S&P Global Ratings upgraded SiriusPoint’s core insurance operating unit’s long-term issuer credit and financial strength ratings to “A” from “A-“, the company’s third rating upgrade this year.
In addition, Standard & Poor’s raised SiriusPoint’s long-term issuer credit rating to “BBB+” from “BBB” with a stable outlook.
S&P said the upgrade reflected its view that SiriusPoint’s underwriting and portfolio de-risking and stable performance have significantly strengthened its capital position and overall credit fundamentals in recent years.
The rating agency also expects the group to continue to deliver strong underwriting performance in line with peers (combined ratio below 95%) and maintain capital above a 99.99% confidence level over the next two years.
S&P recognized the actions SiriusPoint has taken in recent years, including reducing its catastrophe risk, repurchasing the full amount of all SiriusPoint common stock and warrants held by CM Bermuda Limited, retiring $200 million of preferred stock, and the recent sales of its holdings in ArmadaCare and Arcadian.
This year, AM Best and Fitch Ratings upgraded SiriusPoint to A (Excellent) and A (Strong) respectively, citing the company’s improving earnings, strong underwriting discipline, prudent capital management and ability to absorb fluctuations in the underwriting cycle.
“We are extremely proud to have achieved our third rating upgrade this year, which is a strong recognition of the company we are today,” said SiriusPoint CEO Scott Egan. “The S&P upgrade reflects the real progress we have made in building a stronger, more resilient business, laying a solid foundation for long-term success.”