AM Best Affirms Credit Ratings of SiriusPoint Ltd. and Its Subsidiaries
19 Aprile 2023 - 6:38PM
Business Wire
AM Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR)
of “a-” (Excellent) of the rated operating subsidiaries of
SiriusPoint Ltd. (SiriusPoint) (Bermuda) [NYSE: SPNT].
Additionally, AM Best has affirmed the Long-Term ICR of “bbb-”
(Good) of SiriusPoint, which is a non-operating holding company.
Concurrently, AM Best has affirmed the Long-Term Issue Credit
Rating of “bbb-” (Good) on USD 115 million, 7% senior unsecured
notes, due 2025, of SiriusPoint. The outlook of these Credit
Ratings (ratings) is stable. (See below for a detailed listing of
the companies and ratings.)
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.
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 USD
0.6 billion from related party investment funds and reinvestment of
the proceeds into high quality fixed income securities. As a
result, cash and fixed income investments comprised 92% of
SiriusPoint's investment portfolio at year-end 2022, up from 78% at
year-end 2021. A partially offsetting rating factor is the group's
somewhat limited capital fungibility due to a significant portion
of consolidated available capital being held as a safety reserve in
the group’s Swedish subsidiary.
SiriusPoint is expected to report adequate operating performance
over the underwriting cycle. However, recent technical performance
has been weak, demonstrated by combined ratios of 120% and 107% (as
calculated by AM Best) in 2021 and 2022, respectively. Underwriting
profitability is expected to improve and be more stable as
SiriusPoint’s management continues to rebalance the group’s
business mix away from catastrophe-exposed property business toward
less volatile accident and health and specialty lines.
SiriusPoint’s neutral business profile assessment reflects its
market position as a midtier global (re)insurer, which operates
from platforms in Europe, the United States, Bermuda and at
Lloyd’s. The group has a good level of diversification by line of
business, which is expected to improve further as it executes its
business plan.
The FSR of A- (Excellent) and the Long-Term ICRs of “a-”
(Excellent) have been affirmed, with stable outlooks for the
following subsidiaries of SiriusPoint Ltd.:
- 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 the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
Copyright © 2023 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Ben Diaz-Clegg Senior Financial Analyst +44 20
7397 0293 ben.diaz-clegg@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Ghislain Le Cam, CFA, FRM Senior Director,
Analytics +44 20 7397 0268 ghislain.lecam@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 439 2200, ext. 5098 al.slavin@ambest.com
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