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May 3, 2023 Newswires
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Earnings Document

U.S. Regulated Equity Markets (Alternative Disclosure) via PUBT

SiriusPoint Ltd.

Financial Supplement

March 31, 2023

(UNAUDITED)

This financial supplement is for informational purposes only. It should be read in conjunction with documents filed with the Securities and Exchange Commission by SiriusPoint Ltd., including the Company's Quarterly Report on Form 10-Q.

Point Building

Dhruv Gahlaut - Head of Investor Relations and Chief Strategy Officer

3 Waterloo Lane

Tel: (044) 20 3772 3111

Pembroke HM 08

Email: [email protected]

Bermuda

Website: www.siriuspt.com

SiriusPoint Ltd.

Basis of Presentation and Non-GAAP Financial Measures:

Unless the context otherwise indicates or requires, as used in this financial supplement references to "we," "our," "us," the "Company," and "SiriusPoint" refer to SiriusPoint Ltd. and its directly and indirectly owned subsidiaries, as a combined entity, except where otherwise stated or where it is clear that the terms mean only SiriusPoint Ltd. exclusive of its subsidiaries. We have made rounding adjustments to reach some of the figures included in this financial supplement and, unless otherwise indicated, percentages presented in this financial supplement are approximate.

In presenting SiriusPoint's results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States ("GAAP"). SiriusPoint's management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of SiriusPoint's financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. Core underwriting income, Core net services income, Core income, Core combined ratio, accident year loss ratio, accident year combined ratio and attritional loss ratio are non-GAAP financial measures. Management believes it is useful to review Core results as it better reflects how management views the business and reflects the Company's decision to exit the runoff business. Tangible book value per diluted common share is also a non-GAAP financial measure. SiriusPoint's management believes that effects of intangible assets are not indicative of underlying underwriting results or trends and make book value comparisons to less acquisitive peer companies less meaningful. The tangible book value per diluted common share is also useful because it provides a more accurate measure of the realizable value of shareholder returns, excluding intangible assets. Reconciliations and definitions of such measures to the most comparable GAAP figures are included in the attached financial information in accordance with Regulation G.

Safe Harbor Statement Regarding Forward-Looking Statements:

This financial supplement includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. 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 financial supplement is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this financial supplement. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as "believes," "intends," "seeks," "anticipates," "aims," "plans," "estimates," "expects," "assumes," "continues," "should," "could," "will," "may" and the negative of these or similar terms and phrases. 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 re-underwriting to reduce volatility and improving underwriting performance, de-risking our investment portfolio, and transforming our business, including re-balancing our portfolio and growing the Insurance & Services segment; the impact of 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 and equity market volatility; inadequacy of loss and loss adjustment expense reserves, the lack of available capital, and periods characterized by excess underwriting capacity and unfavorable premium rates; the performance of financial markets, impact of inflation, and foreign currency fluctuations; our ability to compete successfully in the (re)insurance market and the effect of consolidation in the (re)insurance industry; technology breaches or failures, including those resulting from a malicious cyber-attack on us, our business partners or service providers; the effects of global climate change, including increased severity and frequency of weather-related natural disasters and catastrophes and increased coastal flooding in many geographic areas; our ability to retain key senior management and key employees; a downgrade or withdrawal of our financial ratings; fluctuations in our results of operations; legal restrictions on certain of SiriusPoint's insurance and reinsurance subsidiaries' ability to pay dividends and other distributions to SiriusPoint; the outcome of legal and regulatory proceedings and regulatory constraints on our business; reduced returns or losses in SiriusPoint's investment portfolio; our potential exposure to U.S. federal income and withholding taxes and our significant deferred tax assets, which could become devalued if we do not generate future taxable income or applicable corporate tax rates are reduced; risks associated with delegating authority to third party managing general agents; future strategic transactions such as acquisitions, dispositions, investments, mergers or joint ventures; SiriusPoint's response to any acquisition proposal that may be received from Daniel Loeb or any other party, including any actions that may be considered by the Company's board of directors or any committee thereof; and other risks and factors listed under "Risk Factors" in the Company's most recent Annual Report on Form 10-K and other subsequent periodic reports filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the date made and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Page 2 of 17

SiriusPoint Ltd.

Table of Contents

Key Performance Indicators

Key Performance Indicators

4

Consolidated Financial Statements

Consolidated Balance Sheets - by Quarter

5

Consolidated Statements of Income (Loss)

6

Consolidated Statements of Income (Loss) - by Quarter

7

Operating Segment Information

Segment Reporting - Three months ended March 31, 2023

8

Segment Reporting - Three months ended March 31, 2022

9

Consolidated Results - by Quarter

10

Core Results - by Quarter

11

Reinsurance Segment - by Quarter

12

Insurance & Services Segment - by Quarter

13

Investments

Investments - by Quarter

14

Other

Earnings (loss) per Share - by Quarter

15

Annualized Retuon Average Common Shareholders' Equity - by Quarter

16

Book Value per Share - by Quarter

17

Page 3 of 17

SiriusPoint Ltd.

Key Performance Indicators

March 31, 2023 and 2022

(expressed in millions of U.S. dollars, except per share data and ratios)

2023

2022

Combined ratio

73.8 %

93.7 %

Core underwriting income (1)

$

107.4

$

12.7

Core net services income (1)

$

12.8

$

14.0

Core income (1)

$

120.2

$

26.7

Core combined ratio (1)

80.5 %

97.5 %

Accident year loss ratio (1)

63.6

%

64.1

%

Accident year combined ratio (1)

97.2 %

98.5 %

Attritional loss ratio (1)

62.3

%

62.8

%

Annualized retuon average common shareholders' equity attributable to SiriusPoint common shareholders

28.3 %

(39.5)%

Book value per common share (2)

$

12.54

$

11.56

Book value per diluted common share (2)

$

12.31

$

11.32

Tangible book value per diluted common share (1) (2)

$

11.41

$

10.43

  1. Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. See reconciliations in "Segment Reporting." Accident year combined ratio, accident year loss ratio and attritional loss ratio are non-GAAP financial measures. See definitions in "Core Results by Quarter." Tangible book value per diluted common share is a non-GAAP financial measure. See reconciliation in "Book Value per Share - by Quarter."
  2. Prior year comparatives represent amounts as of December 31, 2022.

Page 4 of 17

SiriusPoint Ltd.

Consolidated Balance Sheets - by Quarter

(expressed in millions of U.S. dollars)

March 31,

December 31,

September 30,

June 30,

March 31,

Assets

2023

2022

2022

2022

2022

Debt securities, available for sale, at fair value, net of allowance for credit losses

$

3,565.9

$

2,635.5

$

1,324.0

$

715.5

$

-

Debt securities, trading, at fair value

1,120.2

1,526.0

1,697.1

2,210.5

2,622.8

Short-term investments, at fair value

594.0

984.6

1,991.6

1,378.0

989.0

Investments in related party investment funds, at fair value

117.9

128.8

309.0

318.1

678.6

Other long-term investments, at fair value

361.9

377.2

414.9

436.4

438.2

Equity securities, trading, at fair value

1.6

1.6

1.4

1.6

2.7

Total investments

5,761.5

5,653.7

5,738.0

5,060.1

4,731.3

Cash and cash equivalents

763.6

705.3

647.3

746.6

826.1

Restricted cash and cash equivalents

211.0

208.4

144.2

630.6

972.8

Redemption receivable from related party investment fund

11.6

18.5

-

-

-

Due from brokers

6.5

4.9

20.2

72.8

70.1

Interest and dividends receivable

33.5

26.7

17.0

14.6

10.7

Insurance and reinsurance balances receivable, net

2,261.0

1,876.9

1,952.7

1,934.8

1,936.8

Deferred acquisition costs, net

357.1

294.9

278.6

271.3

271.0

Unearned premiums ceded

462.3

348.8

379.1

375.6

365.7

Loss and loss adjustment expenses recoverable, net

1,392.0

1,376.2

1,309.2

1,257.5

1,278.6

Deferred tax asset

175.7

200.3

197.6

180.1

180.6

Intangible assets

161.9

163.8

165.9

168.0

170.0

Assets held for sale

-

-

20.9

-

-

Other assets

209.5

157.9

127.4

129.2

102.6

Total assets

$

11,807.2

$

11,036.3

$

10,998.1

$

10,841.2

$

10,916.3

Liabilities

Loss and loss adjustment expense reserves

$

5,318.9

$

5,268.7

$

5,200.5

$

4,940.8

$

4,936.0

Unearned premium reserves

1,833.1

1,521.1

1,572.8

1,557.2

1,504.9

Reinsurance balances payable

1,004.9

813.6

793.9

759.0

773.5

Deposit liabilities

141.2

140.5

138.9

143.5

147.2

Securities sold, not yet purchased, at fair value

19.4

27.0

41.7

83.4

64.0

Securities sold under an agreement to repurchase

20.3

18.0

17.3

17.5

-

Due to brokers

60.1

-

16.6

18.0

32.1

Accounts payable, accrued expenses and other liabilities

275.7

266.6

245.8

206.5

188.7

Deferred tax liability

59.4

59.8

66.9

59.2

98.0

Liability-classified capital instruments

47.0

60.4

48.9

50.7

76.0

Debt

779.2

778.0

762.0

781.3

808.4

Total liabilities

9,559.2

8,953.7

8,905.3

8,617.1

8,628.8

Shareholders' equity

Series B preference shares

200.0

200.0

200.0

200.0

200.0

Common shares

16.2

16.2

16.2

16.2

16.2

Additional paid-in capital

1,642.6

1,641.3

1,633.2

1,630.3

1,623.4

Retained earnings

400.8

262.2

288.8

387.2

448.0

Accumulated other comprehensive income (loss)

(23.0)

(45.0)

(53.7)

(10.4)

0.6

Shareholders' equity attributable to SiriusPoint shareholders

2,236.6

2,074.7

2,084.5

2,223.3

2,288.2

Noncontrolling interests

11.4

7.9

8.3

0.8

(0.7)

Total shareholders' equity

2,248.0

2,082.6

2,092.8

2,224.1

2,287.5

Total liabilities, noncontrolling interests and shareholders' equity

$

11,807.2

$

11,036.3

$

10,998.1

$

10,841.2

$

10,916.3

Page 5 of 17

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Disclaimer

SiriusPoint Ltd. published this content on 03 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 May 2023 20:47:08 UTC.

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