SiriusPoint Ltd. (NYSE:SPNT) Q4 2023 Earnings Call Transcript

74% of our investment portfolio is now fixed income, of which 99% is investment grade, with an average credit rating unchanged at AA. We didn’t experience any defaults in our fixed-income portfolio during 2023. P&L volatility is significantly lower compared to last year and has helped given 90% of the fixed income portfolio is now designated as available for sale, up from 88% at Q3 2023 and none at year end 2021. Moving on to Slide 19 which looks at our balance sheet. Our balance sheet is strong, ending the quarter with $2.3 billion of common shareholders equity which is up 23% since the beginning of the year and 13% during the quarter, driven by the growth in net income. Total capital, including debt, stood at $3.3 billion. Our issued debt is unchanged, while our debt to total capital ratio is 23.8% and remains within our target range.

Debt leverage improved by 1.4 points and asset leverage is lower at 3.3 times versus 3.6 times at the end of the third quarter. With this, we conclude the financial section of our presentation. Our 2023 results were strong and showed a significant turnaround in 2023. We delivered record net income of $339 million, achieved a 16.2% annualized return on average equity and delivered $50 million of cost savings ahead of schedule, which contributed to a consolidated combined ratio of 84.5%, an improvement of 11.9 points year-on-year. We expect to build on this performance and aim to deliver 12% to 15% return on average common equity in the midterm. I would like to thank you again for your time this morning. For any questions, please contact our investor relations team at investor.relations@siriuspt.com.

I now turn the call back over to the operator.

Operator: Ladies and gentlemen, thank you for your participation. This concludes today’s event. You may disconnect your lines at this time or log off the webcast and enjoy the rest of your day.

End of Q&A: