SiriusPoint Ltd. Q4 FY2025 earnings call

• Strong 2025 performance: top line grew 16%, operating earnings per share up 49%, diluted book value per share up 28%, operating return on equity 16.2% which is third consecutive year improvement and outperformed cycle target. - Disciplined underwriting: core combined ratio 92.9% in fourth quarter. - Simplified ownership structure via CM Bermuda transaction. - Earned positive rating agency outlook upgrades. - Employee engagement scores at all-time high. - Completed sales of Armada and Arcadian, crystallized liquidity and off-balance sheet value. - Attracted top talent and promoted internally. - Accident & Health business strategically important, with IMG as core part, and recent acquisitions of Assist America and World Nomads. - Disciplined approach to onboarding MGA partners, rejecting over 90% of opportunities. - Plan to repurchase $100 million of common shares over next 12 months.

In 2025, top line grew 16%. Diluted book value per share grew 28%. Operating earnings per share grew 49%. Leverage to reduce to 23% by end of February. 2025 operating return on equity 16.2%. Fourth quarter operating return on equity 17.1%, GAAP ROE 44.9% as Armada sale closed. Core combined ratio 92.9% in fourth quarter. Gross written premiums grew 18% in fourth quarter. Accident & Health gross written premiums grew 23% in 2025 to ~$1 billion, making up ~27% of business mix. Insurance and Services segment gross written premium grew 23% in fourth quarter to $556 million, full year 26% to $2.3 billion. Insurance and Services segment fourth quarter combined ratio 93.3%, full year 91.7%. Reinsurance segment gross written premium grew 9% in fourth quarter to $341 million, full year 3% growth.

• 2026 market conditions expected to be tougher in some parts, but diversified portfolio and focus on specialist MGAs position well to maintain performance. - Focus on underwriting performance first over growth. - Expect IMG business to generate over $30 million of fee income and over $35 million of EBITDA in 2026. - Repurchase of $100 million of common shares over next 12 months expected to be accretive to EPS and ROE throughout 2026 and book value per share by 2027.

• Insurance market conditions in 2026 may be tougher in some markets. - Property catastrophe reinsurance pricing declined at 1/1 renewals with some accounts failing to meet rate adequacy benchmarks. - Credit and bond pricing pressured in other specialties due to favorable historical results and ample market capacity.

Q: Congrats on the quarter and the year. Summary of 2026 outlook and insurance run rate.

A: Scott said 2026 market has tougher parts but diversified portfolio and MGA focus help maintain performance. Jim said to start with 91.7% insurance run rate and mix may shift plus or minus 0.5 point.

Q: Question on fee income side, how much of 2025 fee income was from Armada.

A: James said generally about $26 million, run rate base expectation around $40 million including 2 bolt-on acquisitions.

Q: Question on Surety business sustainability.

A: Scott said viewed as sustainable, Jim said minimal amounts of book follow specific areas and feel good about growth in 2026.

Q: On insurance segment casualty rate environment.

A: James said rate broadly moving in line with trend, disciplined activity.

Q: On attracting talent and focus areas.

A: Scott said across firm, attracting underwriting, functional talent, and internal talent growing.

Q: On insurance retention rate.

A: James said continue to see opportunity with risk management prudence, will be prudent and disciplined.

Q: With 2/3 premiums from insurance and services, how mix evolves.

A: Scott said insurance growing quicker than reinsurance, no specific target but trend expected to increase.

Q: On $100 million buyback cadence.

A: James said likely opportunistic, Scott said will be opportunistic, front-loaded if needed, right for shareholders.