company's control. The Company cautions you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially fromthose made in or suggested by the forward -looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward -looking terminology such as "may," "plan," "seek," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or the negative thereof or variations thereon or similar terminology. Actual events, results and outcomes may differ materially from the Company's expectations due to a variety of known and unknown risks, uncertainties and other factors. Among the risks and uncertainties that could cause actual results to differ from those described in the forward -looking statements are the following: our ability to execute on our strategic transformation, including changing the mix of business between insurance and rein surance; the impact of the novel coronavirus ("COVID-19") pandemic or other unpredictable catastrophic events including uncertainties with respect to current and future COVID-19 losses across many classes of insurance business and the amount of insurance losses that may ultimately be ceded to the reinsurance market, supply chain issues, labor shortages and related increased costs, changing interest rates, equity market volatility and ongoing business and financial market impacts of COVID-19; the costs, expenses and difficulties of the integration of the operations of Sirius International Insurance Group, Ltd. ("Sirius Group"); fluctuations in