SiriusPoint Ltd. Q4 FY2024 earnings call

• Completed loss portfolio transfer on workers' compensation business with Enstar, repurchased all CMIG outstanding shares and warrants, and reduced carrying value of a legacy MGA investment.
• Strong operational performance: Underlying net income up 14% to approximately $300 million, core combined ratio 91% (2.4-point improvement vs prior year), continuing lines growth 10%, underlying ROE 14.6%.
• Fourth quarter underwriting profit with 90.2% combined ratio, 21% growth in continuing lines gross premiums written.
• Catastrophe losses: $39 million in Q4 (primarily Hurricane Milton), California wildfires estimated $60-70 million net pretax losses.
• MGA distribution strategy strengthening with 19 new partnerships, rationalizing MGA equity stakes from 36 to 20.
• External reserve review validated lost reserves as prudent, fifteenth consecutive quarter of favorable prior year development

Continuing Lines: In the fourth quarter, continuing lines gross premiums written grew 21%, with net premiums written increasing 28%. Full-year continuing lines growth was 10%, comprising 14% growth in insurance and services and 5% growth in reinsurance. The core business combined ratio was 90.2% in the fourth quarter and 91% for the full year 2024.

MGA: In 2024, nineteen new or expanding distribution partnerships were entered into through the MGA Centre of Excellence. Core MGA revenues and net service fee income reduced quarter over quarter due to the deconsolidation of Arcadian. However, a 100% owned accident and health MGA businesses saw a 25% year-on-year increase in service revenues.

Investment Portfolio: Fourth quarter net investment income was $69 million, contributing to a $29 million investment result. Full-year 2024 net investment income was $304 million, outperforming the guidance of $295 to $300 million as interest rates remained elevated

• 2025 focus on ongoing operations, expects headline premium growth similar to 2024 continuing lines growth.
• Effective tax rate expected to increase to 19% in 2025 due to Bermuda Corporate Income Tax Act of 2023.
• Transaction with CMIG is immediately accretive to book value by 4%, EPS to increase >20%, ROE to increase over 200 basis points.
• Aim to continue delivering 12%-15% return on average common equity through the cycle

• Catastrophe losses: California wildfires could impact results; reinsurance participants need to maintain 2023 rates/terms.
• MGA investment risk: $55 million write-down on an MGA investment in Q4.
• Tax risk: Bermuda tax changes impact effective tax rate