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SiriusPoint (SPNT)
NYSE:SPNT
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SiriusPoint
(NYSE:SPNT)
71Outperform
Positive Factors
Investment and Growth
Favorable new money rates and asset growth support net investment income into the future.
Strategy and Structure
The simplification of capital and ownership structures could attract a larger group of investors.
Negative Factors
Financial Leverage
There is less room for the company to extend its financial and operating leverage, limiting further ROE expansion.
Reserves and Confidence
Confidence in reserves may take time to be established, as is customary for newer companies and management teams.
Valuation Concerns
The valuation does not entirely reflect the shift into insurance, which comprises a significant portion of gross premiums written.
SiriusPoint (SPNT) vs. S&P 500 (SPY)
Market Cap
$2.28B
Dividend YieldN/A
Average Volume (3M)785.05K
Price to Earnings (P/E)19.6
Beta (1Y)0.54
Revenue Growth-5.57%
EPS Growth-44.54%
CountryUS
Employees1,012
SectorFinancial
Sector Strength88
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)0.49
Shares Outstanding116,588,960
10 Day Avg. Volume669,675
30 Day Avg. Volume785,055
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.29
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.13
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.00Price Target Upside-11.78% Downside
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 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
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 |
| 292.70M | 2.50B | -344.70M | -103.80M | 151.63M | EBITDA |
| 302.70M | 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 |
| -42.90M | -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
19.27
Price Trends
16.33
Positive
15.47
Positive
14.93
Positive
Market Momentum
0.82
Negative
72.50
Negative
86.66
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 19.27 is above the 20-day moving average (MA) of 17.24, above the 50-day MA of 16.33, and above the 200-day MA of 14.93, indicating a bullish trend. The MACD of 0.82 indicates Negative momentum. The RSI at 72.50 is Negative, neither overbought nor oversold. The STOCH value of 86.66 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $12.04B | 7.86 | 16.30% | 0.62% | 32.10% | -30.52% | |
79 Outperform | $2.35B | 19.47 | 16.03% | ― | 25.88% | 9.45% | |
78 Outperform | $13.10B | 16.58 | 7.60% | 1.72% | 1.60% | -7.50% | |
76 Outperform | $1.94B | 5.01 | 14.07% | ― | 35.36% | -3.34% | |
71 Outperform | $2.28B | 19.65 | 7.20% | ― | -5.57% | -44.54% | |
65 Neutral | $466.53M | 10.93 | 7.04% | ― | 7.75% | -49.93% | |
64 Neutral | $12.60B | 9.73 | 7.92% | 16985.68% | 12.21% | -5.55% |
* Financial Sector Average
Performance Comparison
SPNT
SiriusPoint
19.27
6.78
54.28%
GLRE
Greenlight Capital Re
13.57
0.57
4.38%
RGA
Reinsurance Group
204.85
0.89
0.44%
RNR
Renaissancere Holdings
251.89
29.66
13.35%
SKWD
Skyward Specialty Insurance Group, Inc.
59.87
23.43
64.30%
HG
Hamilton Insurance Group, Ltd. Class B
20.64
4.53
28.12%
SiriusPoint Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: 6.00%|
Next Earnings Date:Jul 31, 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 Corporate Events
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.
Spark’s Take on SPNT Stock
According to Spark, TipRanks’ AI Analyst, SPNT is a Outperform.
SiriusPoint’s overall stock score reflects a combination of strong strategic direction, sound financial stability, and reasonable valuation. Key strengths include a solid balance sheet with no debt and positive corporate events that enhance shareholder value. Challenges include inconsistent profitability and cash flow efficiency, which weigh on the financial performance score.
To see Spark’s full report on SPNT stock, click here.
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.