SIRIUSPOINT LTD – 10-Q – Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis is intended to help the reader understand
our business, financial condition, results of operations, liquidity and capital
resources. You should read this discussion in conjunction with our unaudited
condensed consolidated financial statements and the related notes contained
elsewhere in this Quarterly Report on Form 10-Q. The terms "we," "our," "us,"
and the "Company," as used in this report, refer to SiriusPoint Ltd.
("SiriusPoint") 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 exclusive of its subsidiaries.
Acquisition of Sirius International Insurance Group, Ltd.
On February 26, 2021, we completed the acquisition of Sirius International
Insurance Group, Ltd. ("Sirius Group") and changed our name from Third Point
Reinsurance Ltd. to SiriusPoint Ltd. See "Recent Developments" below and Note 3
"Acquisition of Sirius Group" in our unaudited condensed consolidated financial
statements included elsewhere in this Quarterly Report on Form 10-Q for a more
detailed discussion on the Sirius Group acquisition.
Our results of operations and financial condition for the nine months ended
September 30, 2021 include Sirius Group for the period from February 26, 2021
through September 30, 2021. The following discussion and analysis of our results
of operations for the three and nine months ended September 30, 2021, compared
to the three and nine months ended September 30, 2020, as well as our liquidity
and capital resources as of September 30, 2021, should be read in that context.
In addition, the results of operations for the three and nine months ended
September 30, 2021 and financial condition as of September 30, 2021 may not be
reflective of the ultimate ongoing business of the combined entities.
The statements in this discussion regarding business outlook, our expectations
regarding our future performance, liquidity and capital resources and other
non-historical statements in this discussion are forward-looking statements.
These forward-looking statements are subject to numerous risks and
uncertainties, including, but not limited to, the risks and uncertainties
described in "Risk Factors" of our Quarterly Reports on Form 10-Q for the
quarters ended March 31, 2021 and June 30, 2021, and "Special Note Regarding
Forward-Looking Statements". Our actual results may differ materially from those
contained in or implied by any forward-looking statements.
Special Note Regarding Forward-Looking Statements
Certain statements in this Quarterly Report on Form 10-Q may constitute
"forward-looking" statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements include, without
limitation, statements regarding prospects for our industry, our business
strategy, plans, goals and expectations concerning our market position,
international expansion, investment portfolio, future operations, margins,
profitability, future efficiencies, capital expenditures, liquidity and capital
resources and other non-historical financial and operating information. When
used in this discussion, the words "believes," "intends," "seeks,"
"anticipates," "plans," "estimates," "expects," "assumes," "continues,"
"should," "could," "will," "may" and the negative of these or similar terms and
phrases are intended to identify forward-looking statements.
Forward-looking statements reflect our current expectations regarding future
events, results or outcomes. These expectations may or may not be realized.
Although we believe the expectations reflected in the forward-looking statements
are reasonable, we can give you no assurance these expectations will prove to
have been correct. Some of these expectations may be based upon assumptions,
data or judgments that prove to be incorrect. Actual events, results and
outcomes may differ materially from our expectations due to a variety of known
and unknown risks, uncertainties and other factors. Although it is not possible
to identify all of these risks and factors, they include, among others, the
following:
•the costs, expenses and difficulties of the integration of the operations of
Sirius Group;
•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, continued low
interest rates, equity market volatility and ongoing business and financial
market impacts of COVID-19 associated economic downturn;
•fluctuations in our results of operations;
•a downgrade or withdrawal of our financial ratings;
•inadequacy of loss and loss adjustment expense reserves;
•the effects of global climate change and/or periods characterized by excess
underwriting capacity and unfavorable premium rates;
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•reduced returns or losses in SiriusPoint's investment portfolio;
•legal restrictions on certain of SiriusPoint's insurance and reinsurance
subsidiaries' ability to pay dividends and other distributions to SiriusPoint;
•SiriusPoint's significant deferred tax assets, which could become devalued if
either SiriusPoint does not generate future taxable income or applicable
corporate tax rates are reduced;
•the lack of availability of capital;
•future strategic transactions such as acquisitions, dispositions, investments,
mergers or joint ventures;
•technology breaches;
•our concentrated exposure in Third Point Enhanced LP ("TP Enhanced Fund"),
whose investment strategy may bear substantial investment risks;
•  our lack of control of the TP Enhanced Fund and Third Point LLC, who invest
and manage our capital accounts, and we have limited ability to withdraw our
capital accounts;
•  conflicts of interest among various members of Third Point Advisors LLC ("TP
GP"), TP Enhanced Fund, Third Point LLC and SiriusPoint; and
•other risks and uncertainties included in Part II, Item 1A. "Risk Factors" of
our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021 and
June 30, 2021 and any subsequent reports filed with the Securities and Exchange
Commission (the "SEC").
Any one of these factors or a combination of these factors could materially
affect our financial condition or future results of operations and could
influence whether any forward-looking statements contained in this report
ultimately prove to be accurate. Our forward-looking statements are not
guarantees of future performance, and you should not place undue reliance on
them. All forward-looking statements speak only as of the date made and we
undertake no obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events or otherwise.
In addition, while we do, from time to time, communicate with security analysts,
it is against our policy to disclose to them any material non-public information
or other confidential information. Accordingly, shareholders should not assume
that we agree with any statement or report issued by any analyst irrespective of
the content of the statement or report. Thus, to the extent that reports issued
by securities analysts contain any projections, forecasts, or opinions, such
reports are not our responsibility.
Overview
We are a holding company domiciled in Bermuda. Through our subsidiaries, we
provide multi-line insurance and reinsurance on a worldwide basis. SiriusPoint
plans to create a highly diversified portfolio with expanded underwriting
capabilities, geographic footprint and product offerings. SiriusPoint expects to
offer enhanced scale and a global platform, with access to admitted and
non-admitted paper in Europe, the United States, Bermuda and Lloyd's of London
("Lloyd's"). We believe that refocused underwriting strategies will position
SiriusPoint to capitalize on market opportunities with a proven management team
to focus on underwriting profitability. SiriusPoint plans to reposition its
investment portfolio to better align with its underwriting strategy, while
leveraging its strategic partnership with Third Point LLC. We believe that this
repositioning will result in lower volatility, while taking advantage of
opportunities to improve risk-adjusted returns across asset classes.
On May 27, 2021, in connection with an internal reorganization, Sirius
International Group, Ltd. ("SIG"), Sirius International Holdings Ltd. and Sirius
International Insurance Group, Ltd., wholly-owned subsidiaries of the Company,
merged with and into the Company, with the Company being the surviving entity.
In addition, on May 27, 2021, Third Point Reinsurance Company Ltd. ("Third Point
Re BDA") merged with and into Sirius Bermuda Insurance Company Ltd. ("Sirius
Bermuda"), with Sirius Bermuda being the surviving entity. Upon the
effectiveness of the merger, Sirius Bermuda changed its name to SiriusPoint
Bermuda Insurance Company Ltd. ("SiriusPoint Bermuda"). All references to
SiriusPoint Bermuda prior to the merger date refer to legacy Third Point Re BDA
and Sirius Bermuda, unless otherwise indicated.
Our key insurance and reinsurance subsidiaries include SiriusPoint Bermuda
Insurance Company Ltd. ("SiriusPoint Bermuda"), Third Point Reinsurance (USA)
Ltd. ("Third Point Re USA"), SiriusPoint International Insurance Corporation
("SiriusPoint International"), SiriusPoint America Insurance Company
("SiriusPoint America"), Sirius International Corporate Member Limited, a
Lloyd's Corporate Member, and SiriusPoint Global Solutions. In addition, Sirius
International sponsors Lloyd's Syndicate 1945 ("Syndicate 1945") and Sirius
International Corporate Member participates in the Lloyd's market, which in turn
provides underwriting capacity to Syndicate 1945. In 2020, SiriusPoint Specialty
Insurance
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Corporation, a New Hampshire domiciled surplus lines underwriter, was
established to focus primarily on accident and health and environmental risks.
In addition to the key insurance and reinsurance subsidiaries, we own two
managing general underwriting ("MGU") subsidiaries, International Medical Group,
Inc. ("IMG") and ArmadaCorp Capital, LLC ("Armada"). IMG is a full service MGU
that has been an award-winning provider of global health and travel insurance
benefits and assistance service for over 25 years. IMG offers a full, innovative
line of international medical insurance products, trip cancellation programs,
medical management services and 24/7 emergency medical and travel assistance.
Armada, through ArmadaCare and ArmadaHealth, serves as a supplemental medical
insurance MGU that markets and underwrites its signature UltimateHealth
supplemental health product designed for C Suite executives, as well as
PlenaHealth and ComplaMed, which are targeted towards broader segments of the
workforce.
In September 2020, we announced an investment in Arcadian Risk Capital Ltd.
("Arcadian"). In addition to capitalizing Arcadian, we also provide insurance
paper and meaningful net capacity. Arcadian has been established as a managing
general agent ("MGA") and incorporated in Bermuda where Arcadian will initially
operate. Arcadian commenced operations on October 1, 2020 with a Bermuda-only
platform, with a plan to expand to multiple offices over time where it will
underwrite various lines of insurance business, via established broker networks.
In July 2021, we launched Banyan Risk Ltd. ("Banyan Risk") and also announced a
strategic insurance partnership and investment in Joyn Insurance Services Inc.
("Joyn"). Banyan Risk and Joyn both operate as MGAs and commenced underwriting
in July 2021.
Products and Services
We provide reinsurance products to insurance and reinsurance companies,
government entities, and other risk bearing vehicles. Contracts are written on
an excess of loss or quota share basis. In addition, we write contracts on both
a prospective and a retroactive basis. Prospective reinsurance contracts cover
losses incurred as a result of future insurable events. Retroactive reinsurance
contracts cover the potential for changes in estimates of loss and loss
adjustment expense reserves related to loss events that have occurred in the
past. Retroactive reinsurance contracts can generate an underwriting profit
should the ultimate loss and loss adjustment expenses settle for less than the
initial estimate of reserves while the premiums received at the inception of the
contract generate insurance float.
In addition to our reinsurance product offerings, we write primary insurance
business, predominantly by several MGUs in the accident and health space.
SiriusPoint employs a detailed selection process for these MGU partners and has
narrowly defined underwriting standards in place that are closely monitored by
the SiriusPoint staff. In addition to these A&H product offerings, we write
primary Casualty insurance through Arcadian as well as through Pie Insurance
Holdings, Inc. ("Pie Insurance"), a start-up specializing in a data driven
approach to workers compensation insurance. We also have a minority investment
and carrier relationship with Pie Insurance.
Reportable Segments
The acquisition of Sirius Group created a highly diversified portfolio with
expanded underwriting capabilities, geographical footprint and product
offerings. As a result, starting in 2021, we began classifying our business into
four reportable segments - Accident & Health ("A&H"), Specialty, Property, and
Runoff & Other. Where applicable, all prior periods presented have been revised
to conform to this new presentation. Each segment is described below.
•A&H consists of our A&H insurance and reinsurance underwriting business along
with our two MGUs, IMG and Armada, which provide supplemental healthcare and
medical travel insurance products as well as related administration services;
•Specialty consists of our specialty insurance and reinsurance underwriting
units, which includes Aviation & Space, Marine & Energy, Credit, Contingency,
Casualty, Environmental and Mortgage;
•Property consists of our underwriting lines of business that offer Property
Catastrophe Excess Reinsurance, Agriculture Reinsurance and Property Risk and
Pro Rata;
•Runoff & Other consists of the results of SiriusPoint Global Solutions, which
specializes in the acquisition and management of runoff liabilities for
insurance and reinsurance companies, both in the United States and
internationally, as well as asbestos risks, environmental risks and other
long-tailed liability exposures, and our legacy reserve-based transactions.
Runoff & Other also includes retroactive reinsurance contracts consisting of
loss
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portfolio transfers, adverse development covers and other forms of reserve
reinsurance providing indemnification of loss and loss adjustment expense
reserves with respect to past loss events. Refer to "Loss Portfolio Transfer"
below for additional information.
Investment Management
As a result of the acquisition of Sirius Group, we repositioned our investment
portfolio to better align with our underwriting strategy, while leveraging our
strategic partnership with Third Point LLC. We believe that this repositioning
will result in lower volatility, while taking advantage of opportunities to
improve risk-adjusted returns across asset classes.
Under our investment strategy, our fixed income investments, which comprise the
majority of our portfolio, are outsourced to a diversified range of third-party
asset managers. Third Point LLC continues to manage the majority of our
alternative investment allocation, specialty asset classes as well as working
with us on tailored asset-liability management strategies. We believe that this
will be a strategic differentiator on our returns while also reducing volatility
and creating a portfolio mix more in line with peer property/casualty
reinsurers. Our investment objective is to maximize total return, including
yield income and gains and losses, over the long-term, without assuming risk to
a degree which could jeopardize the vitality of our insurance franchise.
We seek to operate our investment portfolio in a way that will allow us to
demonstrate to internal and external constituents that we are able, and will
remain able, to pay insurance claims during, and after, periods of extreme
volatility whether such volatility arises from within its insurance business
operations or investment portfolio. Such constituents include numerous
regulatory regimes, rating agencies, shareholders and SiriusPoint's risk
management framework.
We now have subsidiaries and branches located throughout the world and our
global footprint requires us to transact in numerous currencies. Where
practical, we aim to generally match material liabilities with assets and in
many cases investable assets. From time to time, we may utilize third party
tools such as currency forwards or swaps to mitigate unmatched exposure or may
choose to leave such exposure unmatched.
Recent Developments
Acquisition of Sirius International Insurance Group, Ltd.
On February 26, 2021, the Company completed the acquisition of Sirius Group. We
accounted for the acquisition of Sirius Group under the acquisition method of
accounting in accordance with Financial Accounting Standards Board Accounting
Standards Codification Topic Business Combinations. The total deal consideration
was $1,079.8 million, which was comprised of stock, cash, and other contingent
value components. The associated bargain purchase gain from the Sirius Group
acquisition was $12.9 million, which represents the excess of the fair value of
the underlying net assets acquired and liabilities assumed over the total deal
consideration. The gain from bargain purchase is included in other revenues in
the condensed consolidated statements of income (loss). The bargain purchase
determination is consistent with the fact that Sirius Group's shares traded at a
discount to book value and the need for Sirius Group to quickly diversify its
ownership base.
We believe that our operating subsidiaries, following the acquisition of Sirius
Group, have adequate capital resources in the aggregate, and the ability to
produce sufficient cash flows to meet expected claims payments and operational
expenses, including but not limited to interest payments.
During the nine months ended September 30, 2021, the Company has recorded
$49.5 million of corporate expenses associated with the acquisition of Sirius
Group, comprised of $29.7 million of professional and advisory fees and
$19.8 million of compensation-related expenses.
See Note 3 "Acquisition of Sirius Group" in our unaudited condensed consolidated
financial statements included elsewhere in this Quarterly Report on Form 10-Q
for a more detailed discussion on the Sirius Group acquisition.

COVID-19 Pandemic
The COVID-19 pandemic has had and is expected to continue to have a significant
effect on the (re)insurance industry. The industry has been impacted by a number
of factors 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, continued low interest
rates, equity market volatility and ongoing business and financial market
impacts of COVID-19 associated economic downturn. The insurance industry and
Sirius Group, prior to our acquisition of Sirius Group, have already sustained
material losses resulting
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from COVID-19, with potentially more to come, which will reduce available
capital and help sustain the upward pricing trend for (re)insurers that we were
seeing across many lines of business before the impacts of COVID-19.
We continue to maintain a strong capital position despite the uncertainty
associated with COVID-19. We will continue to prudently assess the investment
opportunities presented to us, and believe that we are well positioned to
continue to deploy our capital efficiently. The ultimate impact of COVID-19 on
current business in force as well as risks and potential opportunities on future
business remains highly uncertain.
For the three and nine months ended September 30, 2021, we recorded $2.4 million
and $8.1 million, respectively (2020 - $15.6 million and $35.0 million,
respectively) of COVID-19 losses, as a result of recognition of losses incurred
related to unearned premium converting to earned premium, while our ultimate
loss incurred estimates remained unchanged.
Recent Strategic Investments
During 2021, we announced a number of strategic (re)insurance partnerships.
In April 2021, we announced a strategic partnership with Hestia Capital. Hestia
Capital is a Texas-based advisory start-up and will focus on sourcing and
developing structured specialty insurance and reinsurance transactions and
insurance-related investments in underserved or specialized markets. We made an
investment in the company and will provide (re)insurance paper and capacity for
the new venture.
In June 2021, we made an equity investment in Outdoorsy, a global online RV
rental and outdoor travel marketplace. Outdoorsy plans to use the capital it has
raised to drive its growth and expansion of Roamly, Outdoorsy's innovative
insurtech business. Our strategic partnership with Outdoorsy will enable us to
support the development of insurance products that serve their customers' needs.
Furthermore, our partnership will allow us to deliver on a key strategic goal of
identifying and making investments in insurtech companies and aligns with our
plans to revitalize and grow our business.
In July 2021, we announced a strategic insurance partnership and investment in
Joyn. Our partnership will allow us to work together to transform small and
mid-market U.S. commercial insurance through digital technology, data analytics,
and automation. Joyn will operate as a MGA and began underwriting on July 1,
2021. We are a founding investor in the venture and will provide insurance
capacity, backed by a strong reinsurer panel. We will also assist in the
strategic direction of Joyn, helping to shape its growth trajectory.
In July 2021, we launched Banyan Risk. Banyan Risk will operate as a MGA and is
headquartered and regulated in Bermuda. Banyan Risk commenced operations in July
and will underwrite directors and officers insurance, focusing on tailored
solutions for areas such as life sciences, global initial public offerings, the
technology sector, and special purpose acquisition companies. In addition to
capitalizing Banyan Risk, we will also provide insurance paper and meaningful
net capacity.
In September 2021, we announced a strategic partnership with Vouch Insurance
("Vouch"). Vouch is a new kind of insurance platform for startups, offering
fully-digital, tailored coverage that takes minutes to activate. The company
provides comprehensive property and casualty insurance to meet the unique and
fast changing needs of startups. We made an investment in the company and will
provide multi-year underwriting capacity.
In September 2021, we announced a strategic investment and multi-year
underwriting capacity partnership with Corvus Insurance that will support
existing and future commercial insurance product offerings.
In October 2021, we announced a strategic partnership with Parameter Climate, a
full-service climate underwriting and distribution advisory firm. As part of the
transaction, we purchased a significant ownership stake in Parameter Climate in
addition to providing multiyear capacity and paper. Additional capacity has been
secured from another leading global reinsurer.
We intend to remain nimble and optimize our global platform by continuing to
partner with and invest in innovative businesses and teams in the (re)insurance
industry. We see these strategic partnerships as a key differentiator and a
means by which we can add value and drive disruptive change in the industry.
Loss Portfolio Transfer
On July 30, 2021, we agreed, subject to applicable regulatory approvals and
other closing conditions, to enter into a loss portfolio transfer transaction
with Pallas Reinsurance Company Ltd., a subsidiary of the Compre Group, an
insurance and reinsurance legacy specialist, and on October 29, 2021, we
executed definitive agreements in respect of the loss portfolio
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transfer and the services to be provided in connection therewith (collectively,
the "LPT"). The LPT covers $369 million of the Company's loss reserves for the
subject business, including much of the legacy Sirius Group runoff portfolio,
including asbestos and environmental lines, for a premium of $388 million. We
will recognize an estimated net charge of $23 million, including approximately
$4 million of federal excise tax expense, in the fourth quarter of 2021, subject
to post-closing adjustments.
Our transaction with the Compre Group underscores the ongoing transformation of
SiriusPoint, our focus on optimizing capital allocation and rebalancing towards
insurance and higher margin and growth lines, and provides further certainty on
SiriusPoint's reserve position. Following the completion of the LPT, our net
loss reserves from Runoff business were reduced by 46%.
Key Performance Indicators
We believe that the following key financial indicators are the most important in
evaluating our performance:
                                                           Three months ended                           Nine months ended
                                                                           September 30,        September 30,       September 30,
                                                 September 30, 2021             2020                2021                2020
                                                              ($ in millions, except for per share data and ratios)
Annualized return on average common
shareholders' equity attributable to
SiriusPoint common shareholders                              (7.8) %              19.7  %             9.8   %              0.9  %
Net underwriting loss (1)                       $          (265.8)         

$ (29.7) $ (223.8) $ (27.3)
Combined ratio (1)

                                          151.9  %             121.0  %           118.1   %            106.3  %
Basic book value per share (2) (4)              $           15.31          $     16.88          $   15.31           $    16.88
Tangible basic book value per share (2) (4)     $           14.22          $     16.88          $   14.22           $    16.88
Diluted book value per share (2) (3) (4)        $           15.14          $     16.71          $   15.14           $    16.71
Tangible diluted book value per share (2) (4)   $           14.07          $     16.71          $   14.07           $    16.71


(1)See Note 5 "Segment reporting" in our unaudited condensed consolidated
financial statements included elsewhere in this Quarterly Report on Form 10-Q
for a calculation of net underwriting loss and combined ratio.
(2)Basic book value per share, tangible basic book value per share, diluted book
value per share and tangible diluted book value per share are non-GAAP financial
measures. See reconciliations in "Non-GAAP Financial Measures".
(3)In the first quarter of 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 consistent with how dilution is
calculated using the treasury stock method for earnings per share. See "Non-GAAP
Financial Measures" for additional information.
(4)Prior year comparatives represent amounts as of December 31, 2020.
Annualized Return on Average Common Shareholders' Equity Attributable to
SiriusPoint Common Shareholders
Annualized return on average common shareholders' equity attributable to
SiriusPoint common shareholders is calculated by dividing annualized net income
(loss) available to SiriusPoint common shareholders for the period by the
average common shareholders' equity determined using the common shareholders'
equity balances at the beginning and end of the period.
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Annualized return on average common shareholders' equity attributable to
SiriusPoint common shareholders for the three and nine months ended September
30, 2021 and 2020 was calculated as follows:

                                                      Three months ended                       Nine months ended
                                               September 30,       September 30,       September 30,       September 30,
                                                   2021                2020                2021                2020
                                                                            ($ in millions)
Net income (loss) available to SiriusPoint
common shareholders                            $    (48.0)         $     

68.7 $ 147.4 $ 9.1

Common shareholders' equity attributable to
SiriusPoint common shareholders - beginning of
period                                         $  2,480.1          $  1,357.3          $  1,563.9          $  1,414.1
Common shareholders' equity attributable to
SiriusPoint common shareholders - end of
period                                            2,438.0             1,427.6             2,438.0             1,427.6
Average common shareholders' equity
attributable to SiriusPoint common
shareholders                                   $  2,459.1          $  

1,392.5 $ 2,001.0 $ 1,420.9

Annualized return on average common
shareholders' equity attributable to
SiriusPoint common shareholders                      (7.8) %             19.7  %              9.8  %              0.9  %


The decrease in annualized return on average common shareholders' equity
attributable to SiriusPoint common shareholders for the three months ended
September 30, 2021 compared to the three months ended September 30, 2020 was
primarily due to higher underwriting losses due to third quarter catastrophe
losses from the European floods and Hurricane Ida, mainly offset by improved
investment results.
The increase in annualized return on average common shareholders' equity
attributable to SiriusPoint common shareholders for the nine months ended
September 30, 2021 compared to the nine months ended September 30, 2020 was
primarily due to an increase in net income in the current year period driven by
improved investment results, partially offset by higher underwriting losses due
to third quarter catastrophe losses and $49.5 million of costs associated with
the Sirius Group acquisition.
The average common shareholders' equity attributable to SiriusPoint common
shareholders for the nine months ended September 30, 2021 was impacted by the
additional equity issued related to the Sirius Group acquisition.
Net Underwriting Income (Loss)
We measure segment performance for our underwriting segments based on net
underwriting income or loss. Net underwriting income is a pre-tax measure of
underwriting profitability that takes into account net premiums earned as
revenues, including service fee revenue from the Company's managing general
underwriting subsidiaries, and loss and loss adjustment expenses incurred, net,
acquisition costs, net, and other underwriting expenses as expenses. Other
underwriting expenses include those operating expenses that are incremental
and/or directly attributable to our individual underwriting operations. See
"Segment Results" and Note 5 "Segment reporting" to our unaudited condensed
consolidated financial statements for additional details.
Combined Ratio
Combined ratio is calculated by dividing the sum of loss and loss adjustment
expenses incurred, net, acquisition costs, net and other underwriting expenses
by net premiums earned. This ratio is a key indicator of a company's
underwriting profitability. See "Segment Results" and Note 5 "Segment reporting"
to our unaudited condensed consolidated financial statements for additional
details.
Basic and Tangible Basic Book Value Per Share
Basic book value per share and tangible basic book value per share are non-GAAP
financial measures and there are no comparable GAAP measures. See "Non-GAAP
Financial Measures" for an explanation and calculation.
As of September 30, 2021, basic book value per share was $15.31, representing a
decrease of $0.28 per share, or 1.8%, from $15.59 per share as of June 30, 2021.
As of September 30, 2021, tangible basic book value per share was $14.22,
representing a decrease of $0.26 per share, or 1.8%, from $14.48 per share as of
June 30, 2021. The decreases were primarily due to a net loss in the current
period.
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As of September 30, 2021, basic book value per share was $15.31, representing a
decrease of $1.57 per share, or 9.3%, from $16.88 per share as of December 31,
2020. As of September 30, 2021, tangible basic book value per share was $14.22,
representing a decrease of $2.66 per share, or 15.8%, from $16.88 per share as
of December 31, 2020. The decreases were primarily due to the dilutive impact of
shares and other securities issued in conjunction with the acquisition of Sirius
Group, partially offset by net income in the current year period.
Diluted and Tangible Diluted Book Value Per Share
Diluted book value per share and tangible diluted book value per share are
non-GAAP financial measures and there are no comparable GAAP measures. In the
first quarter of 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 consistent with how dilution is calculated using the
treasury stock method for earnings per share. See "Non-GAAP Financial Measures"
for an explanation and reconciliations.
As of September 30, 2021, diluted book value per share was $15.14, representing
a decrease of $0.23 per share, or 1.5%, from $15.37 per share as of June 30,
2021. As of September 30, 2021, tangible diluted book value per share was
$14.07, representing a decrease of $0.23 per share, or 1.6%, from $14.30 per
share as of June 30, 2021. The decreases were primarily due to a net loss in the
current period.
As of September 30, 2021, diluted book value per share was $15.14, representing
a decrease of $1.57 per share, or 9.4%, from $16.71 per share as of December 31,
2020. As of September 30, 2021, tangible diluted book value per share was
$14.07, representing a decrease of $2.64 per share, or 15.8%, from $16.71 per
share as of December 31, 2020. The decreases were primarily due to the dilutive
impact of shares and other securities issued in conjunction with the acquisition
of Sirius Group, including the acquisition of intangible assets, partially
offset by net income in the current year period.
Consolidated Results of Operations-Three and nine months ended September 30,
2021 and 2020:
The following table sets forth the key items discussed in the consolidated
results of operations section, and the period over period change, for the three
and nine months ended September 30, 2021 and 2020:
                                            Three months ended                                         Nine months ended
                           September 30,       September 30,                          September 30,       September 30,
                               2021                 2020              Change              2021                 2020              Change
                                                                           ($ in millions)
Net underwriting loss      $   (265.8)         $     (29.7)         $ (236.1)         $   (223.8)         $     (27.3)         $ (196.5)
Other revenues                   20.7                    -              20.7                47.1                    -              47.1
Net investment income           199.8                122.0              77.8               463.7                 74.1             389.6
Net corporate and other
expenses                        (19.5)               (14.9)             (4.6)             (113.5)               (30.2)            (83.3)
Intangible asset
amortization                     (2.0)                   -              (2.0)               (4.1)                   -              (4.1)
Interest expense                 (9.7)                (2.1)             (7.6)              (24.4)                (6.2)            (18.2)
Foreign exchange gains
(losses)                         16.1                 (5.9)             22.0                16.5                  3.1              13.4
Income tax (expense)
benefit                          13.0                 (0.7)             13.7                (6.4)                (4.4)             (2.0)

Net income (loss)          $    (47.4)         $      68.7          $ (116.1)         $    155.1          $       9.1          $  146.0


The key changes in our consolidated results for the three and nine months ended
September 30, 2021 compared to the prior year periods are discussed below.
Net Underwriting Loss
The increase in net underwriting loss for the three and nine months ended
September 30, 2021 was primarily driven by third quarter catastrophe losses from
the European floods and Hurricane Ida. In addition, the Runoff & Other Segment
recorded $7.1 million of accelerated expenses related to interest crediting
features in certain reinsurance contracts. Refer to "Segment Results" for
additional information.
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Other Revenues
For the three months ended September 30, 2021, other revenues consist of
$18.8 million of changes in the fair value of liability-classified capital
instruments issued as part of the aggregate consideration for the Sirius Group
acquisition and a bargain purchase gain of $1.9 million. The decline in value of
the liability-classified capital instruments was primarily attributable to
shorter life to maturity and a decrease in the Company's share price during the
three months ended September 30, 2021.
For the nine months ended September 30, 2021, other revenues consist of
$34.2 million of changes in the fair value of liability-classified capital
instruments issued as part of the aggregate consideration for the Sirius Group
acquisition and a bargain purchase gain of $12.9 million. The bargain purchase
gain represents the excess of the fair value of the underlying net assets
acquired and liabilities assumed over the purchase price. The bargain purchase
determination is consistent with the fact that Sirius Group's shares traded at a
discount to book value and the need for Sirius Group to quickly diversify its
ownership base.
See Note 3 "Acquisition of Sirius Group" in our unaudited condensed consolidated
financial statements included elsewhere in this Quarterly Report on Form 10-Q
for a more detailed discussion on the bargain purchase gain recognized as a
result of the Sirius Group acquisition and the components of the aggregate
consideration.
Investments
Investment Portfolio
The following is a summary of our total investments, cash and cash equivalents
and restricted cash and cash equivalents as of September 30, 2021 and December
31, 2020:
                                                        September 30,         December 31,
                                                            2021                  2020               Change
                                                                          ($ in millions)
Investments in related party investment funds (1)     $      1,456.8          $  1,055.6          $   401.2
Debt securities                                              2,100.9               101.3            1,999.6
Short-term investments                                       1,057.9                   -            1,057.9
Equity securities                                                3.4                   -                3.4
Other long-term investments                                    454.5                 4.0              450.5
Total investments                                            5,073.5             1,160.9            3,912.6
Cash and cash equivalents                                      701.2               526.0              175.2
Restricted cash and cash equivalents (2)                     1,482.3             1,187.9              294.4

Total invested assets and cash                        $      7,257.0        

$ 2,874.8 $ 4,382.2

(1)Consists of our investments in TP Enhanced Fund and TP Venture Fund.
(2)Primarily consists of cash and fixed income securities such as U.S.
Treasuries, money markets funds, and sovereign debt, securing the Company's
contractual obligations under certain (re)insurance contracts that the Company
will not be released from until the underlying risks have expired or have been
settled.
The main driver for the increase in total investments was the acquisition of
Sirius Group on February 26, 2021. In addition, the increase in total
investments was driven by the performance of the TP Enhanced Fund and our
strategic investment portfolio.
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Investment Results
The following is a summary of the results from investments and cash for the
three and nine months ended September 30, 2021 and 2020:

                                                Three months ended                                         Nine months ended
                               September 30,        September 30,                         September 30,        September 30,
                                    2021                 2020              Change              2021                 2020              Change
                                                                               ($ in millions)
Net realized and unrealized
investment gains (losses)      $     (11.7)         $       7.0          $ (18.7)         $      43.7          $      54.6          $ (10.9)
Net investment income from
investments in related party
fund                                 202.4                110.6             91.8                401.2                  8.3            392.9
Other net investment income            9.1                  4.4              4.7                 18.8                 11.2              7.6

Net investment income $ 199.8 $ 122.0 $ 77.8 $ 463.7 $ 74.1 $ 389.6

The following is a summary of net investment income (loss) by investment
classification, for the three and nine months ended September 30, 2021 and 2020:
                                              Three months ended                                         Nine months ended
                             September 30,        September 30,                         September 30,        September 30,
                                  2021                 2020              Change              2021                 2020              Change
                                                                             ($ in millions)
Debt securities              $       2.4          $       6.1          $  

(3.7) $ 12.6 $ 65.0 $ (52.4)
Short-term investments

              (5.6)                   -             (5.6)                (4.2)                   -             (4.2)
Equity securities                   (1.4)                   -             (1.4)                (1.4)                   -             (1.4)
Other long-term investments         11.5                    -             11.5                 73.4                    -             73.4
Net investment income from
investments in related party
investment funds                   202.4                110.6             91.8                401.2                  8.3            392.9
Net investment income before
other investment expenses
and investment income (loss)
on cash and cash equivalents       209.3                116.7             92.6                481.6                 73.3            408.3
Other investment expenses           (7.8)                (0.3)            (7.5)               (12.3)                (1.1)           (11.2)
Net investment income (loss)
on cash and cash equivalents        (1.7)                 5.6             (7.3)                (5.6)                 1.9             (7.5)

Net investment income $ 199.8 $ 122.0 $ 77.8 $ 463.7 $ 74.1 $ 389.6

Investment Returns
The following is a summary of the net investment returns for our total net
investments on a U.S. Dollar basis for the three and nine months ended September
30, 2021 and 2020:
                                                       Three months ended                                   Nine months ended
                                          September 30, 2021        September 30, 2020        September 30, 2021        September 30, 2020

TP Enhanced Fund                                      16.3  %                   14.6  %                   38.3  %                    1.0  %
Collateral and other investments managed
by Third Point LLC                                    (0.1) %                    0.6  %                    0.2  %                    3.8  %

Fixed income investments acquired as part
of Sirius acquisition (1)                             (0.1) %                      -  %                    0.5  %                      -  %
Equity securities and other long-term
investments acquired as part of Sirius
acquisition (2)                                        1.2  %                      -  %                   14.4  %                      -  %


(1)Fixed income investment returns in original currencies for investments
acquired as part of the Sirius Group acquisition were 0.2% and 0.6% for the
three and nine months ended September 30, 2021, respectively.
(2)Equity securities and other long-term investment returns in original
currencies for investments acquired as part of the Sirius Group acquisition were
1.2% and 14.5% for the three and nine months ended September 30, 2021,
respectively.
Net investment income for the three months ended September 30, 2021 was
primarily attributable to net investment income of $201.0 million from our
investment in the TP Enhanced Fund, corresponding to a 16.3% return. The return
was primarily attributable to long event/fundamental and activist equities, in
particular strong performance from the fund's largest positions:
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Upstart Holdings Inc., SentinelOne Inc., and Prudential PLC. In addition, the
Company recognized net investment income of $6.9 million on fixed maturity,
short term, equity and alternative investments. This was mainly attributable to
unrealized gains of $4.9 million resulting from market appreciation on
alternative investments and offset by unfavorable foreign exchange developments.
Net investment income for the nine months ended September 30, 2021 was primarily
attributable to net investment income of $398.8 million from our investment in
the TP Enhanced Fund, corresponding to a 38.3% return. The return was primarily
attributable to long event/fundamental equities, in particular Upstart Holdings
Inc. and SentinelOne Inc. In addition, the Company recognized an unrealized gain
of $35.4 million from our investment in Pie Insurance and $18.1 million in
unrealized gains in other private equity and hedge fund investments for the nine
months ended September 30, 2021.
Net investment income for the three months ended September 30, 2020 was
primarily attributable to net investment income of $110.6 million from our
investment in the TP Enhanced Fund, corresponding to a 14.6% return. Equity
markets continued to rebound with technology-oriented stocks leading
out-performance globally.
Net investment income for the nine months ended September 30, 2020 was primarily
attributable to investment income from our credit portfolio, with strong
contributions from investments in investment grade corporate credit and
residential mortgage backed securities.
Refer to "Part I, Item 3. Quantitative and Qualitative Disclosures about Market
Risks" of this Quarterly Report on Form 10-Q for a discussion of certain risks
and factors that could adversely impact our investments results.
Net Corporate and Other Expenses
Net corporate and other expenses include costs associated with operating as a
publicly-traded company and non-underwriting activities. In addition, for the
three and nine months ended September 30, 2021, net corporate and other expenses
included costs related to the acquisition of Sirius Group, expected credit
losses from the Company's insurance and reinsurance balances receivable and loss
and loss adjustment expenses recoverable, and a gain from the sale of Cedar
Insurance Company ("Cedar").
The increase in net corporate and other expenses for the three months ended
September 30, 2021 compared to the three months ended September 30, 2020 was
primarily due to compensation-related expenses associated with the acquisition
of Sirius Group and expenses from the legacy Sirius Group companies, partially
offset by a gain from the sale of Cedar.
The increase in net corporate and other expenses for the nine months ended
September 30, 2021 compared to the nine months ended September 30, 2020 was
primarily due to professional and advisory fees and compensation-related
expenses associated with the acquisition of Sirius Group, expected credit losses
from the Company's insurance and reinsurance balances receivable and loss and
loss adjustment expenses recoverable, and expenses from the legacy Sirius Group
companies from the date of acquisition.
For the three months ended September 30, 2021, we recorded $3.1 million of
compensation-related expenses associated with the acquisition of Sirius Group.
For the nine months ended September 30, 2021, we recorded $49.5 million of
corporate expenses associated with the acquisition of Sirius Group, comprised of
$29.7 million of professional and advisory fees and $19.8 million of
compensation-related expenses.
For the three and nine months ended September 30, 2021, we recorded current
expected credit (gains) losses of $(0.3) million and $15.3 million, respectively
(2020 - $0.3 million and $0.5 million, respectively). The increase in current
expected credit losses for the nine months ended September 30, 2021, was
primarily a result of the acquisition of Sirius Group. We recorded an expense to
re-establish the acquired company's current expected credit losses provision.
See Note 12 "Allowance for expected credit losses" in our unaudited condensed
consolidated financial statements included elsewhere in this Quarterly Report on
Form 10-Q for a more detailed discussion on the credit loss methodology.
For the three and nine months ended September 30, 2021, we recognized a
$5.8 million gain from the sale of Cedar to Grandview Risk Holdings Ltd. See
Note 4 "Significant transactions" in our unaudited condensed consolidated
financial statements included elsewhere in this Quarterly Report on Form 10-Q
for a more detailed discussion on the sale of Cedar.
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Amortization of Intangible Assets
The amortization of intangible assets for the three and nine months ended
September 30, 2021 was due to intangible assets recognized as a result of the
Sirius Group acquisition. See Note 3 "Acquisition of Sirius Group" in our
unaudited condensed consolidated financial statements included elsewhere in this
Quarterly Report on Form 10-Q for a more detailed discussion on the intangible
assets recognized as a result of the Sirius Group acquisition.
Interest Expense
In February 2015, Third Point Re (USA) Holdings, Inc. ("TPRUSA") issued
$115.0 million of senior notes bearing 7.0% interest. In November 2016, Sirius
Group issued $400.0 million of senior notes bearing 4.6% interest and in
September 2017, Sirius Group issued SEK 2,750.0 million floating rate callable
subordinated notes. As a result, our consolidated results of operations include
interest expense related to the senior and subordinated notes.
The increase in interest expense for the three and nine months ended September
30, 2021 was due to $7.6 million and $18.2 million, respectively, of interest
expense from the senior notes and the SEK subordinated notes, from the legacy
Sirius Group companies from the date of acquisition.
Foreign Currency Translation
Except for the Canadian reinsurance operations of SiriusPoint America, the U.S.
dollar is the functional currency for SiriusPoint's business. Assets and
liabilities are remeasured into the functional currency using current exchange
rates; revenues and expenses are remeasured into the functional currency using
the average exchange rate for the period. The remeasurement process results in
foreign exchange gains (losses) in the consolidated results of operations.
The foreign exchange gains of $16.1 million and $16.5 million for the three and
nine months ended September 30, 2021, respectively, were primarily due to the
Company's international operations and from the foreign currency effects of the
SEK subordinated notes.
The foreign exchange losses for the three months ended September 30, 2020 were
primarily due to the revaluation of foreign currency loss and loss adjustment
expense reserves denominated in British pounds to the United States dollar,
which weakened as compared to the pound in the prior period.
The foreign exchange gains for the nine months ended September 30, 2020 were
primarily due to the revaluation of foreign currency loss and loss adjustment
expense reserves denominated in British pounds to the United States dollar,
which strengthened as compared to the pound in the prior period.
Income Tax (Expense) Benefit
The increase in income tax benefit for the three months ended September 30, 2021
compared to the three months ended September 30, 2020 primarily reflects the
Company's recognition of proportionally more operating losses in taxable
jurisdictions.
The increase in income tax expense for the nine months ended September 30, 2021
compared to the nine months ended September 30, 2020 primarily reflects the
Company's recognition of proportionally more operating income in taxable
jurisdictions. Subsequent to the acquisition of Sirius Group, the Company has
subsidiaries and branches that operate in various other jurisdictions around the
world that are subject to tax in the jurisdictions in which they operate. The
jurisdictions in which the Company's subsidiaries and branches are subject to
tax are Australia, Belgium, Canada, Germany, Hong Kong (China), Ireland,
Luxembourg, Malaysia, Singapore, Sweden, Switzerland, the United Kingdom and the
United States.
Segment Results - Three and nine months ended September 30, 2021 and 2020
The determination of our reportable segments is based on the manner in which
management monitors the performance of our operations. Effective January 1,
2021, our business comprises four operating segments, Accident & Health ("A&H"),
Specialty, Property, and Runoff & Other.
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In addition, effective January 1, 2021, the Company changed its accounting
policy for assumed written premium recognition. 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. See Note 2 "Significant accounting policies" in
our unaudited condensed consolidated financial statements included elsewhere in
this Quarterly Report on Form 10-Q for a more detailed discussion.

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The following table sets forth net underwriting results and ratios for the
segment results for the three months ended September 30, 2021 and 2020:

                                                               Three months 

ended September 30, 2021

                                                                                                Runoff &
                                           A&H            Specialty          Property            Other              Total
                                                                          ($ in millions)
Gross premiums written (1)             $  118.1          $   350.9          $  182.0          $     2.7          $  653.7
Net premiums written (1)                   88.4              306.8              91.0                5.1             491.3
Net premiums earned (1)                   111.7              240.6             150.8                9.0             512.1
Loss and loss adjustment expenses
incurred, net (2)                          55.8              155.6             362.5                7.8             581.7
Acquisition costs, net                     10.5               65.8              30.9               (0.3)            106.9
Other underwriting expenses (2)            30.2               25.6              22.1               11.4              89.3

Net underwriting income (loss) $ 15.2 $ (6.4) $ (264.7) $ (9.9) $ (265.8)

Underwriting ratios (3):
Loss ratio                                 50.0  %            64.7  %          240.4  %                 NM          113.6  %
Acquisition cost ratio                      9.4  %            27.3  %           20.5  %                 NM           20.9  %
Other underwriting expense ratio           27.0  %            10.6  %           14.7  %                 NM           17.4  %
Combined ratio (4)                         86.4  %           102.6  %          275.6  %                 NM          151.9  %

                                                               Three months ended September 30, 2020
                                                                                                Runoff &
                                           A&H            Specialty          Property            Other              Total
                                                                          ($ in millions)
Gross premiums written (1)             $    0.2          $    79.0          $   42.6          $     2.9          $  124.7
Net premiums written (1)                    0.2               76.7              36.6                2.9             116.4
Net premiums earned (1)                     0.6               87.7              49.8                3.6             141.7
Loss and loss adjustment expenses
incurred, net (2)                           0.4               67.9              62.2              (20.0)            110.5
Acquisition costs, net                      0.1               18.0              13.0               23.7              54.8
Other underwriting expenses (2)               -                3.1               1.6                1.4               6.1

Net underwriting income (loss) $ 0.1 $ (1.3) $ (27.0) $ (1.5) $ (29.7)

Underwriting ratios (3):
Loss ratio                                 66.7  %            77.4  %          124.9  %                 NM           78.0  %
Acquisition cost ratio                     16.7  %            20.5  %           26.1  %                 NM           38.7  %
Other underwriting expense ratio              -  %             3.5  %            3.2  %                 NM            4.3  %
Combined ratio (4)                         83.4  %           101.4  %          154.2  %                 NM          121.0  %


(1)Includes service fee revenue from the Company's MGUs of $12.5 million for the
three months ended September 30, 2021 (2020 - $nil).
(2)Loss and loss adjustment expenses incurred, net and other underwriting
expenses include expenses associated with the Company's MGUs of $3.6 million and
$24.5 million, respectively, for the three months ended September 30, 2021 (2020
- $nil and $nil).
(3)Underwriting ratios are calculated by dividing the related expense by net
premiums earned.
(4)Ratios considered not meaningful ("NM") to Runoff & Other.
(5)In the first quarter of 2021, we modified the presentation of our operating
segments to better align with the manner in which management monitors the
performance of our operations. This change was primarily due to our acquisition
of Sirius Group (See Note 3 "Acquisition of Sirius Group"). Prior period segment
results have been adjusted to conform to the current period presentation.
Gross premiums written
Gross premiums written increased by $529.0 million, or 424.2%, to $653.7 million
for the three months ended September 30, 2021 from $124.7 million for the three
months ended September 30, 2020, primarily driven by an increase in gross
premiums written of $473.3 million as a result of new premiums from the legacy
Sirius Group companies.
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Net premiums written
Net premiums written increased by $374.9 million, or 322.1%, to $491.3 million
for the three months ended September 30, 2021 from $116.4 million for the three
months ended September 30, 2020, primarily driven by an increase in net premiums
written of $339.4 million as a result of new premiums from the legacy Sirius
Group companies.
Net premiums earned
Net premiums earned increased by $370.4 million, or 261.4%, to $512.1 million
for the three months ended September 30, 2021 from $141.7 million for the three
months ended September 30, 2020, primarily driven by an increase in net premiums
earned of $390.6 million as a result of new premiums from the legacy Sirius
Group companies.
Underwriting results
We generated a net underwriting loss of $265.8 million and a combined ratio of
151.9% for the three months ended September 30, 2021, compared to a net
underwriting loss of $29.7 million and a combined ratio of 121.0% for the three
months ended September 30, 2020. The change in net underwriting results was
primarily driven by the Property segment as a result of catastrophe losses from
the European floods and Hurricane Ida.
Catastrophe losses, net of reinsurance and reinstatement premiums, for the three
months ended September 30, 2021 were $286.5 million, or 55.9 percentage points
on the combined ratio, including $132 million for the European floods and
$100 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.
Catastrophe losses, net of reinsurance and reinstatement premiums, for the three
months ended September 30, 2020 were $29.6 million, or 20.9 percentage points,
related to Hurricane Laura and other third quarter catastrophes.
Net favorable prior year loss reserve development was $16.2 million for the
three months ended September 30, 2021. The change was primarily driven by net
favorable prior year loss reserve development of $15.0 million from the legacy
Sirius Group companies, primarily due to favorable loss reserve development of
$6.1 million and $5.5 million relating to the A&H and Property segments,
respectively, based on better than expected loss reserve emergence. The change
in net underwriting results for the three months ended September 30, 2020 for
prior period loss reserve development and adjustments to premium earnings
estimates, after the impact of any offsetting changes in acquisition costs,
resulted in a minimal improvement in the net underwriting results.
COVID-19 losses, net of reinsurance and reinstatement premiums, for the three
months ended September 30, 2021 were $2.4 million compared to $15.6 million for
the three months ended September 30, 2020, from the earn in of losses on
unearned premium converting to earned premium in our Specialty segment.
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The following table sets forth net underwriting results and ratios for the
segment results for the nine months ended September 30, 2021 and 2020:

                                                                Nine months ended September 30, 2021
                                                                                                Runoff &
                                           A&H            Specialty          Property            Other              Total
                                                                          ($ in millions)
Gross premiums written (1)             $  343.5          $   807.9          $  457.3          $   (25.7)         $ 1,583.0
Net premiums written (1)                  267.8              692.4             324.6              (24.2)           1,260.6
Net premiums earned (1)                   250.4              610.7             385.4              (12.1)           1,234.4
Loss and loss adjustment expenses
incurred, net (2)                         121.9              393.9             482.2              (13.1)             984.9
Acquisition costs, net                     35.4              168.9              79.7               (2.5)             281.5
Other underwriting expenses (2)            69.5               54.7              52.6               15.0              191.8

Net underwriting income (loss) $ 23.6 $ (6.8) $ (229.1) $ (11.5) $ (223.8)

Underwriting Ratios: (3)
Loss ratio                                 48.7  %            64.5  %          125.1  %                 NM            79.8  %
Acquisition cost ratio                     14.1  %            27.7  %           20.7  %                 NM            22.8  %
Other underwriting expenses ratio          27.8  %             9.0  %           13.6  %                 NM            15.5  %
Combined ratio (4)                         90.6  %           101.2  %          159.4  %                 NM           118.1  %

                                                                Nine months ended September 30, 2020
                                                                                                Runoff &
                                           A&H            Specialty          Property            Other              Total
                                                                          ($ in millions)
Gross premiums written (1)             $    2.8          $   232.2          $  160.2          $     3.0          $   398.2
Net premiums written (1)                    2.8              224.3             138.9                3.0              369.0
Net premiums earned (1)                     2.5              285.6             135.9                4.9              428.9
Loss and loss adjustment expenses
incurred, net (2)                           3.7              203.1              99.5              (18.9)             287.4
Acquisition costs, net                      0.3               85.3              38.8               23.3              147.7
Other underwriting expenses (2)             0.1               12.4               4.7                3.9               21.1

Net underwriting income (loss) $ (1.6) $ (15.2) $ (7.1) $ (3.4) $ (27.3)

Underwriting Ratios: (3)
Loss ratio                                148.0  %            71.1  %           73.2  %                 NM            67.0  %
Acquisition cost ratio                     12.0  %            29.9  %           28.6  %                 NM            34.4  %
Other underwriting expenses ratio           4.0  %             4.3  %            3.5  %                 NM             4.9  %
Combined ratio (4)                        164.0  %           105.3  %          105.3  %                 NM           106.3  %


(1)Includes service fee revenue from the Company's MGUs of $37.3 million for the
nine months ended September 30, 2021 (2020 - $nil).
(2)Loss and loss adjustment expenses incurred, net and other underwriting
expenses include expenses associated with the Company's MGUs of $8.0 million and
$55.4 million, respectively, for the nine months ended September 30, 2021 (2020
- $nil and $nil).
(3)Underwriting ratios are calculated by dividing the related expense by net
premiums earned.
(4)Ratios considered not meaningful ("NM") to Runoff & Other.
(5)In the first quarter of 2021, we modified the presentation of our operating
segments to better align with the manner in which management monitors the
performance of our operations. This change was primarily due to our acquisition
of Sirius Group (See Note 3 "Acquisition of Sirius Group"). Prior period segment
results have been adjusted to conform to the current period presentation.
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Gross premiums written
Gross premiums written increased by $1,184.8 million, or 297.5%, to $1,583.0
million for the nine months ended September 30, 2021 from $398.2 million for the
nine months ended September 30, 2020, primarily driven by an increase in gross
premiums written of $1,128.8 million as a result of new premiums from the legacy
Sirius Group companies from the date of acquisition.
Net premiums written
Net premiums written increased by $891.6 million, or 241.6%, to $1,260.6 million
for the nine months ended September 30, 2021 from $369.0 million for the nine
months ended September 30, 2020, primarily driven by an increase in net premiums
written of $869.9 million as a result of new premiums from the legacy Sirius
Group companies from the date of acquisition.
Net premiums earned
Net premiums earned increased by $805.5 million, or 187.8%, to $1,234.4 million
for the nine months ended September 30, 2021 from $428.9 million for the nine
months ended September 30, 2020, primarily driven by an increase in net premiums
earned of $866.4 million as a result of new premiums from the legacy Sirius
Group companies from the date of acquisition.
Underwriting results
We generated a net underwriting loss of $223.8 million and a combined ratio of
118.1% for the nine months ended September 30, 2021, compared to a net
underwriting loss of $27.3 million and a combined ratio of 106.3% for the nine
months ended September 30, 2020. The change in net underwriting results was
primarily driven by the Property segment as a result of catastrophe losses from
the European floods and Hurricane Ida.
Catastrophe losses, net of reinsurance and reinstatement premiums, for the nine
months ended September 30, 2021 were $304.9 million, or 24.7 percentage points
on the combined ratio, including $132 million for the European floods and
$100 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 also includes
$40 million from June windstorms and winter storm Uri. Sirius Group's Uri losses
fell into the pre-acquisition period and, if included in the Company's results,
total catastrophe losses would have been $341 million.
Catastrophe losses, net of reinsurance and reinstatement premiums, for the nine
months ended September 30, 2020 were $29.6 million, or 6.9 percentage points on
the combined ratio, related to Hurricane Laura and other third quarter
catastrophes.
Net favorable prior year loss reserve development was $25.9 million for the nine
months ended September 30, 2021. The change was driven by net favorable prior
year loss reserve development of $27.0 million from the legacy Sirius Group
companies, primarily due to favorable loss reserve development relating to the
Property segment of $15.6 million as a result of better than expected loss
reserve emergence on European-related exposures covering multiple accident
years, and favorable loss reserve development relating to the A&H segment of
$6.9 million. The change in net underwriting results for the nine months ended
September 30, 2020 for prior period loss reserve development and adjustments to
premium earnings estimates, after the impact of any offsetting changes in
acquisition costs, resulted in a $3.4 million improvement in the net
underwriting results.
COVID-19 losses for the nine months ended September 30, 2021 were $8.1 million
compared to $35.0 million for the nine months ended September 30, 2020, from the
earn in of losses on unearned premium converting to earned premium in our
Specialty segment.
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A&H

A&H, which consists of the A&H insurance and reinsurance underwriting unit along
with our two MGUs, IMG and Armada, which provide supplemental healthcare and
medical travel insurance products as well as related administration services.
The following table sets forth net underwriting results and ratios, and the
period over period changes for the A&H segment for the three and nine months
ended September 30, 2021 and 2020:
                                                Three months ended                                        Nine months ended
                                 September         September 30,                          September          September 30,
                                  30, 2021              2020              Change           30, 2021              2020               Change
                                                                              ($ in millions)
Gross premiums written (1)      $   118.1          $     0.2            $ 117.9          $   343.5          $      2.8            $ 340.7
Net premiums written (1)             88.4                0.2               88.2              267.8                 2.8              265.0
Net premiums earned (1)             111.7                0.6              111.1              250.4                 2.5              247.9
Loss and loss adjustment
expenses incurred, net (2)           55.8                0.4               55.4              121.9                 3.7              118.2
Acquisition costs, net               10.5                0.1               10.4               35.4                 0.3               35.1
Other underwriting expenses (2)      30.2                  -               30.2               69.5                 0.1               69.4
Net underwriting income (loss)  $    15.2          $     0.1            $  15.1          $    23.6          $     (1.6)           $  25.2

Underwriting ratios (3):
Loss ratio                           50.0  %            66.7    %         (16.7) %            48.7  %            148.0    %         (99.3) %
Acquisition cost ratio                9.4  %            16.7    %          (7.3) %            14.1  %             12.0    %           2.1  %
Other underwriting expense
ratio                                27.0  %               -    %          27.0  %            27.8  %              4.0    %          23.8  %
Combined ratio                       86.4  %            83.4    %           3.0  %            90.6  %            164.0    %         (73.4) %


(1)Includes service fee revenue from the Company's MGUs of $12.5 million and
$37.3 million in the three and nine months ended September 30, 2021,
respectively (2020 - $nil and $nil).
(2)Loss and loss adjustment expenses incurred, net and other underwriting
expenses include expenses associated with the Company's MGUs for the three and
nine months ended September 30, 2021 were $3.6 million and $24.5 million, and
$8.0 million and $55.4 million, respectively (2020 - $nil and $nil).
(3)Underwriting ratios are calculated by dividing the related expense by net
premiums earned.
Underwriting Results
Three months ended September 30, 2021 and 2020
Gross premiums written in the A&H segment increased by $117.9 million for the
three months ended September 30, 2021 compared to the three months ended
September 30, 2020, primarily driven by an increase in premiums of
$118.1 million as a result of new premiums from the legacy Sirius Group
companies.
The A&H segment generated net underwriting income of $15.2 million and a
combined ratio of 86.4% for the three months ended September 30, 2021, compared
to net underwriting income of $0.1 million and a combined ratio of 83.4% for the
three months ended September 30, 2020. The change in net underwriting results
for the three months ended September 30, 2021, compared to the three months
ended September 30, 2020, was primarily driven by net underwriting income from
the legacy Sirius Group companies. Our A&H segment 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 global
pandemic.
Net favorable prior year loss reserve development was $7.2 million for the three
months ended September 30, 2021 compared to minimal net prior year loss reserve
development for the three months ended September 30, 2020. The change from the
prior period was driven by net favorable reserve development from the legacy
Sirius Group companies as a result of better than expected loss reserve
emergence.
Nine months ended September 30, 2021 and 2020
Gross premiums written in the A&H segment increased by $340.7 million for the
nine months ended September 30, 2021 compared to the nine months ended September
30, 2020, primarily driven by an increase in premiums of $343.7 million as a
result of new premiums from the legacy Sirius Group companies from the date of
acquisition.
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The A&H segment generated net underwriting income of $23.6 million and a
combined ratio of 90.6% for the nine months ended September 30, 2021, compared
to a net underwriting loss of $1.6 million for the nine months ended September
30, 2020. The change in net underwriting results for the nine months ended
September 30, 2021, compared to the nine months ended September 30, 2020, was
primarily driven by net underwriting income from the legacy Sirius Group
companies from the date of acquisition. Our A&H segment 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 global pandemic.
Net favorable prior year loss reserve development was $7.9 million for the nine
months ended September 30, 2021 compared to minimal adverse prior year loss
reserve development for the nine months ended September 30, 2020. The change
from the prior period was driven by net favorable reserve development from the
legacy Sirius Group companies as a result of better than expected loss reserve
emergence.
Specialty
Specialty consists of our specialty insurance and reinsurance product offerings,
which includes Aviation & Space, Marine & Energy, Credit, Contingency, Casualty,
Environmental and Mortgage.
These lines of business represent unique risks where the more difficult and
unusual risks are underwritten, and much of the market is characterized by a
high degree of specialization. The following table sets forth net underwriting
results and ratios, and the period over period changes for the Specialty segment
for the three and nine months ended September 30, 2021 and 2020:
                                              Three months ended                                       Nine months ended
                               September          September 30,                          September          September
                                30, 2021              2020               Change           30, 2021           30, 2020           Change
                                                                           ($ in millions)
Gross premiums written        $   350.9          $     79.0            $ 271.9          $   807.9          $   232.2          $ 575.7
Net premiums written              306.8                76.7              230.1              692.4              224.3            468.1
Net premiums earned               240.6                87.7              152.9              610.7              285.6            325.1
Loss and loss adjustment
expenses incurred, net            155.6                67.9               87.7              393.9              203.1            190.8
Acquisition costs, net             65.8                18.0               47.8              168.9               85.3             83.6
Other underwriting expenses        25.6                 3.1               22.5               54.7               12.4             42.3
Net underwriting loss         $    (6.4)         $     (1.3)           $  (5.1)         $    (6.8)         $   (15.2)         $   8.4

Underwriting ratios (1):
Loss ratio                         64.7  %             77.4    %         (12.7) %            64.5  %            71.1  %          (6.6) %
Acquisition cost ratio             27.3  %             20.5    %           6.8  %            27.7  %            29.9  %          (2.2) %
Other underwriting expense
ratio                              10.6  %              3.5    %           7.1  %             9.0  %             4.3  %           4.7  %
Combined ratio                    102.6  %            101.4    %           1.2  %           101.2  %           105.3  %          (4.1) %


(1)Underwriting ratios are calculated by dividing the related expense by net
premiums earned.
Underwriting Results
Three months ended September 30, 2021 and 2020
Gross premiums written in the Specialty segment increased by $271.9 million, or
344.2%, for the three months ended September 30, 2021 compared to the three
months ended September 30, 2020, primarily driven by an increase in premiums of
$181.5 million as a result of new premiums from the legacy Sirius Group
companies, and due to an increase in casualty premium written of $56.0 million
in the period from our Bermuda incorporated MGU, Arcadian, in which we invest
capital and expertise.
The Specialty segment generated a net underwriting loss of $6.4 million and a
combined ratio of 102.6% for the three months ended September 30, 2021, compared
to a net underwriting loss of $1.3 million and a combined ratio of 101.4% for
the three months ended September 30, 2020.
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COVID-19 losses, net of reinsurance and reinstatement premiums, for the three
months ended September 30, 2021 were $2.4 million compared to $5.8 million for
the three months ended September 30, 2020, from the earn in of losses on
unearned premium converting to earned premium.
Net favorable prior year loss reserve development was $3.8 million for the three
months ended September 30, 2021 compared to minimal prior year loss reserve
development for the three months ended September 30, 2020.
Nine months ended September 30, 2021 and 2020
Gross premiums written in the Specialty segment increased by $575.7 million, or
247.9%, for the nine months ended September 30, 2021 compared to the nine months
ended September 30, 2020, primarily driven by an increase in premiums of
$381.6 million as a result of new premiums from the legacy Sirius Group
companies from the date of acquisition, and due to an increase in casualty
premium written of $144.5 million in the period from Arcadian.
The Specialty segment generated a net underwriting loss of $6.8 million and a
combined ratio of 101.2% for the nine months ended September 30, 2021, compared
to a net underwriting loss of $15.2 million and a combined ratio of 105.3% for
the nine months ended September 30, 2020. The change in net underwriting results
for the nine months ended September 30, 2021, compared to the nine months ended
September 30, 2020, was primarily driven by lower COVID-19 losses in 2021,
partially offset by a net underwriting loss of $4.6 million as result of the
legacy Sirius Group companies from the date of acquisition.
COVID-19 losses, net of reinsurance and reinstatement premiums, for the nine
months ended September 30, 2021 were $8.1 million compared to $25.2 million for
the nine months ended September 30, 2020, from the earn in of losses on unearned
premium converting to earned premium.
Net favorable prior year loss reserve development was $4.0 million for the nine
months ended September 30, 2021 compared to net favorable prior year loss
reserve development of $1.9 million, after the impact of any offsetting changes
in acquisition costs for the nine months ended September 30, 2020.
Property
Property consists of our underwriting lines of business which offer Property
Catastrophe Excess Reinsurance, Agriculture Reinsurance and Property Risk and
Pro Rata insurance and reinsurance on a worldwide basis. The following table
sets forth net underwriting results and ratios, and the period over period
changes for the Property segment for the three and nine months ended September
30, 2021 and 2020:
                                              Three months ended                                       Nine months ended
                              September 30,        September                           September 30,        September
                                  2021              30, 2020           Change              2021              30, 2020           Change
                                                                            ($ in millions)
Gross premiums written        $   182.0           $    42.6          $  139.4          $   457.3           $   160.2          $  297.1
Net premiums written               91.0                36.6              54.4              324.6               138.9             185.7
Net premiums earned               150.8                49.8             101.0              385.4               135.9             249.5
Loss and loss adjustment
expenses incurred, net            362.5                62.2             300.3              482.2                99.5             382.7
Acquisition costs, net             30.9                13.0              17.9               79.7                38.8              40.9
Other underwriting expenses        22.1                 1.6              20.5               52.6                 4.7              47.9
Net underwriting loss         $  (264.7)          $   (27.0)         $ (237.7)         $  (229.1)          $    (7.1)         $ (222.0)

Underwriting ratios (1):
Loss ratio                        240.4   %           124.9  %          115.5  %           125.1   %            73.2  %           51.9  %
Acquisition cost ratio             20.5   %            26.1  %           (5.6) %            20.7   %            28.6  %           (7.9) %
Other underwriting expense
ratio                              14.7   %             3.2  %           11.5  %            13.6   %             3.5  %           10.1  %
Combined ratio                    275.6   %           154.2  %          121.4  %           159.4   %           105.3  %           54.1  %

(1)Underwriting ratios are calculated by dividing the related expense by net
premiums earned.

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Underwriting Results
Three months ended September 30, 2021 and 2020
Gross premiums written in the Property segment increased by $139.4 million, or
327.2%, for the three months ended September 30, 2021 compared to the three
months ended September 30, 2020, primarily driven by an increase in premiums of
$173.2 million as a result of new premiums from the legacy Sirius Group
companies. 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.
The Property segment generated a net underwriting loss of $264.7 million and a
combined ratio of 275.6% for the three months ended September 30, 2021, compared
to a net underwriting loss of $27.0 million and a combined ratio of 154.2% for
the three months ended September 30, 2020. The change in net underwriting
results for the three months ended September 30, 2021, compared to the three
months ended September 30, 2020, was primarily driven by increased catastrophe
losses from the European floods and Hurricane Ida.
Catastrophe losses, net of reinsurance and reinstatement premiums, for the three
months ended September 30, 2021 in the Property segment were $284.6 million,
including $132 million for the European floods and $100 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.
Catastrophe losses, net of reinsurance and reinstatement premiums, for the three
months ended September 30, 2020 in the Property segment were $29.6 million
related to Hurricane Laura and other third quarter catastrophes.
COVID-19 losses, net of reinsurance and reinstatement premiums, for the three
months ended September 30, 2021 in the Property segment were $nil compared to
$9.8 million for the three months ended September 30, 2020, driven by property
business interruption losses.
Net favorable prior year loss reserve development was $4.5 million for the three
months ended September 30, 2021 as a result of better than expected loss reserve
experience on attritional losses and small historical catastrophe event losses,
compared to minimal favorable prior year loss reserve development for the three
months ended September 30, 2020.
Nine months ended September 30, 2021 and 2020
Gross premiums written in the Property segment increased by $297.1 million, or
185.5%, for the nine months ended September 30, 2021 compared to the nine months
ended September 30, 2020, primarily driven by an increase in premiums of
$399.8 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.
The Property segment generated a net underwriting loss of $229.1 million and a
combined ratio of 159.4% for the nine months ended September 30, 2021, compared
to a net underwriting loss of $7.1 million and a combined ratio of 105.3% for
the nine months ended September 30, 2020. The change in net underwriting results
for the nine months ended September 30, 2021, compared to the nine months ended
September 30, 2020, was primarily driven by increased catastrophe losses from
the European floods and Hurricane Ida.
Catastrophe losses, net of reinsurance and reinstatement premiums, for the nine
months ended September 30, 2021 in the Property segment were $303.0 million,
including $132 million for the European floods and $100 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 also includes $40 million from June windstorms and
winter storm Uri.
Catastrophe losses, net of reinsurance and reinstatement premiums, for the nine
months ended September 30, 2020 in the Property segment were $29.6 million
related to Hurricane Laura and other third quarter catastrophes.
COVID-19 losses, net of reinsurance and reinstatement premiums, for the nine
months ended September 30, 2021 in the Property segment were $nil compared to
$9.8 million for the nine months ended September 30, 2020, driven by property
business interruption losses.
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Net favorable prior year loss reserve development was $13.6 million for the nine
months ended September 30, 2021 compared to minimal prior year loss reserve
development for the nine months ended September 30, 2020. The change was driven
by net favorable loss reserve development from the legacy Sirius Group
companies, primarily due to favorable loss reserve development of $15.6 million
relating to the Property segment based on better than expected loss reserve
emergence, primarily on European-related exposures covering multiple accident
years.
Runoff & Other
Runoff & Other consists of the results of SiriusPoint Global Solutions, which
specializes in the acquisition and management of runoff liabilities for
insurance and reinsurance companies, both in the United States and
internationally, as well as asbestos risks, environmental risks and other
long-tailed liability exposures, and our legacy reserve-based transactions.
Runoff & Other also includes retroactive reinsurance contracts consisting of
loss portfolio transfers, adverse development covers and other forms of reserve
reinsurance providing indemnification of loss and loss adjustment expense
reserves with respect to past loss events. The following table sets forth net
underwriting results, and the period over period changes for the Runoff & Other
segment for the three and nine months ended September 30, 2021 and 2020:
                                                 Three months ended                                         Nine months ended
                                September 30,        September 30,                         September 30,        September 30,
                                     2021                 2020              Change              2021                 2020              Change
                                                                                ($ in millions)
Gross premiums written          $       2.7          $       2.9          $ 

(0.2) $ (25.7) $ 3.0 $ (28.7)
Net premiums written

                    5.1                  2.9              2.2                (24.2)                 3.0            (27.2)
Net premiums earned                     9.0                  3.6              5.4                (12.1)                 4.9            (17.0)
Loss and loss adjustment
expenses incurred, net                  7.8                (20.0)            27.8                (13.1)               (18.9)             5.8
Acquisition costs, net                 (0.3)                23.7            (24.0)                (2.5)                23.3            (25.8)
Other underwriting expenses            11.4                  1.4             10.0                 15.0                  3.9             11.1
Net underwriting loss           $      (9.9)         $      (1.5)         $ 

(8.4) $ (11.5) $ (3.4) $ (8.1)

Underwriting Results
Three months ended September 30, 2021 and 2020
Gross premiums written in the Runoff & Other segment decreased by $0.2 million
for the three months ended September 30, 2021 compared to the three months ended
September 30, 2020.
The Runoff & Other segment generated a net underwriting loss of $9.9 million for
the three months ended September 30, 2021, compared to a net underwriting loss
of $1.5 million for the three months ended September 30, 2020. For the three
months ended September 30, 2021, other underwriting expenses include
$9.8 million of expenses, of which $7.1 million were accelerated during the
third quarter of 2021, relating to interest crediting features in certain
reinsurance and deposit contracts, compared to $1.3 million for the three months
ended September 30, 2020. We will reassess capacity to underwrite these risks in
the future as a result of the LPT.
Nine months ended September 30, 2021 and 2020
Gross premiums written in the Runoff & Other segment decreased by $28.7 million
for the nine months ended September 30, 2021 compared to the nine months ended
September 30, 2020, primarily driven by reduction of $30.0 million from the
impact of restructuring one retroactive reinsurance contract that was previously
written and fully earned. The decrease in net premiums earned from the reduction
in retroactive exposures in this reinsurance contract was offset by a similar
decrease in loss and loss adjustment expenses incurred and acquisition costs.
The Runoff & Other segment generated a net underwriting loss of $11.5 million
for the nine months ended September 30, 2021, compared to a net underwriting
loss of $3.4 million for the nine months ended September 30, 2020. For the nine
months ended September 30, 2021, other underwriting expenses include
$13.5 million of expenses, of which $7.1 million were accelerated during the
third quarter of 2021, relating to interest crediting features in certain
reinsurance and deposit contracts compared to $3.7 million for the nine months
ended September 30, 2020.
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Non-GAAP Financial Measures
We have included certain financial measures that are not calculated under
standards or rules that comprise U.S. GAAP. Such measures, including basic book
value per share, tangible basic book value per share, diluted book value per
share and tangible diluted book value per share, are referred to as non-GAAP
financial measures. These non-GAAP financial measures may be defined or
calculated differently by other companies. We believe these measures allow for a
more complete understanding of our underlying business. These measures are used
by management to monitor our results and should not be viewed as a substitute
for those determined in accordance with U.S. GAAP. Reconciliations of non-GAAP
measures to the most comparable U.S. GAAP measures are included below.
Basic Book Value Per Share, Tangible Basic Book Value Per Share, Diluted Book
Value Per Share, Tangible Diluted Book Value Per Share
In the first quarter of 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 consistent with how dilution is calculated using the
treasury stock method for earnings per share. This change had no impact on
previously presented basic book value per share. The following table shows the
revised diluted book value per share compared to the diluted book value per
share as previously presented:
                                      December 31,        September 30,          June 30,           March 31,         December 31,
                                          2020                 2020                2020               2020                2019

Diluted book value per share $ 16.71 $ 15.37

    $   14.62          $    13.30          $    15.19
Diluted book value per share,
as previously presented                    16.42                15.06              14.37               13.05               15.04
Difference                            $     0.29          $      0.31          $    0.25          $     0.25          $     0.15


Basic book value per share, as presented, is a non-GAAP financial measure and is
calculated by dividing common shareholders' equity attributable to SiriusPoint
common shareholders by the number of common shares outstanding, excluding the
total number of issued unvested restricted shares, at period end.
Tangible basic book value per share, as presented, is a non-GAAP financial
measure and is calculated by dividing tangible common shareholders' equity
attributable to SiriusPoint common shareholders by the number of common shares
outstanding, excluding the total number of unvested restricted shares, at period
end. Tangible book value per share is useful to investors because it measures
the realizable value of shareholder returns, excluding the impact of intangible
assets.
Diluted book value per share and tangible diluted book value per share, as
presented, are non-GAAP financial measures and are calculated using the treasury
stock method. Under the treasury stock method, we assume that proceeds received
from in-the-money options and/or warrants exercised are used to repurchase
common shares in the market. The dilutive effect of restricted shares,
restricted share units and options are calculated in a manner consistent with
how dilution is calculated using the treasury stock method for earnings per
share. We have also followed a similar approach for calculating dilution for
warrants, Series A preference shares, Upside Rights and other potentially
dilutive securities issued as part of our acquisition of Sirius Group.
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The following table sets forth the computation of basic book value per share,
tangible basic book value per share, diluted book value per share and tangible
diluted book value per share as of September 30, 2021 and December 31, 2020: