SiriusPoint Ltd. said Wednesday it will close offices and lay off staff as it reported a $98 million net loss for the third quarter due to Hurricane Ian and investment losses.
The Bermuda-based insurer and reinsurer said it will close its Miami offices; Hamburg, Germany; and Singapore as part of a restructuring of its underwriting platform. It will also reduce its footprint in Liege, Belgium and Toronto.
North American property catastrophe business will continue to be underwritten from Bermuda, and international property catastrophe business from Stockholm, SiriusPoint said in its third quarter earnings report.
The decision to reduce its global footprint and headcount was not an easy one, SiriusPoint CEO Scott Egan said in the statement.
“It was driven by the significant, increasing impacts of climate change, including under-modeled perils, and the challenges facing the catastrophe reinsurance market, which has for years seen poor historical performance and inadequate returns on capital,”; Mr. Egan, who was appointed CEO in September.
SiriusPoint net loss of $98 million for the third quarter, compared to a net loss of $48 million in the prior year period.
Catastrophe losses, net of reinsurance and reinsurance premiums, were $114.6 million in the quarter, compared to $283.5 million in the prior year period, and included $80.1 million in Hurricane Ian losses.
SiriusPoint’s total expense ratio improved to 107.7% from 147.7% in the prior year.
The company reported a net investment loss of $28.2 million for the quarter, compared to net investment income of $199.8 million in the prior year period.
SiriusPoint also announced changes in executive leadership.
Monica Cramér Manhem, president of international reinsurance and CEO SiriusPoint International, and a member of the executive management team, has decided to retire, the company said.
Cramér Manhem will continue in his current role until a successor is appointed.
David Govrin has been promoted to the expanded role of global president of SiriusPoint and chief underwriting officer.
Mr. Govrin was previously global chief underwriting officer and president, Americas reinsurance.