SiriusPoint Ltd

Good morning and welcome to the Serious Point fourth quarter 2025 earnings conference call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference line will be open for questions with instructions to follow. As a reminder, this conference call is being recorded. I would now like to turn the call over to Mr. Liam Blackledge, investor relations and strategy manager. Please go ahead.

Thank you, operator. And good morning or good afternoon to everyone listening. I welcome you to the Sirius Point earnings call for the 2025 fourth quarter and four year results. Last night, we issued our earnings press release and financial supplement, which are available on our website, www.siriuspt.com. Additionally, a webcast presentation will coincide with today's discussion and is available on our website. Joining me on the call today are Scott Egan, our Chief Executive Officer, and Jim McKinney, our Chief Financial Officer. Before we start, I would like to remind you that today's remarks contain forward-looking statements based on management's current expectations. Actual results may differ. Certain non-GAAP financial measures will also be discussed. Management uses the non-GAAP financial measures in its internal analysis of our results operations and believes that they may be informative to investors engaging the quality of our financial performance and identifying trends in our results. However, These measures should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with GAAP. Please refer to page two of the investor presentation and the company's latest public filings with the Security and Exchange Commission for additional information. I will now turn the call over to Scott.

Thanks, Liam, and welcome, everyone, to our fourth quarter and full year 2025 results call. The fourth quarter rounded out another very strong performance year for Serious Point. Our disciplined underwriting strategy, customer first mindset and relentless focus on delivery means we have a lot to be pleased about as we look back on our progress in 2025. Our top line for the year grew 16%. We improved the quality of our underwriting earnings year over year by 1.5 points. We grew our diluted book value per share by 28%. We delivered a 49% increase in operating earnings per share over prior year and our leverage will reduce to an all-time low of 23% by the end of February. Our 2025 operating return on equity of 16.2% has improved for the third consecutive year and more importantly outperformed against our 12-15% across the cycle target. The performance momentum I have talked about many times in these calls can be seen in the metrics that we've delivered in 2025. Looking at the fourth quarter in isolation, we delivered operating return on equity of 17.1% with a 44.9% return on equity on a gap basis as we closed the sale of Armada for $250 million. Our diluted boot value increased by $1.70 in the quarter as a result. We continue to produce strong underwriting results with a core combined ratio of 92.9%, despite some historical one-offs in acquisition costs, which Jim will unpack for you. In addition, the fourth quarter saw a strong growth trend continue with gross written premiums growing 18%. Turning back to look at 2025 as a whole, there is much to be proud of beyond the financial headlines. We simplified our ownership structure through the closing of the CM Bermuda transaction in the first quarter. We earned positive outlook upgrades from three of our rating agencies. We saw employee engagement scores rise again to an all-time high. We completed the sale of Armada MGA and announced the sale of Arcading MGA, which crystallised £390 million of liquidity. and almost $200 million of off-balance sheet value while agreeing long-term capacity deals on underwriting. Finally, it has been important to attract top talent to the company while growing talent internally. We have had great momentum, and in 2025, we welcomed 18 senior leaders to the company, as well as promoting six from within. Focusing back on our full year 2025 operating return on equity of 16.2%, There are a number of important points I would like to make. It is ahead of a 12 to 15% across the cycle target, having only set this 12 months ago and is the highest the company has achieved. We have also improved this metric every year for the past three years, as we execute hard to build performance momentum across all of our business lines. Despite our return on equity target being an annual one, we have managed to deliver either within or above a range in every quarter this year, despite impacts from events like California wildfires. We believe this is an important evidence point to our lower volatility portfolio and the track record we continue to build demonstrates our approach to underwriting, risk management and capital allocation. I want to take a moment to briefly focus on slide 9. Even though it is one that we've included for a while, it is actually a very important one to pause on at the end of another calendar year. It clearly shows the underwriting track record we have been building since we reshaped the portfolio late in 2022. Since the third quarter of 2023, our combined ratio has been relatively stable and benchmarks well against our peers. We do recognise that insurance market conditions will be tougher in 2026, but it is also important to highlight that not in every market. We strongly believe our diversified portfolio and distribution focus on partnering with specialist MGAs positions as well to maintain our current levels of performance. It is worth noting that in 2025, 60% of our growth came from lines that are less correlated with P&C pricing cycles, with accident and health being the largest contributor. The last quarter of 2025 and the start of 2026 has been in line with our planning assumptions. Our focus will be on underwriting performance first over growth. Slide 10 focuses on volatility. I want to briefly touch on two actions which help us to deliver against our lower volatility strategy, which we've added some new slides for this quarter. Firstly, as part of this strategy, we do target higher growth in insurance over reinsurance. We continue to believe the growth opportunity in insurance is more compelling in order to meet or exceed our target ROE year in, year out. while operating within the risk corridor we are comfortable with. That said, reinsurance is a key part of our business mix, and many of our relationships with MGAs can either start as a reinsurance relationship or be a blend of reinsurance and insurance. This mix of capabilities is compelling both for us and for our partners and gives us and them great flexibility. We will also be opportunistic in reinsurance, where we see rates driving returns that are commensurate with the volatility and risk that we take and that fit within our overall portfolio volatility appetite. We are happy to allocate capital for these opportunities and will continue to do so in 2026 as they arise. Our evolution over the last few years has meant that roughly half of our premiums are now US specialty, and this is by far our largest underwriting platform. Secondly, our accident and health business is a strategically important part of our portfolio. With a long track record of high returns, its low volatility and low capital intensity acts as a volatility shock absorber to some of the other lines we write outside of ANH. We manage this mix carefully and dynamically to achieve our overall strategic aim of a lower volatility portfolio. Our accident and health gross written premiums grew by 23% in 2025 to around $1 billion, and overall it makes up around 27% of our business mix. It also has a low correlation to wider P&C pricing and market trends. The profit consistency of accident and health, which boasts over 20 years of profitability, allows us to plan a wider portfolio mix with high levels of confidence. Following the sale of Armada in October, we now have one 100% owned A&H MGA, IMG, which is consolidated into our P&L. IMG is a core part of our future plans. It drives a strong set of fee income profits in its own right, as well as providing around a quarter of the gross written premiums to our accident and health underwriting business, underlining its strategic importance. We believe the combined A&H underwriting business and IMG is compelling strategically. In 2025, we appointed a new CEO for IMG, Will Nehan. We also recently announced the small acquisition of Assist America. Assist America has been privately owned since it was founded in 1990 and provides global emergency travel assistance services to insurance companies worldwide. Their client base includes many of the leading insurance companies in the US, Asia and the Middle East, widening our worldwide offering in these services and building on the already strong US and European infrastructure we have at IMG. With a target addressable market of around 4 billion in medical and travel assistance services, we believe the acquisition is a great opportunity to further build out our service fees. Following completion and integration in 2026, we expect the fully integrated business to add around $4-5 million of EBITDA annually. More recently, we also announced the acquisition of World Nomads by IMG. World Nomads is a global travel insurance platform with a strong, recognisable lifestyle brand and distribution model. The acquisition presents the opportunity to increase our trip cancellation premiums and revenues and meaningfully expand our global distribution capabilities. These are areas that we have grown significantly over the past 12 months under the IMG brand. Following completion and integration in 2026, we expect this business to also increase EBITDA by around $4 to $5 million annually. I would like to welcome our new colleagues from Assist America and World Nomads to IMG and the Sirius Point Group. We expect our IMG business to generate over $30 million of free income and over $35 million of EBITDA in 2026. The carrying value of IMG on our balance sheet at year end was $77 million, And although this will increase upon completion of the new acquisitions, we continue to strongly believe it is undervalued relative to IMG's enterprise value, and as a result, understates Sirius Point's overall book value. Looking more holistically at the acquisitions, these investments into IMG and our A&H business reinforce the importance of both this specialty as part of our portfolio and our diversification from capital-like fee income. We strongly believe these are additive to our story and performance momentum. Touching briefly on our distribution relationships with MGA partners, the fourth quarter saw us add three new partners who we have spent several months getting to know and doing due diligence on. As I have mentioned many times before, we take a very disciplined approach when onboarding new distribution partners. We reject over 90% of opportunities presented to us and will only partner with NGOs who we believe we will work with on a long-term basis and where we have an aligned philosophy in relation to underwriting excellence and data sharing. As a general principle, we also take our time with new partners in taking underwriting risk. This slide shows this. While roughly a third of our partners have been onboarded in the last two years, Their premiums make up under 10% of our MGA premium mix. Higher premium volumes with partners where we have greater historical experience is core to our philosophy and approach, which we think makes a lot of sense. Almost all of our partners risk share with us and have skin in the game. We think this is an important part of the relationship. A few points for me to close before I pass across to Jim to go through the financials in more detail. Since the third quarter results, we have now closed on the sales of Armada and Arcadian for combined value of $390 million and the proceeds have been received. Armada closed in the fourth quarter and the sale is now included in our financials, whilst Arcadian closed at the end of January and so will be included in our financials in the next quarter. As a reminder, Arcadian will be less significant from a capital and book value perspective, given the $96 million value recognition we took upon deconsolidation in the second quarter of 2024. As we announced last quarter, we intend to use part of these proceeds to fully redeem the $200 million worth of 8% preference shares next week at their upcoming rate reset. We announced this formally via an 8K filing at the end of January. This will reduce our leverage ratio to 23% by the end of February, which is a historic low for the company and is actually below the levels we were operating at before the settlements agreed with CM Bermuda in 2024. We believe this is a good use of funds, provides us with greater capital flexibility and points to a continued strong balance sheet management. Our overall capital remains strong and our fourth quarter BSCR ratio has improved to 247%. Pro forma for the upcoming preferred share redemption, it is still a very healthy 232%. Our standard practice is to assess our capital position at the end of each year, and so today we are pleased to be announcing our intention to repurchase $100 million of our outstanding common shares over the next 12 months. At our current market price, this represents over 4% of the total shares outstanding. We expect this to be accretive to EPS and ROE throughout 2026 and book value per share by 2027. We believe our strong capital position and the continuing earnings profile of the business leaves us in a very strong position to fund growth opportunities in 2026. Before I conclude, I want to briefly look back to this time last year. 12 months ago, when delivering our 2024 full year results, I commented how a repositioning was materially complete and that Sirius Point was a business with an earnings profile of $300 million. This year, we have demonstrated that again, delivering operating income of $310 million. Importantly, on an operating earnings per share basis, This is up 49% year over year, meaning our shareholders are benefiting from our continued execution and value creation. And with that, I will end back where I started. This year saw consistent and improving underwriting performance, strong premium growth, book value and operating earnings per share growth, and significant value brought onto the balance sheet from our ongoing MGA rationalisation. We continue to lay further foundations for continued profitable growth, investing in people and technology to improve our performance further. We achieved another record operating return on equity, which could not have been possible without our greatest asset, our people. The team has worked tirelessly to achieve these results, and I could not be more proud of them or grateful to them for their unwavering support. I do not take it for granted. While 2025 was another strong year for the company, complacency is not in our DNA. We are relentless in our ambition to become a best-in-class specialty underwriter and 2026 is another chance for us to showcase our progress. We remain focused and determined to deliver against our ambitions and we are positive about our outlook. And with that, I will pass across to Jim, who will take you through the financials in more detail.