SiriusPoint's Q1 2025: Unpacking Contradictions in Underwriting Performance, Ratios, and Catastrophe Losses

Underwriting performance and profitability, core combined ratio improvement, MGA equity stakes and financial impact, and underwriting income and catastrophe losses are the key contradictions discussed in SiriusPoint's latest 2025Q1 earnings call



Strong Financial Performance and Premium Growth:
- SiriusPoint Ltd. reported a 12% year-over-year increase in core gross written premiums and a 20% increase in net written premiums for Q1 2025.
- The growth was driven by strong underwriting performance, a focus on premium retention, and strategic expansion of MGA partnerships.

Underwriting Profitability and Margin Improvement:
- The company achieved a combined ratio of 95.4% for its core business, with a 10.9-point impact from California wildfires.
- The improvement in underwriting profit was due to a reduction in catastrophe losses, favorable prior year development, and an improved expense ratio.

Favorable Prior Year Development and Reserve Management:
- SiriusPoint reported $34 million of favorable prior year development in Q1 2025.
- This was a result of prudent reserving practices, demonstrating the company's disciplined approach to risk management.

Rating Agency Outlook Revisions:
- Fitch and AM Best revised SiriusPoint's outlook from stable to positive, affirming the company's ratings.
- The positive outlook is attributed to significant underwriting improvements, completion of the CM Bermuda buyback, and a strong balance sheet.