Q 2024 Financial Supplement
Financial Supplement
(UNAUDITED)
This financial supplement is for informational purposes only. It should be read in conjunction with documents filed with the
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Tel: +1 646 884 4310 |
Pembroke HM 08 |
Email: [email protected] |
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Website: www.siriuspt.com |
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
In presenting
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," "targets," "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; 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 interest rates, and foreign currency fluctuations; our ability to compete successfully in the insurance and reinsurance market and the effect of consolidation in the insurance and reinsurance 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; geopolitical uncertainty, including the ongoing conflicts in
Page 2 of 20
Table of Contents
Key Performance Indicators
Consolidated Financial Statements |
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Consolidated Statements of Income |
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Consolidated Statements of Income - by Quarter |
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Consolidated Statements of Comprehensive Income - by Quarter |
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Operating Segment Information |
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Segment Reporting - Three months ended |
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Segment Reporting - Three months ended |
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Segment Reporting - Six months ended |
11 |
Segment Reporting - Six months ended |
12 |
Consolidated Results - by Quarter |
13 |
Core Results - by Quarter |
14 |
Reinsurance Segment - by Quarter |
15 |
Insurance & Services Segment - by Quarter |
16 |
Investments |
|
Investments - by Quarter |
17 |
Other |
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Earnings per Share - by Quarter |
18 |
Annualized Retuon Average Common Shareholders' Equity - by Quarter |
19 |
Book Value per Share - by Quarter |
20 |
Page 3 of 20
Key Performance Indicators
(expressed in millions of
Three months ended |
Six months ended |
||||||||||
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||||||||
Combined ratio |
89.0 % |
83.0 % |
87.0 % |
78.4 % |
|||||||
Core underwriting income (1) |
$ |
36.9 |
$ |
63.3 |
$ |
81.2 |
$ |
170.7 |
|||
Core net services income (1) |
$ |
9.1 |
$ |
7.7 |
$ |
27.2 |
$ |
24.4 |
|||
Core income (1) |
$ |
46.0 |
$ |
71.0 |
$ |
108.4 |
$ |
195.1 |
|||
Core combined ratio (1) |
93.3 % |
89.4 % |
92.5 % |
85.1 % |
|||||||
Accident year loss ratio (1) |
61.6 % |
65.2 % |
60.7 % |
64.4 % |
|||||||
Accident year combined ratio (1) |
94.2 % |
93.6 % |
93.6 % |
95.3 % |
|||||||
Attritional loss ratio (1) |
60.6 % |
65.2 % |
60.2 % |
63.8 % |
|||||||
Annualized retuon average common shareholders' equity attributable to |
17.9 % |
11.0 % |
16.7 % |
19.2 % |
|||||||
Book value per common share (2) |
$ |
14.68 |
$ |
13.76 |
$ |
14.68 |
$ |
13.76 |
|||
Book value per diluted common share (2) |
$ |
14.31 |
$ |
13.35 |
$ |
14.31 |
$ |
13.35 |
|||
Tangible book value per diluted common share (1) (2) |
$ |
13.47 |
$ |
12.47 |
$ |
13.47 |
$ |
12.47 |
- 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."
- Prior year comparatives represent amounts as of
December 31, 2023 .
Page 4 of 20
Consolidated Balance Sheets - by Quarter
(expressed in millions of
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||||||||||
Assets |
2024 |
2024 |
2023 |
2023 |
2023 |
|||||||||
Debt securities, available for sale, at fair value, net of allowance for credit losses |
$ |
5,345.3 |
$ |
5,057.5 |
$ |
4,755.4 |
$ |
4,423.3 |
$ |
4,172.1 |
||||
Debt securities, trading, at fair value |
307.7 |
406.0 |
534.9 |
616.4 |
753.2 |
|||||||||
Short-term investments, at fair value |
97.5 |
329.9 |
371.6 |
548.7 |
559.2 |
|||||||||
Investments in related party investment funds, at fair value |
106.6 |
105.6 |
105.6 |
109.9 |
111.3 |
|||||||||
Other long-term investments, at fair value |
241.7 |
296.6 |
308.5 |
326.1 |
355.4 |
|||||||||
Equity securities, at fair value |
- |
1.6 |
1.6 |
1.6 |
1.6 |
|||||||||
Total investments |
6,098.8 |
6,197.2 |
6,077.6 |
6,026.0 |
5,952.8 |
|||||||||
Cash and cash equivalents |
598.1 |
867.5 |
969.2 |
703.5 |
676.2 |
|||||||||
Restricted cash and cash equivalents |
125.9 |
218.9 |
132.1 |
107.7 |
95.2 |
|||||||||
Redemption receivable from related party investment fund |
- |
- |
3.0 |
2.4 |
5.0 |
|||||||||
Due from brokers |
28.6 |
16.4 |
5.6 |
21.5 |
18.2 |
|||||||||
Interest and dividends receivable |
50.7 |
44.5 |
42.3 |
41.1 |
36.8 |
|||||||||
Insurance and reinsurance balances receivable, net |
2,120.2 |
2,127.2 |
1,966.3 |
2,057.6 |
2,219.6 |
|||||||||
Deferred acquisition costs, net |
341.9 |
320.8 |
308.9 |
333.0 |
342.6 |
|||||||||
Unearned premiums ceded |
496.1 |
494.8 |
449.2 |
464.7 |
484.8 |
|||||||||
Loss and loss adjustment expenses recoverable, net |
2,191.5 |
2,233.8 |
2,295.1 |
2,314.2 |
2,276.6 |
|||||||||
Deferred tax asset |
285.1 |
290.7 |
293.6 |
180.6 |
163.9 |
|||||||||
Intangible assets |
146.8 |
149.8 |
152.7 |
155.6 |
158.5 |
|||||||||
Other assets |
280.3 |
174.2 |
175.9 |
183.3 |
165.4 |
|||||||||
Total assets |
$ |
12,764.0 |
$ |
13,135.8 |
$ |
12,871.5 |
$ |
12,591.2 |
$ |
12,595.6 |
||||
Liabilities |
||||||||||||||
Loss and loss adjustment expense reserves |
$ |
5,606.0 |
$ |
5,565.3 |
$ |
5,608.1 |
$ |
5,448.8 |
$ |
5,307.4 |
||||
Unearned premium reserves |
1,769.7 |
1,715.7 |
1,627.3 |
1,762.8 |
1,842.2 |
|||||||||
Reinsurance balances payable |
1,544.5 |
1,780.5 |
1,736.7 |
1,733.4 |
1,845.4 |
|||||||||
Deposit liabilities |
22.1 |
128.8 |
134.4 |
135.8 |
137.8 |
|||||||||
Deferred gain on retroactive reinsurance |
23.0 |
25.8 |
27.9 |
25.8 |
21.2 |
|||||||||
Debt |
648.6 |
770.6 |
786.2 |
763.5 |
765.9 |
|||||||||
Securities sold under an agreement to repurchase |
- |
- |
- |
- |
11.0 |
|||||||||
Due to brokers |
40.2 |
60.7 |
6.2 |
39.1 |
28.1 |
|||||||||
Deferred tax liability |
56.1 |
48.9 |
68.7 |
81.2 |
61.0 |
|||||||||
Liability-classified capital instruments |
72.6 |
83.2 |
67.3 |
62.0 |
65.4 |
|||||||||
Accounts payable, accrued expenses and other liabilities |
275.7 |
335.9 |
278.1 |
273.4 |
261.3 |
|||||||||
Total liabilities |
10,058.5 |
10,515.4 |
10,340.9 |
10,325.8 |
10,346.7 |
|||||||||
Commitments and contingent liabilities |
||||||||||||||
Shareholders' equity |
||||||||||||||
Series B preference shares |
200.0 |
200.0 |
200.0 |
200.0 |
200.0 |
|||||||||
Common shares |
17.1 |
17.0 |
16.8 |
16.5 |
16.3 |
|||||||||
Additional paid-in capital |
1,713.3 |
1,711.2 |
1,693.0 |
1,661.4 |
1,645.6 |
|||||||||
Retained earnings |
801.7 |
691.8 |
601.0 |
507.5 |
450.0 |
|||||||||
Accumulated other comprehensive income (loss), net of tax |
(28.0) |
(17.4) |
3.1 |
(135.4) |
(75.9) |
|||||||||
Shareholders' equity attributable to |
2,704.1 |
2,602.6 |
2,513.9 |
2,250.0 |
2,236.0 |
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Noncontrolling interests |
1.4 |
17.8 |
16.7 |
15.4 |
12.9 |
|||||||||
Total shareholders' equity |
2,705.5 |
2,620.4 |
2,530.6 |
2,265.4 |
2,248.9 |
|||||||||
Total liabilities, noncontrolling interests and shareholders' equity |
$ |
12,764.0 |
$ |
13,135.8 |
$ |
12,871.5 |
$ |
12,591.2 |
$ |
12,595.6 |
||||
Page 5 of 20
Consolidated Statements of Income
(expressed in millions of
Three months ended |
Six months ended |
||||||||||
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Revenues |
|||||||||||
Net premiums earned |
$ |
590.5 |
$ |
639.7 |
$ |
1,184.3 |
$ |
1,235.2 |
|||
Net investment income |
78.2 |
68.5 |
157.0 |
130.2 |
|||||||
Net realized and unrealized investment gains (losses) |
(55.9) |
(1.8) |
(54.9) |
9.5 |
|||||||
Net realized and unrealized investment gains (losses) from related party investment funds |
1.0 |
(0.9) |
1.0 |
(0.1) |
|||||||
Net investment income and net realized and unrealized investment gains (losses) |
23.3 |
65.8 |
103.1 |
139.6 |
|||||||
Other revenues |
129.5 |
5.3 |
141.4 |
14.1 |
|||||||
Total revenues |
743.3 |
710.8 |
1,428.8 |
1,388.9 |
|||||||
Expenses |
|||||||||||
Loss and loss adjustment expenses incurred, net |
364.4 |
375.7 |
681.9 |
642.8 |
|||||||
Acquisition costs, net |
119.9 |
111.8 |
264.8 |
231.5 |
|||||||
Other underwriting expenses |
41.1 |
43.3 |
82.9 |
95.5 |
|||||||
Net corporate and other expenses |
66.6 |
70.3 |
122.6 |
130.3 |
|||||||
Intangible asset amortization |
3.0 |
2.9 |
5.9 |
5.3 |
|||||||
Interest expense |
15.7 |
11.7 |
36.2 |
24.5 |
|||||||
Foreign exchange (gains) losses |
3.6 |
17.4 |
(0.1) |
17.5 |
|||||||
Total expenses |
614.3 |
633.1 |
1,194.2 |
1,147.4 |
|||||||
Income before income tax expense |
129.0 |
77.7 |
234.6 |
241.5 |
|||||||
Income tax expense |
(14.2) |
(15.8) |
(23.9) |
(41.3) |
|||||||
Net income |
114.8 |
61.9 |
210.7 |
200.2 |
|||||||
Net income attributable to noncontrolling interests |
(0.9) |
(2.0) |
(2.0) |
(4.4) |
|||||||
Net income available to |
113.9 |
59.9 |
208.7 |
195.8 |
|||||||
Dividends on Series B preference shares |
(4.0) |
(4.0) |
(8.0) |
(8.0) |
|||||||
Net income available to |
$ |
109.9 |
$ |
55.9 |
$ |
200.7 |
$ |
187.8 |
|||
Earnings per share available to |
|||||||||||
Basic earnings per share available to |
$ |
0.60 |
$ |
0.32 |
$ |
1.11 |
$ |
1.08 |
|||
Diluted earnings per share available to |
$ |
0.57 |
$ |
0.31 |
$ |
1.05 |
$ |
1.05 |
|||
Weighted average number of common shares used in the determination of earnings per share |
|||||||||||
Basic |
170,173,022 |
162,027,831 |
169,453,656 |
161,473,011 |
|||||||
Diluted |
178,711,254 |
166,708,932 |
178,085,119 |
165,997,198 |
- Basic earnings per share is based on the weighted average number of common shares and participating securities outstanding during the period. The weighted average number of common shares excludes any dilutive effect of outstanding warrants, options and unvested restricted shares. Diluted earnings per share is based on the weighted average number of common shares and participating securities outstanding and includes any dilutive effects of warrants, options and unvested restricted shares under share plans and are determined using the treasury stock method.
U.S. GAAP requires that participating securities be treated in the same manner as outstanding shares for earnings per share calculations. The Company treats certain of its unvested restricted shares as participating securities. In the event of a net loss, all participating securities, outstanding warrants, options and restricted shares are excluded from both basic and diluted loss per share since their inclusion would be anti-dilutive.
Page 6 of 20
Consolidated Statements of Income - by Quarter
(expressed in millions of
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||||||||||
2024 |
2024 |
2023 |
2023 |
2023 |
||||||||||
Revenues |
||||||||||||||
Net premiums earned |
$ |
590.5 |
$ |
593.8 |
$ |
578.0 |
$ |
613.0 |
$ |
639.7 |
||||
Net investment income |
78.2 |
78.8 |
78.4 |
75.1 |
68.5 |
|||||||||
Net realized and unrealized investment gains (losses) |
(55.9) |
1.0 |
(12.4) |
(7.1) |
(1.8) |
|||||||||
Net realized and unrealized investment gains (losses) from related party investment funds |
1.0 |
- |
(1.0) |
0.1 |
(0.9) |
|||||||||
Net investment income and net realized and unrealized investment gains (losses) |
23.3 |
79.8 |
65.0 |
68.1 |
65.8 |
|||||||||
Other revenues |
129.5 |
11.9 |
2.8 |
21.5 |
5.3 |
|||||||||
Total revenues |
743.3 |
685.5 |
645.8 |
702.6 |
710.8 |
|||||||||
Expenses |
||||||||||||||
Loss and loss adjustment expenses incurred, net |
364.4 |
317.5 |
365.4 |
373.1 |
375.7 |
|||||||||
Acquisition costs, net |
119.9 |
144.9 |
111.7 |
129.5 |
111.8 |
|||||||||
Other underwriting expenses |
41.1 |
41.8 |
64.2 |
36.6 |
43.3 |
|||||||||
Net corporate and other expenses |
66.6 |
56.0 |
64.5 |
63.4 |
70.3 |
|||||||||
Intangible asset amortization |
3.0 |
2.9 |
2.9 |
2.9 |
2.9 |
|||||||||
Interest expense |
15.7 |
20.5 |
19.8 |
19.8 |
11.7 |
|||||||||
Foreign exchange (gains) losses |
3.6 |
(3.7) |
19.2 |
(1.8) |
17.4 |
|||||||||
Total expenses |
614.3 |
579.9 |
647.7 |
623.5 |
633.1 |
|||||||||
Income (loss) before income tax (expense) benefit |
129.0 |
105.6 |
(1.9) |
79.1 |
77.7 |
|||||||||
Income tax (expense) benefit |
(14.2) |
(9.7) |
101.6 |
(15.3) |
(15.8) |
|||||||||
Net income |
114.8 |
95.9 |
99.7 |
63.8 |
61.9 |
|||||||||
Net income attributable to noncontrolling interests |
(0.9) |
(1.1) |
(2.2) |
(2.3) |
(2.0) |
|||||||||
Net income available to |
113.9 |
94.8 |
97.5 |
61.5 |
59.9 |
|||||||||
Dividends on Series B preference shares |
(4.0) |
(4.0) |
(4.0) |
(4.0) |
(4.0) |
|||||||||
Net income available to |
$ |
109.9 |
$ |
90.8 |
$ |
93.5 |
$ |
57.5 |
$ |
55.9 |
||||
Earnings per share available to |
||||||||||||||
Basic earnings per share available to |
$ |
0.60 |
$ |
0.50 |
$ |
0.52 |
$ |
0.33 |
$ |
0.32 |
||||
Diluted earnings per share available to |
$ |
0.57 |
$ |
0.49 |
$ |
0.50 |
$ |
0.32 |
$ |
0.31 |
||||
Weighted average number of common shares used in the determination of earnings per share |
||||||||||||||
Basic |
170,173,022 |
168,934,114 |
166,640,624 |
163,738,528 |
162,027,831 |
|||||||||
Diluted |
178,711,254 |
174,380,963 |
173,609,940 |
168,516,508 |
166,708,932 |
- Basic earnings per share is based on the weighted average number of common shares and participating securities outstanding during the period. The Company treats certain of its unvested restricted shares and preference shares as participating securities. The weighted average number of common shares excludes any dilutive effect of outstanding warrants, options or restricted share awards and units. Diluted earnings per share is based on the weighted average number of common shares outstanding and includes any dilutive effects of warrants, options, restricted share awards and units, and is determined using the treasury stock method. In the event of a net loss, all participating securities, outstanding warrants, options and restricted shares and units are excluded from both basic and diluted loss per share since their inclusion would be anti-dilutive.
Page 7 of 20
Consolidated Statements of Comprehensive Income - by Quarter
(expressed in millions of
|
|
|
|
|
||||||||||
2024 |
2024 |
2023 |
2023 |
2023 |
||||||||||
Comprehensive income |
||||||||||||||
Net income |
$ |
114.8 |
$ |
95.9 |
$ |
99.7 |
$ |
63.8 |
$ |
61.9 |
||||
Other comprehensive income (loss), net of tax |
||||||||||||||
Change in foreign currency translation adjustment |
(0.1) |
(1.8) |
1.0 |
(1.1) |
1.5 |
|||||||||
Unrealized gains (losses) from debt securities held as available for sale investments |
(3.4) |
(18.4) |
128.8 |
(56.2) |
(56.6) |
|||||||||
Reclassifications from accumulated other comprehensive income (loss) |
(7.1) |
(0.3) |
8.7 |
(2.2) |
2.2 |
|||||||||
Total other comprehensive income (loss) |
(10.6) |
(20.5) |
138.5 |
(59.5) |
(52.9) |
|||||||||
Comprehensive income |
104.2 |
75.4 |
238.2 |
4.3 |
9.0 |
|||||||||
Net income attributable to noncontrolling interests |
(0.9) |
(1.1) |
(2.2) |
(2.3) |
(2.0) |
|||||||||
Comprehensive income available to |
$ |
103.3 |
$ |
74.3 |
$ |
236.0 |
$ |
2.0 |
$ |
7.0 |
||||
Page 8 of 20
Segment Reporting - Three months ended
(expressed in millions of
Insurance & |
Eliminations |
Segment |
||||||||||||||||||
Measure |
||||||||||||||||||||
Reinsurance |
Services |
Core |
(2) |
Corporate |
Reclass |
Total |
||||||||||||||
Gross premiums written |
$ |
352.5 |
$ |
490.2 |
$ |
842.7 |
$ |
- |
$ |
21.8 |
$ |
- |
$ |
864.5 |
||||||
Net premiums written |
308.8 |
341.1 |
649.9 |
- |
(6.3) |
- |
643.6 |
|||||||||||||
Net premiums earned |
256.2 |
297.2 |
553.4 |
- |
37.1 |
- |
590.5 |
|||||||||||||
Loss and loss adjustment expenses incurred, net |
143.8 |
192.2 |
336.0 |
(1.3) |
29.7 |
- |
364.4 |
|||||||||||||
Acquisition costs, net |
67.2 |
75.8 |
143.0 |
(36.5) |
13.4 |
- |
119.9 |
|||||||||||||
Other underwriting expenses |
20.2 |
17.3 |
37.5 |
- |
3.6 |
- |
41.1 |
|||||||||||||
Underwriting income (loss) |
25.0 |
11.9 |
36.9 |
37.8 |
(9.6) |
- |
65.1 |
|||||||||||||
Services revenues |
- |
57.4 |
57.4 |
(34.4) |
- |
(23.0) |
- |
|||||||||||||
Services expenses |
- |
47.7 |
47.7 |
- |
- |
(47.7) |
- |
|||||||||||||
Net services fee income |
- |
9.7 |
9.7 |
(34.4) |
- |
24.7 |
- |
|||||||||||||
Services noncontrolling income |
- |
(0.6) |
(0.6) |
- |
- |
0.6 |
- |
|||||||||||||
Net services income |
- |
9.1 |
9.1 |
(34.4) |
- |
25.3 |
- |
|||||||||||||
Segment income (loss) |
25.0 |
21.0 |
46.0 |
3.4 |
(9.6) |
25.3 |
65.1 |
|||||||||||||
Net investment income |
78.2 |
- |
78.2 |
|||||||||||||||||
Net realized and unrealized investment losses |
(55.9) |
- |
(55.9) |
|||||||||||||||||
Net realized and unrealized investment gains from related party investment funds |
1.0 |
- |
1.0 |
|||||||||||||||||
Other revenues |
106.5 |
23.0 |
129.5 |
|||||||||||||||||
Net corporate and other expenses |
(18.9) |
(47.7) |
(66.6) |
|||||||||||||||||
Intangible asset amortization |
(3.0) |
- |
(3.0) |
|||||||||||||||||
Interest expense |
(15.7) |
- |
(15.7) |
|||||||||||||||||
Foreign exchange losses |
(3.6) |
- |
(3.6) |
|||||||||||||||||
Income before income tax expense |
$ |
25.0 |
$ |
21.0 |
46.0 |
3.4 |
79.0 |
0.6 |
129.0 |
|||||||||||
Income tax expense |
- |
- |
(14.2) |
- |
(14.2) |
|||||||||||||||
Net income |
46.0 |
3.4 |
64.8 |
0.6 |
114.8 |
|||||||||||||||
Net income attributable to noncontrolling interest |
- |
- |
(0.3) |
(0.6) |
(0.9) |
|||||||||||||||
Net income available to |
$ |
46.0 |
$ |
3.4 |
$ |
64.5 |
$ |
- |
$ |
113.9 |
||||||||||
Underwriting Ratios: (1) |
||||||||||||||||||||
Loss ratio |
56.1 % |
64.7 % |
60.7 % |
61.7 % |
||||||||||||||||
Acquisition cost ratio |
26.2 % |
25.5 % |
25.8 % |
20.3 % |
||||||||||||||||
Other underwriting expenses ratio |
7.9 % |
5.8 % |
6.8 % |
7.0 % |
||||||||||||||||
Combined ratio |
90.2 % |
96.0 % |
93.3 % |
89.0 % |
||||||||||||||||
- Underwriting ratios are calculated by dividing the related expense by net premiums earned.
- Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards.
Page 9 of 20
Segment Reporting - Three months ended
(expressed in millions of
Insurance & |
Eliminations |
Segment |
||||||||||||||||||
Measure |
||||||||||||||||||||
Reinsurance |
Services |
Core |
(2) |
Corporate |
Reclass |
Total |
||||||||||||||
Gross premiums written |
$ |
357.7 |
$ |
447.5 |
$ |
805.2 |
$ |
- |
$ |
37.3 |
$ |
- |
$ |
842.5 |
||||||
Net premiums written |
311.9 |
276.4 |
588.3 |
- |
37.3 |
- |
625.6 |
|||||||||||||
Net premiums earned |
271.8 |
324.4 |
596.2 |
- |
43.5 |
- |
639.7 |
|||||||||||||
Loss and loss adjustment expenses incurred, net |
146.7 |
216.7 |
363.4 |
(1.5) |
13.8 |
- |
375.7 |
|||||||||||||
Acquisition costs, net |
51.3 |
80.7 |
132.0 |
(35.9) |
15.7 |
- |
111.8 |
|||||||||||||
Other underwriting expenses |
12.0 |
25.5 |
37.5 |
- |
5.8 |
- |
43.3 |
|||||||||||||
Underwriting income |
61.8 |
1.5 |
63.3 |
37.4 |
8.2 |
- |
108.9 |
|||||||||||||
Services revenues |
(2.8) |
62.2 |
59.4 |
(36.9) |
- |
(22.5) |
- |
|||||||||||||
Services expenses |
- |
50.0 |
50.0 |
- |
- |
(50.0) |
- |
|||||||||||||
Net services fee income (loss) |
(2.8) |
12.2 |
9.4 |
(36.9) |
- |
27.5 |
- |
|||||||||||||
Services noncontrolling income |
- |
(1.7) |
(1.7) |
- |
- |
1.7 |
- |
|||||||||||||
Net services income (loss) |
(2.8) |
10.5 |
7.7 |
(36.9) |
- |
29.2 |
- |
|||||||||||||
Segment income |
59.0 |
12.0 |
71.0 |
0.5 |
8.2 |
29.2 |
108.9 |
|||||||||||||
Net investment income |
68.5 |
- |
68.5 |
|||||||||||||||||
Net realized and unrealized investment losses |
(1.8) |
- |
(1.8) |
|||||||||||||||||
Net realized and unrealized investment losses from related party investment funds |
(0.9) |
- |
(0.9) |
|||||||||||||||||
Other revenues |
(17.2) |
22.5 |
5.3 |
|||||||||||||||||
Net corporate and other expenses |
(20.3) |
(50.0) |
(70.3) |
|||||||||||||||||
Intangible asset amortization |
(2.9) |
- |
(2.9) |
|||||||||||||||||
Interest expense |
(11.7) |
- |
(11.7) |
|||||||||||||||||
Foreign exchange losses |
(17.4) |
- |
(17.4) |
|||||||||||||||||
Income before income tax expense |
$ |
59.0 |
$ |
12.0 |
71.0 |
0.5 |
4.5 |
1.7 |
77.7 |
|||||||||||
Income tax expense |
- |
- |
(15.8) |
- |
(15.8) |
|||||||||||||||
Net income (loss) |
71.0 |
0.5 |
(11.3) |
1.7 |
61.9 |
|||||||||||||||
Net income attributable to noncontrolling interest |
- |
- |
(0.3) |
(1.7) |
(2.0) |
|||||||||||||||
Net income (loss) available to |
$ |
71.0 |
$ |
0.5 |
$ |
(11.6) |
$ |
- |
$ |
59.9 |
||||||||||
Underwriting Ratios: (1) |
||||||||||||||||||||
Loss ratio |
54.0 % |
66.8 % |
61.0 % |
58.7 % |
||||||||||||||||
Acquisition cost ratio |
18.9 % |
24.9 % |
22.1 % |
17.5 % |
||||||||||||||||
Other underwriting expenses ratio |
4.4 % |
7.9 % |
6.3 % |
6.8 % |
||||||||||||||||
Combined ratio |
77.3 % |
99.6 % |
89.4 % |
83.0 % |
||||||||||||||||
- Underwriting ratios are calculated by dividing the related expense by net premiums earned.
- Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards.
Page 10 of 20
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