In a candid reflection on SiriusPoint’s recent performance, CEO Scott Egan outlined how the company navigated the challenges of 2022, emphasizing the importance of restructuring, focused market repositioning, and disciplined underwriting. Egan shared insights on the insurer’s strategy and how it’s fostering long-term growth amid a competitive and volatile environment.
Managing Volatility in a Shifting Market
Egan identified volatility management as a critical pillar of SiriusPoint’s strategy for recovery and growth. He pointed out that the company’s risk exposure in 2022 was disproportionate to the size of its balance sheet, with excessive risk-taking leading to significant instability. In response, SiriusPoint made decisive moves to scale back and exit high-risk areas, notably in property-catastrophe reinsurance, to better control its risk profile.
“We aim to take calculated risks but with much clearer guardrails than in the past,” Egan said. “We’ve refined our risk appetites to ensure that we are only engaging in opportunities where we can align interests with our clients and mitigate volatility.” The company’s focus is now on balancing premium growth with disciplined risk management, utilizing its capital strategically in favorable market conditions while pulling back in less suitable areas.
Targeted Growth in Specialized Markets
The second pillar of SiriusPoint’s strategy centers on building on its strengths and expanding within markets where it can leverage deep expertise. This approach has led the company to reassess its portfolio, exiting markets where it lacked the necessary capabilities and concentrating efforts on sectors with a proven track record of growth and profitability.
Egan noted the company’s ambitions for larger scale but acknowledged that growth will take time. Specific areas like accident & health, which have shown strong performance historically, are key focus areas for expansion. Property business also represents a significant area of growth, particularly within the London market, where SiriusPoint has strategically diversified its exposure to reduce reliance on U.S. hurricane risks. “We’re increasing our footprint in property, and in doing so, we’re diversifying the risk more broadly, which is a positive development,” Egan explained.
SiriusPoint’s growth is also targeted in niche sectors such as credit and bond, aviation, marine, and energy, where it collaborates with specialized managing general agents (MGAs) and partners. These partnerships have allowed SiriusPoint to expand its specialty business, which experienced growth in 2024. However, the company remains cautious in the casualty space due to ongoing concerns about reserve strengthening and the evolving rating environment. Egan emphasized that while certain casualty sectors, like public D&O, are off-limits, the company is exploring growth opportunities in other casualty areas with caution and selectivity.
Building Long-Term Partnerships
A third core pillar of SiriusPoint’s strategy is establishing enduring partnerships with like-minded MGAs and programs. Egan stressed the importance of long-term relationships built on mutual respect and shared values, particularly when navigating the industry’s cyclical ups and downs.
“We don’t enter relationships without a deep understanding of our partners,” he said. “We seek out partnerships that are sustainable through both good times and challenging periods.” This approach has led to the establishment of 19 new MGA relationships in 2024, further validating the effectiveness of this strategy.
Advancing Underwriting Excellence
Finally, SiriusPoint is committed to advancing its underwriting discipline as a core competency. Egan emphasized that underwriting is not just about risk selection; it’s about the finer details—policy wordings, terms, and conditions—that shape how risks are managed and mitigated. The company’s approach is highly selective, ensuring that risks are tightly managed and aligned with its broader strategic goals.
“Underwriting is a skill we continue to hone,” Egan concluded. “It’s not just about taking risks; it’s about doing so with precision and discipline to ensure that every decision is made with the long-term success of the business in mind.”
By adhering to these principles, SiriusPoint aims to solidify its position in the market and continue its recovery from the difficulties of 2022, positioning itself for sustainable growth in the years to come.
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