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    SPNT
    Earnings call· Jun 2026(Q2 FY26)

    SiriusPoint Q2 FY26 earnings call SPNT

    Jul 30, 2026 Source

    Executive summary

    SiriusPoint Ltd. Q2 FY26 — Strong Underwriting Profitability and Capital Returns

    SiriusPoint delivered another quarter of consistent underwriting profitability, with operating ROE at the upper end of its target range. The company continues to execute its strategy of diversifying its portfolio towards lower volatility lines and disciplined capital management, leading to strong book value growth and significant capital returns. While facing competitive market conditions in some areas, the focus remains on underwriting discipline and deploying capital where risk-adjusted returns are strongest.

    Highlights

    5

    • Core combined ratio of 91.4% demonstrates strong underwriting profitability.

    • Operating return on equity (ROE) of 13.8% for the quarter and 14.7% for H1 2026, within the 12%-15% target range.

    • Book value per diluted common share, excluding AOCI, increased 3% in the quarter and 8% year-to-date.

    • Total capital returned to shareholders in 2026 reached $295 million, including $95 million in share repurchases year-to-date.

    • Insurance and Services gross written premium grew 15% in the quarter, driven by attractive risk-adjusted returns.

    Concerns

    5

    • Net written premium grew only 1% due to disciplined underwriting and portfolio optimization.

    • Reinsurance premium declined 9% as the company pulled back in areas with competitive pricing like property cat and certain casualty segments.

    • Moderating rate momentum in General Liability and competitive conditions in Financial and Professional lines.

    • Aviation market continues to face unfavorable loss trends, requiring significant rate action in upcoming renewal seasons.

    • Property catastrophe reinsurance experienced further rate pressure at midyear renewals, leading to reduced participation.

    Guidance & targets

    2
    CategoryTargetConfidence
    Return on Equity (ROE)
    12% to 15%
    high materiality
    High
    Full year OUE ratio
    approximately 7%
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Insurance and Services
    Growth driven by areas with attractive risk-adjusted returns, maintaining strong underwriting discipline and favorable prior year development.
    Gross Written Premium growth: 15% (Q2)Gross Written Premium growth: 11% (YTD)Combined Ratio: 91.4% (YTD)
    		—15%—90.7% combined ratio
    Reinsurance
    Prioritizing profitability over volume, with premium decline due to intentional portfolio actions and improved combined ratio driven by lower catastrophe losses and better portfolio quality.
    Gross Written Premium decline: -9% (Q2)Combined Ratio improvement: 5.2 points (YTD)
    		—-9%—88.3% combined ratio

    Operational metrics

    20
    Operating Return on Equity (ROE)
    13.8%
    Q2 FY26

    Operating ROE for the quarter, within the target range.

    Operating Return on Equity (ROE)
    14.7%
    H1 FY26

    Operating ROE for the first half of the year, at the upper end of the target range.

    Core Return on Equity (ROE)
    16.2%
    H1 FY26

    ROE for the core business, excluding runoff, which is above the target range.

    Core Gross Written Premium (GWP)
    $982Mup 6%
    Q2 FY26

    Reflecting continued growth in insurance and services business.

    Core Gross Written Premium (GWP)
    nearly $2Bup 3%
    H1 FY26

    Overall growth for the first half of the year.

    Net Service Fee Income
    $10Mup 15%
    Q2 FY26

    Increased contribution from fee-based earnings.

    Total Investment Income
    $73M
    Q2 FY26

    Strong investment performance.

    Net Investment Income
    $66M
    Q2 FY26

    Component of total investment income.

    Operating Net Income
    $79Munchanged from prior year
    Q2 FY26

    Despite a more competitive market environment.

    Operating Earnings Per Share
    $0.67unchanged from prior year
    Q2 FY26

    Diluted EPS, unchanged from prior year.

    Operating Earnings Per Share
    $1.37up 17% YoY
    H1 FY26

    Diluted EPS for the first half of the year.

    Net Investment Income
    $132M
    H1 FY26

    Investment portfolio provides stable earnings stream.

    Total Investment Income
    $151M
    H1 FY26

    Overall investment income for the first half.

    DSCR ratio
    239%
    Q2 FY26

    Estimated DSCR ratio, reflecting a well-capitalized balance sheet.

    Debt to Capital
    22.9%
    Q2 FY26

    Near the lowest level in several years, providing financial flexibility.

    Liquidity
    $1.1B
    Q2 FY26

    Robust liquidity to support business and strategic opportunities.

    Employee Engagement Score
    83increased for the third consecutive year
    Annual

    Overall employee engagement score, with top quartile scores across leadership, alignment, collaboration, development, recognition, and pride.

    NPS Score
    +40increased double digit year-on-year
    Annual

    Well above industry benchmarks, indicating strong employee satisfaction.

    Accident & Health Business
    around $1B
    Q2 FY26

    Growth of this segment highlights its strategic importance as a consistently profitable and low volatility business.

    Earned Premium Timing Impact
    $31Mreduced by 10%
    Q2 FY26

    This is a timing impact, not an economic one, creating a favorable earned premium tailwind for future periods.

    Industry KPIs

    11
    MetricValueDetails
    Combined ratio91.4%%
    Capital returns$295MUSD
    ROE operating ROE13.8%%
    Catastrophe losses—
    Book value per share$19.48USD
    Net investment income$66MUSD
    Retention persistencystrong
    Net premiums written earned$982MUSD
    Renewal rate change pricingsoftened
    Statutory regulatory capital239%%
    Prior year reserve developmentfavorable

    Product announcements

    2
    ProductTypeDetails
    Fine Art offeringlaunch
    Crisis Solutions offering (PVT)launch

    Deals & partnerships

    2
    Assist AmericaBolt-on acquisition for IMG business, building on existing products and customers.

    Part of the strategy to diversify the IMG business and product set, leveraging sub-specialisms within existing product lines.

    World NomadsBolt-on acquisition for IMG business, building on existing products and customers, focusing on a sub-specialism within travel insurance.

    A sub-specialism within the product, allowing access to different segments within the marketplace. Expected to contribute to IMG's growth and margin, particularly if direct-to-consumer distribution is expanded.

    Risks & headwinds

    9
    Competitive Market EnvironmentQ2 FY26

    Operating net income unchanged from prior year despite strong performance

    Mitigation: Disciplined underwriting approach, focus on attractive risk-adjusted returns, portfolio diversification.

    Moderating Rate Momentum in General LiabilityQ2 FY26

    Rate momentum has moderated

    Mitigation: Focus on segments where underwriting discipline supports attractive returns.

    Competitive Financial and Professional LinesQ2 FY26

    Market remains competitive, particularly in D&O and professional liability

    Mitigation: Remaining cautious and highly selective, prioritizing margin over growth.

    Unfavorable Loss Cost Trends in Auto ExposureQ2 FY26

    Reduced auto exposure

    Mitigation: Intentional reduction of participation in auto exposure, benefiting from strong growth in environmental.

    Rate Pressure in Property Catastrophe ReinsuranceMid-year 2026

    Further rate pressure at midyear renewals

    Mitigation: Reduced participation and allowed premium volumes to decline, prioritizing profitability and capital efficiency over top line growth. Property cat is now approximately 4% of the portfolio.

    Emerging Loss Trends in Surety MarketOngoing

    Monitoring emerging loss trends across the market

    Mitigation: Portfolio remains differentiated with a focus on commercial surety and limited exposure to larger project-related risks.

    Aviation Market Loss TrendsH1 FY26, Q3/Q4 renewal season

    Unfavorable loss trends have continued in H1 FY26

    Mitigation: Expectations for significant rate action in major airline business later this year to match risk with price; not frightened to walk away from inadequate rates.

    MGA Price CompetitionOngoing

    Elevated competition showing up in loss assumptions

    Mitigation: Selective onboarding process, focus on deep expertise and specialisms, variable commission structures to provide downside protection from a loss ratio perspective.

    Property Reinsurance Pricing PressureJanuary 1 renewals

    Further pressure on pricing if wind season is quiet

    Mitigation: Diversified book with property cat as a small part (4%), allowing strong earnings performance regardless of property cat market conditions; willingness to walk away from inadequate rates.

    What to watch in Q3 FY26

    5

    Earned Premium Tailwinds

    Q3 FY26, Q4 FY26, Q1 FY27
    CurrentQ2 earned premium reduced by 10% or $31M due to mix shift
    TargetIncremental increases in earned premium

    Why it matters

    The timing impact📎 from portfolio mix shift is expected to create a favorable tailwind for earned premium in future periods, impacting revenue recognition and profitability.

    Importantly, this is a timing impact📎 rather than an economic one, creating a favorable earned premium tailwind that will benefit future periods.

    Q&A highlights

    5

    Clarification on the 'other property' segment's attractiveness given broader market pressures, and specific examples of profitable niches.

    Scott Egan explained that their 'other property' book includes niche programs in the MGA space, such as landlords and SME businesses in the UK and North America. These niches offer attractive environments and rates, differing from the broader property and property cat markets. Jim McKinney added that the market often conflates property cat with attritional property, which have different trends.

    “The dynamics that we're seeing in those type of markets is actually quite different to what I would call the kind of broader general property markets and property cat markets, if that helps answer your question.”

    asked by Michael Phillips · answered by Scott Egan

    2 min read6 chapters

    Detailed Narrative

    01

    Underwriting Discipline and Portfolio Diversification

    SiriusPoint continues to demonstrate strong underwriting profitability with a core combined ratio of 91.4% for Q2 2026 and 90.1% for H1 2026. The company is deliberately diversifying its portfolio, notably growing its Accident & Health business to approximately $1 billion, which is consistently profitable and has low volatility. This strategic shift aims to reduce volatility and achieve an across-the-cycle ROE target of 12% to 15%, with H1 2026 operating ROE at 14.7%.

    02

    MGA and Program Business Strategy

    The company maintains a highly selective approach to partnering with specialist MGAs, declining over 90% of opportunities. This strategy focuses on long-term relationships with strong renewal rates, where incentives are aligned with underwriting profitability rather than premium growth. This differentiated approach is considered key to success and earnings power, contributing significantly to the strong growth in the Insurance and Services segment.

    03

    Capital Management and Shareholder Returns

    SiriusPoint's balance sheet and capital position remain robust, supported by ratings upgrades to A by S&P, Fitch, and A.M. Best. The estimated DSCR ratio is strong at 239%, and debt to capital is near its lowest level in several years at 22.9%. The company returned $295 million to shareholders in 2026, including $95 million in share repurchases year-to-date, with $79 million remaining under the current authorization, viewing buybacks as an attractive capital allocation opportunity.

    04

    Impact of Portfolio Mix Shift on Earned Premium

    Changes in the portfolio mix during H1 2026, specifically growth in longer-duration lines like surety and reduced exposure to shorter-tail property catastrophe business, have extended the earning pattern of unearned premium. This timing impact📎 reduced earned premium recognized in Q2 by approximately 10% or $31 million. Management expects this to create a favorable earned premium tailwind benefiting future periods, extending into Q1 2027.

    05

    Market Conditions and Pricing Trends

    Market conditions vary by class. While Accident & Health remains attractive and employer stop loss is firming, General Liability rate momentum has moderated. Financial and Professional lines remain competitive, particularly in D&O and professional liability. Property catastrophe reinsurance continues to experience rate pressure, leading to reduced participation. Aviation is highlighted as a challenging market with unfavorable loss trends requiring significant rate action.

    06

    AI and Technology Adoption

    SiriusPoint is actively investing in AI and technology across the organization, with numerous use cases being explored. The focus is on leveraging AI to improve underwriting quality, enhance efficiency, manipulate data, and assist with contracts. While acknowledging that not all initiatives will succeed, the company views AI as a powerful tool for both speed and quality in underwriting, rather than solely an efficiency lever.

    AI-generated summary of the company’s earnings call. Not investment advice.