Andrew Andersen, an analyst from Jefferies, has initiated a new Hold rating on SiriusPoint (SPNT).
Andrew Andersen has given his Hold rating due to a combination of factors. The company has made significant strides in its transformation, particularly in simplifying its ownership and capital structure, and shifting focus towards specialty insurance. However, these improvements are already reflected in the current valuation, which stands at 1.0x P/B, indicating limited upside potential in the near term.
While SiriusPoint has shown favorable growth and stable margins, the full impact of its transformative actions is yet to be realized. The company’s unique MGA distribution approach and its emphasis on longer-tail lines may take time to prove their effectiveness. Additionally, the current market conditions and the company’s financial leverage suggest that further expansion in ROE might be constrained, justifying the Hold rating at this time.