AM Best Affirms Credit Ratings of SiriusPoint Ltd. and Its Subsidiaries
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) for the operating subsidiaries of SiriusPoint Ltd. (NYSE: SPNT). Additionally, it affirmed a Long-Term ICR of “bbb-” (Good) for SiriusPoint as a non-operating holding company. The ratings reflect SiriusPoint's consolidated balance sheet strength, assessed as very strong, and adequate operating performance. Notably, the company demonstrated a significant de-risking in 2022, with cash and fixed income securities increasing to 92% of its portfolio. However, its recent technical performance showed weaknesses with combined ratios of 120% and 107% for 2021 and 2022, respectively. SiriusPoint aims to improve underwriting profitability by shifting its business mix away from catastrophe-exposed property business.
- Financial Strength Rating of A- (Excellent) reaffirmed.
- Long-Term Issuer Credit Ratings of 'a-' (Excellent) affirmed for operating subsidiaries.
- Significant de-risking of asset base in 2022 with USD 0.6 billion redemption and reinvestment in high quality fixed income securities.
- Cash and fixed income investments comprise 92% of the investment portfolio.
- Recent combined ratios were high at 120% and 107% for 2021 and 2022 respectively.
- Weak technical performance may hinder growth.
The ratings reflect SiriusPoint’s consolidated balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings of the group’s operating subsidiaries factor in their strategic importance to
SiriusPoint’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which was at the strongest level at year-end 2022, as measured by Best’s Capital Adequacy Ratio. The assessment also considers the significant de-risking of SiriusPoint’s asset base in 2022, owing to the redemption of
SiriusPoint’s neutral business profile assessment reflects its market position as a midtier global (re)insurer, which operates from platforms in
The FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) have been affirmed, with stable outlooks for the following subsidiaries of
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SiriusPoint America Insurance Company -
SiriusPoint Bermuda Insurance Company Ltd. -
SiriusPoint International Insurance Corporation (publ) -
SiriusPoint Specialty Insurance Corporation
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in
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Source: AM Best
FAQ
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