Sirius International Insurance Group, Ltd. Announces Third Quarter 2018 Results
For the nine months ended
Commenting on
Investors and stockholders are encouraged to visit the "Financial Information" section of
Operating results for the third quarter of 2018 included the following:
- Gross written premiums for the quarter were
$398 million , an increase of 11% compared to the third quarter of 2017, driven by top line growth in Global Property and Specialty & Casualty segments. - Catastrophe losses, net of reinsurance and reinstatement premiums, amounted to
$77 million in the quarter, primarily related to Typhoon Jebi ($48 million ), Hurricane Florence ($9 million ), and the Kerala Floods ($7 million ). - Highlights by reportable segment for the third quarter of 2018 included the following:
- Global Property produced an underwriting (loss) for the quarter of
$(51) million and a 130% combined ratio driven mainly by catastrophe losses and higher current accident year losses. - Global A&H produced
$12 million of underwriting income, including net service fee income, and a combined ratio of 96%. - Specialty & Casualty produced a
$(2) million underwriting (loss) for the quarter and a combined ratio of 103%, driven mainly by losses in the discontinued London Marine book. - Runoff & Other produced
$8 million of underwriting income mainly from favorable loss reserve movements.Sirius Global Solutions closed on the acquisition of WRM America in the third quarter. - The investment portfolio returned 0.6% in
U.S. Dollars and 0.5% in original currencies - Net investment income increased
$10 million or 83% for the third quarter of 2018 to$22 million from$12 million for the same period in 2017 due to a higher interest rate environment. - Overall, net currency effects on shareholder's equity were favorable by
$4 million . - Common shareholder's equity ended the quarter at
$1,973 million .
About
Forward-Looking Statements
This communication contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements about the growth prospects of
Contacts:
(212) 312-0219
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Consolidated Balance Sheets |
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As at |
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(Expressed in millions of |
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Assets |
Unaudited |
|
Fixed maturity investments, trading at fair value (Amortized cost 2018: |
|
|
Short-term investments, at fair value (Amortized cost 2018: |
760.0 |
625.0 |
Equity securities, trading at fair value (Cost 2018: |
430.4 |
299.2 |
Other long-term investments, at fair value (Cost 2018: |
349.0 |
269.5 |
Cash |
106.5 |
215.8 |
Restricted cash |
15.0 |
14.8 |
Total investments and cash |
3,640.5 |
3,604.3 |
Accrued investment income |
12.1 |
14.1 |
Insurance and reinsurance premiums receivable |
762.5 |
543.6 |
Reinsurance recoverable on unpaid losses |
349.0 |
319.7 |
Reinsurance recoverable on paid losses |
29.8 |
17.5 |
Funds held by ceding companies |
180.0 |
153.2 |
Ceded unearned insurance and reinsurance premiums |
191.2 |
106.6 |
Deferred acquisition costs |
152.8 |
120.9 |
Deferred tax asset |
197.7 |
244.1 |
Accounts receivable on unsettled investment sales |
0.1 |
0.3 |
|
400.7 |
401.0 |
Intangible assets |
207.5 |
216.3 |
Other assets |
134.8 |
82.0 |
Total assets |
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Liabilities |
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Loss and loss adjustment expense reserves |
|
|
Unearned insurance and reinsurance premiums |
766.9 |
506.8 |
Ceded reinsurance payable |
239.2 |
139.1 |
Funds held under reinsurance treaties |
105.4 |
73.4 |
Deferred tax liability |
256.9 |
282.2 |
Debt |
697.7 |
723.2 |
Accounts payable on unsettled investment purchases |
18.1 |
0.3 |
Other liabilities |
200.6 |
176.8 |
Total liabilities |
4,175.8 |
3,800.3 |
Commitments and Contingencies |
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Mezzanine equity |
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Series A redeemable preference shares |
108.8 |
106.1 |
Common shareholder's equity |
||
Common shares (shares issued and outstanding: 120,000,000) |
1.2 |
1.2 |
Additional paid-in surplus |
1,199.3 |
1,197.9 |
Retained earnings |
970.2 |
858.4 |
Accumulated other comprehensive (loss) |
(197.7) |
(140.5) |
Total common shareholder's equity |
1,973.0 |
1,917.0 |
Non-controlling interests |
1.1 |
0.2 |
Total equity |
1,974.1 |
1,917.2 |
Total liabilities, mezzanine equity, and equity |
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Consolidated Statements of (Loss) Income |
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For the three and nine months ended |
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Three months ended |
Nine months ended |
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(Expressed in millions of |
2018 |
2017 |
2018 |
2017 |
Revenues |
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Net earned insurance and reinsurance premiums |
|
|
|
|
Net investment income |
21.8 |
12.1 |
51.8 |
44.2 |
Net realized investment gains (losses) |
3.9 |
(24.4) |
8.0 |
(26.9) |
Net unrealized investment (losses) gains |
(11.7) |
(2.7) |
29.0 |
(25.2) |
Net foreign exchange (losses) gains |
(0.4) |
15.7 |
21.7 |
17.0 |
Other revenue |
17.0 |
9.5 |
96.0 |
11.8 |
Total revenues |
351.7 |
293.0 |
1,121.0 |
771.5 |
Expenses |
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Loss and loss adjustment expenses |
260.4 |
371.2 |
552.8 |
626.6 |
Insurance and reinsurance acquisition expenses |
59.2 |
49.5 |
189.0 |
143.5 |
Other underwriting expenses |
35.7 |
28.7 |
117.1 |
86.6 |
General and administrative expenses |
19.5 |
19.8 |
58.0 |
60.6 |
Intangible asset amortization expenses |
3.9 |
3.9 |
11.8 |
6.3 |
Interest expense on debt |
7.6 |
5.0 |
23.1 |
14.6 |
Total expenses |
386.3 |
478.1 |
951.8 |
938.2 |
Pre-tax (loss) income |
(34.6) |
(185.1) |
169.2 |
(166.7) |
Income tax benefit (expense) |
6.9 |
12.8 |
(55.4) |
11.3 |
Net (loss) income |
(27.7) |
(172.3) |
113.8 |
(155.4) |
Income attributable to non-controlling interests |
(0.3) |
(4.2) |
(0.9) |
(13.2) |
(Loss) income before accrued dividends on Series A |
(28.0) |
(176.5) |
112.9 |
(168.6) |
Accrued dividends on Series A redeemable preference |
- |
(2.5) |
(2.6) |
(3.5) |
Net (loss) income attributable to |
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Net (loss) income per common share and common share |
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Basic earnings per common share and common share |
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Diluted earnings per common share and common share |
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Weighted average number of common shares and |
||||
Basic weighted average number of common shares and |
120,000,000 |
120,000,000 |
120,000,000 |
120,000,000 |
Diluted weighted average number of common shares and |
120,000,000 |
120,000,000 |
120,000,000 |
120,000,000 |
Loss ratio |
81.1% |
131.3% |
60.4% |
83.5% |
Acquisition expense ratio |
18.4% |
17.5% |
20.7% |
19.1% |
Other underwriting expense ratio |
11.1% |
10.1% |
12.8% |
11.5% |
Combined ratio |
110.6% |
158.9% |
93.9% |
114.1% |
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Consolidated Statements of Comprehensive (Loss) Income |
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For the three and nine months ended |
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Three months ended |
Nine months ended |
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(Expressed in millions of |
2018 |
2017 |
2018 |
2017 |
Comprehensive (loss) income |
||||
Net (loss) income |
$ (27.7) |
$ (172.3) |
$ 113.8 |
$ (155.4) |
Other comprehensive income (loss), net of tax |
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Change in foreign currency translation, net of tax |
4.7 |
26.3 |
(57.2) |
73.5 |
Total other comprehensive income (loss) |
4.7 |
26.3 |
(57.2) |
73.5 |
Comprehensive (loss) income |
(23.0) |
(146.0) |
56.6 |
(81.9) |
Income attributable to non-controlling interests |
(0.3) |
(4.2) |
(0.9) |
(13.2) |
Comprehensive (loss) income attributable to |
$ (23.3) |
$ (150.2) |
$ 55.7 |
$ (95.1) |
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