Good morning, ladies and gentlemen, and welcome to SiriusPoint Fourth Quarter and Full Year 2021 Earnings Conference Call. [Operator Instructions]. As a reminder, this call is being recorded. I would now like to turn the call over to Ms. Clare Kerrigan, Head of Investor Relations for SiriusPoint. Please go ahead.

Thank you, operator. Welcome to the SiriusPoint Limited Earnings Call for the fourth quarter of 2021. Last night, we issued our earnings press release and financial supplement, which are available on our website, www.siriuspt.com. With me here today are Sid Sankaran, our Chairman and Chief Executive Officer; and David Junius, our Chief Financial Officer. Before we begin, I would like to remind you that many of the remarks today will contain forward-looking statements based on current expectations. Actual results may differ materially from those projected as a result of certain risks and uncertainties. Please refer to the earnings press release and the company's other public filings, including the recent Form 10-Q for the period ended September 30, 2021, where you will find risk factors that could cause actual results to differ materially from these forward-looking statements. In addition, management will refer to certain non-GAAP financial measures which management believe allow for a more complete understanding of the company's financial results. A reconciliation of these non-GAAP measures to the most comparable GAAP measure is presented in the company's earnings press release that is available on our website. At this time, I will turn the call over to Sid.

Thank you, Clare, and good morning, everyone. It's terrific to be speaking with you on the first anniversary of SiriusPoint's formation. At the end of February last year, we created a company that has enormous potential with a global platform, strong long-term relationships and outstanding talent. Our strategy is focused on a comprehensive reunderwriting of our property, casualty and specialty reinsurance portfolios. Building value in our Insurance and Services segment, including our robust and growing MGA platform and repositioning our capital allocation within our investment portfolio. The team has been relentless this year in their dedication to positive change and profitable growth, and I couldn't be more proud of the talented people who make up SiriusPoint. Some of our milestones this year include launching on the New York Stock Exchange on February 26, 2021, under the ticker symbol SPNT with a new management team who bring a wealth of diverse experience and expertise. Creating our Insurance and Services division and developing our brand as the go-to partner for entrepreneurs in the insurance industry. We've evaluated over 200 partnership opportunities and have launched strategic partnerships with over 20 companies, bringing our total portfolio to over 30 relationships. We've recruited significant new hires in key growth areas and functional support with unique skills and expertise to build on our outstanding talent and drive our business forward. We've made significant progress over the last year, dramatically reshaping our company with a single-minded focus on our goals of optimizing our capital allocation, reducing our volatility profile and leveraging our global platform to build long-term differentiated value for our shareholders, partners and clients. Our focus remains on continuing to shift to a more balanced business mix between insurance and reinsurance. In particular, away from property cat and on reducing equity exposure in our investment portfolio.…

Thanks, Sid. For the fourth quarter, we generated a net loss of $140 million or $0.88 per diluted share versus net income of $134 million or $1.43 per diluted share in the same quarter a year ago. Our annualized return on average common equity in the quarter was negative 23.7%. As Sid mentioned, we returned to underwriting profitability following Q3, but this was offset by investment losses driven by a broad equity market decline. For the full year, we generated net income of $45 million or $0.27 per diluted share versus net income of $144 million or $1.53 per diluted share in the prior year. Our return on average common equity was 2.3% for the year. As Sid mentioned, this quarter, we changed our reporting segments to reinsurance and insurance and services, the combination of which we define as core, with our remaining results, including the former Runoff segment reported in the corporate results. Core underwriting income and net core services income are each presented on a gross basis to show the contribution of underwriting and our consolidated distribution platforms before intercompany eliminations. So as if the key parts of the company operated independently. As part of this change, we have broken out service fee income and expenses as well as gains and losses from our investments in MGAs separately from underwriting income. This provides stakeholders with greater transparency into the profit contribution from the fee-driven parts of our business as well as the returns on our investments in our strategic partnerships. The combination of core underwriting and net core services income is core income. We believe this presentation better reflects our company's strategy and management structure and provides transparency in which to evaluate the transformation of our reinsurance business and the growth in our Insurance and Services segment. Additional…

Thanks, David. Going into 2022, our focus remains on profitable and sustainable growth, shifting our business mix and continuing to execute on our insurance and services strategy. When we closed the merger last February, we knew it would take a year and 1/1 renewals to derisk our reinsurance book. While our results are not yet reflective of the work we have undertaken, I'm confident that we have positioned our reinsurance portfolio for lower volatility and improved profitability going forward. While we have been successful in repositioning our portfolio, we have also made meaningful investments in over 20 MGAs and insurance services company, bringing our portfolio of partnerships to over 30. We believe these partnerships will accelerate our growth and improve our profitability as these investments mature over time. Lastly, we've derisked our investment portfolio, which will result in lower returns but also lower risk volatility in the year ahead. We have financial strength, a flexible underwriting and operating platform, a great team with a strong entrepreneurial culture and a disciplined growth mindset. I'm full of enthusiasm for the year ahead. Thank you for your time, and I'll turn the call back over to the operator.

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