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SiriusPoint (SPNT)
NYSE:SPNT
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SiriusPoint (SPNT) AI Stock Analysis

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SPNT

SiriusPoint

(NYSE:SPNT)

Rating:71Outperform
Price Target:
$21.50
▲(8.64%Upside)
SiriusPoint's stock score is driven by strong technical momentum and positive earnings call highlights, including consistent underwriting profits and strategic growth. However, challenges in profitability and cash flow, along with valuation concerns, moderate the score.
Positive Factors
Investment Income
Favorable new money rates and asset growth support net investment income.
Strategy Simplification
The simplification of capital and ownership structure could open SPNT to a larger group of investors.
Negative Factors
Leverage Limitations
There is less room for the company to extend its financial and operating leverage, limiting further ROE expansion.
Valuation Concerns
The valuation does not entirely reflect the shift into insurance, which comprises 60% of gross premiums written.

SiriusPoint (SPNT) vs. SPDR S&P 500 ETF (SPY)

SiriusPoint Business Overview & Revenue Model

Company DescriptionSiriusPoint Ltd. (SPNT) is a global insurance and reinsurance company, headquartered in Bermuda. The company operates across various sectors, including property and casualty insurance, accident and health insurance, and specialty insurance lines. SiriusPoint offers a range of insurance and reinsurance products designed to meet the diverse needs of its clients worldwide, including businesses, individuals, and other insurance companies.
How the Company Makes MoneySiriusPoint makes money primarily through underwriting insurance and reinsurance policies, earning premiums from customers in exchange for assuming risk. The company diversifies its revenue streams by offering a broad portfolio of insurance products, including property and casualty, specialty lines, and accident and health coverage. Additionally, SiriusPoint generates income by investing the premiums received into a variety of financial assets, aiming to earn returns that exceed the cost of claims and operational expenses. Strategic partnerships and collaborations with other insurance entities and intermediaries also play a significant role in expanding the company's market reach and enhancing revenue generation.

SiriusPoint Earnings Call Summary

Earnings Call Date:May 05, 2025
(Q1-2025)
|
% Change Since: 8.86%|
Next Earnings Date:Aug 04, 2025
Earnings Call Sentiment Positive
SiriusPoint's first quarter of 2025 demonstrated strong premium growth, resilient underwriting profits despite significant losses from California wildfires, and favorable recognition from rating agencies. However, challenges like wildfire losses, decreased investment income, and global uncertainties present areas of concern.
Q1-2025 Updates
Positive Updates
Strong Start to Fiscal Year 2025
SiriusPoint reported a return-on-equity of 12.9%, which is within their target range of 12% to 15%, and achieved double-digit growth in both gross written premiums (12%) and net written premiums (20%) year-over-year.
Underwriting Profit Despite Catastrophe Losses
The company delivered its 10th consecutive quarter of underwriting profit despite a $59 million loss from California wildfires, maintaining a combined ratio of 95.4% for its core business.
Favorable Prior Year Development
SiriusPoint reported $34 million of favorable prior year development, marking the 16th consecutive quarter of such development, highlighting their prudent approach to reserving.
Investment Income and Shareholder Returns
Net investment income was $71 million, and the company completed a $753 million shareholder repurchase agreement, further repurchasing and retiring 0.5 million shares.
Recognition by Rating Agencies
Fitch and AM Best revised SiriusPoint's outlook from stable to positive, affirming their ratings and recognizing the company's financial improvements.
Negative Updates
Impact of California Wildfires
The wildfires resulted in a $59 million loss, contributing a 10.9-point impact to SiriusPoint's combined ratio for the quarter.
Decreased Net Investment Income
Net investment income decreased by $8 million compared to the previous year, attributed to a lower invested asset base following buybacks.
Global Uncertainty and Inflation Concerns
There is ongoing global uncertainty due to tariff changes, and inflation remains a primary focus, with potential impacts needing close monitoring.
Company Guidance
During SiriusPoint's First Quarter 2025 Earnings Conference Call, the company reported a successful start to the year, achieving its 10th consecutive quarter of underwriting profit despite significant losses from the California wildfires. The company demonstrated strong performance with a combined ratio of 95.4% and a return-on-equity of 12.9%, well within its target range of 12% to 15%. Gross written premiums grew by 12% year-over-year, with net written premiums increasing by 20%, marking the fourth consecutive quarter of double-digit growth. The company also reported $34 million in favorable prior year development and a net investment income of $71 million for the quarter. The call highlighted SiriusPoint's strategic focus on maintaining underwriting discipline, leveraging its MGA distribution strategy, and investing in data capabilities to drive growth and profitability. Additionally, the company completed a $753 million shareholder repurchase agreement and received positive outlook revisions from Fitch and AM Best, underscoring its strong financial position and ongoing transformation into a best-in-class specialty underwriter.

SiriusPoint Financial Statement Overview

Summary
SiriusPoint's financial performance is mixed, with a strong balance sheet but challenges in profitability and cash flow. The stable capital structure is countered by fluctuations in EBIT and cash flow, indicating operational difficulties.
Income Statement
68
Positive
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.
Balance Sheet
75
Positive
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.
Cash Flow
62
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.60B2.74B66.00M2.22B884.57M
Gross Profit2.60B2.74B66.00M2.22B884.57M
EBITDA302.70M393.90M-370.20M4.64B0.00
Net Income199.90M354.80M-386.00M58.10M143.80M
Balance Sheet
Total Assets12.52B12.87B11.04B10.62B3.54B
Cash, Cash Equivalents and Short-Term Investments6.03B969.20M4.33B2.08B525.99M
Total Debt639.10M786.20M778.00M816.70M114.27M
Total Liabilities10.59B10.34B8.95B8.12B1.97B
Stockholders Equity1.94B2.51B2.07B2.50B1.56B
Cash Flow
Free Cash Flow74.70M581.30M292.50M1.60M73.36M
Operating Cash Flow74.70M581.30M293.30M1.60M73.36M
Investing Cash Flow343.60M-332.20M-1.30B208.60M6.11M
Financing Cash Flow-625.00M-61.50M-23.70M24.30M-19.48M

SiriusPoint Technical Analysis

Technical Analysis Sentiment
Positive
Last Price19.79
Price Trends
50DMA
19.41
Positive
100DMA
17.96
Positive
200DMA
16.24
Positive
Market Momentum
MACD
0.05
Negative
RSI
57.38
Neutral
STOCH
93.84
Negative
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 19.79 is above the 20-day moving average (MA) of 19.32, above the 50-day MA of 19.41, and above the 200-day MA of 16.24, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 57.38 is Neutral, neither overbought nor oversold. The STOCH value of 93.84 is Negative, 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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
86
Outperform
$11.64B6.3118.75%0.64%23.19%-22.42%
81
Outperform
$2.21B6.7614.07%35.36%-3.34%
76
Outperform
$12.99B16.617.60%1.81%1.47%-7.47%
74
Outperform
$2.10B17.3716.03%25.88%9.45%
71
Outperform
$2.31B19.907.20%-5.57%-44.54%
65
Neutral
$458.55M10.097.04%5.21%-57.04%
58
Neutral
HK$92.24B5.77-3.20%4.64%5.50%-56.25%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SPNT
SiriusPoint
19.79
5.55
38.97%
GLRE
Greenlight Capital Re
13.27
-0.13
-0.97%
RGA
Reinsurance Group
196.55
-20.74
-9.54%
RNR
Renaissancere Holdings
247.26
21.75
9.64%
SKWD
Skyward Specialty Insurance Group, Inc.
51.98
13.34
34.52%
HG
Hamilton Insurance Group, Ltd. Class B
21.55
4.66
27.59%

SiriusPoint Corporate Events

Executive/Board ChangesShareholder Meetings
SiriusPoint Holds Annual General Meeting, Elects Directors
Neutral
May 21, 2025

On May 20, 2025, SiriusPoint Ltd. held its annual general meeting of shareholders, where three key decisions were made. Shareholders elected two Class III directors, Scott Egan and Sharon M. Ludlow, to serve until 2028. They also approved the compensation for the company’s named executive officers and confirmed PricewaterhouseCoopers LLP as the independent auditor until 2026.

The most recent analyst rating on (SPNT) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on SiriusPoint stock, see the SPNT Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
SiriusPoint Reports Strong Q1 2025 Financial Results
Positive
May 5, 2025

On May 5, 2025, SiriusPoint Ltd. reported strong financial results for the first quarter of 2025, showcasing a tenth consecutive quarter of underwriting profits and a net income of $58 million. Despite challenges such as the California wildfires, which resulted in $59 million in losses, the company achieved a combined ratio of 95.4% and a 12.9% return on equity, aligning with its target range. The company’s net premiums written grew by 20%, driven by its Insurance & Services segment, and its book value per diluted common share increased by 5.3% from the previous quarter. The positive outlook from AM Best and Fitch reflects SiriusPoint’s solid performance and strategic progress.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: May 07, 2025