Q1 2024 SiriusPoint Ltd Earnings Call

Operator: Good morning, ladies and gentlemen, and welcome to SiriusPoint's first quarter 2024 earnings conference call. During today's presentation, all parties will be in a listen-only mode.

Good morning, ladies and gentlemen, and welcome to Sirius Plains first quarter 'twenty 'twenty four earnings conference call. During today's presentation. All parties will be in a listen only mode. As a reminder, this conference call is being recorded and a replay is available through 11 59 P M. Eastern.

Operator: As a reminder, this conference call is being recorded, and a replay will be available through 11:59 p.m. Eastern Time on May 15, 2024. With that, I would like to turn the call over to Dhruv Gahlaut, Head of Investor Relations and Chief Strategy Officer. Please go ahead.

Time on May 15th 'twenty, 'twenty, four with that I would like to turn the call over to drew Scotland.

Drew Scotland: Head of Investor Relations and Chief Strategy Officer. Please go ahead. Thank you operator, and good morning, good afternoon to everyone listening.

Dhruv Gahlaut: Thank you, operator, and good morning, and good afternoon to everyone listening. I welcome you to the SiriusPoint earnings call for the 2024 first quarter results. Last night, we issued an earnings press release and financial supplement, which are now available on our website, www.siriuspt.com. Additionally, a webcast presentation will coincide with today's discussion and is available on our website. With me here today are Scott Egan, our Chief Executive Officer, and Steve Yendall, our Chief Financial Officer.

Drew Scotland: Welcome you to the serious point earnings call for the 'twenty 'twenty four fourth quarter results.

Speaker Change: Last night, we issued earnings press release and financial supplement.

Drew Scotland: Which are now available on our website www dot <unk> dot com.

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

Drew Scotland: With me here today are Scott Egan, our Chief Executive Officer, and Steve <unk>, Our Chief Financial Officer.

Dhruv Gahlaut: Before we start, I would like to remind you that today's comment contains forward-looking statements based on management's current expectations. Actual results may differ, and certain non-GAAP financial measures will also be. Management uses non-GAAP financial measures in its internal analysis of results and believes that they may be informative to investors regarding the quality of our financial performance and identifying trends in our results. However, these measures should not be considered as a substitute or superior to the measures of financial performance prepared in accordance with GAAP. Please refer to page 2 of our investor presentation for additional information and the company's latest public findings. At this point, I will turn the call over to Scott.

Speaker Change: Before we start I would like to remind you that today's remarks contain forward looking statements based on management's current expectations.

Speaker Change: Actual results may differ.

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

Speaker Change: Management uses the non-GAAP financial measures in its internal know magnitude of results.

Speaker Change: Believes that they may be informative to investors engaging the quality of our financial performance and I think then in aggregate.

Speaker Change: However, these measures should not be considered as a substitute or superior to the measures of financial performance.

Speaker Change: And in accordance with GAAP.

Speaker Change: Please refer to page two of the Investor presentation.

Speaker Change: Additional information in the company's latest public findings.

Speaker Change: At this point I will turn the call over to Scott.

Scott Egan: Thank you, Dhruv, and good morning, good afternoon, everyone. Thank you for joining our first quarter 2024 results call. As you can hear, I have a rather croaky voice today, so I apologize in advance.

Scott Egan: Thank you Jos and good morning. Good afternoon, everyone. Thank you for joining our first quarter 2020 full results call. As you can hear I have a rather croaky voice today, so I apologize in advance, but the great news is.

Scott Egan: But the great news is our results are better than my voice. I'm really pleased to be able to say that 2024 is off to a strong start. We delivered our sixth consecutive quarter of positive underwriting results, improved the quality of our earnings, and took action to further strengthen our balance sheet. The performance momentum from 2023 has continued with strong year-over-year performance. We are executing on our ambition to deliver consistent and stable earnings that create long-term shareholder value.

Our results are better than my voice.

Scott Egan: I'm really pleased to be able to see the 2024 is off to a strong start.

Scott Egan: We delivered a sixth consecutive quarter of positive underwriting results.

Scott Egan: The quality of earnings and took action to further strengthen our balance sheet.

Scott Egan: The performance momentum from 2023 has continued with strong year over year performance.

Scott Egan: We are executing on our ambition to deliver consistent unstable earnings that create long term shareholder value.

Scott Egan: Our strong results and strategic actions taken this quarter move us closer to our longer-term ambition of becoming a best-in-class insurer-reinsurer. Before sharing the key messages relating to our results, I want to recap on four developments from the quarter in our key messages on slide five. Firstly, I would like to highlight the liability management exercise we completed recently. This has further improved the quality and strength of our balance sheet and an area that we highlighted in Q4 that we would focus on.

Scott Egan: Our strong results and strategic actions taken this quarter moves us closer to our longer term ambition of becoming a best in class insurer and reinsurer.

Scott Egan: Before sharing the key message is relating to our results I want to recap on four developments from the quarter within our key messages on slide five.

Scott Egan: Firstly I would like to highlight the liability management exercise we completed recently this.

Scott Egan: This is further improve the quality and strength of our balance sheet an area that we highlighted at Q4 that we would focus on.

Scott Egan: We announced three debt transactions in late March, including our debut debt issuance of $400 million. These transactions were aimed at refinancing $400 million of 2026 Legacy Senior Notes and redeeming 115 million of Legacy 2025 Senior Notes. All were successfully executed.

Scott Egan: We announced three transactions in late March, including our debut debt issuance.

Scott Egan: Issuance of $400 million.

Scott Egan: These transactions were aimed at refinancing $400 million of 2026 legacy senior notes and redeeming $115 million of legacy 2025 Senior notes all were successfully executed.

Scott Egan: The new debt instrument will be capital accretive under the rating agency and regulatory capital models and will increase our capital levels by a further $300 million on a net basis. This increase in capital equates to an approximately 20 point improvement in our Q4-23 BSCR ratio, which already stands at 255% before this. Our capital levels have never been stronger.

Scott Egan: The new debt instrument will be capped to repeat too under the rating agency unregulated capital models and will increase our capital levels by a further $300 million on a net basis.

Scott Egan: Increasing capital equates to an approximately 20 point improvement in our Q4, 2000, <unk> ratio, which already stands at 255% before this capital levels.

Scott Egan: Ever been stronger.

Scott Egan: Additionally, the redemption of the 115,025 senior notes will reduce our financial leverage by around 2.5%. These transactions together were designed to simplify and optimize our capital structure and complete another part of our repositioning of the group. Secondly, and as we previously communicated, we identified a material weakness in our internal controls over financial reporting in Q3 2023. As a reminder, the material weakness was in respect to a misstatement of our quarterly premiums during the first half of 2023. I am pleased to say that this has now been fully remedied as of Q4 2023.

Scott Egan: Additionally, the redemption of the $115 million 25, senior notes will reduce our financial leverage by around two five points.

Scott Egan: These transactions together with designed to simplify and optimize our capital structure and complete another part of our repositioning of the group.

Scott Egan: Secondly, and as we previously communicated we identified a material weakness in our internal controls over financial reporting in quarter three 2023.

Scott Egan: As a remainder the material weakness was in respect to a misstatement of our quarterly premiums during the first half of 'twenty three.

Scott Egan: I am pleased to say that this has now been fully remediated as of quarter four 2023.

Scott Egan: Thirdly, we obtained new ratings from Moody's ahead of our debt offering. They have assigned us an A3 financial strength rating, further validating the progress we have made in improving our results and strengthening our balance sheet. As a reminder, we have financial strength ratings from AMBEST, S&P, and Fitch, and this year, S&P, Fitch, and AMBEST have found our financial strength ratings to be stable. And finally, I want to highlight the Lost Portfolio transaction we announced yesterday. This transaction covers approximately $400 million of workers' comp reserves linked solely to the business we already exited at 1-1 this year.

Scott Egan: Lastly, we obtained new ratings from Moody's I hate to put that offering.

Scott Egan: At the same dose in <unk> financial strength rating further validate the progress we have made in improving our results and strengthening our balance sheet.

Scott Egan: As a remainder we have financial strength ratings from am best.

Scott Egan: On Fitch and this year S&P Fitch and am best affirmed our financial strength ratings.

Scott Egan: Stable.

Scott Egan: And finally I want to highlight the loss portfolio transaction, we announced yesterday.

Scott Egan: This transaction covers approximately $400 million of workers comp reserve linked solely to the business. We already exited one one this year given the historical performance of this specific but we felt it was the right decision to reduce future uncertainty.

Scott Egan: Given the historical poor performance of this specific book, we felt it was the right decision to reduce future uncertainty now as part of our balance sheet improvement work. We have entered into a transaction with NSTAR, which is subject to regulatory approval. This will further improve the quantum and quality of our reserve market. Now, back to a Q1 result.

Scott Egan: Our balance sheet and prudent at work.

Scott Egan: We have entered into a transaction with <unk>, which is subject to regulatory approval.

Scott Egan: This will further improve the quantum on quality.

Scott Egan: Our reserve project.

Scott Egan: Coming back now to our Q1 results.

Scott Egan: We are very pleased to report a strong first quarter, with a combined ratio of 91.4% for our core business, net income of $91 million, and diluted book value per share growth of 2%. Importantly, our Q1 performance is within the updated medium-term ROE guidance range of 12 to 15 percent. Beginning with a strong underwriting result for the quarter, our headline combined ratio of 91.4% for our core business was an improvement of 5% versus the prior year on a life-for-life basis, excluding the lost portfolio transfer transaction we announced in the first quarter of 2023.

Scott Egan: We are very pleased to report a strong first quarter with a combined ratio of 91, 4% for our core business.

Scott Egan: Net income of $91 million or diluted book value per share growth of 2%.

Scott Egan: Importantly, our Q1 performance is within the updated medium term auto guidance range of 12% to 15%.

Scott Egan: Beginning with a strong underwriting result for the quarter.

Scott Egan: Our headline combined ratio of 91 fourth of our core business was an improvement of 5% versus prior year on a like for like basis, excluding the loss portfolio transfer transaction, we announced in the first quarter of 2023.

Scott Egan: The combined ratio has been supported by both loss and expense ratio improvements, with the loss ratio improving 5 points, of which, importantly, 3 points came from attritional loss ratio improvement. We recorded no cap losses in the first quarter compared to 7 million last year and have no material exposure related to the Baltimore Key Bridge. On an accident-year basis, the combined ratio also saw an improvement and was down by around 4 points to 92.9%.

Our combined ratio has been supported by both loss and expense ratio improvement with the loss ratio improving five points of which importantly, three points came from attritional loss ratio improvement.

Scott Egan: Recorded no cat losses in the first quarter compared to $7 million last year and have no material exposure related to the Baltimore key bridge.

Scott Egan: On an accident year basis. The combined ratio also saw an improvement and was down by around four points to 92, 9%.

Scott Egan: Additionally, on a consolidated basis, this quarter marks the twelfth consecutive quarter of favourable prior year development, providing strong evidence of a prudent approach to reserving. Our other underwriting expense ratio for core business also decreased 1.4 points versus Q1 last year as we realized the benefits from our cost saving program.

Scott Egan: Additionally, on a consolidated basis this quarter marks the 12th consecutive quarter of favorable prior year development, providing strong evidence of our prudent approach to reserving.

Scott Egan: Our other underwriting expense ratio for core business also decreased one four points versus Q1 last year as we realize the benefits from our cost saving program.

Scott Egan: Combined, these improvements are important proof points of the actions we have and are taking to drive better and the right performance. Turning to our investment result, which continues to be strong in quarter one. Net investment income of $79 million reflects the strong rate performance in the first quarter, continued optimisation work by the team, and rotation into high-quality spread products. Our portfolio continues to perform well, and again, we saw no defaults across our fixed income portfolio this quarter.

Scott Egan: Combined these improvements are important proof points of the options, we have and are taking to drive better underwriting performance turning to investments results, which continues to be strong in quarter one.

Scott Egan: Net investment income of $79 million reflects the strong rate performance in the first quarter continue.

Scott Egan: Continued optimization work by the team and rotation into high quality spread products.

Scott Egan: Our portfolio continues to perform well and again, we saw annuity flows across our fixed income portfolio of this quarter.

Scott Egan: Overall, our investment strategy remains unchanged, and we continue to operate a fixed income portfolio with an average credit rating of double A. Turning now to our Distribution Strategy and Consolidated NGAs, which have delivered strong results. Our distribution strategy remains important to us, and we have continued to onboard new MGA underwriting partners in line with our intention to partner as a paper and capacity provider without taking an equity stake. We added a total of 3 new MGA partners in the first quarter and expanded our relationship with 2 existing partners.

Scott Egan: Overall, our investment strategy remains unchanged and we continue to operate our fixed income portfolio with an average credit rating of double a.

Scott Egan: Turning now to a distribution strategy and consolidated MGH, which have delivered strong results.

Scott Egan: Our distribution strategy remains important to us and we have continued to onboard new MGA underwriting partners in line with the intention to partner as a paper on capacity provider without taking an equity stake.

Scott Egan: <unk> added a total of three new MGA partners in the first quarter and expanded our relationship with two existing partners.

Scott Egan: Since the end of the quarter, we have also entered into two further new partnerships. This momentum we are building should bear fruit as we go through the year and emerge from the impact of the underwriting decisions we have taken to improve underwriting profits. We continue to rationalize our equity stakes in the first quarter, closing the previously announced sale of Corvus and writing off a small investment. This brings our total holdings to 24 at the end of the first quarter, down from 36 at the beginning of 2023.

Scott Egan: Since the end of the quarter. We have also entered into two new partnerships.

Scott Egan: This momentum we are building should bear fruit as we go through the year and emerged from the impact of the underwriting decisions, we have taken to improve the underwriting profit.

Scott Egan: We continue to rationalize our equity stakes in the first quarter closing the previously announced sale of Corvus and written off a small investment.

Scott Egan: This brings our total holdings to 24 at the end of the first quarter down from 36 at the beginning of 2023.

Scott Egan: Moving on to our consolidated MGA stand-alone performance, service revenues were up 3% on the prior year, while service margin increased by 1.2% to 30%, generating net service fee income of $20 million, up 8% year-on-year. However, despite the strong underlying performance, we continue to believe that the actual economic value is significantly higher than the carrying value of these assets and is not fully reflected in Siriuspoint's share price. So, in summary, 2024 is off to a strong start.

Scott Egan: Moving on to our consolidated <unk> Standalone performance.

Scott Egan: <unk> revenues were up 3% on prior year, while <unk> margin increased by one point to 30% generate net service fee income of $20 million up 8% year on year.

Scott Egan: Despite the strong underlying performance, we continue to believe that the actual economic value is significantly higher than the carrying value of these assets that is not fully reflected in cities share price.

Scott Egan: Our aim is to keep that going. We are focused on improving the returns of the business, targeting a 12 to 15% return on equity in the medium term. Q1 Performance Shows we are on track. With these remarks, I will pass it over to Steve, who will take you through the financials.

Scott Egan: So in summary, 2024 is off to a strong start our aim is to keep that going.

Scott Egan: We are focused on improving the returns of the business targeting a 12% to 15% return on equity in the medium term.

Scott Egan: Q1 performance shows we are on track.

Scott Egan: With these remarks I will pass it over to Steve who will take you through the financials.

Stephen Yendall: Thank you, Scott. And good morning. Good afternoon, everyone.

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

Steve: I'll now take you through the financial section of the presentation, starting with first quarter financials on slide eight.

Stephen Yendall: I'll now take you to the financial section of the presentation, starting with the first quarter financials on slide. Overall, it was a strong quarter with all three earnings engines positively contributing to net income and up year-on-year on a like-for-like basis as we adjust for the benefits linked to the lost portfolio transaction. For the underwriting result, this marks the sixth consecutive quarter of positive income as we delivered core underwriting profits of $44 million with a combined ratio of 91.4%. Gross premiums written decreased 17% quarter on quarter for our core business.

Steve: Overall, it was a strong quarter with all three earnings engines positively contributing to net income and up year on year on a like for like basis as we adjust for the benefits linked to the loss portfolio transaction.

Steve: So the underwriting result, this marks the sixth consecutive quarter of positive income as we delivered core underwriting profits of $44 million with a combined ratio of 91, 4%.

Steve: Gross premiums written decreased 17% quarter on quarter for our core business.

Stephen Yendall: Top-line growth was impacted by premium reductions in both the reinsurance segment, where premiums are down $40 million compared to the first quarter of last year, and insurance and services, where premiums decreased by $140 million. However, premium deduction was largely driven by exits in certain programs like cyber and workers' compensation, and adjusting for those, premiums were down 7% for the core business. The reduction in premium demonstrates the decisive actions we have taken to prioritize underwriting profitability and to ensure we are closing the financial performance gap to operate at a best-in-class level. We do expect to pivot to growth in 2025.

Steve: Top line growth was impacted by premium reductions in both the reinsurance segment, where premiums are down $40 million compared to the first quarter last year and insurance and services, where premiums decreased by $140 million.

Steve: However, premium direction was largely driven by exits in certain programs like cyber and workers compensation and adjusting for those premiums were down 7% for the core business.

The reduction in premium it demonstrates the decisive actions, we have taken to prioritize underwriting profitability and to ensure we are closing the financial performance gap to operate at best in class levels, We do expect to pivot to growth in 2025.

Stephen Yendall: Core MGA revenues grew 3% on the prior year to $66 million and were driven mainly by growth from Armada, IMG, and Arcadian. Margin improved by 1.4 points to a strong 30%, resulting in our MGA net services fee income increasing to $20 million for the quarter, and was driven by better margins at both Armada and IMG. Total investment result for the quarter was strong at $80 million. This was driven by $79 million of net investment income, which is up by $17 million compared to the prior quarter as the de-risked portfolio continues to benefit from rate increases. Unrealized and realized gains, including from related party investment funds, were $1 million.

Steve: Or MGA with revenues grew 3% on prior year to $66 million and were driven mainly by growth from Nevada, IMG and Arcadia.

Margins improved by one four points to a strong 30%, resulting in our MGA net service fee income increasing to $20 billion for the quarter and was driven by better margins at both Armada and the IMG.

Steve: Total investment results for the quarter was strong at $80 million. This was driven by $79 million of net investment income, which is up by $17 million compared to the prior quarter as the de risked portfolio continues to benefit from rate increases unrealized and realized gains including from related party investment funds were $1 million.

Stephen Yendall: Net income of $91 million is lower compared to the prior year quarter of $132 million, which included a one-off benefit of $80 million post-tax relating to the lost portfolio transfer announced in March of last year. On a like-for-like basis, excluding the benefit of the lost portfolio transfer, that income was up $44 million. Other items impacting income included $4 million of foreign exchange gains and a $60 million impact from mark-to-market on liability-classified capital instruments. Common shareholders' equity grew by 4% during the quarter, supported by strong earnings.

Steve: Net income of $91 million is lower compared to the prior year quarter of 132 million, which included a one off benefit of $80 million post tax relating to the loss portfolio transfer announced in March of last year.

Steve: On a like for like basis, excluding the benefit of the loss portfolio transfer net income was up $44 million.

Steve: Other items impacting income included $4 million of foreign exchange gains and a $16 million impact from mark to market on liability classified capital instruments.

Steve: Common shareholders' equity grew by 4% during the quarter supported by strong earnings.

Adjusting for LCI common shareholders' equity growth was 5% in the quarter.

Stephen Yendall: Adjusting for AOCI, common shareholders' equity growth was 5% in the quarter. Moving on to slide nine, I will focus on the rate trends, including 4-1 renewal. We saw an average rate change of around 4% across our portfolio, excluding the North American program. This change was mainly driven by the U.S. casualty and non-U.S. property portfolio. Non-U.S. property saw a 4% rate increase, while rates in the U.S. increased by 3%.

Speaker Change: Moving on to slide nine I will focus on the rate trends, including four one renewals.

Speaker Change: We saw an average rate change it around 4% across our portfolio, excluding the North American program business rate change was mainly driven by the U S casualty at non U S property portfolio.

Speaker Change: Non U S property saw a 4% rate increase while rates in the U S casualty increased by 3% accident and health rates were up around 5% while rates in the international business were up 4%.

Stephen Yendall: Accident and health rates were up around 5%, while rates in the international business were up 4%. Moving to the topic of renewals, only 6% of our business renews in April, excluding North American program business. Experience an average rate change of around 5% across the portfolio, excluding the North America program. Next slide 10 shows the year-to-date changes in combined ratio for our core business and breaks the movements into individual subcomponents. Our headline combined ratio for the corn business was 80.5% in the first quarter of 2023 and benefited from 16.3 points of reserve releases linked to the LPT transaction.

Speaker Change: Moving to the topic of renewables only 6% of our business renews in April excluding North American program business, we experienced an average rate change at around 5% across the portfolio, Excluding North America program business.

Speaker Change: Next slide 10 shows the year to date changes in combined ratio for our core business and breaks the movements into individual sub components.

Speaker Change: Our headline combined ratio for the corn business with 85% in the first quarter 2023 and benefited from 16 three points of reserve releases linked to the LPT transaction.

Stephen Yendall: Likewise, we benefited by 0.3 points from the LPT in the first quarter of 2024 related to the recognition of the deferred gain as we reported a headline combined ratio of 91.4%. Adjusting for these LPT-related benefits, we saw 5.1 points of improvement on a like-for-like basis. The improvement in the combined ratio for the core business was driven mainly by lower attritional and cat losses compared to the same period of the prior year. The core attritional loss ratio is at 59.7%, down 2.6 points from the previous year period, while we had no cats in the first quarter compared to 7 million last year for the core business.

Likewise, we benefited by three points from the LPT in the first quarter of 2024 related to the recognition of the deferred gain as we reported a headline combined ratio of 91, 4%.

Speaker Change: Adjusting for these LPT related benefits, we saw five one points of improvement on a like for like basis.

Speaker Change: The improvement in the combined ratio for the core business was driven mainly by lower Attritional and cat losses compared to the same period of the prior year. The core Attritional loss ratio was at 59, 7% down two six points on the previous year period, while we had no cats in the first quarter compared to $7 million last year for the core business.

Stephen Yendall: On slides 11 and 12, we look at the investment portfolio investment results. We delivered strong net investment income of $79 million, increased our overall asset duration to 2.9 years from 2.8 years versus full year 2023, and locked in attractive reinvestment yields in excess of 4.5% on our investments during the quarter. We continue to rotate our portfolio during the first quarter, investing over $300 million from short-term investments in treasuries into high-grade corporates and structured credit. We continue to benefit from higher rates.

Speaker Change: On slides 11, and 12, we look at the investment portfolio investment result.

Speaker Change: We delivered strong net investment income of $79 million increased our overall asset duration to two nine years from two eight years versus full year 2023, and locked in attractive reinvestment yields in excess of four 5% on our investments during the quarter.

Speaker Change: We continue to rotate our portfolio during the first quarter investing over $300 million from short term investments in treasuries into high grade corporates and structured credit we continue to benefit from higher rates.

Stephen Yendall: Overall, our investment strategy remains unchanged and focused on maintaining a high-quality fixed income portfolio. 75% of our investment portfolio is now fixed income, of which 98% is investment grade with an average credit rating unchanged at AA. We did not experience any defaults in our fixed income portfolio during the quarter.

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

Speaker Change: 75% of our investment portfolio is now fixed income of which 98% is investment grade with an average credit rating unchanged at double a.

Speaker Change: We did not experience any defaults in our fixed income portfolio during the quarter.

Stephen Yendall: P&L volatility is significantly lower and has helped given 93% of the fixed income portfolio is now designated as available for sale, up from 90% at Q4 2023 and none at year-end 2021. Moving on to slide 13, which looks at our balance sheet. Our balance sheet is strong, ending the quarter with $2.4 billion of common shareholders' equity, which is up 4% in the quarter, driven by the growth in net income. Total capital, including debt, stood at $3.4 billion.

Speaker Change: P&L volatility is significantly lower and has helped give a 93% of the fixed income portfolio is now designated as available for sale up from 90% at Q4, 2023, and none at year end 2021.

Speaker Change: Moving on to slide 13, which looks at our balance sheet. Our balance sheet is strong ending the quarter with $2 4 billion of common shareholders' equity, which is up 4% in the quarter driven by the growth in net income.

Speaker Change: Total capital, including debt stood at $3 4 billion.

Stephen Yendall: We lowered our debt to total capital ratio to 22.8%, which is within our target range; debt leverage improved by one point, and asset leverage is stable at 3.2 times. As a result of the debt actions mentioned earlier, we expect debt leverage to improve by a further two and a half points. With this, we conclude the financial section of our presentation. Our first quarter results were strong and demonstrated another quarter of stable, consistent, and improving results.

Speaker Change: We lowered our debt to total capital ratio to 22, 8%, which is within our target range.

Speaker Change: Debt leverage improved by one point and asset leverage is stable at three two times.

Speaker Change: As a result of the debt actions mentioned earlier, we expect that leverage to improve by a further two five points.

Speaker Change: With this we conclude the financial section of our presentation.

Speaker Change: Our first quarter results were strong and demonstrated another quarter of stable consistent and improving results.

Stephen Yendall: We expect to build on this performance and aim to deliver a 12 to 15% return on average common equity in the medium term. 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 SiriusPT.com. I now turn the call back over to the operator.

Speaker Change: We expect to build on this performance and aim to deliver a 12% to 15% return on average common equity and the medium term.

Speaker Change: 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 Sirius PT Dot com.

Speaker Change: I would now turn the call back over to the operator.

Operator: Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation. You may disconnect your lines at this time, and thank you for your participation.

Speaker Change: Thank you. This will conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.

Speaker Change: You may disconnect your lines at this time and thank you for your participation.