Attached files
| file | filename |
|---|---|
| EX-99.1 - EX-99.1 - Sirius International Insurance Group, Ltd. | a18-40185_1ex99d1.htm |
| 8-K - 8-K - Sirius International Insurance Group, Ltd. | a18-40185_18k.htm |
Sirius International Insurance Group, Ltd.
Investor Financial Supplement
September 30, 2018
(Unaudited)
This financial supplement is for informational purposes only. It should be read in conjunction with documents filed with the Securities and Exchange Commission by Sirius International Insurance Group, Ltd., including its Quarterly Report on Form 10-Q for the quarter ended September 30, 2018.
Sirius International Insurance Group, Ltd.
Table of Contents
|
|
Page |
|
Basis of Presentation |
1 |
|
|
|
|
Key Performance Indicators |
2 |
|
|
|
|
Consolidated Financial Statements |
|
|
Consolidated Statements of (Loss) Income |
3 |
|
Consolidated Statements of Comprehensive (Loss) Income |
4 |
|
Consolidated Balance Sheets |
5 |
|
Consolidated Statements of Shareholder’s Equity |
6 |
|
|
|
|
Segment Information |
|
|
Consolidated Statements of (Loss) Income — Segment Results Format |
7 |
|
Consolidated Underwriting Results by Segment |
8 |
|
Segment Data - Quarterly |
|
|
Global Property |
10 |
|
Global A&H |
11 |
|
Specialty & Casualty |
12 |
|
Runoff & Other |
13 |
|
Gross Written Premiums by Segment |
14 |
|
Net Earned Insurance and Reinsurance Premiums by Segment |
15 |
|
|
|
|
Investment Information |
|
|
Net Investment Income |
16 |
|
Investment Holdings - Cost to Fair Value Reconciliation |
17 |
|
Investment Holdings - Quarterly |
|
|
Investment Type |
18 |
|
Credit Quality and Maturity Profile |
19 |
|
|
|
|
Other |
|
|
Book Value Per Share |
20 |
|
Basic and Diluted Earnings Per Share |
21 |
|
Return on Common Shareholder’s Equity - Consecutive Quarters |
22 |
|
Reserves for Unpaid Losses and Loss Adjustment Expenses |
23 |
Sirius International Insurance Group, Ltd.
Basis of Presentation
BASIS OF PRESENTATION
Sirius International Insurance Group, Ltd. (the “Company”) is a Bermuda exempted company whose principal businesses are conducted through its wholly- and majority-owned insurance subsidiaries (collectively with the Company, “Sirius Group”, “we,” “our” and “us”). Sirius Group provides insurance, reinsurance and insurance services on a worldwide basis.
We have made rounding adjustments to reach some of the figures included in this financial supplement and, unless otherwise indicated, percentages presented in this financial supplement are approximate.
Sirius International Insurance Group, Ltd.
Key Performance Indicators
|
(Expressed in millions of U.S. dollars, except share and per |
|
Three months ended September 30, |
|
Nine months ended September 30, |
| ||||||||
|
share information) |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| ||||
|
Key Underwriting Metrics: |
|
|
|
|
|
|
|
|
| ||||
|
Underwriting (loss) income (1) |
|
$ |
(34.2 |
) |
$ |
(166.6 |
) |
$ |
55.6 |
|
$ |
(106.1 |
) |
|
Combined ratio(2) |
|
110.6 |
% |
158.9 |
% |
93.9 |
% |
114.1 |
% | ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Key Investment Return Metrics: |
|
|
|
|
|
|
|
|
| ||||
|
Net investment income |
|
$ |
21.8 |
|
$ |
12.1 |
|
$ |
51.8 |
|
$ |
44.2 |
|
|
Total return on investments: |
|
|
|
|
|
|
|
|
| ||||
|
U.S. dollars |
|
0.6 |
% |
1.0 |
% |
0.4 |
% |
3.4 |
% | ||||
|
Local currencies |
|
0.5 |
% |
0.7 |
% |
1.3 |
% |
2.3 |
% | ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Selected Financial Data: |
|
|
|
|
|
|
|
|
| ||||
|
Basic earnings per common share and common share equivalent |
|
$ |
(0.23 |
) |
$ |
(1.49 |
) |
$ |
0.88 |
|
$ |
(1.43 |
) |
|
Diluted earnings per common share and common share equivalent |
|
$ |
(0.23 |
) |
$ |
(1.49 |
) |
$ |
0.88 |
|
$ |
(1.43 |
) |
|
Weighted average number of common shares and common share equivalents outstanding |
|
120,000,000 |
|
120,000,000 |
|
120,000,000 |
|
120,000,000 |
| ||||
|
Return on equity(3) |
|
-1.2 |
% |
-7.3 |
% |
2.9 |
% |
-4.8 |
% | ||||
(1) Underwriting (loss) income is calculated as net earned insurance and reinsurance premiums less loss and loss adjustment expenses, insurance and reinsurance acquisition expenses and other underwriting expenses.
(2) The combined ratio is calculated by combining the loss ratio, the acquisition expense ratio, and the other underwriting expense ratio.
(3) Return on equity is calculated by dividing net comprehensive income attributable to Sirius Group’s common shareholder for the period by the beginning common shareholder’s equity.
|
|
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
|
December 31, 2017 |
| ||||
|
Selected Balance Sheet Data: |
|
|
|
|
|
|
|
|
| ||||
|
Book value per share attributable to Sirius Group’s common shareholder |
|
$ |
16.44 |
|
$ |
16.64 |
|
$ |
16.23 |
|
$ |
15.98 |
|
Sirius International Insurance Group, Ltd.
Consolidated Statements of (Loss) Income
For the Three and Nine Months Ended September 30, 2018 and 2017
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
| ||||||||
|
(Expressed in millions of U.S. dollars) |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| ||||
|
Revenues |
|
|
|
|
|
|
|
|
| ||||
|
Net earned insurance and reinsurance premiums |
|
$ |
321.1 |
|
$ |
282.8 |
|
$ |
914.5 |
|
$ |
750.6 |
|
|
Net investment income |
|
21.8 |
|
12.1 |
|
51.8 |
|
44.2 |
| ||||
|
Net realized investment gains (losses) |
|
3.9 |
|
(24.4 |
) |
8.0 |
|
(26.9 |
) | ||||
|
Net unrealized investment (losses) gains |
|
(11.7 |
) |
(2.7 |
) |
29.0 |
|
(25.2 |
) | ||||
|
Net foreign exchange (losses) gains |
|
(0.4 |
) |
15.7 |
|
21.7 |
|
17.0 |
| ||||
|
Other revenue |
|
17.0 |
|
9.5 |
|
96.0 |
|
11.8 |
| ||||
|
Total revenues |
|
351.7 |
|
293.0 |
|
1,121.0 |
|
771.5 |
| ||||
|
Expenses |
|
|
|
|
|
|
|
|
| ||||
|
Loss and loss adjustment expenses |
|
260.4 |
|
371.2 |
|
552.8 |
|
626.6 |
| ||||
|
Insurance and reinsurance acquisition expenses |
|
59.2 |
|
49.5 |
|
189.0 |
|
143.5 |
| ||||
|
Other underwriting expenses |
|
35.7 |
|
28.7 |
|
117.1 |
|
86.6 |
| ||||
|
General and administrative expenses |
|
19.5 |
|
19.8 |
|
58.0 |
|
60.6 |
| ||||
|
Intangible asset amortization expenses |
|
3.9 |
|
3.9 |
|
11.8 |
|
6.3 |
| ||||
|
Interest expense on debt |
|
7.6 |
|
5.0 |
|
23.1 |
|
14.6 |
| ||||
|
Total expenses |
|
386.3 |
|
478.1 |
|
951.8 |
|
938.2 |
| ||||
|
Pre-tax (loss) income |
|
(34.6 |
) |
(185.1 |
) |
169.2 |
|
(166.7 |
) | ||||
|
Income tax benefit (expense) |
|
6.9 |
|
12.8 |
|
(55.4 |
) |
11.3 |
| ||||
|
Net (loss) income |
|
(27.7 |
) |
(172.3 |
) |
113.8 |
|
(155.4 |
) | ||||
|
Income attributable to non-controlling interests |
|
(0.3 |
) |
(4.2 |
) |
(0.9 |
) |
(13.2 |
) | ||||
|
(Loss) income before accrued dividends on Series A redeemable preference shares |
|
(28.0 |
) |
(176.5 |
) |
112.9 |
|
(168.6 |
) | ||||
|
Accrued dividends on Series A redeemable preference shares |
|
— |
|
(2.5 |
) |
(2.6 |
) |
(3.5 |
) | ||||
|
Net (loss) income attributable to Sirius Group’s common shareholder |
|
$ |
(28.0 |
) |
$ |
(179.0 |
) |
$ |
110.3 |
|
$ |
(172.1 |
) |
Sirius International Insurance Group, Ltd.
Consolidated Statements of Comprehensive (Loss) Income
For the Three and Nine Months Ended September 30, 2018 and 2017
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
| ||||||||
|
(Expressed in millions of U.S. dollars) |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| ||||
|
Comprehensive (loss) income |
|
|
|
|
|
|
|
|
| ||||
|
Net (loss) income |
|
$ |
(27.7 |
) |
$ |
(172.3 |
) |
$ |
113.8 |
|
$ |
(155.4 |
) |
|
Other comprehensive income (loss), net of tax |
|
|
|
|
|
|
|
|
| ||||
|
Change in foreign currency translation, net of tax |
|
4.7 |
|
26.3 |
|
(57.2 |
) |
73.5 |
| ||||
|
Total other comprehensive income (loss) |
|
4.7 |
|
26.3 |
|
(57.2 |
) |
73.5 |
| ||||
|
Comprehensive (loss) income |
|
(23.0 |
) |
(146.0 |
) |
56.6 |
|
(81.9 |
) | ||||
|
Income attributable to non-controlling interests |
|
(0.3 |
) |
(4.2 |
) |
(0.9 |
) |
(13.2 |
) | ||||
|
Comprehensive (loss) income attributable to Sirius Group’s common shareholder |
|
$ |
(23.3 |
) |
$ |
(150.2 |
) |
$ |
55.7 |
|
$ |
(95.1 |
) |
Sirius International Insurance Group, Ltd.
Consolidated Balance Sheets
|
(Expressed in millions of U.S. dollars, except share information) |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
|
December 31, 2017 |
|
September 30, 2017 |
| |||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Fixed maturity investments, trading at fair value |
|
$ |
1,979.6 |
|
$ |
1,885.4 |
|
$ |
2,059.0 |
|
$ |
2,180.0 |
|
$ |
2,274.6 |
|
|
Short-term investments, at fair value |
|
760.0 |
|
819.6 |
|
801.0 |
|
625.0 |
|
911.3 |
| |||||
|
Equity securities, trading at fair value |
|
430.4 |
|
415.1 |
|
369.7 |
|
299.2 |
|
315.9 |
| |||||
|
Other long-term investments, at fair value |
|
349.0 |
|
316.6 |
|
286.8 |
|
269.5 |
|
236.0 |
| |||||
|
Cash |
|
106.5 |
|
114.1 |
|
174.9 |
|
215.8 |
|
145.7 |
| |||||
|
Restricted cash |
|
15.0 |
|
15.9 |
|
16.6 |
|
14.8 |
|
— |
| |||||
|
Total investments and cash |
|
3,640.5 |
|
3,566.7 |
|
3,708.0 |
|
3,604.3 |
|
3,883.5 |
| |||||
|
Accrued investment income |
|
12.1 |
|
12.5 |
|
13.6 |
|
14.1 |
|
11.9 |
| |||||
|
Insurance and reinsurance premiums receivable |
|
762.5 |
|
807.4 |
|
723.7 |
|
543.6 |
|
630.0 |
| |||||
|
Reinsurance recoverable on unpaid losses |
|
349.0 |
|
358.3 |
|
327.8 |
|
319.7 |
|
334.9 |
| |||||
|
Reinsurance recoverable on paid losses |
|
29.8 |
|
17.8 |
|
21.2 |
|
17.5 |
|
18.2 |
| |||||
|
Funds held by ceding companies |
|
180.0 |
|
157.4 |
|
162.3 |
|
153.2 |
|
141.1 |
| |||||
|
Ceded unearned insurance and reinsurance premiums |
|
191.2 |
|
207.3 |
|
173.0 |
|
106.6 |
|
127.7 |
| |||||
|
Deferred acquisition costs |
|
152.8 |
|
151.4 |
|
151.0 |
|
120.9 |
|
123.2 |
| |||||
|
Deferred tax asset |
|
197.7 |
|
197.9 |
|
217.6 |
|
244.1 |
|
312.5 |
| |||||
|
Accounts receivable on unsettled investment sales |
|
0.1 |
|
— |
|
0.2 |
|
0.3 |
|
— |
| |||||
|
Goodwill |
|
400.7 |
|
400.8 |
|
401.3 |
|
401.0 |
|
397.1 |
| |||||
|
Intangible assets |
|
207.5 |
|
208.4 |
|
212.3 |
|
216.3 |
|
225.2 |
| |||||
|
Other assets |
|
134.8 |
|
124.2 |
|
92.6 |
|
82.0 |
|
96.0 |
| |||||
|
Total assets |
|
$ |
6,258.7 |
|
$ |
6,210.1 |
|
$ |
6,204.6 |
|
$ |
5,823.6 |
|
$ |
6,301.3 |
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Loss and loss adjustment expense reserves |
|
$ |
1,891.0 |
|
$ |
1,827.1 |
|
$ |
1,875.9 |
|
$ |
1,898.5 |
|
$ |
1,916.6 |
|
|
Unearned insurance and reinsurance premiums |
|
766.9 |
|
800.5 |
|
765.9 |
|
506.8 |
|
597.5 |
| |||||
|
Ceded reinsurance payable |
|
239.2 |
|
254.2 |
|
182.8 |
|
139.1 |
|
158.4 |
| |||||
|
Funds held under reinsurance treaties |
|
105.4 |
|
72.6 |
|
82.5 |
|
73.4 |
|
68.5 |
| |||||
|
Deferred tax liability |
|
256.9 |
|
255.7 |
|
253.1 |
|
282.2 |
|
316.9 |
| |||||
|
Debt |
|
697.7 |
|
695.9 |
|
717.6 |
|
723.2 |
|
724.9 |
| |||||
|
Mandatorily redeemable preference shares |
|
— |
|
— |
|
— |
|
— |
|
250.0 |
| |||||
|
Accounts payable on unsettled investment purchases |
|
18.1 |
|
6.2 |
|
97.3 |
|
0.3 |
|
1.4 |
| |||||
|
Other liabilities |
|
200.6 |
|
191.8 |
|
173.2 |
|
176.8 |
|
262.9 |
| |||||
|
Total liabilities |
|
4,175.8 |
|
4,104.0 |
|
4,148.3 |
|
3,800.3 |
|
4,297.1 |
| |||||
|
Mezzanine equity |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Series A redeemable preference shares |
|
108.8 |
|
108.8 |
|
108.8 |
|
106.1 |
|
103.5 |
| |||||
|
Equity |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Common shareholder’s equity |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Common shares (shares issued and outstanding: 120,000,000) |
|
1.2 |
|
1.2 |
|
1.2 |
|
1.2 |
|
1.2 |
| |||||
|
Additional paid-in surplus |
|
1,199.3 |
|
1,199.3 |
|
1,199.3 |
|
1,197.9 |
|
1,196.1 |
| |||||
|
Retained earnings |
|
970.2 |
|
998.2 |
|
900.4 |
|
858.4 |
|
842.4 |
| |||||
|
Accumulated other comprehensive (loss) |
|
(197.7 |
) |
(202.4 |
) |
(153.9 |
) |
(140.5 |
) |
(138.7 |
) | |||||
|
Total common shareholder’s equity |
|
1,973.0 |
|
1,996.3 |
|
1,947.0 |
|
1,917.0 |
|
1,901.0 |
| |||||
|
Non-controlling interests |
|
1.1 |
|
1.0 |
|
0.5 |
|
0.2 |
|
(0.3 |
) | |||||
|
Total equity |
|
1,974.1 |
|
1,997.3 |
|
1,947.5 |
|
1,917.2 |
|
1,900.7 |
| |||||
|
Total liabilities, mezzanine equity, and equity |
|
$ |
6,258.7 |
|
$ |
6,210.1 |
|
$ |
6,204.6 |
|
$ |
5,823.6 |
|
$ |
6,301.3 |
|
Sirius International Insurance Group, Ltd.
Consolidated Statements of Shareholder’s Equity
|
|
|
Year to date for the period ended, |
| |||||||||||||
|
(Expressed in millions of U.S. dollars) |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
|
December 31, 2017 |
|
September 30, 2017 |
| |||||
|
Common Shares |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Balance at beginning and end of period |
|
$ |
1.2 |
|
$ |
1.2 |
|
$ |
1.2 |
|
$ |
1.2 |
|
$ |
1.2 |
|
|
Additional paid-in surplus |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Balance at beginning of period |
|
1,197.9 |
|
1,197.9 |
|
1,197.9 |
|
1,184.6 |
|
1,184.6 |
| |||||
|
Capital contribution from former parent |
|
1.4 |
|
1.4 |
|
1.4 |
|
13.3 |
|
11.5 |
| |||||
|
Balance at end of period |
|
1,199.3 |
|
1,199.3 |
|
1,199.3 |
|
1,197.9 |
|
1,196.1 |
| |||||
|
Retained earnings |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Balance at beginning of period |
|
858.4 |
|
858.4 |
|
858.4 |
|
1,014.5 |
|
1,014.5 |
| |||||
|
Cumulative effect of an accounting change |
|
1.6 |
|
1.6 |
|
1.6 |
|
— |
|
— |
| |||||
|
Balance at beginning of period, as adjusted |
|
860.0 |
|
860.0 |
|
860.0 |
|
1,014.5 |
|
1,014.5 |
| |||||
|
Net income |
|
113.8 |
|
141.5 |
|
43.3 |
|
(136.3 |
) |
(155.4 |
) | |||||
|
Income attributable to non-controlling interest |
|
(0.9 |
) |
(0.6 |
) |
(0.2 |
) |
(13.7 |
) |
(13.2 |
) | |||||
|
Accrued dividends on Series A redeemable preference shares |
|
(2.6 |
) |
(2.6 |
) |
(2.6 |
) |
(6.1 |
) |
(3.5 |
) | |||||
|
Other, net |
|
(0.1 |
) |
(0.1 |
) |
(0.1 |
) |
— |
|
— |
| |||||
|
Balance at end of period |
|
970.2 |
|
998.2 |
|
900.4 |
|
858.4 |
|
842.4 |
| |||||
|
Accumulated other comprehensive (loss) income |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Balance at beginning of period |
|
(140.5 |
) |
(140.5 |
) |
(140.5 |
) |
(212.2 |
) |
(212.2 |
) | |||||
|
Accumulated net foreign currency translation (losses) |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Balance at beginning of period |
|
(140.5 |
) |
(140.5 |
) |
(140.5 |
) |
(212.2 |
) |
(212.2 |
) | |||||
|
Net change in foreign currency translation |
|
(57.2 |
) |
(61.9 |
) |
(13.4 |
) |
71.7 |
|
73.5 |
| |||||
|
Balance at end of period |
|
(197.7 |
) |
(202.4 |
) |
(153.9 |
) |
(140.5 |
) |
(138.7 |
) | |||||
|
Balance at the end of period |
|
(197.7 |
) |
(202.4 |
) |
(153.9 |
) |
(140.5 |
) |
(138.7 |
) | |||||
|
Total common shareholder’s equity |
|
$ |
1,973.0 |
|
$ |
1,996.3 |
|
$ |
1,947.0 |
|
$ |
1,917.0 |
|
$ |
1,901.0 |
|
|
Non-controlling interests |
|
1.1 |
|
1.0 |
|
0.5 |
|
0.2 |
|
(0.3 |
) | |||||
|
Total equity |
|
$ |
1,974.1 |
|
$ |
1,997.3 |
|
$ |
1,947.5 |
|
$ |
1,917.2 |
|
$ |
1,900.7 |
|
Sirius International Insurance Group, Ltd.
Consolidated Statements of (Loss) Income — Segment Results Format
For the Three and Nine Months Ended September 30, 2018 and 2017
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
| ||||||||
|
(Expressed in millions of U.S. dollars) |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| ||||
|
Underwriting Results: |
|
|
|
|
|
|
|
|
| ||||
|
Gross written premiums |
|
$ |
398.0 |
|
$ |
356.7 |
|
$ |
1,518.2 |
|
$ |
1,166.4 |
|
|
Net written premiums |
|
$ |
305.7 |
|
$ |
277.6 |
|
$ |
1,095.4 |
|
$ |
874.7 |
|
|
Net earned insurance and reinsurance premiums |
|
$ |
321.1 |
|
$ |
282.8 |
|
$ |
914.5 |
|
$ |
750.6 |
|
|
Loss and allocated loss adjustment expenses (“LAE”) |
|
(248.4 |
) |
(359.2 |
) |
(524.9 |
) |
(602.0 |
) | ||||
|
Insurance and reinsurance acquisition expenses |
|
(59.2 |
) |
(49.5 |
) |
(189.0 |
) |
(143.5 |
) | ||||
|
Technical profit (loss) |
|
13.5 |
|
(125.9 |
) |
200.6 |
|
5.1 |
| ||||
|
Unallocated LAE |
|
(12.0 |
) |
(12.0 |
) |
(27.9 |
) |
(24.6 |
) | ||||
|
Other underwriting expenses |
|
(35.7 |
) |
(28.7 |
) |
(117.1 |
) |
(86.6 |
) | ||||
|
Underwriting (loss) income |
|
(34.2 |
) |
(166.6 |
) |
55.6 |
|
(106.1 |
) | ||||
|
Service fee revenue |
|
15.4 |
|
6.6 |
|
55.5 |
|
13.9 |
| ||||
|
General and administrative expenses, MGU + Runoff & Other |
|
(14.6 |
) |
(18.2 |
) |
(40.4 |
) |
(32.6 |
) | ||||
|
Underwriting (loss) income, including net service fee income |
|
(33.4 |
) |
(178.2 |
) |
70.7 |
|
(124.8 |
) | ||||
|
Net investment income |
|
21.8 |
|
12.1 |
|
51.8 |
|
44.2 |
| ||||
|
Net realized investment gains (losses) |
|
3.9 |
|
(24.4 |
) |
8.0 |
|
(26.9 |
) | ||||
|
Net unrealized investment (losses) gains |
|
(11.7 |
) |
(2.7 |
) |
29.0 |
|
(25.2 |
) | ||||
|
Net foreign exchange (losses) gains |
|
(0.4 |
) |
15.7 |
|
21.7 |
|
17.0 |
| ||||
|
Other revenue |
|
1.6 |
|
2.9 |
|
40.5 |
|
(2.1 |
) | ||||
|
General and administrative expenses |
|
(4.9 |
) |
(1.6 |
) |
(17.6 |
) |
(28.0 |
) | ||||
|
Intangible asset amortization expenses |
|
(3.9 |
) |
(3.9 |
) |
(11.8 |
) |
(6.3 |
) | ||||
|
Interest expense on debt |
|
(7.6 |
) |
(5.0 |
) |
(23.1 |
) |
(14.6 |
) | ||||
|
Pre-tax (loss) income |
|
(34.6 |
) |
(185.1 |
) |
169.2 |
|
(166.7 |
) | ||||
|
Income tax benefit (expense) |
|
6.9 |
|
12.8 |
|
(55.4 |
) |
11.3 |
| ||||
|
Net (loss) income |
|
(27.7 |
) |
(172.3 |
) |
113.8 |
|
(155.4 |
) | ||||
|
Income attributable to non-controlling interests |
|
(0.3 |
) |
(4.2 |
) |
(0.9 |
) |
(13.2 |
) | ||||
|
(Loss) income before accrued dividends on Series A redeemable preference shares |
|
(28.0 |
) |
(176.5 |
) |
112.9 |
|
(168.6 |
) | ||||
|
Accrued dividends on Series A redeemable preference shares |
|
— |
|
(2.5 |
) |
(2.6 |
) |
(3.5 |
) | ||||
|
Net (loss) income attributable to Sirius Group’s common shareholder |
|
$ |
(28.0 |
) |
$ |
(179.0 |
) |
$ |
110.3 |
|
$ |
(172.1 |
) |
Sirius International Insurance Group, Ltd.
Consolidated Underwriting Results by Segment
|
|
|
Three Months Ended September 30, 2018 |
| ||||||||||||||||
|
(Expressed in millions of U.S. dollars) |
|
Global |
|
Global |
|
Specialty & |
|
Runoff & |
|
Corporate |
|
Total |
| ||||||
|
Gross written premiums |
|
$ |
203.7 |
|
$ |
117.1 |
|
$ |
76.5 |
|
$ |
0.7 |
|
$ |
— |
|
$ |
398.0 |
|
|
Net written premiums |
|
$ |
144.9 |
|
$ |
87.9 |
|
$ |
72.6 |
|
$ |
0.3 |
|
$ |
— |
|
$ |
305.7 |
|
|
Net earned insurance and reinsurance premiums |
|
$ |
172.7 |
|
$ |
89.6 |
|
$ |
58.4 |
|
$ |
0.4 |
|
$ |
— |
|
$ |
321.1 |
|
|
Loss and allocated LAE |
|
(173.2 |
) |
(51.3 |
) |
(34.1 |
) |
10.2 |
|
— |
|
(248.4 |
) | ||||||
|
Insurance and reinsurance acquisition expenses |
|
(30.1 |
) |
(26.7 |
) |
(16.2 |
) |
(0.1 |
) |
13.9 |
|
(59.2 |
) | ||||||
|
Technical (loss) profit |
|
(30.6 |
) |
11.6 |
|
8.1 |
|
10.5 |
|
13.9 |
|
13.5 |
| ||||||
|
Unallocated LAE |
|
(3.3 |
) |
(1.7 |
) |
(1.6 |
) |
(0.7 |
) |
(4.7 |
) |
(12.0 |
) | ||||||
|
Other underwriting expenses |
|
(17.5 |
) |
(6.4 |
) |
(8.4 |
) |
(1.4 |
) |
(2.0 |
) |
(35.7 |
) | ||||||
|
Underwriting (loss) income |
|
(51.4 |
) |
3.5 |
|
(1.9 |
) |
8.4 |
|
7.2 |
|
(34.2 |
) | ||||||
|
Service fee revenue |
|
— |
|
29.3 |
|
— |
|
— |
|
(13.9 |
) |
15.4 |
| ||||||
|
Managing general underwriter unallocated LAE |
|
— |
|
(4.7 |
) |
— |
|
— |
|
4.7 |
|
— |
| ||||||
|
Managing general underwriter other underwriting expenses |
|
— |
|
(2.0 |
) |
— |
|
— |
|
2.0 |
|
— |
| ||||||
|
General and administrative expenses, MGU + Runoff & Other |
|
— |
|
(13.8 |
) |
— |
|
(0.8 |
) |
— |
|
(14.6 |
) | ||||||
|
Underwriting (loss) income, including net service fee income |
|
(51.4 |
) |
12.3 |
|
(1.9 |
) |
7.6 |
|
— |
|
(33.4 |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Underwriting Ratios (1) (2) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Loss ratio |
|
102.2 |
% |
59.2 |
% |
61.1 |
% |
NM |
|
NM |
|
81.1 |
% | ||||||
|
Acquisition expense ratio |
|
17.4 |
% |
29.8 |
% |
27.7 |
% |
NM |
|
NM |
|
18.4 |
% | ||||||
|
Other underwriting expense ratio |
|
10.1 |
% |
7.1 |
% |
14.4 |
% |
NM |
|
NM |
|
11.1 |
% | ||||||
|
Combined ratio |
|
129.7 |
% |
96.1 |
% |
103.2 |
% |
NM |
|
NM |
|
110.6 |
% | ||||||
(1) Underwriting ratios are calculated by dividing the related expense by net earned insurance and reinsurance premiums.
(2) Ratios considered not meaningful (“NM”) to Runoff & Other and Corporate Eliminations.
Sirius International Insurance Group, Ltd.
Consolidated Underwriting Results by Segment (Continued)
|
|
|
Nine Months Ended September 30, 2018 |
| ||||||||||||||||
|
(Expressed in millions of U.S. dollars) |
|
Global |
|
Global |
|
Specialty & |
|
Runoff & |
|
Corporate |
|
Total |
| ||||||
|
Gross written premiums |
|
$ |
875.7 |
|
$ |
375.0 |
|
$ |
252.9 |
|
$ |
14.6 |
|
$ |
— |
|
$ |
1,518.2 |
|
|
Net written premiums |
|
$ |
569.1 |
|
$ |
286.2 |
|
$ |
228.3 |
|
$ |
11.8 |
|
$ |
— |
|
$ |
1,095.4 |
|
|
Net earned insurance and reinsurance premiums |
|
$ |
476.3 |
|
$ |
258.4 |
|
$ |
168.3 |
|
$ |
11.5 |
|
$ |
— |
|
$ |
914.5 |
|
|
Loss and allocated LAE |
|
(311.8 |
) |
(138.0 |
) |
(87.4 |
) |
12.3 |
|
— |
|
(524.9 |
) | ||||||
|
Insurance and reinsurance acquisition expenses |
|
(93.5 |
) |
(82.3 |
) |
(44.9 |
) |
(2.3 |
) |
34.0 |
|
(189.0 |
) | ||||||
|
Technical profit |
|
71.0 |
|
38.1 |
|
36.0 |
|
21.5 |
|
34.0 |
|
200.6 |
| ||||||
|
Unallocated LAE |
|
(7.7 |
) |
(4.3 |
) |
(4.5 |
) |
(1.6 |
) |
(9.8 |
) |
(27.9 |
) | ||||||
|
Other underwriting expenses |
|
(53.0 |
) |
(20.7 |
) |
(24.3 |
) |
(5.2 |
) |
(13.9 |
) |
(117.1 |
) | ||||||
|
Underwriting income |
|
10.3 |
|
13.1 |
|
7.2 |
|
14.7 |
|
10.3 |
|
55.6 |
| ||||||
|
Service fee revenue |
|
— |
|
89.5 |
|
— |
|
— |
|
(34.0 |
) |
55.5 |
| ||||||
|
Managing general underwriter unallocated LAE |
|
— |
|
(9.8 |
) |
— |
|
— |
|
9.8 |
|
— |
| ||||||
|
Managing general underwriter other underwriting expenses |
|
— |
|
(13.9 |
) |
— |
|
— |
|
13.9 |
|
— |
| ||||||
|
General and administrative expenses, MGU + Runoff & Other |
|
— |
|
(37.5 |
) |
— |
|
(2.9 |
) |
— |
|
(40.4 |
) | ||||||
|
Underwriting income, including net service fee income |
|
10.3 |
|
41.4 |
|
7.2 |
|
11.8 |
|
— |
|
70.7 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Underwriting Ratios (1) (2) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Loss ratio |
|
67.1 |
% |
55.1 |
% |
54.6 |
% |
NM |
|
NM |
|
60.4 |
% | ||||||
|
Acquisition expense ratio |
|
19.6 |
% |
31.8 |
% |
26.7 |
% |
NM |
|
NM |
|
20.7 |
% | ||||||
|
Other Underwriting expense ratio |
|
11.1 |
% |
8.0 |
% |
14.4 |
% |
NM |
|
NM |
|
12.8 |
% | ||||||
|
Combined ratio |
|
97.8 |
% |
94.9 |
% |
95.7 |
% |
NM |
|
NM |
|
93.9 |
% | ||||||
(1) Underwriting ratios are calculated by dividing the related expense by net earned insurance and reinsurance premiums.
(2) Ratios considered not meaningful (“NM”) to Runoff & Other and Corporate Eliminations.
Sirius International Insurance Group, Ltd.
Segment Data — Quarterly
Global Property
|
(Expressed in millions of U.S. dollars) |
|
Q3 2018 |
|
Q2 2018 |
|
Q1 2018 |
|
Q4 2017 |
|
Q3 2017 |
| |||||
|
Gross written premiums |
|
$ |
203.7 |
|
$ |
325.4 |
|
$ |
346.6 |
|
$ |
125.5 |
|
$ |
154.6 |
|
|
Net written premiums |
|
144.9 |
|
177.0 |
|
247.2 |
|
105.4 |
|
121.4 |
| |||||
|
Net earned insurance and reinsurance premiums |
|
172.7 |
|
167.5 |
|
136.1 |
|
152.3 |
|
162.0 |
| |||||
|
Loss and allocated LAE |
|
(173.2 |
) |
(68.2 |
) |
(70.4 |
) |
(111.9 |
) |
(283.4 |
) | |||||
|
Insurance and reinsurance acquisition expenses |
|
(30.1 |
) |
(34.1 |
) |
(29.3 |
) |
(30.8 |
) |
(34.2 |
) | |||||
|
Technical (loss) profit |
|
$ |
(30.6 |
) |
$ |
65.2 |
|
$ |
36.4 |
|
$ |
9.6 |
|
$ |
(155.6 |
) |
|
Unallocated LAE |
|
(3.3 |
) |
(2.5 |
) |
(1.9 |
) |
(0.2 |
) |
(8.2 |
) | |||||
|
Other underwriting expenses |
|
(17.5 |
) |
(18.1 |
) |
(17.4 |
) |
(11.7 |
) |
(17.7 |
) | |||||
|
Underwriting (loss) income |
|
$ |
(51.4 |
) |
$ |
44.6 |
|
$ |
17.1 |
|
$ |
(2.3 |
) |
$ |
(181.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Underwriting Ratios (1) |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Loss ratio |
|
102.2 |
% |
42.2 |
% |
53.1 |
% |
73.6 |
% |
180.0 |
% | |||||
|
Acquisition expense ratio |
|
17.4 |
% |
20.4 |
% |
21.5 |
% |
20.2 |
% |
21.1 |
% | |||||
|
Other underwriting expense ratio |
|
10.1 |
% |
10.8 |
% |
12.8 |
% |
7.7 |
% |
10.9 |
% | |||||
|
Combined ratio |
|
129.7 |
% |
73.4 |
% |
87.4 |
% |
101.5 |
% |
212.0 |
% | |||||
(1) Underwriting ratios are calculated by dividing the related expense by net earned insurance and reinsurance premiums.
Sirius International Insurance Group, Ltd.
Segment Data — Quarterly
Global A&H
|
(Expressed in millions of U.S. dollars) |
|
Q3 2018 |
|
Q2 2018 |
|
Q1 2018 |
|
Q4 2017 |
|
Q3 2017 |
| |||||
|
Gross written premiums |
|
$ |
117.1 |
|
$ |
112.3 |
|
$ |
145.6 |
|
$ |
113.2 |
|
$ |
149.6 |
|
|
Net written premiums |
|
87.9 |
|
82.8 |
|
115.5 |
|
81.4 |
|
107.6 |
| |||||
|
Net earned insurance and reinsurance premiums |
|
89.6 |
|
80.8 |
|
88.0 |
|
92.7 |
|
75.2 |
| |||||
|
Loss and allocated LAE |
|
(51.3 |
) |
(40.9 |
) |
(45.8 |
) |
(51.5 |
) |
(42.9 |
) | |||||
|
Insurance and reinsurance acquisition expenses |
|
(26.7 |
) |
(26.4 |
) |
(29.2 |
) |
(27.9 |
) |
(24.1 |
) | |||||
|
Technical profit |
|
$ |
11.6 |
|
$ |
13.5 |
|
$ |
13.0 |
|
$ |
13.3 |
|
$ |
8.2 |
|
|
Unallocated LAE |
|
(1.7 |
) |
(1.0 |
) |
(1.6 |
) |
(1.0 |
) |
(0.7 |
) | |||||
|
Other underwriting expenses |
|
(6.4 |
) |
(6.3 |
) |
(8.0 |
) |
(5.1 |
) |
(5.9 |
) | |||||
|
Underwriting income |
|
$ |
3.5 |
|
$ |
6.2 |
|
$ |
3.4 |
|
$ |
7.2 |
|
$ |
1.6 |
|
|
Service fee revenue |
|
29.3 |
|
27.4 |
|
32.8 |
|
25.3 |
|
26.0 |
| |||||
|
MGU unallocated LAE |
|
(4.7 |
) |
(5.1 |
) |
— |
|
— |
|
— |
| |||||
|
MGU other underwriting expenses |
|
(2.0 |
) |
(3.5 |
) |
(8.4 |
) |
— |
|
— |
| |||||
|
MGU General and administrative expenses |
|
(13.8 |
) |
(14.2 |
) |
(9.5 |
) |
(16.3 |
) |
(17.1 |
) | |||||
|
Underwriting income, including net service fee income |
|
$ |
12.3 |
|
$ |
10.8 |
|
$ |
18.3 |
|
$ |
16.2 |
|
$ |
10.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Underwriting Ratios (1) |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Loss ratio |
|
59.2 |
% |
51.9 |
% |
53.9 |
% |
56.6 |
% |
58.0 |
% | |||||
|
Acquisition expense ratio |
|
29.8 |
% |
32.7 |
% |
33.2 |
% |
30.1 |
% |
32.0 |
% | |||||
|
Other underwriting expense ratio |
|
7.1 |
% |
7.8 |
% |
9.1 |
% |
5.5 |
% |
7.8 |
% | |||||
|
Combined ratio |
|
96.1 |
% |
92.4 |
% |
96.2 |
% |
92.2 |
% |
97.8 |
% | |||||
(1) Underwriting ratios are calculated by dividing the related expense by net earned insurance and reinsurance premiums.
Sirius International Insurance Group, Ltd.
Segment Data — Quarterly
Specialty & Casualty
|
(Expressed in millions of U.S. dollars) |
|
Q3 2018 |
|
Q2 2018 |
|
Q1 2018 |
|
Q4 2017 |
|
Q3 2017 |
| |||||
|
Gross written premiums |
|
$ |
76.5 |
|
$ |
60.9 |
|
$ |
115.5 |
|
$ |
33.9 |
|
$ |
53.4 |
|
|
Net written premiums |
|
72.6 |
|
55.1 |
|
100.6 |
|
28.5 |
|
48.4 |
| |||||
|
Net earned insurance and reinsurance premiums |
|
58.4 |
|
55.5 |
|
54.4 |
|
39.5 |
|
45.2 |
| |||||
|
Loss and allocated LAE |
|
(34.1 |
) |
(31.7 |
) |
(21.6 |
) |
(25.5 |
) |
(34.6 |
) | |||||
|
Insurance and reinsurance acquisition expenses |
|
(16.2 |
) |
(14.6 |
) |
(14.1 |
) |
(10.4 |
) |
(12.6 |
) | |||||
|
Technical profit (loss) |
|
$ |
8.1 |
|
$ |
9.2 |
|
$ |
18.7 |
|
$ |
3.6 |
|
$ |
(2.0 |
) |
|
Unallocated LAE |
|
(1.6 |
) |
(1.7 |
) |
(1.2 |
) |
0.2 |
|
(2.3 |
) | |||||
|
Other underwriting expenses |
|
(8.4 |
) |
(7.9 |
) |
(8.0 |
) |
(3.0 |
) |
(4.6 |
) | |||||
|
Underwriting (loss) income |
|
$ |
(1.9 |
) |
$ |
(0.4 |
) |
$ |
9.5 |
|
$ |
0.8 |
|
$ |
(8.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Underwriting Ratios (1) |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Loss ratio |
|
61.1 |
% |
60.2 |
% |
41.9 |
% |
64.1 |
% |
81.6 |
% | |||||
|
Acquisition expense ratio |
|
27.7 |
% |
26.3 |
% |
25.9 |
% |
26.3 |
% |
27.9 |
% | |||||
|
Other underwriting expense ratio |
|
14.4 |
% |
14.2 |
% |
14.7 |
% |
7.6 |
% |
10.2 |
% | |||||
|
Combined ratio |
|
103.2 |
% |
100.7 |
% |
82.5 |
% |
98.0 |
% |
119.7 |
% | |||||
(1) Underwriting ratios are calculated by dividing the related expense by net earned insurance and reinsurance premiums.
Sirius International Insurance Group, Ltd.
Segment Data — Quarterly
Runoff & Other
|
(Expressed in millions of U.S. dollars) |
|
Q3 2018 |
|
Q2 2018 |
|
Q1 2018 |
|
Q4 2017 |
|
Q3 2017 |
| |||||
|
Gross written premiums |
|
$ |
0.7 |
|
$ |
6.4 |
|
$ |
7.5 |
|
$ |
0.3 |
|
$ |
(0.9 |
) |
|
Net written premiums |
|
0.3 |
|
5.4 |
|
6.1 |
|
0.2 |
|
0.2 |
| |||||
|
Net earned insurance and reinsurance premiums |
|
0.4 |
|
5.1 |
|
6.0 |
|
0.2 |
|
0.4 |
| |||||
|
Loss and allocated LAE |
|
10.2 |
|
(0.3 |
) |
2.4 |
|
5.8 |
|
1.7 |
| |||||
|
Insurance and reinsurance acquisition expenses |
|
(0.1 |
) |
(1.5 |
) |
(0.7 |
) |
(0.8 |
) |
2.0 |
| |||||
|
Technical profit |
|
$ |
10.5 |
|
$ |
3.3 |
|
$ |
7.7 |
|
$ |
5.2 |
|
$ |
4.1 |
|
|
Unallocated LAE |
|
(0.7 |
) |
— |
|
(0.9 |
) |
(0.5 |
) |
(0.8 |
) | |||||
|
Other underwriting expenses |
|
(1.4 |
) |
(2.4 |
) |
(1.4 |
) |
0.3 |
|
(0.5 |
) | |||||
|
Underwriting income (loss) |
|
$ |
8.4 |
|
$ |
0.9 |
|
$ |
5.4 |
|
$ |
5.0 |
|
$ |
2.8 |
|
|
Service fee revenue |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||
|
General and administrative expenses |
|
(0.8 |
) |
(1.0 |
) |
(1.1 |
) |
0.1 |
|
(1.1 |
) | |||||
|
Underwriting income (loss), including net service fee income |
|
$ |
7.6 |
|
$ |
(0.1 |
) |
$ |
4.3 |
|
$ |
5.1 |
|
$ |
1.7 |
|
Sirius International Insurance Group, Ltd.
Gross Written Premiums by Segment
|
|
|
Three Months Ended |
|
Nine Months Ended |
| |||||||||||||||||
|
(Expressed in millions of U.S. dollars) |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30 |
|
September 30, |
|
September 30, |
| |||||||
|
Global Property |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Other Property |
|
$ |
138.8 |
|
$ |
232.5 |
|
$ |
172.7 |
|
$ |
92.0 |
|
$ |
81.5 |
|
$ |
544.0 |
|
$ |
313.2 |
|
|
Property Catastrophe Excess |
|
55.3 |
|
45.6 |
|
166.6 |
|
10.0 |
|
58.7 |
|
267.5 |
|
245.3 |
| |||||||
|
Agriculture |
|
9.6 |
|
47.3 |
|
7.3 |
|
23.5 |
|
14.4 |
|
64.2 |
|
48.1 |
| |||||||
|
Total |
|
203.7 |
|
325.4 |
|
346.6 |
|
125.5 |
|
154.6 |
|
875.7 |
|
606.6 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Global A&H |
|
117.1 |
|
112.3 |
|
145.6 |
|
113.2 |
|
149.6 |
|
375.0 |
|
381.4 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Specialty & Casualty |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Casualty |
|
41.4 |
|
28.1 |
|
27.1 |
|
15.0 |
|
13.3 |
|
96.6 |
|
23.2 |
| |||||||
|
Aviation & Space |
|
13.5 |
|
10.8 |
|
21.1 |
|
14.8 |
|
12.2 |
|
45.4 |
|
50.9 |
| |||||||
|
Trade Credit |
|
10.7 |
|
6.2 |
|
41.0 |
|
(5.7 |
) |
9.3 |
|
57.9 |
|
45.4 |
| |||||||
|
Marine |
|
1.5 |
|
8.5 |
|
17.6 |
|
7.3 |
|
14.6 |
|
27.6 |
|
48.8 |
| |||||||
|
Contingency |
|
2.8 |
|
3.5 |
|
6.9 |
|
2.5 |
|
4.0 |
|
13.2 |
|
15.9 |
| |||||||
|
Environmental |
|
3.9 |
|
2.4 |
|
0.4 |
|
— |
|
— |
|
6.7 |
|
— |
| |||||||
|
Surety |
|
2.7 |
|
1.4 |
|
1.4 |
|
— |
|
— |
|
5.5 |
|
— |
| |||||||
|
Total |
|
76.5 |
|
60.9 |
|
115.5 |
|
33.9 |
|
53.4 |
|
252.9 |
|
184.2 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Runoff & Other |
|
0.7 |
|
6.4 |
|
7.5 |
|
0.3 |
|
(0.9 |
) |
14.6 |
|
(5.8 |
) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Total |
|
$ |
398.0 |
|
$ |
505.0 |
|
$ |
615.2 |
|
$ |
272.9 |
|
$ |
356.7 |
|
$ |
1,518.2 |
|
$ |
1,166.4 |
|
Sirius International Insurance Group, Ltd.
Net Earned Insurance and Reinsurance Premiums by Segment
|
|
|
Three Months Ended |
|
Nine Months Ended |
| |||||||||||||||||
|
(Expressed in millions of U.S. dollars) |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
September 30, |
|
September 30, |
| |||||||
|
Global Property |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Other Property |
|
$ |
98.6 |
|
$ |
103.1 |
|
$ |
93.3 |
|
$ |
83.0 |
|
$ |
91.0 |
|
$ |
295.0 |
|
$ |
254.5 |
|
|
Property Catastrophe Excess |
|
50.9 |
|
42.0 |
|
42.4 |
|
40.4 |
|
47.5 |
|
135.3 |
|
119.2 |
| |||||||
|
Agriculture |
|
23.2 |
|
22.4 |
|
0.4 |
|
28.9 |
|
23.5 |
|
46.0 |
|
38.4 |
| |||||||
|
Total |
|
172.7 |
|
167.5 |
|
136.1 |
|
152.3 |
|
162.0 |
|
476.3 |
|
412.1 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Global A&H |
|
89.6 |
|
80.8 |
|
88.0 |
|
92.7 |
|
75.2 |
|
258.4 |
|
214.1 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Specialty & Casualty |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Casualty |
|
23.2 |
|
16.8 |
|
10.7 |
|
7.7 |
|
4.6 |
|
50.7 |
|
7.3 |
| |||||||
|
Aviation & Space |
|
14.1 |
|
15.3 |
|
14.8 |
|
11.7 |
|
12.6 |
|
44.2 |
|
42.1 |
| |||||||
|
Trade Credit |
|
11.7 |
|
9.5 |
|
11.1 |
|
7.5 |
|
9.5 |
|
32.3 |
|
25.1 |
| |||||||
|
Marine |
|
4.0 |
|
9.6 |
|
13.4 |
|
9.8 |
|
14.3 |
|
27.0 |
|
36.8 |
| |||||||
|
Contingency |
|
3.1 |
|
3.7 |
|
4.5 |
|
2.8 |
|
4.2 |
|
11.3 |
|
12.4 |
| |||||||
|
Surety |
|
1.9 |
|
0.5 |
|
(0.1 |
) |
— |
|
— |
|
2.3 |
|
— |
| |||||||
|
Environmental |
|
0.4 |
|
0.1 |
|
— |
|
— |
|
— |
|
0.5 |
|
— |
| |||||||
|
Total |
|
58.4 |
|
55.5 |
|
54.4 |
|
39.5 |
|
45.2 |
|
168.3 |
|
123.7 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Runoff & Other |
|
0.4 |
|
5.1 |
|
6.0 |
|
0.2 |
|
0.4 |
|
11.5 |
|
0.7 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Total |
|
$ |
321.1 |
|
$ |
308.9 |
|
$ |
284.5 |
|
$ |
284.7 |
|
$ |
282.8 |
|
$ |
914.5 |
|
$ |
750.6 |
|
Sirius International Insurance Group, Ltd.
Net Investment Income
|
|
|
Three Months Ended |
|
Nine Months Ended |
| |||||||||||||||||
|
(Expressed in millions of U.S. dollars) |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
September 30, |
|
September 30, |
| |||||||
|
Fixed maturity investments |
|
$ |
14.2 |
|
$ |
13.7 |
|
$ |
9.9 |
|
$ |
10.9 |
|
$ |
12.7 |
|
$ |
37.8 |
|
$ |
40.6 |
|
|
Short-term investments |
|
2.4 |
|
0.5 |
|
0.8 |
|
1.4 |
|
— |
|
3.7 |
|
0.1 |
| |||||||
|
Equity securities |
|
5.9 |
|
7.1 |
|
1.2 |
|
1.2 |
|
1.0 |
|
14.2 |
|
3.9 |
| |||||||
|
Other long-term investments |
|
2.7 |
|
1.3 |
|
1.2 |
|
1.2 |
|
1.6 |
|
5.2 |
|
7.3 |
| |||||||
|
Total investment income |
|
25.2 |
|
22.6 |
|
13.1 |
|
14.7 |
|
15.3 |
|
60.9 |
|
51.9 |
| |||||||
|
Investment expenses |
|
(3.4 |
) |
(3.4 |
) |
(2.3 |
) |
(2.1 |
) |
(3.2 |
) |
(9.1 |
) |
(7.7 |
) | |||||||
|
Net investment income |
|
$ |
21.8 |
|
$ |
19.2 |
|
$ |
10.8 |
|
$ |
12.6 |
|
$ |
12.1 |
|
$ |
51.8 |
|
$ |
44.2 |
|
Sirius International Insurance Group, Ltd.
Investment Holdings — Cost to Fair Value Reconciliation
|
|
|
September 30, 2018 |
| |||||||||||||||
|
(Expressed in millions of U.S. dollars) |
|
Cost or |
|
Gross |
|
Gross unrealized |
|
Net foreign |
|
Fair Value |
|
Percentage |
| |||||
|
Fixed Maturity Investments |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Corporate debt securities |
|
$ |
792.3 |
|
$ |
1.3 |
|
$ |
(9.3 |
) |
$ |
10.5 |
|
$ |
794.8 |
|
22.7 |
% |
|
Residential mortgage-backed securities |
|
452.0 |
|
0.1 |
|
(14.4 |
) |
6.2 |
|
443.9 |
|
12.6 |
% | |||||
|
Asset-backed securities |
|
412.3 |
|
0.1 |
|
(1.1 |
) |
2.3 |
|
413.6 |
|
11.8 |
% | |||||
|
Commercial mortgage-backed securities |
|
155.1 |
|
0.4 |
|
(3.5 |
) |
0.8 |
|
152.8 |
|
4.3 |
% | |||||
|
U.S. government and government agency |
|
112.5 |
|
— |
|
(1.2 |
) |
4.4 |
|
115.7 |
|
3.3 |
% | |||||
|
Non-U.S. government and government agency |
|
45.4 |
|
— |
|
(0.3 |
) |
0.7 |
|
45.8 |
|
1.3 |
% | |||||
|
Preferred stocks |
|
13.2 |
|
0.9 |
|
(2.6 |
) |
0.1 |
|
11.6 |
|
0.3 |
% | |||||
|
U.S. States, municipalities and political subdivision |
|
1.4 |
|
— |
|
— |
|
— |
|
1.4 |
|
0.0 |
% | |||||
|
Total fixed maturity investments |
|
1,984.2 |
|
2.8 |
|
(32.4 |
) |
25.0 |
|
1,979.6 |
|
56.3 |
% | |||||
|
Equity securities |
|
406.4 |
|
39.0 |
|
(22.3 |
) |
7.3 |
|
430.4 |
|
12.2 |
% | |||||
|
Total equity securities |
|
406.4 |
|
39.0 |
|
(22.3 |
) |
7.3 |
|
430.4 |
|
12.2 |
% | |||||
|
Total fixed maturity and equity securities |
|
2,390.6 |
|
41.8 |
|
(54.7 |
) |
32.3 |
|
2,410.0 |
|
68.5 |
% | |||||
|
Other long-term investments |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Hedge funds and private equity funds |
|
263.3 |
|
17.4 |
|
(5.2 |
) |
6.0 |
|
281.5 |
|
8.0 |
% | |||||
|
Limited liability companies and private equity securities |
|
56.7 |
|
9.3 |
|
(0.7 |
) |
2.2 |
|
67.5 |
|
1.9 |
% | |||||
|
Total other long-term investments |
|
320.0 |
|
26.7 |
|
(5.9 |
) |
8.2 |
|
349.0 |
|
9.9 |
% | |||||
|
Short-term investments |
|
758.5 |
|
— |
|
(0.2 |
) |
1.7 |
|
760.0 |
|
21.6 |
% | |||||
|
Total investments |
|
$ |
3,469.1 |
|
$ |
68.5 |
|
$ |
(60.8 |
) |
$ |
42.2 |
|
$ |
3,519.0 |
|
100.0 |
% |
Sirius International Insurance Group, Ltd.
Investment Holdings — Quarterly
Investment Type
|
|
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
|
December 31, 2017 |
|
September 30, 2017 |
|
|
|
|
Fair Value % |
|
Fair Value % |
|
Fair Value % |
|
Fair Value % |
|
Fair Value % |
|
|
Cash and investment holdings |
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity investments |
|
|
|
|
|
|
|
|
|
|
|
|
Corporate debt securities |
|
21.8 |
% |
21.9 |
% |
24.1 |
% |
28.1 |
% |
27.7 |
% |
|
Residential mortgage-backed securities |
|
12.2 |
% |
12.2 |
% |
12.4 |
% |
8.1 |
% |
6.6 |
% |
|
Asset-backed securities |
|
11.4 |
% |
8.9 |
% |
8.3 |
% |
13.2 |
% |
12.9 |
% |
|
Commercial mortgage-backed securities |
|
4.2 |
% |
4.7 |
% |
5.7 |
% |
5.3 |
% |
6.6 |
% |
|
U.S. government and government agency |
|
3.2 |
% |
2.7 |
% |
2.2 |
% |
2.4 |
% |
2.1 |
% |
|
Non-U.S. government and government agency |
|
1.3 |
% |
2.3 |
% |
2.5 |
% |
3.0 |
% |
2.4 |
% |
|
Preferred stocks |
|
0.3 |
% |
0.2 |
% |
0.3 |
% |
0.3 |
% |
0.2 |
% |
|
U.S. States, municipalities and political subdivision |
|
0.0 |
% |
0.0 |
% |
0.0 |
% |
0.1 |
% |
0.1 |
% |
|
Total fixed maturity investments |
|
54.4 |
% |
52.9 |
% |
55.5 |
% |
60.5 |
% |
58.6 |
% |
|
Equity securities |
|
11.8 |
% |
11.6 |
% |
10.0 |
% |
8.3 |
% |
8.1 |
% |
|
Total fixed maturity and equity securities |
|
66.2 |
% |
64.5 |
% |
65.5 |
% |
68.8 |
% |
66.7 |
% |
|
Other long-term investments |
|
|
|
|
|
|
|
|
|
|
|
|
Hedge funds and private equity funds |
|
7.7 |
% |
7.0 |
% |
6.0 |
% |
5.7 |
% |
4.2 |
% |
|
Limited liability companies and private equity securities |
|
1.9 |
% |
1.9 |
% |
1.7 |
% |
1.8 |
% |
1.9 |
% |
|
Total other long-term investments |
|
9.6 |
% |
8.9 |
% |
7.7 |
% |
7.5 |
% |
6.1 |
% |
|
Short-term investments |
|
20.9 |
% |
23.0 |
% |
21.6 |
% |
17.3 |
% |
23.4 |
% |
|
Total investments |
|
96.7 |
% |
96.4 |
% |
94.8 |
% |
93.6 |
% |
96.2 |
% |
|
Cash and restricted cash |
|
3.3 |
% |
3.6 |
% |
5.2 |
% |
6.4 |
% |
3.8 |
% |
|
Total cash and invested assets |
|
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% |
Sirius International Insurance Group, Ltd.
Investment Holdings — Quarterly
Credit Quality and Maturity Profile
|
|
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
|
December 31, 2017 |
|
September 30, 2017 |
|
|
|
|
Fair Value % |
|
Fair Value % |
|
Fair Value % |
|
Fair Value % |
|
Fair Value % |
|
|
Credit Quality of Fixed Maturities |
|
|
|
|
|
|
|
|
|
|
|
|
AAA |
|
28.9 |
% |
27.9 |
% |
25.4 |
% |
31.7 |
% |
31.4 |
% |
|
AA |
|
38.8 |
% |
37.3 |
% |
37.7 |
% |
29.1 |
% |
29.8 |
% |
|
A |
|
17.7 |
% |
17.6 |
% |
17.9 |
% |
19.1 |
% |
16.8 |
% |
|
BBB |
|
10.0 |
% |
11.0 |
% |
13.1 |
% |
15.3 |
% |
18.2 |
% |
|
Other |
|
4.6 |
% |
6.2 |
% |
5.9 |
% |
4.8 |
% |
3.8 |
% |
|
Total fixed maturity investments |
|
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maturity Profile of Fixed Maturities |
|
|
|
|
|
|
|
|
|
|
|
|
Due in one year or less |
|
12.1 |
% |
9.4 |
% |
7.2 |
% |
5.0 |
% |
4.9 |
% |
|
Due after one year through five years |
|
35.0 |
% |
37.0 |
% |
41.6 |
% |
46.2 |
% |
45.7 |
% |
|
Due after five years through ten years |
|
1.3 |
% |
4.1 |
% |
2.3 |
% |
3.2 |
% |
3.5 |
% |
|
Due after ten years |
|
0.0 |
% |
0.4 |
% |
1.0 |
% |
1.2 |
% |
0.9 |
% |
|
Mortgage-backed and asset-backed securities |
|
51.0 |
% |
48.7 |
% |
47.4 |
% |
44.0 |
% |
44.7 |
% |
|
Preferred Stocks |
|
0.6 |
% |
0.4 |
% |
0.5 |
% |
0.4 |
% |
0.3 |
% |
|
Total |
|
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% |
Sirius International Insurance Group, Ltd.
Book Value Per Share
|
(Expressed in millions of U.S. dollars except for |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
| |||||
|
Numerator: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total common shareholder’s equity |
|
$ |
1,973.0 |
|
$ |
1,996.3 |
|
$ |
1,947.0 |
|
$ |
1,917.0 |
|
$ |
1,901.0 |
|
|
Book value numerator |
|
$ |
1,973.0 |
|
$ |
1,996.3 |
|
$ |
1,947.0 |
|
$ |
1,917.0 |
|
$ |
1,901.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Denominator: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Common voting shares outstanding |
|
120,000,000 |
|
120,000,000 |
|
120,000,000 |
|
120,000,000 |
|
120,000,000 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Book value per share attributable to Sirius Group’s common shareholder |
|
$ |
16.44 |
|
$ |
16.64 |
|
$ |
16.23 |
|
$ |
15.98 |
|
$ |
15.84 |
|
Sirius International Insurance Group, Ltd.
Basic and Diluted Earnings Per Share
|
(Expressed in millions of U.S. dollars except for |
|
Three Months Ended |
|
Nine Months Ended |
| ||||||||
|
share and per share amounts) |
|
September 30, 2018 |
|
September 30, 2017 |
|
September 30, 2018 |
|
September 30, 2017 |
| ||||
|
Numerator: |
|
|
|
|
|
|
|
|
| ||||
|
Net income |
|
$ |
(27.7 |
) |
$ |
(172.3 |
) |
$ |
113.8 |
|
$ |
(155.4 |
) |
|
Less: Income attributable to non-controlling interests |
|
(0.3 |
) |
(4.2 |
) |
(0.9 |
) |
(13.2 |
) | ||||
|
Less: Accrued dividends on Series A redeemable preference shares |
|
— |
|
(2.5 |
) |
(2.6 |
) |
(3.5 |
) | ||||
|
Net income (loss) available for dividends out of undistributed earnings |
|
$ |
(28.0 |
) |
$ |
(179.0 |
) |
$ |
110.3 |
|
$ |
(172.1 |
) |
|
Less: Earnings attributable to Series A redeemable preference shares |
|
— |
|
— |
|
(4.5 |
) |
— |
| ||||
|
Net income (loss) available to Sirius Group’s common shareholder |
|
$ |
(28.0 |
) |
$ |
(179.0 |
) |
$ |
105.8 |
|
$ |
(172.1 |
) |
|
|
|
|
|
|
|
|
|
|
| ||||
|
Denominator: |
|
|
|
|
|
|
|
|
| ||||
|
Weighted average shares outstanding for basic and diluted earnings per share |
|
120,000,000 |
|
120,000,000 |
|
120,000,000 |
|
120,000,000 |
| ||||
|
Earnings per share |
|
|
|
|
|
|
|
|
| ||||
|
Basic earnings per share |
|
$ |
(0.23 |
) |
$ |
(1.49 |
) |
$ |
0.88 |
|
$ |
(1.43 |
) |
|
Diluted earnings per share |
|
$ |
(0.23 |
) |
$ |
(1.49 |
) |
$ |
0.88 |
|
$ |
(1.43 |
) |
Sirius International Insurance Group, Ltd.
Return on Common Shareholder’s Equity — Consecutive Quarters
|
|
|
Three Months Ended |
|
Nine Months Ended |
| |||||||||||||||||
|
(Expressed in millions |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
September 30, |
|
September 30, |
| |||||||
|
Beginning common shareholder’s equity |
|
$ |
1,996.3 |
|
$ |
1,947.0 |
|
$ |
1,917.0 |
|
$ |
1,901.0 |
|
$ |
2,051.8 |
|
$ |
1,917.0 |
|
$ |
1,988.1 |
|
|
Net comprehensive income (losses) attributable to common shareholder |
|
(23.3 |
) |
49.3 |
|
29.7 |
|
16.8 |
|
(150.2 |
) |
55.7 |
|
(95.1 |
) | |||||||
|
Return on beginning common shareholder’s equity |
|
-1.2 |
% |
2.5 |
% |
1.5 |
% |
0.9 |
% |
-7.3 |
% |
2.9 |
% |
-4.8 |
% | |||||||
|
Annualized return on beginning common shareholder’s equity |
|
-4.8 |
% |
10.0 |
% |
6.0 |
% |
3.6 |
% |
-29.2 |
% |
3.9 |
% |
-6.4 |
% | |||||||
Sirius International Insurance Group, Ltd.
Reserves for Unpaid Losses and Loss Adjustment Expenses
|
|
|
Three months ended |
|
Nine months ended |
| ||||||||
|
(Expressed in millions of U.S. dollars) |
|
September 30, 2018 |
|
September 30, 2017 |
|
September 30, 2018 |
|
September 30, 2017 |
| ||||
|
Gross beginning balance |
|
$ |
1,827.1 |
|
$ |
1,659.3 |
|
$ |
1,898.5 |
|
$ |
1,620.1 |
|
|
Less: beginning reinsurance recoverable on unpaid losses |
|
(358.3 |
) |
(304.7 |
) |
(319.7 |
) |
(291.5 |
) | ||||
|
Net loss and LAE reserve balance |
|
1,468.8 |
|
1,354.6 |
|
1,578.8 |
|
1,328.6 |
| ||||
|
Losses and LAE incurred relating to: |
|
|
|
|
|
|
|
|
| ||||
|
Current year losses |
|
270.5 |
|
374.6 |
|
575.8 |
|
622.5 |
| ||||
|
Prior years losses |
|
(10.1 |
) |
(3.4 |
) |
(23.0 |
) |
4.1 |
| ||||
|
Total net incurred losses and LAE |
|
260.4 |
|
371.2 |
|
552.8 |
|
626.6 |
| ||||
|
Foreign currency translation adjustment to net loss and LAE reserves |
|
(5.4 |
) |
12.9 |
|
(20.9 |
) |
33.1 |
| ||||
|
Acquisitions |
|
0.2 |
|
— |
|
0.2 |
|
14.3 |
| ||||
|
Accretion of fair value adjustment to net loss and LAE reserves |
|
0.1 |
|
0.1 |
|
0.1 |
|
0.1 |
| ||||
|
Loss and LAE paid relating to: |
|
|
|
|
|
|
|
|
| ||||
|
Current year losses |
|
80.5 |
|
51.9 |
|
152.5 |
|
116.3 |
| ||||
|
Prior years losses |
|
101.6 |
|
105.1 |
|
416.5 |
|
304.6 |
| ||||
|
Total loss and LAE payments |
|
182.1 |
|
157.0 |
|
569.0 |
|
420.9 |
| ||||
|
Net ending balance |
|
1,542.0 |
|
1,581.8 |
|
1,542.0 |
|
1,581.8 |
| ||||
|
Plus ending reinsurance recoverable on unpaid losses |
|
349.0 |
|
334.9 |
|
349.0 |
|
334.9 |
| ||||
|
Gross ending balance |
|
$ |
1,891.0 |
|
$ |
1,916.7 |
|
$ |
1,891.0 |
|
$ |
1,916.7 |
|