By Chris Munro

May 5 - (The Insurer) – SiriusPoint’s Q1 2025 core combined ratio deteriorated by 4 points to 95.4% as increased favorable prior-year reserve development did not offset California wildfire-related catastrophe losses during the period, but the carrier booked earnings per share that beat analysts' consensus forecast.

The Bermudian company defines its core combined ratio as reflecting the sum of reinsurance and insurance & services segments, and does not include its operations in runoff.

SiriusPoint’s first quarter 2025 core combined ratio comprised attritional losses of 59.3%, catastrophe losses of 10.9% and acquisition and underwriting expenses of 30.7%, while favorable prior-year loss development cut 5.5 points from the total.

Its Q1 2025 reinsurance combined ratio was 97.1%, and its insurance & services combined ratio was 94.0%.

During the first quarter of 2024, SiriusPoint’s core combined ratio was 91.4%, and included an attritional loss ratio of 59.7%, zero catastrophe losses and acquisition and underwriting expenses of 33.3%, with favorable prior-year loss development trimming 1.6 points.

In Q1 2024, its reinsurance combined ratio was 84.2%, while insurance & services recorded a combined ratio of 98.4%.

First quarter 2025 catastrophe losses were driven by the $59 million net impact from the California wildfires, while the favorable prior-year development was largely in property and mainly due to prior-year catastrophe events, and also favorable development in A&H due to lower-than-expected reported attritional losses.

SiriusPoint’s overall combined ratio, including its runoff business, deteriorated by 6.5 points year on year to 91.4% for 2025’s first quarter.

The Scott Egan-led company booked underwriting profit of $28.5 million for the three months to March 31, 2025, down from Q1 2024’s $44.3 million.

SiriusPoint posted diluted earnings per share of $0.49 for Q1 2025, flat when compared with the prior-year period and well ahead of the $0.23 that was analysts’ consensus forecast, as per MarketWatch.

The company’s core gross premiums written totaled $989.9 million for the first three months of 2025, up from $880.7 million. Its core net premiums written grew to $752.0 million in Q1 2025, compared with the prior-year period’s $627.2 million.

As SiriusPoint noted, the premium volume growth was driven primarily by its insurance & services segment, including growth across A&H, surety expansion and also continued strategic organic and new program growth in its international business.

Net investment income fell to $71.2 million in Q1 2025 from the prior-year period’s $78.8 million.

CEO Egan said 2025 has got off to a strong start for SiriusPoint.

“Our aim to deliver stable and consistent earnings can be seen with our first quarter return on equity of 12.9%, well within our 12% to 15% target range as our diverse portfolio performed well against the backdrop of elevated natural catastrophe losses,” he said.