SiriusPoint Q2 core gross written premium rises led by insurance, services growth

Overview

• Specialty underwriter's Q2 core gross written premium rose 6%, led by Insurance Services growth

• Q2 net income available to common shareholders rose to $69 mln; operating EPS was $0.67

• Book value per diluted common share increased 3% sequentially to $19.48

Outlook

• Company says market conditions are becoming more challenging

Result Drivers

• INSURANCE SERVICES GROWTH - Premium growth in Insurance Services, mainly from new programs in General Liability and London MGAs, drove overall premium increases

• HIGHER ACQUISITION COSTS - Increased acquisition costs, mainly from profit commission accruals and incentive compensation, weighed on underwriting income

• FAVORABLE LOSS RESERVE DEVELOPMENT - Increased favorable prior year loss reserve development, especially in AH and Property, partially offset higher costs

Company press release: ID:nGNE5PL3JW

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the reinsurance peer group is "buy"

• Wall Street's median 12-month price target for Siriuspoint Ltd is $26.00, about 1.2% below its July 28 closing price of $26.31

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)