Earnings Document

	UNITED STATES SECURITIES AND EXCHANGE COMMISSION
	WASHINGTON, D.C. 20549
	___________________________
	FORM 10-Q
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended March 31, 2024
	OR
	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
☐	OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from	to
	Commission File Number 001-36052
	SIRIUSPOINT LTD.
	(Exact name of registrant as specified in its charter)
	Bermuda	98-1599372
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Point Building

3 Waterloo Lane

Pembroke HM 08, Bermuda

+1 441 542-3300

(Address of Principal Executive Offices) (Registrant's Telephone Number, Including Area Code) Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Shares, $0.10 par value	SPNT	New York Stock Exchange
8.00% Resettable Fixed Rate Preference Shares,	SPNT PB	New York Stock Exchange
Series B, $0.10 par value,
$25.00 liquidation preference per share

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required

to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such

shorter period that the registrant was required to submit such files).Yes ☒

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐

As of April 26, 2024, the registrant had 170,482,223 common shares issued and outstanding.

SiriusPoint Ltd.
INDEX
	Page
PARTI. FINANCIAL INFORMATION	1
Item 1.Financial Statements	1
Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023	1
Consolidated Statements of Income for the three months ended March 31, 2024 and 2023 (unaudited)	2
Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023
	3
(unaudited)
Consolidated Statements of Shareholders' Equity for the three months ended March 31, 2024 and 2023
	4
(unaudited)
Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 (unaudited)	5
Notes to the Consolidated Financial Statements
Note1. Organization	6
Note2. Significant accounting policies	6
Note3. Significant transactions	6
Note4. Segment reporting	7
Note 5. Cash, cash equivalents, restricted cash and restricted investments	11
Note 6. Fair value measurements	11
Note 7. Investments	17
Note 8. Total net investment income and realized and unrealized investment gains	21
Note 9. Derivatives	22
Note 10. Variable and voting interest entities	23
Note 11. Loss and loss adjustment expense reserves	26
Note 12. Allowance for expected credit losses	26
Note 13. Debt and letter of credit facilities	27
Note 14. Income taxes	28
Note 15. Shareholders' equity	29
Note 16. Earnings per share available to SiriusPoint common shareholders	30
Note 17. Related party transactions	30
Note 18. Commitments and contingencies	32
Note 19. Subsequent event	34
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	35
Item 3. Quantitative and Qualitative Disclosures About Market Risk	54
Item 4. Controls and Procedures	56
PART II. OTHER INFORMATION	56
Item 1. Legal Proceedings	56
Item 1A. Risk Factors	56
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	58
Item 3. Defaults Upon Senior Securities	59
Item 4. Mine Safety Disclosures	59
Item 5. Other Information	59
Item 6. Exhibits	60

PART I - Financial Information

ITEM 1. Financial Statements

SIRIUSPOINT LTD.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of March 31, 2024 and December 31, 2023

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

		March 31,		December 31,
		2024			2023
Assets
Debt securities, available for sale, at fair value, net of allowance for credit losses of $0.0 (2023 - $0.0)	$	5,057.5	$	4,755.4
(cost - $5,075.4; 2023 - $4,754.6)
Debt securities, trading, at fair value (cost - $433.3; 2023 - $568.1)		406.0			534.9
Short-term investments, at fair value (cost - $330.0; 2023 - $370.8)		329.9			371.6
Investments in related party investment funds, at fair value		105.6			105.6
Other long-term investments, at fair value (cost - $343.1; 2023 - $356.2) (includes related party		296.6			308.5
investments at fair value of $170.6 (2023 - $173.7))
Equity securities, trading, at fair value (cost - $1.6; 2023 - $1.9)		1.6			1.6
Total investments		6,197.2			6,077.6
Cash and cash equivalents		867.5			969.2
Restricted cash and cash equivalents		218.9			132.1
Redemption receivable from related party investment fund		-			3.0
Due from brokers		16.4			5.6
Interest and dividends receivable		44.5			42.3
Insurance and reinsurance balances receivable, net		2,127.2			1,966.3
Deferred acquisition costs, net		320.8			308.9
Unearned premiums ceded		494.8			449.2
Loss and loss adjustment expenses recoverable, net		2,233.8			2,295.1
Deferred tax asset		290.7			293.6
Intangible assets		149.8			152.7
Other assets		174.2			175.9
Total assets	$	13,135.8		$	12,871.5
Liabilities

Loss and loss adjustment expense reserves	$	5,565.3	$	5,608.1
Unearned premium reserves		1,715.7			1,627.3
Reinsurance balances payable		1,780.5			1,736.7
Deposit liabilities		128.8			134.4
Deferred gain on retroactive reinsurance		25.8			27.9
Debt		770.6			786.2
Due to brokers		60.7			6.2
Deferred tax liability		48.9			68.7
Liability-classified capital instruments		83.2			67.3
Accounts payable, accrued expenses and other liabilities		335.9			278.1
Total liabilities		10,515.4			10,340.9
Commitments and contingent liabilities
Shareholders' equity
Series B preference shares (par value $0.10; authorized and issued: 8,000,000)		200.0			200.0
Common shares (issued and outstanding: 169,753,232; 2023 - 168,120,022)		17.0			16.8
Additional paid-in capital		1,711.2			1,693.0
Retained earnings		691.8			601.0
Accumulated other comprehensive income (loss), net of tax		(17.4)			3.1
Shareholders' equity attributable to SiriusPoint shareholders		2,602.6			2,513.9
Noncontrolling interests		17.8			16.7
Total shareholders' equity		2,620.4			2,530.6
Total liabilities, noncontrolling interests and shareholders' equity	$	13,135.8		$	12,871.5

The accompanying Notes to the Consolidated Financial Statements are

an integral part of the Consolidated Financial Statements.

SIRIUSPOINT LTD.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the three months ended March 31, 2024 and 2023

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

		2024			2023
Revenues
Net premiums earned	$	593.8	$	595.5
Net investment income		78.8			61.7
Net realized and unrealized investment gains		1.0			11.3
Net realized and unrealized investment gains from related party investment funds		-			0.8
Net investment income and net realized and unrealized investment gains		79.8			73.8
Other revenues		11.9			8.8
Total revenues		685.5			678.1
Expenses
Loss and loss adjustment expenses incurred, net		317.5			267.1
Acquisition costs, net		144.9			119.7
Other underwriting expenses		41.8			52.2
Net corporate and other expenses		56.0			60.0
Intangible asset amortization		2.9			2.4
Interest expense		20.5			12.8
Foreign exchange (gains) losses		(3.7)			0.1
Total expenses		579.9			514.3
Income before income tax expense		105.6			163.8
Income tax expense		(9.7)			(25.5)
Net income		95.9			138.3
Net income attributable to noncontrolling interests		(1.1)			(2.4)
Net income available to SiriusPoint		94.8			135.9
Dividends on Series B preference shares		(4.0)			(4.0)
Net income available to SiriusPoint common shareholders	$	90.8	$	131.9
Earnings per share available to SiriusPoint common shareholders

Basic earnings per share available to SiriusPoint common shareholders	$	0.50	$	0.76
Diluted earnings per share available to SiriusPoint common shareholders	$	0.49	$	0.74
Weighted average number of common shares used in the determination of earnings per share
Basic		168,934,114			160,905,860
Diluted		174,380,963			164,130,946

The accompanying Notes to the Consolidated Financial Statements are

an integral part of the Consolidated Financial Statements.

SIRIUSPOINT LTD.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

For the three months ended March 31, 2024 and 2023

(expressed in millions of U.S. dollars)

		2024			2023
Comprehensive income
Net income	$	95.9	$	138.3
Other comprehensive income (loss), net of tax
Change in foreign currency translation adjustment		(1.8)			(0.3)
Unrealized gains (losses) from debt securities held as available for sale investments		(18.4)			22.9
Reclassifications from accumulated other comprehensive loss		(0.3)			(0.6)
Total other comprehensive income (loss)		(20.5)			22.0
Comprehensive income		75.4			160.3
Net income attributable to noncontrolling interests		(1.1)			(2.4)
Comprehensive income available to SiriusPoint	$	74.3	$	157.9

The accompanying Notes to the Consolidated Financial Statements are

an integral part of the Consolidated Financial Statements.

SIRIUSPOINT LTD.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)

For the three months ended March 31, 2024 and 2023

(expressed in millions of U.S. dollars)

		2024			2023
Series B preference shares
Balance, beginning of period	$	200.0	$	200.0
Issuance of preference shares, net		-			-
Balance, end of period		200.0			200.0
Common shares
Balance, beginning of period		16.8			16.2
Issuance of common shares, net		-			-
Exercise of options		0.2			-
Balance, end of period		17.0			16.2
Additional paid-in capital
Balance, beginning of period		1,693.0			1,641.3
Issuance of common shares, net		-			-
Share compensation		2.6			2.5
Exercise of options		15.6			-
Change in ownership interest in subsidiary		-			(1.2)
Balance, end of period		1,711.2			1,642.6
Retained earnings
Balance, beginning of period		601.0			262.2
Net income		95.9			138.3
Net income attributable to noncontrolling interests		(1.1)			(2.4)
Dividends on preference shares		(4.0)			(4.0)
Balance, end of period		691.8			394.1
Accumulated other comprehensive loss, net of tax
Balance, beginning of period		3.1			(45.0)
Change in foreign currency translation adjustment
Balance, beginning of period		(4.1)			(5.2)
Change in foreign currency translation adjustment		(1.8)			(0.3)
Balance, end of period		(5.9)			(5.5)
Unrealized gains (losses) from debt securities held as available for sale investments
Balance, beginning of period		7.2			(39.8)
Unrealized gains (losses) from debt securities held as available for sale investments		(18.4)			22.9
Reclassifications from accumulated other comprehensive loss		(0.3)			(0.6)
Balance, end of period		(11.5)			(17.5)
Balance, end of period		(17.4)			(23.0)
Shareholders' equity attributable to SiriusPoint shareholders		2,602.6			2,229.9
Noncontrolling interests		17.8			11.4
Total shareholders' equity	$	2,620.4	$	2,241.3

The accompanying Notes to the Consolidated Financial Statements are

an integral part of the Consolidated Financial Statements.

SIRIUSPOINT LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

For the three months ended March 31, 2024 and 2023

(expressed in millions of U.S. dollars)

		2024			2023
Operating activities
Net income	$	95.9	$	138.3
Adjustments to reconcile net income to net cash provided by operating activities:
Share compensation		4.1			5.6
Net realized and unrealized (gain) loss on investments and derivatives		4.7			(12.7)
Net realized and unrealized gain on investment in related party investment funds		-			(0.8)
Other revenues		15.9			25.1
Amortization of premium and accretion of discount, net		(18.3)			(20.2)
Amortization of intangible assets		2.9			2.4
Other items, net		(17.4)			(2.8)
Changes in assets and liabilities:
Insurance and reinsurance balances receivable, net		(160.1)			(376.9)
Deferred acquisition costs, net		(11.9)			(62.2)
Unearned premiums ceded		(45.6)			(113.5)
Loss and loss adjustment expenses recoverable, net		61.3			(15.8)
Deferred tax asset/liability		(16.9)			23.9
Other assets		(1.7)			(53.8)
Interest and dividends receivable		(2.2)			(6.8)
Loss and loss adjustment expense reserves		(42.8)			50.2
Unearned premium reserves		88.4			312.0
Deferred gain on retroactive reinsurance		(2.1)			-
Reinsurance balances payable		43.8			191.3
Accounts payable, accrued expenses and other liabilities		57.8			10.9
Net cash provided by operating activities		55.8			94.2
Investing activities
Purchases of investments		(977.1)			(1,259.4)
Proceeds from sales and maturities of investments		852.6			1,188.5
Proceeds from redemptions from related party investment funds		3.0			18.5
Change in due to/from brokers, net		43.7			58.5
Net cash provided by (used in) investing activities		(77.8)			6.1
Financing activities
Taxes paid on withholding shares		(1.5)			(3.0)
Proceeds from loans under an agreement to repurchase		-			2.3
Cash dividends paid to preference shareholders		(4.0)			(4.0)
Settlement of Contingent Value Rights		-			(38.5)
Net proceeds from exercise of options		15.6			-
Net proceeds (payments) on deposit liability contracts		(3.0)			3.8
Net cash provided by (used in) financing activities		7.1			(39.4)
Net increase (decrease) in cash, cash equivalents and restricted cash		(14.9)			60.9
Cash, cash equivalents and restricted cash at beginning of period		1,101.3			913.7
Cash, cash equivalents and restricted cash at end of period	$	1,086.4		$	974.6

The accompanying Notes to the Consolidated Financial Statements are

an integral part of the Consolidated Financial Statements.

SiriusPoint Ltd.

Notes to the Consolidated Financial Statements (UNAUDITED)

(Expressed in U.S. Dollars)

1. Organization

SiriusPoint Ltd. (together with its consolidated subsidiaries, "SiriusPoint" or the "Company") was incorporated under the laws of Bermuda on October 6, 2011. Through its subsidiaries, the Company is a provider of global multi-line reinsurance and insurance products and services.

These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 in Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete annual financial statements. In addition, the year-end consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. This Quarterly Report on Form 10- Q ("Form 10-Q") should be read in conjunction with the audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Form 10-K") filed with the U.S. Securities and Exchange Commission on February 29, 2024.

In the opinion of management, these unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of the Company's financial position and results of operations as at the end of and for the periods presented. All significant intercompany accounts and transactions have been eliminated.

The results for the three months ended March 31, 2024 are not necessarily indicative of the results expected for the full calendar year.

Tabular amounts are in U.S. Dollars in millions, except share amounts, unless otherwise noted.

2. Significant accounting policies

There have been no material changes to the Company's significant accounting policies as described in its 2023 Form 10-K.

Recently issued accounting standards

Issued and effective as of March 31, 2024

In June 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). The amendment clarifies the guidance in Topic 820 on the fair value measurement of an equity security that is subject to a contractual sale restriction and requires specific disclosures related to such an equity security. ASU 2022-03 is effective for public business entities for fiscal years beginning after December 15, 2023 and interim periods within those fiscal years. This pronouncement did not have a material impact on the Company's consolidated financial statements.

Issued but not yet effective as of March 31, 2024

Accounting pronouncements issued during the three months ended March 31, 2024 were either not relevant to the Company or did not impact the Company's consolidated financial statements.

Reclassifications and revisions

Certain comparative figures have been reclassified to conform to the current year presentation in addition to the immaterial revisions to the financial statements as of and for the three months ended March 31, 2023 previously disclosed in the September 30, 2023 Form 10-Q.

3. Significant transactions

SiriusPoint International Loss Portfolio Transfer

On March 2, 2023, the Company agreed, subject to applicable regulatory approvals and other closing conditions, to enter into a loss portfolio transfer transaction ("2023 LPT"), on a funds withheld basis, with Pallas Reinsurance Company Ltd., a subsidiary of the Compre Group, an insurance and reinsurance legacy specialist. The transaction covered loss reserves ceded

initially estimated at $1.3 billion as of the valuation date of September 30, 2022, which were reduced to $905.6 million as of June 30, 2023 at closing, as a result of paid losses and favorable prior accident year reserve development recognized during the interim period, and included in Loss and loss adjustment expenses recoverable in the Company's consolidated balance sheets. As of March 31, 2024, the Company recorded funds held payable of $702.5 million in Reinsurance balances payable and reinsurance recoverable of $725.1 million, and the Company's estimate of deferred gain is $25.8 million. The 2023 LPT comprises several classes of business from 2021 and prior underwriting years. The aggregate limit under the 2023 LPT is 130% of roll forward reserves at the inception of the contract.

4. Segment reporting

The determination of the Company's business segments is based on the manner in which management monitors the performance of its operations. The Company reports two operating segments: Reinsurance and Insurance & Services. The Company's segments each have managers who are responsible for the overall profitability of their segments and who are directly accountable to the Company's chief operating decision maker, the Chief Executive Officer ("CEO"). The CEO assesses segment operating performance, allocates capital, and makes resource allocation decisions based on Segment income (loss). The Company does not manage its assets by segment; accordingly, total assets are not allocated to the segments.

Reinsurance

In the Reinsurance segment, the Company provides reinsurance products to insurance and reinsurance companies, government entities, and other risk bearing vehicles on a treaty or facultative basis. For reinsurance assumed, the Company participates in the reinsurance market with a global focus through the broker market distribution channel. The Company primarily writes treaty reinsurance, on both a proportional and excess of loss basis, and provides facultative reinsurance in some of its business lines. In the United States and Bermuda, the Company's core focus is on distribution, risk and clients located in North America, while our international operation is focused primarily on distribution, risks and clients located in Europe.

The Reinsurance segment predominantly underwrites Casualty, Property and Specialty lines of business on a worldwide basis.

Casualty - the Company provides reinsurance to casualty insurers who underwrite a diverse range of casualty classes. The Company works with clients all over the world, including multi-national, nationwide and regional carriers, as well as risk retention groups and captives. The Company also partners with managing general agents ("MGAs") and sponsor cover holders. The Company's underwriting focus is on proportional transactions covering all major commercial casualty lines, as well professional liability with an emphasis on specialty niche classes of business, including personal lines.

Property - the Company works with leading global brokers as well as large national writers and regional companies. Underwriting is focused on providing critical catastrophe protection and worldwide coverage for natural perils, underwriting residential, commercial, and industrial risks in the United States, Europe and Asia. The Company's property reinsurance offering includes: property catastrophe protection, risk excess of loss, cannabis - pro rata, building risk and structured property specifically in the United States. In 2023, as part of its International Reorganization, the Company significantly reduced its international property catastrophe premiums written, with reinsurance protection purchased at similar costs but with lower attachment points to further protect the balance sheet.

Specialty - the Company's business encompasses a broad range of worldwide reinsurance coverages, including proportional and excess of loss, treaty and facultative. Specialty business lines in the Reinsurance segment include Aviation & Space, Marine & Energy and Credit.

Insurance & Services

Through the Insurance & Services segment, the Company underwrites primary insurance in a number of sectors. The Insurance & Services segment includes Accident & Health, Casualty, and Specialty.

Accident and Health ("A&H") - the Company provides flexible insurance products to meet the risk management needs of diverse populations in select markets. This includes employer groups, associations, affinity groups, higher education and other niche markets. The Company also owns 100% of IMG and Armada, who receive fees for services provided within Insurance & Services and to third parties. IMG offers a full line of international medical insurance products, trip cancellation

programs, medical management services and 24/7 emergency medical and travel assistance. Armada operates as a supplemental medical insurance MGA.

Property & Casualty - the Company is a leading carrier for program administrators and managing general agents. The majority of its insurance business is written through partners in the property and casualty space, covering professional liability, workers' compensation, and commercial auto lines in Bermuda, London, Europe, North America and round the world.

Specialty - the Company's business encompasses a broad range of worldwide insurance coverages. Specialty business lines in the Insurance & Services segment include Aviation & Space, Marine & Energy, Credit and Mortgage.

Management uses segment income (loss) as the primary basis for assessing segment performance. Segment income (loss) is comprised of two components, underwriting income (loss) and net services income (loss). The Company calculates underwriting income (loss) by subtracting loss and loss adjustment expenses incurred, net, acquisition costs, net, and other underwriting expenses from net premiums earned. Net services income (loss) consists of services revenues (fee for service revenue), services expenses, and services non-controlling (income) loss. This definition of segment income (loss) aligns with how business performance is managed and monitored. We continue to evaluate our segments as our business evolves and may further refine our segments and segment income (loss) measures. Certain items are presented in a different manner for segment reporting purposes than in the consolidated statements of income. These items are reconciled to the consolidated presentation in the segment measure reclass column below. Included in Insurance & Services segment income (loss) are services noncontrolling loss (income) attributable to minority shareholders on non-wholly-owned subsidiaries. In addition, services revenues and services expenses are reconciled to other revenues and net corporate and other expenses, respectively.

Segment results are shown prior to corporate eliminations. Corporate eliminations are included in the elimination column below as necessary to reconcile to underwriting income (loss), net services income (loss), and segment income (loss) to the consolidated statements of income.

Corporate includes the results of all runoff business, which represents certain classes of business that we no longer actively underwrite, including the effect of the Restructuring Plan and certain reinsurance contracts that have interest crediting features. Corporate results also include asbestos and environmental and other latent liability exposures on a gross basis, which have mostly been ceded, as well as specific workers' compensation and cyber programs which the Company no longer writes. In addition, revenue and expenses managed at the corporate level, including realized gains (losses), other investment income, including gains (losses) from strategic investments, net realized and unrealized investment gains (losses) from related party investment funds, non services-related other revenues, non services-related net corporate and other expenses, intangible asset amortization, interest expense, foreign exchange (gains) losses and income tax (expense) benefit are reported within Corporate. The CEO does not manage segment results or allocate resources to segments when considering these items and they are therefore excluded from our definition of segment income (loss).

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SiriusPoint Ltd. published this content on 01 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 11:08:26 UTC.