SiriusPoint (NYSE:SPNT) executives highlighted strong underwriting results, premium growth, and capital actions during the company’s fourth-quarter and full-year 2025 earnings call, while also cautioning that parts of the insurance market could become more challenging in 2026.
Full-year results: premium growth, ROE gains, and higher book value
CEO Scott Egan said 2025 “rounded out another very strong performance year,” pointing to a series of year-over-year improvements. Management said top line for the year grew 16% and underwriting earnings quality improved by 1.5 points. Egan also cited 28% growth in diluted book value per share and a 49% increase in operating earnings per share versus the prior year.
McKinney said core gross written premium, net written premium, and net earned premium rose 16%, 19%, and 18%, respectively. Common shareholders’ equity increased by $532 million to $2.3 billion, and diluted book value per share excluding AOCI grew 24% (up $3.46) to $18.10.
Fourth-quarter highlights included Armada sale impact and continued premium growth
In the fourth quarter, management reported operating income of $86 million, or $0.70 per diluted share, and net income of $240 million, or $1.97 per diluted share. Egan noted operating ROE of 17.1% in Q4, and said GAAP ROE reached 44.9% as the company closed the sale of Armada for $250 million, which increased diluted book value by $1.70 in the quarter.
Core gross written premiums grew 18% in the quarter, driven in part by accident and health, which McKinney said grew 20% year over year in Q4. The company reported a core combined ratio of 92.9% in the quarter. McKinney attributed the result to “strong attritional loss results” and “modest catastrophe losses,” alongside legacy and one-off items that pressured acquisition and other underwriting expense (OUE) ratios. He said the one-off items added about two points to the acquisition ratio, partly offset by a one-time OUE benefit related to new Bermuda tax credits.
Net service fee income was $4 million in Q4, with a service margin of 9.4%, with McKinney noting service fee income can be “a bit lumpy due to seasonality trends.” Investment income was $69 million, flat year over year, with management citing support from the yield environment despite a lower asset base following the CM Bermuda shareholder buyback.
Portfolio positioning: accident and health, lower volatility, and MGA strategy
Executives emphasized a strategy focused on a more diversified and lower-volatility portfolio. Egan said about half of premiums are now U.S. specialty and described accident and health (A&H) as a “strategically important part” of the portfolio due to its low volatility and low capital intensity.
Management said accident and health gross written premiums grew 23% in 2025 to around $1 billion, making up about 27% of the overall business mix. McKinney added that A&H accounts for 43% of the insurance and services segment’s gross written premium. Egan said the A&H business has “over 20 years of profitability” and helps the company manage the mix of more volatile lines.
Executives also discussed the company’s distribution approach centered on specialty MGAs. Egan said the company rejects more than 90% of opportunities presented and takes time to ramp underwriting risk with new partners. He noted that while roughly a third of partners have been onboarded in the last two years, those newer partners represent under 10% of the MGA premium mix, and most partners risk share with SiriusPoint.
Acquisitions and fee income outlook at IMG
Following the sale of ArmadaCare, Egan said SiriusPoint now has a 100%-owned A&H MGA, IMG, consolidated into the company’s financial statements. He called IMG a core part of future plans, generating fee income and providing about a quarter of A&H underwriting premiums.
Egan also discussed two announced IMG acquisitions: Assist America and World Nomads. He said Assist America provides global emergency travel assistance services and that, following completion and integration in 2026, management expects the fully integrated business to add around $4 million to $5 million of EBITDA annually. For World Nomads, Egan said the acquisition is intended to expand trip cancellation premiums and global distribution capabilities, and management expects an additional $4 million to $5 million of EBITDA annually after completion and integration in 2026.
Egan said the company expects IMG to generate over $30 million of fee income and over $35 million of EBITDA in 2026. He added that IMG’s carrying value on the balance sheet at year-end was $77 million, and management believes it is undervalued relative to IMG’s enterprise value, which it said understates SiriusPoint’s overall book value.
During Q&A, management addressed how fee income could trend in 2026 following the MGA sales and IMG’s expansion. McKinney indicated that within the 2025 fee income figure referenced by the analyst, a portion related to Armada and suggested thinking about a run rate around $30 million, with potential to reach around $40 million after bolt-on acquisitions are fully integrated. Management cautioned that the acquisitions would not be “up to full power” in 2026, and benefits from World Nomads would not be material until later.
Capital actions: preferred redemption, buyback plan, and risk transfer changes
Management said it intends to fully redeem $200 million of 8% preference shares at the upcoming rate reset. Egan said this would reduce leverage to 23% by the end of February, which he described as an all-time low for the company. McKinney said leverage was 28% at quarter-end, driven by higher shareholders’ equity.
The company also announced an intention to repurchase $100 million of common shares over the next 12 months. Egan said, at the current market price, it represents more than 4% of total shares outstanding. Management said it expects the buyback to be accretive to EPS and ROE throughout 2026 and to book value per share by 2027. Executives said the cadence would be flexible and opportunistic, with the potential for some front-loading depending on share price.
On capital strength, management reported a fourth-quarter BSCR ratio of 247%, improving following the Armada MGA sale. Egan said that pro forma for the preference share redemption, BSCR would be 252%, while McKinney provided a pro forma figure of 232% accounting for the Series B preference share redemption.
McKinney also described actions taken at 1/1 renewals to reduce catastrophe volatility, including purchasing a new property aggregate program for 2026 that attaches at $90 million of accumulated catastrophe losses and buying multi-line aggregate reinsurance coverage effective February 1 with a $100 million annual limit. He said catastrophe losses represented 2.9 points of the company’s combined ratio for the year, largely due to the Q1 California wildfires, and noted property catastrophe premiums are 5% of the overall business mix.
McKinney added that SiriusPoint recorded $15 million of core favorable prior year development in Q4, marking the 19th consecutive quarter of favorable prior year development.
Looking ahead, Egan said market conditions could be “tougher in 2026,” but emphasized that this would not be uniform across all markets and reiterated the company’s focus on underwriting performance over growth. In response to analyst questions, management said the insurance segment combined ratio of roughly 91.7% is a reasonable run rate entering 2026, with McKinney suggesting potential movement of plus or minus about a half point depending on mix. Executives also said they expect continued discipline in casualty pricing, and reiterated that capital can be shifted away from areas where returns are not commensurate with risk.
About SiriusPoint (NYSE:SPNT)
SiriusPoint Ltd. is a global insurance and reinsurance company headquartered in Bermuda, offering a broad range of property and casualty solutions to clients around the world. The company operates through two core segments: reinsurance, which provides treaty and facultative coverage across property, casualty and specialty lines; and insurance, which underwrites specialty programs, fronting arrangements and other tailored products for commercial and niche markets. This integrated model allows SiriusPoint to leverage shared underwriting expertise and capital efficiency across its product suite.
On the reinsurance side, SiriusPoint’s offerings include coverage for natural catastrophes, casualty losses, political risk and other complex exposures, with both proportional and non-proportional treaty structures.
