AM Best has revised the outlook of SiriusPoint’s rated operating subsidiaries to positive from stable, citing the firm’s consolidated balance sheet strength, operating performance, neutral business profile, and appropriate enterprise risk management.
The rating agency explained that revising the outlook to positive from stable reflects SiriusPoint’s improved balance sheet strength following management actions, including derisking the investment portfolio, reducing catastrophe exposure, and buying back shares and warrants.
AM Best has also affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) for the rated operating subsidiaries of SiriusPoint.
Additionally, the rating agency has affirmed the Long-Term ICR of “bbb-” (Good) for SiriusPoint, the group’s non-operating holding company.
As mentioned, AM Best suggested that these ratings reflect SiriusPoint’s consolidated balance sheet strength, which it assesses as very strong, as well as SiriusPoint’s adequate operating performance, neutral business profile and appropriate enterprise risk management.
The rating agency added, “AM Best expects that the group will maintain its risk-adjusted capitalisation comfortably at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by prudent capital management, effective underwriting exposure management and positive operating results.”
Scott Egan, Chief Executive Officer of SiriusPoint, commented, “This outlook revision is a reflection of our journey towards stability, underwriting profitability, and becoming a best-in-class insurer and reinsurer.
“This is further recognition of SiriusPoint’s achievements and the work we have done to reshape our future. I am proud of the team at SiriusPoint who have worked with dedication and commitment to improve our company profile, balance sheet strength, and underwriting performance.”
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