Sirius International Insurance Group, Ltd. (Nasdaq: SG) (“Sirius
Group”, the “Company”, or the “Group”) today reported results for
the second quarter ended June 30, 2020. The Company reported
comprehensive income of $50 million for the second quarter of 2020
compared to comprehensive income of $8 million for the second
quarter of 2019. For the six months ended June 30, 2020, the
comprehensive loss was $(135) million compared to comprehensive
income of $84 million for the six months ended June 30, 2019.
The Group recorded a combined ratio of 96% for the quarter ended
June 30, 2020.
Book value per common share was $13.18 as of
June 30, 2020 compared to $12.78 as of March 31, 2020 and
$14.23 as of December 31, 2019, an increase of 3.1% for the
quarter and a decrease of 7.4% for the six months. Tangible book
value per common share(1) was $8.39 as of June 30, 2020
compared to $7.97 as of March 31, 2020 and $9.39 as of
December 31, 2019, an increase of 5.3% for the quarter and a
decrease of 10.6% for the six months.
“We produced a solid financial return during the
quarter with a 3.1% growth in BVPS,” said Kip Oberting, President
and Chief Executive Officer of Sirius Group. “Investment results
were strong and incremental COVID losses were modest following our
Q1 reserving actions.”
Mr. Oberting continued, “During the quarter we
dedicated substantial resources to the firm’s strategic review
process and these efforts bore fruit as we announced earlier today.
This is a positive outcome for our shareholders, clients and
employees as Sirius celebrates its 75th anniversary.”
Meyer (Sandy) Frucher, Non-Executive Chairman of
the Board of Sirius Group, said “I am pleased to announce the
successful completion of the firm’s strategic review process and am
thrilled Sirius Group has entered into a definitive merger
agreement with Third Point Reinsurance, Ltd. which will lay the
foundation for a long and successful future for the firm. I
especially want to thank Kip Oberting, Gene Boxer, Monica Cramer
Manhém, Jeff Davis and Ralph Salamone who each played key roles in
keeping the company laser-focused over the past few years and were
instrumental in ensuring the positive resolution of the firm’s
strategic review process.”
- Net (loss) attributable to common shareholders for the second
quarter of 2020 was $(14) million. Basic and diluted earnings per
common share were $(0.12). This compares to net income attributable
to common shareholders of $7 million and basic and diluted earnings
per common share of $0.05 for the second quarter of
2019.
- For the six months ended June 30, 2020, net (loss)
attributable to common shareholders was $(112) million. Basic
earnings per common share was $(0.97) and diluted earnings per
common share was $(1.01). This compares to net income attributable
to common shareholders of $102 million and basic and diluted
earnings per common share of $0.80 for the six months ended
June 30, 2019.
_________________________(1)Tangible book value
per common share is a non-GAAP financial measure. See accompanying
Reconciliation of Non-GAAP Financial Measures.
- For the second quarter of 2020, Operating (loss) attributable
to common shareholders(2) was $(17) million compared to Operating
(loss) attributable to common shareholders of $(19) million for the
second quarter of 2019. For the six months ended June 30,
2020, Operating (loss) attributable to common shareholders was
$(117) million compared to Operating (loss) attributable to common
shareholders of $(1) million for the same period in 2019.
Chief Financial Officer, Ralph Salamone further
commented, “Comprehensive income was $50 million for the quarter, a
strong improvement from the first quarter and a significant
increase over the second quarter of last year. The total
return on investments of 3.0% also helped our quarterly financial
performance. Having taken a prudent approach to reserving for COVID
in the first quarter, we recorded a modest amount of additional
losses in the second quarter. Together with a relatively quiet
catastrophe loss quarter, we produced an underwriting profit with a
96% combined ratio. As a result, Book value per common share grew
3.1% during the three months ended June 30, 2020.”
Second Quarter and Year to Date 2020
Summary
Underwriting
Sirius Group’s combined ratio was 96% for the
second quarter of 2020 compared to 105% for the second quarter of
2019. The improvement in the combined ratio was mainly driven by
lower net unfavorable prior year loss reserve development,
partially offset by COVID-19 pandemic losses (4 points), net of
reinsurance. The second quarter of 2020 included less than 1 point
of net unfavorable prior year loss reserve development compared to
17 points for the second quarter of 2019. The second quarter of
2020 also included 3 points of current year catastrophe losses, net
of reinsurance and reinstatement premiums, compared to 2 points for
the second quarter of 2019.
- Gross written premiums for the second quarter of 2020 were $323
million and decreased 34% compared to the second quarter of 2019.
Absent the effect of a single fronting arrangement within the
Global Reinsurance segment, gross written premiums decreased 19%
compared to the prior year period primarily due to decreases in
Global A&H and Global Reinsurance.
- Pre-tax catastrophe losses, net of reinsurance and
reinstatement premiums, amounted to $10 million for the second
quarter of 2020 compared to $8 million for the second quarter of
2019.
- Highlights by reportable segment(3) for the second quarter of
2020 include the following:
- Global Reinsurance produced $13 million of underwriting income
and a 95% combined ratio. The results included $4 million of losses
from the COVID-19 pandemic. Current year catastrophe losses, net of
reinsurance and reinstatement premiums, were $10 million. Net
unfavorable prior year development of $5 million was primarily from
Other Property ($8 million) and Casualty Reinsurance ($5 million)
that was partially offset by favorable prior year loss reserve
development in Property Catastrophe Excess Reinsurance ($8
million).
- Global A&H produced $6 million of underwriting income and a
combined ratio of 96%. These results included $8 million of losses
from the COVID-19 pandemic. Also included were $3 million of net
favorable prior year loss reserve development and $1 million of
drag from the Group’s build out of Armada Health.
- U.S. Specialty produced a $(2) million underwriting loss and a
111% combined ratio.
_______________________(2) Operating (loss) attributable
to common shareholders is a non-GAAP financial measure. See
accompanying Reconciliation of Non-GAAP Financial Measures.(3)
Effective January 1, 2020 Sirius Group effectuated an internal
reorganization which changed its reportable segments. Where
applicable, all prior periods presented have been revised to
conform to this new presentation.
For the six months ended June 30, 2020, Sirius
Group’s combined ratio was 111% compared to 99% for the six months
ended June 30, 2019. Our underwriting results in the first six
months of 2020 were significantly impacted with 19 loss ratio
points from the COVID-19 pandemic. As a result, we recorded $153
million of estimated ultimate losses in our underwriting results
with $130 million in the Global Reinsurance and $22 million in the
Global A&H segments. The first six months of 2020 included 2
points of current year catastrophe losses, net of reinsurance and
reinstatement premiums, compared to 1 point for the same period in
2019. The first six months of 2020 also included 1 point of net
unfavorable prior year loss reserve development compared to 12
points for the same period in 2019.
- Gross written premiums for the first six months of 2020 were
$1,140 million and increased 3% compared to the first six months of
2019. The first six months of 2020 included $69 million from a loss
portfolio transfer completed by Sirius Global Solutions.
- Pre-tax catastrophe losses, net of reinsurance and
reinstatement premiums, amounted to $19 million for the six months
ended June 30, 2020 compared to $10 million for the six months
ended June 30, 2019.
- Highlights by reportable segment for the first six months of
2020 include the following:
- Global Reinsurance produced an $(86) million underwriting
(loss) and a 118% combined ratio driven mainly by $130 million of
losses from the COVID-19 pandemic. COVID-19 losses contributed 27
points to the combined ratio. Current year catastrophe losses, net
of reinsurance and reinstatement premiums, were $19 million. Net
unfavorable prior year development for the six months ended
June 30, 2020 was $14 million as unfavorable prior year loss
reserve development in Other Property ($21 million), Aviation &
Space ($9 million), and Casualty Reinsurance ($6 million) was
partially offset by favorable prior year loss reserve development
in Property Catastrophe Excess Reinsurance ($21 million).
- Global A&H produced $16 million of underwriting income,
including net service fee income from Armada and IMG of $12
million, and a combined ratio of 98%. These results included $22
million of losses from the COVID-19 pandemic. In addition, there
was $8 million of net favorable prior year loss reserve development
and $3 million of drag from the Group’s build out of Armada
Health.
- U.S. Specialty produced a $(5) million underwriting loss and a
117% combined ratio. Runoff & Other produced a $(7)
million underwriting loss.
Investments and Other
- During the second quarter of 2020, the investment portfolio
returned 2.4% in original currencies and 3.0% in U.S. Dollars.
- Total investment results for the second quarter of 2020, which
includes the sum of net investment income, net realized and
unrealized investment gains (losses) in net income, and change in
foreign currency translation on investments recognized through
other comprehensive income, were $124 million, compared to $55
million in the second quarter of 2019, an increase of $68
million. Included in the second quarter investment results are
foreign exchange gains of $33 million in 2020 compared to $2
million in 2019.
- For the first six months of 2020, the investment portfolio
returned 0.5% in original currencies and 0.4% in U.S. Dollars.
- Total investment results for the first six months of 2020 were
$20 million, compared to $117 million for the first six months of
2019, a decrease of $(97) million. Included in the first six
months investment results are foreign exchange gains of $2 million
in 2020 compared to foreign exchange (losses) of $(4) million in
2019.
- Losses from weather derivatives for the first six months of
2020 were $(21) million driven mainly by a relatively warm U.S. and
European winter, which affected open positions in the U.S., United
Kingdom and Central Europe, and higher energy costs in Australia.
- Common shareholders’ equity ended the second quarter of 2020 at
$1,520 million compared to $1,640 million at December 31,
2019. The decrease is primarily due to a comprehensive (loss) of
$(135) million.
Supplemental Materials
In addition to this press release, we have
provided supplemental financial information relating to second
quarter results. Readers are encouraged to visit the “Financial
Information” section of Sirius Group’s website located at
http://ir.siriusgroup.com to view the supplemental financial
information.
Non-GAAP Financial Measures
In presenting Sirius Group’s results, management
has included and discussed non-GAAP financial measures:
Tangible book value, Tangible book value per common share and
Operating (loss) attributable to common shareholders. The Company
believes that these non-GAAP financial measures, which may be
defined and calculated differently by other companies, better
explain and enhance the understanding of the Company’s results of
operations. However, these measures should not be viewed as a
substitute for those determined in accordance with generally
accepted accounting principles in the United States of America
(‘‘GAAP’’). A reconciliation of Tangible book value, Tangible book
value per common share and Operating (loss) attributable to common
shareholders, to the most comparable GAAP measures is included in
the attached financial information in accordance with Regulation
G.
About Sirius Group
Sirius Group, with $2.4 billion of total capital
and roots dating back to 1945, is a global multi-line (re)insurer
headquartered in Bermuda with a unique global branch network,
including offices in Stockholm, New York and London. Sirius
Group’s success over the years has come from working with honest,
capable partners. Sirius Group provides a fully diversified
set of tailored risk products to clients in approximately 150
countries, including health and travel products to consumers
through its two managing general underwriters, ArmadaCorp Capital,
LLC and International Medical Group, Inc. Sirius Group has
been publicly traded since November 2018. You can learn more
by visiting www.siriusgroup.com.
Cautionary Note Regarding
Forward-Looking Statements
We have made statements in this press release
that are forward-looking statements within the meaning of the
federal securities laws, including the Private Securities
Litigation Reform Act of 1995, including statements about the
success of the outcome of the strategic review process, the
completion of Sirius Group's pending merger with Third Point
Reinsurance Ltd. and the potential benefits of the merger.
You can identify forward-looking statements by the use of
forward-looking terminology such as “plan,” “believe,” “expect,”
“anticipate,” “intend,” “outlook,” “estimate,” “forecast,”
“project,” “target,” “continue,” “could,” “may,” “might,” “will,”
“possible,” “potential,” “predict,” “should,” “would,” “seeks,”
“likely,” and other similar words and expressions, but the absence
of these words does not mean that a statement is not
forward-looking. The forward-looking statements are based on the
current expectations of the management of Sirius Group and speak
only as of the date of this press release. There can be no
assurance that future developments will be those that have been
anticipated. These forward-looking statements involve a number of
risks, uncertainties or other assumptions that may cause actual
results or performance to be materially different from those
expressed or implied by these forward-looking statements. These
risks and uncertainties include, but are not limited to, the
continued impact of the COVID-19 pandemic on Sirius Group’s
business, operations and loss reserve estimates; the effect
of judicial, legislative, and regulatory actions to address and
contain the impact of COVID-19; the uncertainty as to the estimate
of ultimate industry loss claims; the general economic conditions
and market conditions in the markets in which Sirius Group
operates; Sirius Group’s exposure to unpredictable catastrophic and
casualty events and unexpected accumulations of attritional losses;
increased competition from existing insurers and reinsurers and
from alternative capital providers, such as insurance-linked funds
and collateralized special purpose insurers; decreased demand for
Sirius Group’s insurance or reinsurance products, consolidation and
cyclical changes in the insurance and reinsurance industry; the
inherent uncertainty of estimating loss and loss adjustment
expenses reserves, including asbestos and environmental reserves,
and the possibility that such reserves may be inadequate to cover
Sirius Group’s ultimate liability for losses; a decline in or
withdrawal of Sirius Group’s operating subsidiaries’ ratings with
rating agencies; the exposure of Sirius Group’s investments to
interest rate, credit, equity risks and market volatility, which
may limit Sirius Group’s net income and may affect the adequacy of
its capital and liquidity; losses related to cyber-attacks on
Sirius Group’s information technology systems; the impact of
various risks associated with transacting business in foreign
countries, including foreign currency exchange-rate risk and
political risks on investments in, and revenues from, Sirius
Group’s operations outside the U.S.; the possibility that Sirius
Group may become subject to additional onerous governmental or
regulatory requirements or fail to comply with applicable
regulatory and solvency requirements; Sirius Group’s
significant deferred tax assets may become materially impaired as a
result of insufficient taxable income or a reduction in applicable
corporate tax rates or other change in applicable tax law; a
decrease in the fair value of Global A&H and/or Sirius Group’s
intangible assets may result in future impairments; the limited
liquidity and trading of Sirius Group’s securities; China Minsheng
Investment Group Corp., Ltd. ("CMIG") and CMIG International
Holding Pte. Ltd.’s status as a direct and indirect majority
shareholder, including their affiliates' liquidity issues, and
actions taken by CMIG, CMIG International Holding Pte. Ltd or any
other parties in interest in connection with such liquidity issues
including ownership changes; Sirius Group’s status as a publicly
traded company, foreign private issuer and controlled company; the
consequences of the written resolution of Sirius Group’s majority
shareholder which may prohibit the Board of Sirius Group from
issuing any form of equity without shareholder approval; the impact
of lawsuits initiated by minority shareholders, including lawsuits
claiming that they are being unfairly oppressed by Sirius Group’s
majority shareholder or lawsuits claiming a right of redemption of
the Series B preference shares; and other risks identified in
Sirius Group’s Annual Report on Form 10-K for the year ended
December 31, 2019, subsequent Quarterly Reports on Form 10-Q and
other filings with the U.S. Securities and Exchange Commission.
Should one or more of these risks or uncertainties materialize, or
should any of the assumptions made by the management of Sirius
Group prove incorrect, actual results may vary in material respects
from those projected in these forward-looking statements. Except as
required by applicable law or regulation, we disclaim any
obligation to publicly update or revise any forward-looking
statement to reflect changes in underlying assumptions or factors,
or new information, data or methods, future events or other
circumstances after the date of this release.
Contact:Sirius
GroupInvestor
Relationsinvestor.relations@siriusgroup.com(212) 312-2525
Sirius International Insurance Group,
Ltd.Consolidated Balance SheetsAs
at June 30, 2020 and December 31, 2019
|
(Expressed in millions of U.S. dollars, except share
information) |
June 30, 2020 |
December 31, 2019 |
| |
Unaudited |
|
| Assets |
|
|
|
Fixed maturity investments, trading, at fair value (Amortized cost
2020: $1,877.7; 2019: $1,656.6) |
$ |
1,904.7 |
|
$ |
1,681.0 |
|
| Short-term investments, at
fair value (Amortized cost 2020: $1,044.5; 2019: $1,090.8) |
1,038.8 |
|
1,085.2 |
|
| Equity securities, trading, at
fair value (Cost 2020: $178.1; 2019: $379.2) |
149.9 |
|
405.2 |
|
| Other long-term investments,
at fair value (Cost 2020: $324.7; 2019: $315.4) |
368.1 |
|
346.8 |
|
| Cash |
186.7 |
|
136.3 |
|
| Restricted cash |
18.0 |
|
14.3 |
|
| Total investments and
cash |
3,666.2 |
|
3,668.8 |
|
| Accrued investment income |
11.0 |
|
11.2 |
|
| Insurance and reinsurance
premiums receivable |
871.7 |
|
730.1 |
|
| Reinsurance recoverable on
unpaid losses |
442.2 |
|
410.3 |
|
| Reinsurance recoverable on
paid losses |
106.1 |
|
73.9 |
|
| Funds held by ceding
companies |
254.7 |
|
293.9 |
|
| Ceded unearned insurance and
reinsurance premiums |
201.9 |
|
162.0 |
|
| Deferred acquisition
costs |
159.1 |
|
148.2 |
|
| Deferred tax asset |
179.7 |
|
166.7 |
|
| Accounts receivable on
unsettled investment sales |
34.4 |
|
6.7 |
|
| Goodwill |
400.8 |
|
400.8 |
|
| Intangible assets |
171.9 |
|
179.8 |
|
| Other assets |
153.8 |
|
161.4 |
|
| Assets held for sale |
10.5 |
|
— |
|
|
Total assets |
$ |
6,664.0 |
|
$ |
6,413.8 |
|
| Liabilities |
|
|
| Loss and loss adjustment expense
reserves |
$ |
2,515.1 |
|
$ |
2,331.5 |
|
| Unearned insurance and
reinsurance premiums |
874.5 |
|
708.0 |
|
| Ceded reinsurance payable |
314.9 |
|
244.7 |
|
| Funds held under reinsurance
treaties |
145.3 |
|
169.1 |
|
| Deferred tax liability |
207.9 |
|
205.9 |
|
| Debt |
684.9 |
|
685.2 |
|
| Accounts payable on unsettled
investment purchases |
11.3 |
|
2.3 |
|
| Other liabilities |
181.7 |
|
201.3 |
|
| Total
liabilities |
4,935.6 |
|
4,548.0 |
|
| Commitments and
contingencies |
|
|
| Mezzanine
equity |
|
|
| Series B preference
shares |
206.2 |
|
|
223.0 |
|
| Common shareholders'
equity |
|
|
| Common shares (shares issued and
outstanding, 2020 & 2019: 115,299,341) |
1.2 |
|
|
1.2 |
|
| Additional paid-in surplus |
1,102.4 |
|
1,098.2 |
|
| Retained earnings |
660.0 |
|
778.5 |
|
| Accumulated other comprehensive
(loss) |
(243.9 |
) |
(237.5 |
) |
| Total common
shareholders' equity |
1,519.7 |
|
1,640.4 |
|
| Non-controlling
interests |
2.5 |
|
2.4 |
|
|
Total equity |
1,522.2 |
|
1,642.8 |
|
|
Total liabilities, mezzanine equity, and
equity |
$ |
6,664.0 |
|
$ |
6,413.8 |
|
Sirius International Insurance Group,
Ltd.Consolidated Statements of (Loss) Income
(Unaudited)For the three and six months ended
June 30, 2020 and 2019
| |
Three months ended June 30, |
Six months ended June 30, |
|
(Expressed in millions of U.S. dollars, except share and per share
information) |
2020 |
2019 |
2020 |
2019 |
| Revenues |
|
|
|
|
|
Net earned insurance and reinsurance premiums |
$ |
369.8 |
|
$ |
370.7 |
|
$ |
804.5 |
|
$ |
682.6 |
|
| Net investment income |
14.8 |
|
24.4 |
|
28.3 |
|
44.5 |
|
| Net realized investment
gains |
7.1 |
|
15.6 |
|
27.4 |
|
24.6 |
|
| Net unrealized investment
gains (losses) |
8.7 |
|
15.5 |
|
(35.1 |
) |
89.5 |
|
| Net foreign exchange (losses)
gains |
(16.1 |
) |
(0.6 |
) |
2.4 |
|
4.5 |
|
| Other revenue |
10.2 |
|
15.4 |
|
14.5 |
|
35.0 |
|
|
Total revenues |
394.5 |
|
441.0 |
|
842.0 |
|
880.7 |
|
| Expenses |
|
|
|
|
| Loss and loss adjustment
expenses |
240.3 |
|
278.0 |
|
667.4 |
|
461.9 |
|
| Insurance and reinsurance
acquisition expenses |
78.1 |
|
77.0 |
|
152.8 |
|
140.3 |
|
| Other underwriting
expenses |
36.3 |
|
35.5 |
|
74.3 |
|
70.8 |
|
| General and administrative
expenses |
23.9 |
|
28.2 |
|
56.0 |
|
52.6 |
|
| Intangible asset amortization
expenses |
4.0 |
|
4.0 |
|
7.9 |
|
7.9 |
|
| Interest expense on debt |
7.9 |
|
8.0 |
|
15.7 |
|
15.6 |
|
|
Total expenses |
390.5 |
|
430.7 |
|
974.1 |
|
749.1 |
|
| Pre-tax (loss)
income |
4.0 |
|
10.3 |
|
(132.1 |
) |
131.6 |
|
| Income tax benefit
(expense) |
(11.2 |
) |
(2.1 |
) |
3.6 |
|
(19.3 |
) |
| Net (loss)
income |
(7.2 |
) |
8.2 |
|
(128.5 |
) |
112.3 |
|
| Loss (income) attributable to
non-controlling interests |
0.2 |
|
(0.8 |
) |
— |
|
(1.2 |
) |
| (Loss) income
attributable to Sirius Group |
(7.0 |
) |
7.4 |
|
(128.5 |
) |
111.1 |
|
| Change in carrying value of
Series B preference shares |
(6.6 |
) |
(0.8 |
) |
16.8 |
|
(9.2 |
) |
|
Net (loss) income attributable to Sirius Group's common
shareholders |
$ |
(13.6 |
) |
$ |
6.6 |
|
$ |
(111.7 |
) |
$ |
101.9 |
|
| |
|
|
|
|
| Net (loss) income per
common share and common share equivalent |
|
|
|
|
| Basic earnings per common
share and common share equivalent |
$ |
(0.12 |
) |
$ |
0.05 |
|
$ |
(0.97 |
) |
$ |
0.80 |
|
| Diluted earnings per common
share and common share equivalent |
$ |
(0.12 |
) |
$ |
0.05 |
|
$ |
(1.01 |
) |
$ |
0.80 |
|
| Weighted average
number of common shares and common share equivalents
outstanding: |
|
|
|
|
| Basic weighted average number
of common shares and common share equivalents outstanding |
|
115,278,176 |
|
|
115,243,685 |
|
|
115,269,720 |
|
|
115,212,772 |
|
| Diluted weighted average
number of common shares and common share equivalents
outstanding |
|
115,278,176 |
|
|
115,796,367 |
|
|
127,171,390 |
|
|
127,542,402 |
|
Sirius International Insurance Group,
Ltd.Consolidated Statements of Comprehensive
(Loss) Income (Unaudited)For the three and six
months ended June 30, 2020 and 2019
| |
Three months
ended June 30, |
Six months
ended June 30, |
|
(Expressed in millions of U.S. dollars) |
2020 |
2019 |
2020 |
2019 |
| Comprehensive (loss)
income |
|
|
|
|
|
Net (loss) income |
$ |
(7.2 |
) |
$ |
8.2 |
|
$ |
(128.5 |
) |
$ |
112.3 |
|
| Other comprehensive
income (loss) |
|
|
|
|
| Change in foreign currency
translation, net of tax |
57.0 |
|
1.1 |
|
(6.4 |
) |
(26.7 |
) |
| Total other
comprehensive income (loss) |
57.0 |
|
1.1 |
|
(6.4 |
) |
(26.7 |
) |
| Comprehensive income
(loss) |
49.8 |
|
9.3 |
|
(134.9 |
) |
85.6 |
|
| Net loss (income) attributable
to non-controlling interests |
0.2 |
|
(0.8 |
) |
— |
|
(1.2 |
) |
|
Comprehensive income (loss) attributable to Sirius
Group |
$ |
50.0 |
|
$ |
8.5 |
|
$ |
(134.9 |
) |
$ |
84.4 |
|
Sirius International Insurance Group,
Ltd.Consolidated Underwriting Results by
Segment
| |
Three months
ended June 30, 2020 |
| (Expressed in millions of U.S.
dollars) |
GlobalReinsurance |
Global A&H |
U.S.Specialty |
Runoff &Other |
CorporateEliminations |
Total |
| Gross written
premiums |
$ |
213.5 |
|
$ |
83.7 |
|
$ |
25.5 |
|
$ |
(0.1 |
) |
$ |
— |
|
$ |
322.6 |
|
| Net written premiums |
$ |
220.5 |
|
$ |
62.0 |
|
$ |
23.8 |
|
$ |
(0.3 |
) |
$ |
— |
|
$ |
306.0 |
|
| Net earned insurance and reinsurance premiums |
$ |
240.9 |
|
$ |
113.2 |
|
$ |
15.2 |
|
$ |
0.5 |
|
$ |
— |
|
$ |
369.8 |
|
| Loss and allocated LAE |
(148.5 |
) |
(69.6 |
) |
(10.4 |
) |
0.5 |
|
— |
|
(228.0 |
) |
| Insurance and reinsurance acquisition expenses |
(53.7 |
) |
(31.5 |
) |
(3.4 |
) |
0.3 |
|
10.2 |
|
(78.1 |
) |
| Technical profit |
38.7 |
|
12.1 |
|
1.4 |
|
1.3 |
|
10.2 |
|
63.7 |
|
| Unallocated LAE |
(5.2 |
) |
(0.6 |
) |
(0.1 |
) |
(1.7 |
) |
(4.7 |
) |
(12.3 |
) |
| Other underwriting expenses |
(20.5 |
) |
(6.7 |
) |
(2.9 |
) |
(1.5 |
) |
(4.7 |
) |
(36.3 |
) |
| Underwriting income (loss) |
13.0 |
|
4.8 |
|
(1.6 |
) |
(1.9 |
) |
0.8 |
|
15.1 |
|
| Service fee revenue |
— |
|
23.1 |
|
— |
|
— |
|
(11.7 |
) |
11.4 |
|
| Managing general underwriter unallocated LAE |
— |
|
(6.2 |
) |
— |
|
— |
|
6.2 |
|
— |
|
| Managing general underwriter other underwriting expenses |
— |
|
(4.7 |
) |
— |
|
— |
|
4.7 |
|
— |
|
| General and administrative expenses, MGU + Runoff &
Other |
— |
|
(11.0 |
) |
— |
|
(1.4 |
) |
— |
|
(12.4 |
) |
| Underwriting income (loss), including net service fee
income |
$ |
13.0 |
|
$ |
6.0 |
|
$ |
(1.6 |
) |
$ |
(3.3 |
) |
$ |
— |
|
$ |
14.1 |
|
| |
|
|
|
|
|
|
| Underwriting Ratios (1) (2) |
|
|
|
|
|
|
| Loss ratio |
63.8 |
% |
62.0 |
% |
69.1 |
% |
NM |
NM |
65.0 |
% |
| Acquisition expense ratio |
22.3 |
% |
27.8 |
% |
22.4 |
% |
NM |
NM |
21.1 |
% |
| Other underwriting expense ratio |
8.5 |
% |
5.9 |
% |
19.1 |
% |
NM |
NM |
9.8 |
% |
| Combined ratio |
94.6 |
% |
95.7 |
% |
110.6 |
% |
NM |
NM |
95.9 |
% |
| |
|
|
|
|
|
|
| (1) Underwriting ratios are calculated by dividing
the related expense by net earned insurance and reinsurance
premiums. |
| (2) Ratios considered not meaningful (“NM”) to
Runoff & Other and Corporate Eliminations. |
Sirius International Insurance Group,
Ltd.Consolidated Underwriting Results by
Segment
| |
Six months
ended June 30, 2020 |
| (Expressed in millions of U.S.
dollars) |
GlobalReinsurance |
Global A&H |
U.S.Specialty |
Runoff &Other |
CorporateEliminations |
Total |
| Gross written
premiums |
$ |
678.8 |
|
$ |
345.8 |
|
$ |
46.3 |
|
$ |
69.3 |
|
$ |
— |
|
$ |
1,140.2 |
|
| Net written premiums |
$ |
565.9 |
|
$ |
262.7 |
|
$ |
39.0 |
|
$ |
68.3 |
|
$ |
— |
|
$ |
935.9 |
|
| Net earned insurance and reinsurance premiums |
$ |
475.9 |
|
$ |
231.1 |
|
$ |
28.0 |
|
$ |
69.5 |
|
$ |
— |
|
$ |
804.5 |
|
| Loss and allocated LAE |
(405.7 |
) |
(149.9 |
) |
(18.1 |
) |
(68.4 |
) |
— |
|
(642.1 |
) |
| Insurance and reinsurance acquisition expenses |
(104.6 |
) |
(62.3 |
) |
(6.4 |
) |
(0.1 |
) |
20.6 |
|
(152.8 |
) |
| Technical (loss) profit |
(34.4 |
) |
18.9 |
|
3.5 |
|
1.0 |
|
20.6 |
|
9.6 |
|
| Unallocated LAE |
(10.2 |
) |
(2.3 |
) |
(0.2 |
) |
(2.5 |
) |
(10.1 |
) |
(25.3 |
) |
| Other underwriting expenses |
(41.8 |
) |
(12.3 |
) |
(8.1 |
) |
(2.4 |
) |
(9.7 |
) |
(74.3 |
) |
| Underwriting (loss) income |
(86.4 |
) |
4.3 |
|
(4.8 |
) |
(3.9 |
) |
0.8 |
|
(90.0 |
) |
| Service fee revenue |
— |
|
59.0 |
|
— |
|
— |
|
(22.7 |
) |
36.3 |
|
| Managing general underwriter unallocated LAE |
— |
|
(12.2 |
) |
— |
|
— |
|
12.2 |
|
— |
|
| Managing general underwriter other underwriting expenses |
— |
|
(9.7 |
) |
— |
|
— |
|
9.7 |
|
— |
|
| General and administrative expenses, MGU + Runoff &
Other |
— |
|
(25.2 |
) |
— |
|
(2.9 |
) |
— |
|
(28.1 |
) |
| Underwriting (loss) income, including net service fee
income |
$ |
(86.4 |
) |
$ |
16.2 |
|
$ |
(4.8 |
) |
$ |
(6.8 |
) |
$ |
— |
|
$ |
(81.8 |
) |
| |
|
|
|
|
|
|
| Underwriting Ratios (1) (2) |
|
|
|
|
|
|
| Loss ratio |
87.4 |
% |
65.9 |
% |
65.4 |
% |
NM |
NM |
83.0 |
% |
| Acquisition expense ratio |
22.0 |
% |
27.0 |
% |
22.9 |
% |
NM |
NM |
19.0 |
% |
| Other underwriting expense ratio |
8.8 |
% |
5.3 |
% |
28.9 |
% |
NM |
NM |
9.2 |
% |
| Combined ratio |
118.2 |
% |
98.2 |
% |
117.2 |
% |
NM |
NM |
111.2 |
% |
| |
|
|
|
|
|
|
| (1) Underwriting ratios are calculated by dividing
the related expense by net earned insurance and reinsurance
premiums. |
| (2) Ratios considered not meaningful (“NM”) to
Runoff & Other and Corporate Eliminations. |
Sirius International Insurance Group,
Ltd.Consolidated Underwriting Results by
Segment
| |
Three months
ended June 30, 2019 |
| (Expressed in millions of U.S.
dollars) |
GlobalReinsurance |
Global A&H |
U.S.Specialty |
Runoff &Other |
CorporateEliminations |
Total |
| Gross written
premiums |
$ |
317.1 |
|
$ |
152.8 |
|
$ |
16.0 |
|
$ |
1.2 |
|
$ |
— |
|
$ |
487.1 |
|
| Net written premiums |
$ |
266.7 |
|
$ |
120.6 |
|
$ |
14.1 |
|
$ |
0.3 |
|
$ |
— |
|
$ |
401.7 |
|
| Net earned insurance and reinsurance premiums |
$ |
244.9 |
|
$ |
118.8 |
|
$ |
6.7 |
|
$ |
0.3 |
|
$ |
— |
|
$ |
370.7 |
|
| Loss and allocated LAE |
(188.5 |
) |
(71.8 |
) |
(4.1 |
) |
(2.4 |
) |
— |
|
(266.8 |
) |
| Insurance and reinsurance acquisition expenses |
(50.0 |
) |
(36.0 |
) |
(1.8 |
) |
(1.8 |
) |
12.6 |
|
(77.0 |
) |
| Technical profit (loss) |
6.4 |
|
11.0 |
|
0.8 |
|
(3.9 |
) |
12.6 |
|
26.9 |
|
| Unallocated LAE |
(4.7 |
) |
(2.0 |
) |
(0.1 |
) |
(0.2 |
) |
(4.2 |
) |
(11.2 |
) |
| Other underwriting expenses |
(21.6 |
) |
(5.9 |
) |
(2.1 |
) |
(1.1 |
) |
(4.8 |
) |
(35.5 |
) |
| Underwriting (loss) income |
(19.9 |
) |
3.1 |
|
(1.4 |
) |
(5.2 |
) |
3.6 |
|
(19.8 |
) |
| Service fee revenue |
— |
|
30.3 |
|
— |
|
— |
|
(13.7 |
) |
16.6 |
|
| Managing general underwriter unallocated LAE |
— |
|
(5.3 |
) |
— |
|
— |
|
5.3 |
|
— |
|
| Managing general underwriter other underwriting expenses |
— |
|
(4.8 |
) |
— |
|
— |
|
4.8 |
|
— |
|
| General and administrative expenses, MGU + Runoff &
Other |
— |
|
(15.0 |
) |
— |
|
(1.0 |
) |
— |
|
(16.0 |
) |
| Underwriting (loss) income, including net service fee
income |
$ |
(19.9 |
) |
$ |
8.3 |
|
$ |
(1.4 |
) |
$ |
(6.2 |
) |
$ |
— |
|
$ |
(19.2 |
) |
| |
|
|
|
|
|
|
| Underwriting Ratios (1) (2) |
|
|
|
|
|
|
| Loss ratio |
78.9 |
% |
62.1 |
% |
62.7 |
% |
NM |
NM |
75.0 |
% |
| Acquisition expense ratio |
20.4 |
% |
30.3 |
% |
26.9 |
% |
NM |
NM |
20.8 |
% |
| Other underwriting expense ratio |
8.8 |
% |
5.0 |
% |
31.3 |
% |
NM |
NM |
9.6 |
% |
| Combined ratio |
108.1 |
% |
97.4 |
% |
120.9 |
% |
NM |
NM |
105.4 |
% |
| |
|
|
|
|
|
|
| (1) Underwriting ratios are calculated by dividing
the related expense by net earned insurance and reinsurance
premiums. |
| (2) Ratios considered not meaningful (“NM”) to
Runoff & Other and Corporate Eliminations. |
Sirius International Insurance Group,
Ltd.Consolidated Underwriting Results by
Segment
| |
Six months
ended June 30, 2019 |
| (Expressed in millions of U.S.
dollars) |
GlobalReinsurance |
Global A&H |
U.S.Specialty |
Runoff &Other |
CorporateEliminations |
Total |
| Gross written
premiums |
$ |
752.1 |
|
$ |
322.1 |
|
$ |
32.6 |
|
$ |
2.6 |
|
$ |
— |
|
$ |
1,109.4 |
|
| Net written premiums |
$ |
602.6 |
|
$ |
255.5 |
|
$ |
27.7 |
|
$ |
0.7 |
|
$ |
— |
|
$ |
886.5 |
|
| Net earned insurance and reinsurance premiums |
$ |
456.2 |
|
$ |
214.9 |
|
$ |
10.8 |
|
$ |
0.7 |
|
$ |
— |
|
$ |
682.6 |
|
| Loss and allocated LAE |
(296.3 |
) |
(135.0 |
) |
(6.5 |
) |
(3.5 |
) |
— |
|
(441.3 |
) |
| Insurance and reinsurance acquisition expenses |
(95.6 |
) |
(62.6 |
) |
(2.5 |
) |
(2.5 |
) |
22.9 |
|
(140.3 |
) |
| Technical profit (loss) |
64.3 |
|
17.3 |
|
1.8 |
|
(5.3 |
) |
22.9 |
|
101.0 |
|
| Unallocated LAE |
(8.7 |
) |
(3.5 |
) |
(0.1 |
) |
(0.7 |
) |
(7.6 |
) |
(20.6 |
) |
| Other underwriting expenses |
(43.2 |
) |
(12.0 |
) |
(4.9 |
) |
(3.2 |
) |
(7.5 |
) |
(70.8 |
) |
| Underwriting income (loss) |
12.4 |
|
1.8 |
|
(3.2 |
) |
(9.2 |
) |
7.8 |
|
9.6 |
|
| Service fee revenue |
— |
|
66.6 |
|
— |
|
— |
|
(24.7 |
) |
41.9 |
|
| Managing general underwriter unallocated LAE |
— |
|
(9.4 |
) |
— |
|
— |
|
9.4 |
|
— |
|
| Managing general underwriter other underwriting expenses |
— |
|
(7.5 |
) |
— |
|
— |
|
7.5 |
|
— |
|
| General and administrative expenses, MGU + Runoff &
Other |
— |
|
(31.2 |
) |
— |
|
(1.8 |
) |
— |
|
(33.0 |
) |
| Underwriting income (loss), including net service fee
income |
$ |
12.4 |
|
$ |
20.3 |
|
$ |
(3.2 |
) |
$ |
(11.0 |
) |
$ |
— |
|
$ |
18.5 |
|
| |
|
|
|
|
|
|
| Underwriting Ratios (1) (2) |
|
|
|
|
|
|
| Loss ratio |
66.9 |
% |
64.4 |
% |
61.1 |
% |
NM |
NM |
67.7 |
% |
| Acquisition expense ratio |
21.0 |
% |
29.1 |
% |
23.1 |
% |
NM |
NM |
20.6 |
% |
| Other underwriting expense ratio |
9.5 |
% |
5.6 |
% |
45.4 |
% |
NM |
NM |
10.4 |
% |
| Combined ratio |
97.4 |
% |
99.1 |
% |
129.6 |
% |
NM |
NM |
98.7 |
% |
| |
|
|
|
|
|
|
| (1) Underwriting ratios are calculated by dividing
the related expense by net earned insurance and reinsurance
premiums. |
| (2) Ratios considered not meaningful (“NM”) to
Runoff & Other and Corporate Eliminations. |
Sirius International Insurance Group,
Ltd.Reconciliation of Non-GAAP Financial
Measures
Tangible book value and Tangible book
value per common share
Tangible book value and Tangible book value per
common share are non-GAAP financial measures. Tangible book value
and Tangible book value per common share are useful to investors
because they measure the realizable value of common shareholder
returns, excluding the impact of goodwill, intangible assets, and
net deferred liability on intangible assets.
Tangible book value is derived by subtracting
Goodwill, Intangible assets and Net deferred tax liability on
intangible assets from book value. Tangible book value per common
share is derived by dividing Tangible book value by the Common
shares outstanding.
The reconciliation to Total common shareholders’
equity and Book value per common share, the most directly
comparable GAAP measures, are presented in the table below.
| |
June 30, |
|
December 31, |
| (Expressed in millions
of U.S. dollars, except share and per share amounts) |
2020 |
|
2019 |
| Common
shares outstanding |
|
115,299,341 |
|
|
|
115,299,341 |
|
| |
|
|
|
| Total common shareholders’ equity |
$ |
1,519.7 |
|
|
$ |
1,640.4 |
|
| Goodwill |
(400.8 |
) |
|
(400.8 |
) |
| Intangible assets |
(171.9 |
) |
|
(179.8 |
) |
| Net deferred tax liability on intangible assets |
20.1 |
|
|
22.8 |
|
| Tangible book value |
$ |
967.1 |
|
|
$ |
1,082.6 |
|
| |
|
|
|
| Book value per common share |
$ |
13.18 |
|
|
$ |
14.23 |
|
| Tangible book
value per common share |
$ |
8.39 |
|
|
$ |
9.39 |
|
Operating (loss) attributable to common
shareholders
The Company uses Operating (loss) attributable
to common shareholders as a measure to evaluate the underlying
fundamentals of its operations and believes it to be a useful
measure of its core performance. Operating (loss) attributable to
common shareholders as used herein differs from net (loss) income
attributable to common shareholders, which the Company believes is
the most directly comparable GAAP measure, by the exclusion of net
realized and unrealized gains and losses on investments, net
foreign exchange gains (losses) and the associated income tax
expense or benefit. The Company’s management believes that
Operating (loss) attributable to common shareholders is useful to
investors because it is more reflective of the Company’s core
business, as it removes the variability arising from fluctuations
in the Company’s fixed maturity investment portfolio, equity
investments trading, investments-related derivatives, and net
foreign exchange gains (losses) and the associated income tax
expense or benefit of those fluctuations. The following is a
reconciliation of net (loss) income attributable to common
shareholders to Operating (loss) attributable to common
shareholders:
|
|
Three months ended June 30, |
Six months ended June 30, |
|
(Expressed in millions of U.S. dollars) |
2020 |
2019 |
2020 |
2019 |
| Net
(loss) income attributable to common shareholders |
$ |
(13.6 |
) |
$ |
6.6 |
|
$ |
(111.7 |
) |
$ |
101.9 |
|
| Adjustment for net realized and unrealized (gains) losses on
investments |
(15.8 |
) |
(31.1 |
) |
7.7 |
|
(114.1 |
) |
| Adjustment for net foreign exchange losses (gains) |
16.1 |
|
— |
|
(2.4 |
) |
(5.1 |
) |
| Adjustment for income tax (benefit) expense (1) |
(3.8 |
) |
5.1 |
|
(11.0 |
) |
16.8 |
|
| Operating
(loss) attributable to common shareholders |
$ |
(17.1 |
) |
$ |
(19.4 |
) |
$ |
(117.4 |
) |
$ |
(0.5 |
) |
(1)Adjustment for income tax (benefit) expense
represents the income tax (benefit) expense associated with the
adjustment for net realized and unrealized (gains) losses on
investments and the income tax (benefit) expense associated with
the adjustment for net foreign exchange gains. The income tax
impact is estimated by applying the statutory rates of applicable
jurisdictions, after consideration of other relevant factors.
Sirius International Ins... (NASDAQ:SG)
過去 株価チャート
から 10 2024 まで 11 2024
Sirius International Ins... (NASDAQ:SG)
過去 株価チャート
から 11 2023 まで 11 2024
