By Mia MacGregor

April 25 - (The Insurer) - AM Best has revised the outlooks of SiriusPoint’s rated operating subsidiaries to positive from stable and affirmed their financial strength rating of A-minus and long-term issuer credit ratings of a-minus.

The rating agency also affirmed the long-term ICR of bbb-minus for the Bermudian (re)insurer's non-operating holding company.

The outlook revision reflects improvements in SiriusPoint’s balance sheet strength, which AM Best said was driven by recent management actions, including de-risking the investment portfolio, reducing catastrophe exposure, and a $733 million repurchase of all common shares and warrants held by CM Bermuda Ltd.

AM Best said that this move eliminated all risks associated with the former shareholder’s financial distress, though it noted a decrease in SiriusPoint’s reported equity to $1.9 billion at year-end 2024, down from $2.5 billion in 2023.

Despite the reduction in equity, AM Best said it expects the group to quickly rebuild its capital base organically through full earnings retention.

The agency also highlighted expectations that SiriusPoint’s underwriting results will remain profitable and less volatile, as it continues to shift its business mix away from catastrophe-exposed property lines and toward less volatile accident and health and specialty lines.

AM Best noted it expects the group to maintain its risk-adjusted capitalization at the strongest level, supported by prudent capital management, effective underwriting exposure management, and positive operating results.

The FSR of A-minus and ICRs of a-minus with positive outlooks apply to SiriusPoint America Insurance Company, SiriusPoint Bermuda Insurance Company Ltd, SiriusPoint International Insurance Corporation, and SiriusPoint Specialty Insurance Corporation.

“This outlook revision is a reflection of our journey towards stability, underwriting profitability, and becoming a best-in-class insurer and reinsurer,” said Scott Egan, CEO of SiriusPoint.