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SiriusPoint’s A rating placed on creditwatch by S&P



On Tuesday, the credit rating agency S&P Global Ratings placed its A rating for financial strength of the Bermuda insurance company and the reinsurer SiriusPoint Ltd. on guard against a potential downgrade.

A- is generally considered to be the lowest rating that insurers can have and remain on many brokers’ safe insurance lists.

In a statement, S&P noted several recent changes in senior executives at SiriusPoint and said that the company’s strategy of going from reinsurance to insurance “is crucial for the company to improve its operating results and maintain its competitive position.”

“We placed all our ratings on SiriusPoint Ltd. and its core subsidiaries on creditwatch with negative consequences,”

; the S&P statement said.

In May, Siddhartha Sankaran resigned as Chairman of the Board and CEO of SiriusPoint and was temporarily replaced by Daniel Malloy, who was previously head of the company.

In June, the company announced that Prashanth Gangu, chief operating officer and president, insurance and services, had also resigned.

S&P said it expects SiriusPoint to report a “breakeven” combined ratio in 2022 and a combined ratio of 97% to 99%, “more in line with comparable” in 2023. The rating agency also noted that SiriusPoint had seen “large losses” from hedge fund investments and negative investment income, which resulted in a net loss of $ 213 million for the first quarter of 2022.

“SiriusPoint plans to reduce the current share of hedge funds to 3% -4% by 2025 from 6% at present,” said S&P.

In a statement in response to the S&P message, Mr. Malloy: “As part of our transformation, we have made significant progress over the past five quarters, redesigned our business, reduced the volatility of our reinsurance and investment portfolios and expanded our insurance and service segment.”

The company is “making good progress” in its search for a permanent CEO, he said.


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