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SiriusPoint (SPNT)
NYSE:SPNT
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SiriusPoint
(NYSE:SPNT)
71Outperform
Positive Factors
Investment Potential
Beneficially, the simplification of capital/ownership structure could open SPNT to a larger group of investors.
Strategy and Transformation
The company has mostly completed a strategy of de-risking, lowering CAT exposure, reducing exposure to older accident years, simplifying its ownership/capital structures, and shifting more into specialty insurance.
Negative Factors
Financial Leverage
The Hold rating reflects the view that there is less room for the company to extend its financial/operating leverage that would lead to further ROE expansion.
Valuation
The valuation still does not entirely reflect the shift into insurance, which comprises 60% of gross premiums written.
SiriusPoint (SPNT) vs. S&P 500 (SPY)
Market Cap
$2.60B
Dividend YieldN/A
Average Volume (3M)849.15K
Price to Earnings (P/E)16.0
Beta (1Y)0.57
Revenue Growth-7.05%
EPS Growth-52.10%
CountryUS
Employees1,012
SectorFinancial
Sector Strength82
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)0.27
Shares Outstanding162,232,970
10 Day Avg. Volume1,089,980
30 Day Avg. Volume849,146
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.98
Price to Cash Flow (P/CF)5.90
P/FCF Ratio5.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.00Price Target Upside1.80% Upside
Rating ConsensusHold
Number of Analyst Covering1
SiriusPoint Business Overview & Revenue Model
Company DescriptionSiriusPoint Ltd. provides multi-line insurance and reinsurance products and services worldwide. The company operates through two segments, Reinsurance, and Insurance & Services. The Reinsurance segment provides coverage to various product lines, which includes aviation and space, casualty, contingency, credit and bond, marine and energy, mortgage, and property to insurance and reinsurance companies, government entities, and other risk bearing vehicles. The Insurance & Services segment offers coverage to various product lines comprising accident and health, environmental, workers' compensation, and other lines of business, including a cross section of property and casualty lines. The company was formerly known as Third Point Reinsurance Ltd. and changed its name to SiriusPoint Ltd. in February 2021. SiriusPoint Ltd. was incorporated in 2011 and is headquartered in Pembroke, Bermuda.
How the Company Makes MoneySiriusPoint makes money primarily through underwriting insurance and reinsurance policies. The company collects premiums from clients in exchange for providing coverage against specified risks. Additionally, SiriusPoint generates revenue through investment income, which involves investing the premiums collected into a variety of assets to earn returns. Key revenue streams include property and casualty insurance, specialty lines, and run-off insurance. Significant partnerships with other insurers and reinsurers enhance SiriusPoint's capacity to manage risk and expand its market presence, thereby contributing to its earnings.
SiriusPoint Financial Statement Overview
Summary
SiriusPoint's financial statements show a mixed performance. The balance sheet is strong with no debt and a stable capital structure. However, income statement and cash flow metrics indicate challenges with inconsistent profitability and declining cash flow efficiency.Income Statement
SiriusPoint has demonstrated a mixed performance in profitability metrics. Recent years show substantial fluctuations in EBIT and EBITDA margins, with TTM results showing zero EBIT and EBITDA, indicating potential operational challenges. The net profit margin has declined from previous highs, while revenue growth has been inconsistent, demonstrating volatility in business performance.68
Positive
Balance Sheet
The balance sheet reflects a stable financial position with no total debt, contributing to a favorable debt-to-equity ratio. The equity ratio indicates a reasonable level of equity financing. However, the return on equity has shown variability, reflecting inconsistent profitability. Overall, the balance sheet highlights a sound capital structure with manageable liabilities.75
Positive
Cash Flow
The company’s cash flow position experienced fluctuations, with TTM free cash flow showing a significant decline compared to previous years. Operating cash flow to net income ratio has weakened, indicating potential inefficiencies in converting income to cash. The free cash flow to net income ratio has also decreased, suggesting challenges in maintaining cash-based profitability.62
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.60B | 2.74B | 66.00M | 2.22B | 884.57M | Gross Profit |
| 2.60B | 2.74B | 66.00M | 2.22B | 884.57M | EBIT |
| 0.00 | 2.50B | -344.70M | -103.80M | 151.63M | EBITDA |
| 0.00 | 393.90M | -370.20M | 4.64B | 0.00 | Net Income Common Stockholders |
| 199.90M | 354.80M | -386.00M | 58.10M | 143.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 6.03B | 969.20M | 4.33B | 2.08B | 525.99M | Total Assets |
| 12.52B | 12.87B | 11.04B | 10.62B | 3.54B | Total Debt |
| 639.10M | 786.20M | 778.00M | 816.70M | 114.27M | Net Debt |
| -894.60M | -183.00M | 72.70M | -183.10M | -411.72M | Total Liabilities |
| 10.59B | 10.34B | 8.95B | 8.12B | 1.97B | Stockholders Equity |
| 1.94B | 2.51B | 2.07B | 2.50B | 1.56B |
| Cash Flow | Free Cash Flow | |||
| 74.70M | 581.30M | 292.50M | 1.60M | 73.36M | Operating Cash Flow |
| 74.70M | 581.30M | 293.30M | 1.60M | 73.36M | Investing Cash Flow |
| 343.60M | -332.20M | -1.30B | 208.60M | 6.11M | Financing Cash Flow |
| -625.00M | -61.50M | -23.70M | 24.30M | -19.48M |
SiriusPoint Technical Analysis
Positive
16.70
Price Trends
15.36
Positive
15.18
Positive
14.57
Positive
Market Momentum
0.24
Positive
57.59
Neutral
70.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPNT, the sentiment is Positive. The current price of 16.7 is above the 20-day moving average (MA) of 16.49, above the 50-day MA of 15.36, and above the 200-day MA of 14.57, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 57.59 is Neutral, neither overbought nor oversold. The STOCH value of 70.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPNT.
SiriusPoint Risk Analysis
SiriusPoint disclosed 64 risk factors in its most recent earnings report. SiriusPoint reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SiriusPoint Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $1.89B | 4.87 | 18.30% | ― | 55.66% | 62.05% | |
79 Outperform | $2.21B | 19.03 | 16.27% | ― | 28.17% | 28.63% | |
75 Outperform | $12.07B | 17.04 | 7.21% | 1.91% | 19.29% | -19.91% | |
73 Outperform | $11.66B | 6.76 | 18.40% | 0.66% | 28.22% | -31.48% | |
71 Outperform | $2.60B | 16.04 | 8.71% | ― | -7.05% | -52.10% | |
68 Neutral | $464.89M | 10.89 | 6.95% | ― | 7.75% | -49.93% | |
63 Neutral | $12.75B | 9.36 | 8.64% | 84.32% | 13.82% | -3.89% |
* Financial Sector Average
Performance Comparison
SPNT
SiriusPoint
16.70
4.68
38.94%
GLRE
Greenlight Capital Re
13.45
0.97
7.77%
RGA
Reinsurance Group
184.71
1.31
0.71%
RNR
Renaissancere Holdings
240.65
17.35
7.77%
SKWD
Skyward Specialty Insurance Group, Inc.
54.79
18.55
51.19%
HG
Hamilton Insurance Group, Ltd. Class B
18.56
4.26
29.79%
SiriusPoint Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: 19.12% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
SiriusPoint's call highlighted significant improvements in underwriting performance, strategic financial restructuring, and premium growth. However, these were somewhat offset by notable one-time losses related to the California wildfires and write-downs of legacy investments. Despite these challenges, the overall strategic direction and financial metrics suggest a positive outlook.Highlights
Improved Underwriting Performance
The company achieved a core combined ratio of 91% for 2024, marking a 2.4-point improvement versus the prior year, despite a 1.9-point increase in catastrophe losses.
Strong Financial Metrics
SiriusPoint reported a 14% improvement in underlying net income to approximately $300 million, and a 14.6% underlying return on equity, which is at the upper end of their target range.
Strategic Repurchases and Restructuring
The repurchase of CMIG's shares and warrants, along with other strategic transactions, increased book value per share by 4% and are expected to increase earnings per share by over 20%.
Continued Premium Growth
The continuing lines gross premiums written grew by 10%, with a 14% increase in insurance and services and a 5% increase in reinsurance.
Investment Income Outperformance
Net investment income for the full year was $304 million, slightly outperforming guidance due to elevated interest rates.
Improved Catastrophe Loss Management
Catastrophe losses were significantly reduced, with SiriusPoint moving from the highest quartile in 2022 to the lowest in 2024 among peers.
Lowlights
California Wildfires Losses
Estimated net pretax losses relating to the California wildfires range from $60 million to $70 million.
MGA Investment Write-Down
A $55 million write-down on a legacy MGA investment impacted net income, following a previous write-down earlier in the year.
Net Loss in Fourth Quarter
The company reported a headline net loss of $21 million for the fourth quarter due to strategic reshaping actions and one-time expenses.
Company Guidance
During the SiriusPoint Fourth Quarter 2024 earnings call, the company highlighted significant progress in reshaping its business and improving financial performance. The transaction with CMIG was a key focus, leading to an immediate 4% accretion in book value and a projected 20% increase in earnings per share. The company reported a 14.6% return on equity, at the upper end of its target range, and a 10% growth in continuing lines premium. Operational efficiency was evident in the combined ratio for core business improving to 91%, and an underlying net income increase of 14% year-over-year to approximately $300 million. Despite challenges such as Hurricane Milton and California wildfires, SiriusPoint maintained a low volatility portfolio, with catastrophe losses reduced significantly from previous years. The company also strengthened its MGA strategy, achieving a net service fee income increase of 56% over the prior year. SiriusPoint's investment portfolio remained robust, with net investment income reaching $304 million, slightly exceeding guidance. As the company enters 2025, it is focused on further improving its business performance, leveraging a strengthened balance sheet and simplified corporate governance structure.SiriusPoint Corporate Events
Business Operations and StrategyFinancial Disclosures
SiriusPoint Reports Strong 2024 Financial Results
Positive
Feb 18, 2025
On February 18, 2025, SiriusPoint Ltd. released its fourth-quarter and full-year 2024 financial results, highlighting a ninth consecutive quarter of underwriting profits with a core combined ratio of 91.0%. Despite a net loss of $21 million in Q4 due to restructuring efforts, the company achieved a 21% growth in gross premiums for the quarter and a 10% increase for the year. SiriusPoint’s underlying net income was $44 million for Q4 and $304 million for 2024, with a return on equity at the upper end of its target range. The company successfully completed significant strategic repositioning in 2024, enhancing its underwriting quality and capital position, as evidenced by strong book value growth and earnings per share accretion.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.