Q3 2023 SiriusPoint Ltd Earnings Call

Speaker 1: Good morning, ladies and gentlemen, and welcome to the serious point limited third quarter 2023 earnings call.

Good morning, ladies and gentlemen.

And welcome to the serious point limited third quarter 2023 earnings call.

Speaker 1: During today's presentation, all parties will be in listen-only mode.

During todays presentation, all parties will be in listen only mode.

Speaker 1: As a reminder, this conference is being recorded. I would now like to turn the call over to Dhruv Balit, Head of Investor Relations and Chief Strategy Officer. Please go ahead, Dhruv.

As a reminder, this conference is being recorded I would now.

I'd like to turn the call over to true knowledge head of Investor Relations and Chief Strategy Officer. Please go ahead Sir.

Thank you operator, and good morning, good afternoon to everyone listening.

Speaker 2: Thank you, operator, and good morning, good afternoon to everyone listening.

Speaker 2: I welcome you to the SiriusPoint earnings call for the 2023 9-month and third quarter results. Last night, we issued our earnings press release and financial supplement, which are available on our website www.stereospt.com.

I welcome you to the serious point earnings call for the 2023 nine months and third quarter results last night.

Should I earnings press release and financial supplement.

China available one of the best site Www Dot C. D. S. P T dot com.

Additionally, although.

Speaker 2: Additionally, our webcast presentation will coincide with today's discussion and is available on our website.

Gosh presentation will coincide with todays discussion I need available on our website.

Speaker 2: With me here today are Scott Egan, our Chief Executive Officer, and Steve Yendell, our Chief Financial Officer.

With me here today.

Scott Egan.

<unk> Executive officer and.

And Steve Young our Chief Financial Officer.

Before we start.

Speaker 2: 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.

I would like to remind you that today's remarks contain forward looking statements based on management's current expectation.

Actual results may differ.

Speaker 2: Certain non-GAAP financial measures will also be discussed.

So it didn't non-GAAP financial measures will also be discussed.

Speaker 2: Management uses the non-GAAP financial measures in its internal analysis of results and believes that they are informative to investors engaging the quality of our financial performance and identifying trends in our results.

Management uses the non-GAAP financial measures.

Analysis of results and believes that they are informative to investors engaging the quality of our financial performance and I didn't define fans in Arizona.

Speaker 2: However, these measures should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with GAAP.

However, these measures should not be considered.

Substitutes for or superior to the measures all financial performance prepared in accordance with GAAP.

Speaker 2: Please refer to page two of our investor presentation for additional information and the company's latest public filing.

Please refer to page two of the Investor presentation with additional information in the company's latest public filings.

Speaker 2: At this time, I will turn the call over to Scott.

At this time I will turn the call over to Scott.

Thank you Bruce and good morning, good afternoon, everyone. Thank you as always for joining our third quarter results call.

Speaker 3: Thank you, Drew. And good morning, good afternoon, everyone. Thank you, as always, for joining our third quarter results call.

Speaker 3: This has been another strong quarter of results for SiriusPoint and we've delivered a first ever underwriting profit in the third quarter since the group was formed and a fourth consecutive quarter of positive underwriting results.

This has been another strong quarter of results for Citi as point and we've delivered our first step of underwriting profit in the third quarter. Since the group was formed and our fourth consecutive quarter of positive underwriting results.

Speaker 3: The actions we have been taking are having a demonstrable impact and our performance is improving.

The actions we've been taking.

Being a demonstrable impact on our performance is improving.

Our results and balance sheet are getting stronger and the overall quality is improving which San Francis well as a platform for further improvement in 2024, which is our aim.

Speaker 3: Our results and balance sheet are getting stronger and their overall quality is improving which serves as well as a platform for further improvement in 2024 which is our aim.

Speaker 3: I am pleased with our progress, but I also recognize that it's much more to do.

I am pleased with our progress by also recognize there is much more to do.

Speaker 3: There is much determination but no complacency.

There is much determination, but no complacency.

Speaker 3: I'd like to provide some comments on two areas before we get into the results.

I'd like to provide some comments on <unk>.

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Speaker 3: We entered into a standstill agreement with Mr Daniel Loeb in August .

We entered into a standstill agreement with Mr. Daniel Loeb in August.

Speaker 3: This agreement comes after Mr Loeb and certain affiliates filed a 13D regarding a potential transaction to acquire the company in April and a subsequent 13D filing with a decision to conclude the exploratory discussions in May.

This agreement comes after Mr. Loeb I'm certain affiliates.

<unk> regarding a potential transaction to acquire the company in April and a subsequent 13D filing with a decision to conclude exploratory discussions and me.

Speaker 3: The Standstill Agreement removes any lingering uncertainty and underlines Mr Loeb's full support for the strategy and progress he outlined in his 15D interview.

The standstill agreement removes any lingering uncertainty.

Underlines, Mr Lopez field support for the strategy and progress he outlined and discussed M D.

Speaker 3: Secondly, I want to reflect on my first 12 months at SiriusPoint.

Secondly, I wanted to flag.

My first 12 months so at this point.

I believe we have made significant progress and performance has improved.

Speaker 3: I believe we have made significant progress and performance has improved.

Speaker 3: We remain committed to building a strong unified culture in order to achieve our ultimate ambition of being a best in class, in shooter, re-in shooter.

We remain committed to building a strong unified culture in order to achieve our ultimate ambition of being a best in class and shoot a reinsurer.

We know we have a way to go but the last 12 months is a good start.

Speaker 3: We know we have a way to go, but the last 12 months is a good start.

Speaker 3: we continue to operate with an underwriting first approach.

We continue to operate with an underwriting.

Approach.

Speaker 3: It's important to create the right blend of culture, leadership and inclusion to attract and retain talent.

It's important to create the right blend of culture leadership and inclusion to attract and retain talent.

Speaker 3: We strengthened the team with many high quality senior appointments with an underwriting, claims, human resources, finance and other parts of the organization. And we will continue to invest in our people. They are our most important asset.

We've strengthened the team with many high quality senior appointments within underwriting claims human resources finance and other parts of the organization.

We will continue to invest in our people.

Our most important asset.

Speaker 3: We have created real shareholder value over the past 12 months and our ambition is to continue to do so.

We have created real shareholder value over the past 12 months.

<unk> mission is to continue to do so.

We importantly believe it is material opportunity to do more.

Speaker 3: We importantly believe that it's a material opportunity to do more.

Speaker 3: As we build a track record of success at SiriusPoint, I am very proud and grateful to my colleagues who have worked incredibly hard.

As we build the track record of success at city point.

I am very proud and grateful to my colleagues, who have worked incredibly hard.

Speaker 3: Their efforts have helped us to achieve a good deal in a short period of time.

Their efforts have helped us to achieve a good deal in a short period of time.

Speaker 3: I'm excited to see out 2023 and continue our progress in 2024.

Im excited to see how 2023 and continue our progress in 2024.

Speaker 3: Before sharing key messages relating to the results for the last nine months of 2023, I'd like to point out that we have revised our 2023 interim financials.

Before sharing key messages relating to the results for the last nine months of 2023.

I'd like to point out that we have revised our 2023 interim financials.

Speaker 3: This was driven primarily by a manual calculation relating only to the second quarter property cap business and also an overnight data transfer error resulting in the incorrect recognition of net premiums and net income.

This was driven primarily by our menu calculation relating only to the second quarter property Cat business and also an overnight take to transfer data, resulting in the recognition of net.

Premiums and net income.

We are now implementing additional controls to ensure the accuracy of the net premiums calculations and we expect to complete the remediation expeditiously.

Speaker 3: We have now implemented additional control to ensure the accuracy of the net premiums calculations and we expect to complete the remediation expeditiously.

Slide eight provides a summary of the changes to our kpis.

Speaker 3: Slide 8 provides a summary of the changes to our KPIs.

Speaker 3: The impact to book value was less than 1% per share.

The impact to boot.

Less than 1% per share.

Speaker 3: There is also no impact on the financial statements for discrete third quarter or on the first nine month result.

There is also no impact on the financial statements for the speak third quarter or on the first nine months results.

Speaker 3: In an effort of continued transparency, we elected to revise the company's historical consolidated statements despite not being required to do so, recognizing this need for transparency and accuracy as we continue our performance improvement journey.

In an effort with continued transparency, we have elected to revise the company's historical consolidated statements. Despite not being required to do so recognizing this need for transparency and accuracy as we continue our performance improvement journey.

Moving now back to the strong quarter results I would like to focus on the key messages.

Speaker 3: Moving now back to the strong quarter results, I would like to focus on the key messages which are outlined on slide 5 and provide an update on our strong progress across our strategic initiatives.

On slide five I'll provide an update on our strong progress across our strategic initiatives.

Speaker 3: Overall, we are very pleased to report continuing performance improvement in the third quarter and another period of positive capital generation across all parts of our business. Underwriting, MGAs and investment.

Overall, we are very pleased to report continued performance improvement in the third quarter and another piece of positive capital generation across all parts of our business underwriting.

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The investments.

Underwriting income for the nine months was strong as we delivered a combined ratio of 87, 6% for the core business.

Speaker 3: Underwriting income for the nine months was strong as we delivered a combined ratio of 87.6% for a core business.

Speaker 3: This is inclusive of $102 million of one-off reserve releases linked to the LPT we did earlier this year, offset in part by the reallocation of $29 million of expenses to the combined ratio from outside of the underwriting result.

This is inclusive of $102 million of one off reserve for leases linked to the LPT. We did earlier this year offset in part by the reallocation of $29 million of expenses to the combined ratio from outside of the underwriting result.

Speaker 3: Adjusting for these one-offs, we've delivered 12 points of like-for-like improvement on the core combined ratio year over year.

Adjusting for these one offs, we've delivered 12 points of like for like improvement on the core combined ratio year over year.

Speaker 3: Third quarter core catastrophe losses of $7 million were significantly down compared to $115 million a year ago and supported by the decisive actions taken on the portfolio.

Third quarter core catastrophe losses of $7 million were significantly down compared to a $115 million a year ago and supported by the decisive actions taken in the portfolio.

Speaker 3: As an example, our property cap premiums are down around $300 million and contributing to an approximately 60% reductions in PMLs for a 1 in 100 year event since the second quarter 2021.

As an example, our property cat premiums are down around $300 million.

And contributing to an approximately 60% reductions in <unk> for a one in 100 data vein since the second quarter 2021.

We continued to take further underwriting actions targeting specific parts of the portfolio and we will continue to prioritize underwriting profits over premium growth during 2024.

Speaker 3: We continue to take further underwriting actions targeting specific parts of the portfolio, and we will continue to prioritise underwriting profits over premium growth during 2024.

Our underwriting results are supported by favorable prior year development of $130 million for the nine months, ending 2023 and $15 million in the discrete third quarter.

Speaker 3: Our underwriting results are supported by favourable prior development of $130 million for the nine months ended 2023 and $30 million in the discrete third quarter.

Speaker 3: During quarter three, we had an assessed development of $80 million with regards to workers' comp within the shooting segment.

During quarter, three we had adverse development of $80 million with regards to walk us cope within the insurance segment.

Speaker 3: I wanted to call this out given the market-wide focus on casualty lines.

I wanted to call this out given the market wide focus on casualty lines.

Speaker 3: For us, the strengthening is very specific and relates to the same program which had an adverse reserve development during 2022.

For us this strengthening is very specific and relates to the same program, which had an adverse reserve development during 2022.

Consequently, we have completed a comprehensive review of the program.

Speaker 3: Consequently, we have completed a comprehensive review of the program and made a decision to exit the underwriting relationship at 1-1 next year.

Made the decision to exit the underwriting relationship.

One next year.

Speaker 3: Overall, we remain comfortable with our reserves and continue to hold buffers as we maintain a prudent and conservative approach to our reserving.

Overall, we remain comfortable with the reserves and continues to hold buffers as we maintained a prudent and conservative approach to reserving.

Speaker 3: Our investment results have again been strong this quarter and we are ahead of our full year guidance on a run rate basis.

Our investment results have again been strong this quarter and we are ahead of our full year guidance on a run rate basis.

Speaker 3: As a result, we are increasing the 2020 full-year net investment income guidance to 250 million to 260 million up from 220 million to 240 million.

As a result, we are increasing the 2023 full year net investment income guidance to $250 million to $260 million up from 220 million to $240 million.

Our investment strategy remains focused on high quality fixed income instruments with an average credit rating of double H and we remain well placed to manage market volatility.

Speaker 3: Our investment strategy remains focused on high quality fixed income instruments with an average credit rating at double A and we remain well placed to manage market volatility.

Our portfolio is performing well and we saw no defaults across the portfolio during the first nine months of this year.

Speaker 3: Portfolio is performing well and we saw no default across the portfolio during the first nine months of this year.

Speaker 3: Moving on to our MGA strategy which is core to our business.

Moving onto an MGA strategy, which is core to our business.

Speaker 3: This year, we launched the SiriusPoint International MGA Center of Excellence to deliver an efficient and collaborative onboarding experience for new MGA partners in our London international business.

This year, we launched the city is point International MGA Center of excellence to deliver an efficient and collaborative onboarding expedient, but new MGA partners and our London International business.

Speaker 3: The programme mirrors are North American structure and improves both quality of experience and operational efficiency by allowing our partners to access expertise across cities, points, and global platforms.

The program mirrors, our north American structure and improves both quality of experience.

Operational efficiency by allowing our partners to access expertise across cities points global platform.

Our partner pipeline is strong in both international and North America, and we are being selective.

Speaker 3: Our partner pipeline is strong in both international and North America and we are being selective.

Speaker 3: We want to work with partners to share a disciplined approach to underwriting and operate in a data-centric way. Equally important.

We want to work with partners, who share our disciplined approach to underwriting.

Operating in a data centric way.

Equally important is the cultural fit.

Speaker 3: We want to work with like-minded partners who share our philosophy.

We want to work with like minded partners to share our philosophy.

Speaker 3: Since the second quarter, we have onboarded three new MGA partnerships, which are pure underwriting relationships and involve no equity stakes in line with our disclosed strategy.

Since the second quarter, we have onboard the three new MGA partnerships, which are pure underwrite relationships uninvolved, new equity Stakes and like Methode disclosed strategy.

Overall <unk> results remained strong.

Capital light fee income from our five consolidated MGH is growing strongly year on year with revenues up 7% versus the previous year, while service margin is up one percentage point to 21%.

Speaker 3: Capital Light Fee Income from our five consolidated MGAs is growing strongly year-on-year, with revenues up 7% versus the previous year, while service margin is up one percentage point to 21%.

Speaker 3: The book value of the five consolidated MGAs is only $92 million but we believe the actual economic value is significantly higher given their attractive growth profile and earnings generation capability and are not fully reflected in serious point share price, a point I will continue to make.

The book value of the five consolidated <unk> is only $92 million, but we believe the actual economic value is significantly higher given their attractive growth profile on earnings generation capability and are not fully reflected in cities point share price.

I will continue to make.

Speaker 3: We have made progress on reducing the number of equity stakes in MGAs to concentrate on fewer and deeper MGA relationships and have now sold seven stakes since the start of the year.

We have made progress on reducing the number of equity stakes and MGH to concentrate on fewer and deeper MGA relationships and have now sold seven states since the start of the year.

Speaker 3: Banyan, which is one of our consolidated MGAs, and one more stake was sold during Q4, bringing our total holdings down to 29 Enxity Stakes from 36 at the year end.

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One more stake was sold during Q4, bringing our total holdings that into 2009 equity Stakes from 36 at the yearend.

Speaker 3: Banyan results were consolidated in our nine-month financials. However, we will stop consolidating them effective 4th Quarter 23, but will continue to provide underwriting capacity to them.

<unk> results were consolidated in a nine month financials. However, we will stop consolidating them effective fourth quarter 'twenty three but we'll continue to provide underwriting capacity to the.

Speaker 3: Overall, all three areas of our business are delivering strong results compared to prior years and we are continuously improving performance.

Overall, all three areas of our business are delivering strong results compared to prior years.

We are continuously improving performance.

Moving onto our balance sheet, which is strong.

Speaker 3: Book value was stable this quarter but on an ex-AOCI basis has increased by 3% during the quarter and 14% since year-end 2022.

Good value was stable this quarter.

Ex OCI basis has increased by 3% during the quarter and 14% since year end 'twenty two.

Speaker 3: Our capital position is stronger with our BSCR ratio at 238% at the end of the second quarter versus 219% at the first quarter, 23%.

Our capital position is stronger with a <unk> ratio at 238% at the end of the second quarter versus 219% at the first quarter 'twenty three.

Speaker 3: Our debt leverage remains stable at 25.3%.

Our debt leverage remained stable at 25, 3%.

We are exploring ways to optimize our capital structure.

Speaker 3: We are exploring ways to optimize our capital structure.

Let me end, where I started.

Speaker 3: We have made significant progress in the past 12 months for our shareholders.

We have made significant progress in the past 12 months for our shareholders.

Speaker 3: But 2023 is not a destination.

But 2023.

It's not a destination.

Speaker 3: It is a platform for further improvement and our aim is to make 2024 a step up again.

It is a platform for further improvement.

Aim is to make 2020 for a step up again.

Speaker 3: Whilst we continue to shape the portfolio with some top-line impact, our ultimate ambition is to make this a growing and profitable company that operates at best-in-class levels.

Whilst we continue to shape the portfolio with some top line impact our ultimate ambition is to make this a growing and profitable company that operates a best in class levels.

Speaker 3: Rest assured we are working incredibly hard to achieve that with no complacency.

Rest assured we are working incredibly hard to achieve that with no complacency.

Speaker 3: We know the journey from underperformer will not be a straight line and we will make some mistakes.

We know the journey from Underperformer will not be a straight line and we will make some mistakes.

Speaker 3: But all that said, 2023 has been an important year in re-establishing the inherent potential of serious points.

But all that said 2023 has been an important year and reestablishing the inherent potential of cities point.

I'd like to thank all of our stakeholders shareholders customers and employees for their support and patience, while we execute our auctions.

Speaker 3: I'd like to thank all the stakeholders, shareholders, customers and employees for their support and patience while we execute our action.

Speaker 3: We believe the future is brighter as a consequence of them.

We believe the future is brighter as a consequence over them.

With these remarks I will now pass over to Steve who will take you through the financials.

Speaker 3: With these remarks, I'll now pass over to Steve, who will take you through the financial.

Okay.

Thank you Scott and good morning, good afternoon, everyone.

Speaker 4: Thank you, Scott, and good morning, good afternoon, everyone. I will now take you to the financial section of the presentation, and we'll start with slide 10, looking at our nine months financials for 2023.

I will now take you through the financial section of the presentation and we will start with slide 10, looking at our nine months financials for 2023.

Speaker 4: We delivered positive profits and generated capital across all three sources of earnings, underwriting, MGA fee income, and investment during the last three quarters.

We delivered positive profits and generated capital across all three sources of earnings.

Underwriting MGA fee income and investment during the last three quarters.

Speaker 4: Net income to SiriusPoint common shareholders at $245 million was up $621 million versus prior year, as our results last year were mainly impacted by negative investment returns and higher cap losses.

Net income to serious point common shareholders at $245 million was up $621 million versus prior year as our results last year were mainly impacted by negative investment turns and higher cat losses.

During the nine months ended of 2023.

Speaker 4: During the nine months ended of 2023, core underwriting results improved as we delivered underwriting profits of $213 million, which benefited from $102 million, a reserve redundancy linked to the LPT transaction.

Core underwriting results improved as we delivered underwriting profits of $213 million, which benefited from a $102 million a reserve redundancy linked to the LPT transaction.

Excluding the release linked to the LPT underwriting profits were $111 million with a combined ratio of 93 five.

Speaker 4: excluding the release link to the LPT, underwriting profits were $111 million with a combined ratio of 93.5.

Speaker 4: Our portfolio actions are having an impact, given cap losses for the core business were down to $14 million year-to-date, compared to $138 million in the same period of the prior year.

Our portfolio actions are having an impact given cat losses for the core business were down to $14 million year to date compared to $138 million in the same period of the prior year.

Speaker 4: More detail on our cap losses is available on slide seven.

More detail on our cap losses is available on slide seven.

Gross premiums written for the core business decreased 3% driven by reinsurance, which was down $202 million and partially offset by insurance and services, which increased $129 million.

Speaker 4: Gross premiums written for the core business decreased 3%, driven by reinsurance, which was down $202 million, and partially offset by insurance and services, which increased $129 million.

Speaker 4: The decline in reinsurance premiums was a result of the already announced portfolio restructuring actions we have taken in the international property segment.

The decline in reinsurance premiums was a result of the already announced portfolio restructuring actions, we have taken in the international property segment.

Speaker 4: capital-like net services fee income increased by 11% at $38 million versus $34 million last year while service revenues are up 7% versus last year and margins are up to 21%.

Capital Light net services fee income increased by 11% at $38 million versus $34 million last year, while service revenues are up 7% versus last year and margins are up to 21%.

Speaker 4: Total investment result was strong at $208 million and driven by $205 million of net investment income, while unrealized and realized gains, including related party, were $2 million and significantly better than the $436 million loss for this period last year.

Total investment result was strong at $208 million and driven by $205 million of net investment income, while unrealized and realized gains including related party were $2 million and significantly better than the 436 million loss for this period last year.

Speaker 4: Investment results have benefited from higher yields, and we raise our full-year net investment income guidance to $250 to $260 million versus $220 to $240 million previously communicated.

Investment results have benefited from higher yields and we raised our full year net investment income guidance to $250 million to $260 million versus $220 million to $240 million previously communicated.

Net corporate and other expenses were down to $194 million for the nine months at $27 million improvement versus the prior year we.

Speaker 4: Net corporate and other expenses were down to $194 million for the nine months, a $27 million improvement versus the prior year.

We had two moving parts here.

Speaker 4: One, we moved 29 million of expenses above the line within our core underwriting result, which supported an improvement. But on the other end, we had 32 million of one-off expenses in relation to restructuring costs and transaction costs.

One <unk>.

We moved $29 million of expenses above the line within our core underwriting result, which supported an improvement but on the other end, we had $32 million of one off expenses in relation to restructuring costs and transaction costs.

Speaker 4: Transaction costs of $8 million were in relation to the 13D process and the lost portfolio transfer. Restructuring costs are $24 million for the nine-month period, and we expect an additional $1 million of restructuring costs to come during the fourth quarter.

Transaction cost of $8 million more in relation to the <unk> process and the loss portfolio transfer.

Restructuring costs are $24 million for the nine month period, and we expect an additional $1 million of restructuring costs to come during the fourth quarter.

Speaker 4: Other notable items during the period include a $44 million negative impact from mark to market on Liability Classified Capital Instruments.

Other notable items during the period include a $44 million negative impact from mark to market on liability classified capital instruments.

Speaker 4: Moving to slide 11. I'll talk briefly about the third quarter financial.

Moving to slide 11, I'll talk briefly about the third quarter financials.

Overall, it was a positive quarter with regards to the underwriting result, as we delivered our first ever positive underwriting results in Q3 since the group was formed.

Speaker 4: Overall, it was a positive quarter with regards to the underwriting result as we delivered our first ever positive underwriting result in Q3 since the group was formed.

Speaker 4: Our underwriting profits were $43 million with the accident year combined ratio at 94.8%, an improvement of 19 points year over year and supported by lower cap losses at 1.2 percentage point.

Our underwriting profits were $43 million with the accident year combined ratio at 94, 8% an improvement of 19 points year over year and supported by lower cat losses at one two percentage points.

Speaker 4: Most premiums written decreased 14% versus last year for the core business and were impacted by lower premiums in both sectors.

Gross premiums written decreased 14% versus last year for the core business and were impacted by lower premiums in both segments.

Speaker 4: insurance and services premiums were down $65 million, while reinsurance premiums fell by $53 million compared to the third quarter last year.

Insurance and services premiums were down $65 million, while reinsurance premiums fell by $53 million compared to the third quarter last year.

Net income of $58 million was an improvement versus the 98 million loss during the prior year quarter and was supported by positive earnings from underwriting investment income MGA fee income.

Speaker 4: Net income of $58 million was an improvement versus the $98 million lost during the prior year quarter and was supported by positive earnings from underwriting investment income and MGA fee income.

Speaker 4: This quarter included $5 million of restructuring charges and $9 million related to the interest on funds withheld related to the lost portfolio transfer.

This quarter included $5 million of restructuring charges and $9 million related to the interest on funds withheld related to the loss portfolio transfer.

Speaker 4: Overall, all three sources of earnings were higher than the prior year.

Overall, all three sources of earnings were higher than the prior year.

Speaker 4: Diluted book value for share at $12.11 was broadly unchanged during the quarter and impacted by mark-to-market movements on fixed income securities. Adjusting for AOCI shareholders equity grew 3%.

Diluted book value per share at $12 11 was broadly unchanged during the quarter and impacted by Mark to market movements on fixed income securities.

Adjusting for OCI shareholders' equity grew 3%.

Speaker 4: Moving on to slide 12, we provide an update on the rate commentary.

Moving on to slide 12, we provide an update on the rate commentary.

Speaker 4: Rating trends in Q3 have remained broadly similar to the first half of 2023.

Rating trends in Q3 have remained broadly similar to the first half of 2023.

Speaker 4: Average rate increases were around 7% for our portfolio, excluding the North America program's business.

Average rate increases were around 7% for our portfolio, excluding the North America programs business.

Speaker 4: North America program business saw 6% rate increases during Q3, excluding cyber and workers compensation, which have both been under pressure and we are taking portfolio actions to manage the profitability of our books.

North America program business saw 6% rate increases during Q3, excluding cyber and workers compensation, which have both been under pressure and we are taking portfolio actions to manage the profitability of our book.

U S property cat rates have remained strong at 20%, while non U S property cat rates have been up 6% during the quarter.

Speaker 4: U.S. property cap rates have remained strong at 20%, while non-U.S. property cap rates have been up 6% during the quarter.

Okay.

Next.

Speaker 4: Slide 13 shows the change in combined ratio versus 22 nine months ended for our core business and breaks the movements into individual subcomponents.

Slide 13 shows the change in combined ratio versus $22 nine months ended for our core business and breaks the movements into individual sub components.

Our portfolio actions are yielding positive results as the combined ratio for our core business on a like for like basis has improved by 12 points year over year.

Speaker 4: Our portfolio actions are yielding positive results if the combined ratio for our core business on a like for like basis has improved by 12 points year over year.

Speaker 4: Our headline combined ratio of 87.6 has benefited from six percentage points of reserve releases linked to the LPT transaction. However, the expense reallocation of 29 million results in around two percentage points dragged.

Our headline combined ratio of 87 six has benefited from six percentage points of reserve releases linked to the LPT transaction. However, the expense reallocation of 29 million result in around two percentage points drag.

Speaker 4: adjusting for these two results on a like-for-like combined ratio of 91.9, which compares to 103.9 for the nine months of 2022.

Adjusting for these two results on a like for like combined ratio of $91 nine which compares to $103 nine for the nine months of 2022.

Attritional loss ratio was higher at 63, 4% or <unk> nine points up on the previous year and is partly impacted from mix changes between insurance and services and the reinsurance segment and also from large losses in the international business.

Speaker 4: The nutritional loss ratio is higher at 63.4% or 0.9 points up on the previous year and is partly impacted from mixed changes between insurance and services and the reinsurance segment and also from large losses in the international business.

Speaker 4: The mix changes resulted in better profit commissions, which are captured in the acquisition cost ratio, which has resulted in around 1.5 points improved.

The mix changes resulted in better profit commissions, which are captured in the acquisition cost ratio, which has resulted in around one five points improvement.

Speaker 4: Looking at both of the moving parts together results in a net improvement of a half point year on year.

Looking at both of the moving parts together results in a net <unk> of a half point.

Our on year.

Speaker 4: We look at the investment portfolio and investment results on slides 13 and 14. We have made progress as we delivered a strong net investment income figure, increased our overall asset duration to 2.7 years from 2.5 years at 2.2, 2023, and locked in attractive reinvestment yields in excess of 4.5% on our investment.

We look at the investment portfolio and investment results on slides 13, and 14, we have made progress as we delivered a strong net investment income figure increased our overall asset duration to $2 seven years from two five years at Q2 2023.

And locked in attractive reinvestment yields in excess of four 5% on our investment.

Speaker 4: Total investment result is higher at $208 million versus a loss of $375 million in the prior year's same period and supported by higher net investment income.

Total investment result is higher at $208 million versus a loss of $375 million in the prior years same period and supported by higher net investment income.

Speaker 4: We have continued to rotate our portfolio and have now invested over $1.5 billion year to date and increased our exposure to corporates and asset backed security.

We have continued to rotate our portfolio and have now invested over $1 5 billion year to date and increased our exposure to corporate and asset backed securities.

Speaker 4: Overall, our investment strategy remains unchanged and focused on maintaining a high-quality fixed-income portfolio.

Overall, our investment strategy remains unchanged and focused on maintaining a high quality fixed income portfolio.

Speaker 4: 74% of our investment portfolio is now fixed income, of which 97% is investment grade, with an average credit rating unchanged at double A.

74% of our investment portfolio is now fixed income of which 97% is investment grade with an average credit rating unchanged at double a.

Speaker 4: P&L volatility is significantly lower versus last year.

P&L volatility is significantly lower versus last year.

Speaker 4: and has helped given 85% of the fixed income portfolios now designated as available for sale, up from 85% at Q2-23, and none at year-end 2021.

And has helped given ADP percent of the fixed income portfolio is now designated as available for sale up from 85% at Q2, 'twenty three and none at year end 2021.

Moving on to slide 15, which looks at our balance sheet.

Speaker 4: Moving on to slide 15, which looks at our balance sheet.

Speaker 4: Our balance sheet is strong, ending the quarter with 2.3 billion of shareholders' equity, which is stable since the prior quarter. Total capital including...

Our balance sheet is strong ending the quarter with $2 3 billion of shareholders' equity, which is stable since the prior quarter.

Total capital, including debt was $3 billion.

Speaker 4: Our issue debt is unchanged, while our debt-to-capital ratio is stable at 25.3% and remains within our target range.

Our issue debt is unchanged, while our debt to capital ratio is stable at 25, 3% and remains within our target range.

Speaker 4: With this, we conclude the financial section of our presentation. Our results continue to be strong. We are on track to deliver significant improvement in profitability in 2023 with only one quarter to go.

With this we conclude the financial section of our presentation. Our results continue to be strong we are on track to deliver significant improvement in profitability in 2023 with only one quarter to go.

Speaker 4: We are close to our goal to achieve double digit return on average common equity for the full year, including the benefit of the last portfolio transfer.

We are close to our goal to achieve double digit return on average common equity for the full year, including the benefit of the loss portfolio transfer.

As we plan for next year, we expect to realize full run rate benefits of all our strategic actions in 2024 as well as deliver a double digit return on average common equity.

I would like to thank you again for your time. This morning for any questions. Please contact our Investor relations team at Investor Relations at serious PT Dot com.

Speaker 4: I would like to thank you again for your time this morning. For any questions, please contact our Investor Relations team at investor.relations at seriouspt.com. I now turn the call back over to the operator.

I'll now turn the call back over to the operator.

Thank you, Sir ladies and gentlemen.

Speaker 1: Thank you, Sam. Ladies and gentlemen, that concludes today's conference. Thank you for joining us. Can we now disconnect your lines?

Today's conference.

Thank you for joining US you may now disconnect your lines.

Uh huh.

Speaker 5: Music

[music].

Thanks.

Okay.