SiriusPoint Ltd. (SPNT) Q3 2026 Earnings Report, Transcript and Summary

Good morning, ladies and gentlemen, and welcome to the Sirius Point Third Quarter 26 Earnings Conference Call. During today's presentation, all parties will be in a listen-only mode. Following the conclusion of prepared remarks, management will host a question-and-answer session, and instructions will be given at that time. As a reminder, this conference call is being recorded and a replay is available through 11:59PM eastern time on 11/20/2026. With that, I would like to turn the call over to Liam Blackledge, investor relations and strategy manager. Please go ahead.

Good morning, and thank you for joining us for SiriusPoint's Third Quarter and 9 Months 26 Earnings Call. Last night, we released our earnings press release Form 10 Q, financial supplement. All of which are available on our website at investors.siriuspt.com, along with the slides that will accompany today's discussion. Joining me on the call are Scott Egan, our Chief Executive Officer and Jim McKinney, our Chief Financial Officer. Before we begin, I would like to remind you that today's remarks contain forward looking statements based on current expectations, and actual results may differ materially. We will also reference certain non GAAP financial measures we believe are useful in evaluating the performance of the business. Reconciliations can be found in the presentation on our SEC filings. Please refer to our earnings release and accompanying materials for a more complete discussion of forward looking statements and non GAAP measures. With that, I will turn the call over to Scott.

Thanks, Liam, and welcome, everyone, to our third quarter and 9 months results call. Before I jump into the results, I want to welcome John Sutherland to our board of directors John brings more than 35 years of insurance industry experience, and I am sure many of you know him from his time at Progressive, where he most recently served as chief financial officer John will be a strong addition to the board, and his appointment speaks to the quality of the business we are building and our ambitions for the future. And I am really looking forward to welcoming John to Sirius Point. Turning to the results now. The third quarter saw Sirius Point deliver another strong performance. With attractive underwriting margins, disciplined growth, and returns above a 12% to 15% ROE target range. We continue to demonstrate the strength of our diversified specialty underwriting portfolio which is increasingly important as pricing becomes more competitive in multiple lines of business. Our business model and approach to the market is delivering strong premium growth in the places we want it. And where we see attractive underwriting margins. The performance this quarter is further evidence of our portfolio mix and deliberate low volatility strategy delivering for our shareholders. Stated aim is to deliver a 12% to 15% return across the cycle and this is another quarter where we have exceeded that target and created strong shareholder value. Throughout the 9 months mark, our key takeaways are unambiguous. The business is performing strongly, We are committed to underwriting discipline, We actively and carefully manage our portfolio mix and volatility, We are growing and have a healthy pipeline of business opportunities. And we have a strong balance sheet and can be agile in our deployment of capital. Jim will take you through the full financials later in the call as usual, But as a brief overview, the third quarter saw us deliver 20% growth in insurance and services and a core combined ratio of 90.1%. Our operating return on equity 17.6%. Year to date, insurance and services had grown by 14% while overall core growth of 7% reflects a disciplined approach to reinsurance where we have shrunk premiums by 6%. On a year to date basis, our core combined ratio was also at 90.1%, and our operating return on equity is 15.8%. Above a 12 to 15% target range. Book value continues to compound at a strong rate, excluding AOCI, our diluted book value per share increased by 4% in the quarter, and is now up 12% through the first 9 months. Core operating return on equity which excludes the runoff portfolio result, was 18.1% for the quarter and 17% for the first 9 months. This metric becomes increasingly important given today's announcement that we have entered into a loss portfolio transfer agreement with Riverstone, which will substantially cover our remaining runoff exposures. The transaction is subject to customary regulatory approvals, and following completion, our runoff exposures will be at de minimis levels. Put simply, this transaction allows us to effectively close the chapter on the legacy book once and for all. The transaction is supported by significant limit and strong collateral while Sirius Point will retain some responsibility for claims administration. As I have previously discussed on these calls, the runoff reserves relate to business written before 2023, prior to when the organization pivoted through its new underwriting strategy. We have been running off and reducing over the past few years but carry the potential to cause reserve volatility along the way. Since 2024, our pure underwriting losses excluding claims administration expenses, have totaled $60 million for the runoff portfolio. Therefore, we see the mitigation of this uncertainty as a further positive step and 1 we hope reinforces the earning strength of our go forward core portfolio which, as I said earlier, is operating well above a 12% to 15% return on equity target. We feel that our reserve position was strong prior to the LPT reflecting our approach to initially reserving NGAs above pricing projections and our track record of 22 consecutive quarters of favorable prior year releases. Following the transaction, we feel we are in an even stronger reserving position as we have removed what we believe to be the greatest element of uncertainty. Jim will discuss the expected accounting impact but importantly, it also frees up capital tied to these legacy reserves, over $200 million upon completion and will increase our BSCR ratio by around 20 percentage points. I am sure I will get asked what we plan to do with this capital and our prioritization remains unchanged. We want to deploy it to support our organic growth, where it meets our strict underwriting targets. Beyond that, we will continue to be thoughtful and dynamic in our approach to capital management, returning excess capital to shareholders when appropriate. This can be seen by our track record where we have $300 million in 2026 alone, on top of the $1 billion of capital returned from strategic capital actions between 2024 and 2025. In line with the established practice we have set out, we expect to provide an update on our capitalization levels and capital return program in the fourth quarter earnings call following the closeout of 2026 and the completion of our 2027 planning process. In the meantime, we will continue with our current buyback program which we set out earlier in the year. What is clear is that our balance sheet capital strength, and agility have never been higher or stronger and that is a good thing for all stakeholders. Looking at slide 11 where we show our core operating ROE metrics, as I noted earlier, this becomes a more important metric as we think about the business performance going forward post the LPT. and 1 that we introduced at the beginning of this year with this evolution in mind By reducing the earnings drag associated with the legacy book, the LPT could drive greater alignment between our core operating ROE and operating ROE on a go forward basis. There will still be claims administration and related expenses for a period while it runs off. Our core operating ROE has exceeded our 12% to 15% target for the past 2 years and is above again for the first 9 months of this year. The LPT transaction reinforces the company's ability and LPT confidence to meet or outperform that range going forward. Looking briefly at slide 7, our track record for both earnings and value creation is strong and consistent. Operating earnings per share continued to grow and are up 19% in the third quarter and 17% year-to-date to date versus the prior year. On the back of this, our book value per share can continues to compound at a healthy rate, with a compound annual growth rate of 19% over the last 3 years. We have grown book value per share by 12% just in the first 9 months, reinforcing that trajectory. These numbers demonstrate a momentum and consistency which I believe validates our strategy and approach building a diversified portfolio that targets disciplined and sustainable growth. Slide 12 talks to this portfolio, and illustrates the scale and breadth of our specialty platform, the meaningful positions we have across multiple lines, and our active management of the various pricing cycles. Importantly, where we are growing and where we are reducing exposure is consistent with the market conditions we have been describing to you and those evident across the broader market We do not need to maintain positions in lines where returns do not adequately compensate for the risk taken. We have other opportunities to deploy our capital more attractively. You can see this in action with solid growth in accident and in health, security, and pockets of P&C insurance lines, while we are reducing premiums in aviation and property cat reinsurance. We are not afraid to either lean in or lean out in specific markets. And Jim will provide more color on each of the specialties. Later in the call. We also want to outline our plans today to update our segment reporting beginning in the fourth quarter. Since 2022, we have changed significantly and have evolved from our roots as a Bermudian reinsurer into a specialty underwriter with a strong insurance focus anchored around key specialty lines of business. Increasingly, these specialties reflect how we discuss, and manage the portfolio today dynamically balancing market conditions and mix to deliver low volatility outcomes for the total portfolio which we at Clear drives the best value creation for shareholders. We think our financial reporting should reflect that evolution. So beginning in the fourth quarter, we expect to update our financial reporting segments to better reflect the evolution of the business and how we manage the company. Accident and health, our largest specialty line rating over $1 billion of premium, becomes a standalone segment. A&H is strategically important to Sirius Point. Given its track record of profitability low correlation with P&C market cycles, and relatively low capital intensity. These are our attributes we regularly highlight investors and that generate significant interest Reporting A&H separately will make its importance and performance more transparent beyond just words. The remaining 9 specialties form a new segment called specialty P&C, For clarity, our core result remains unchanged. And is comprised of the combination of these 2 proposed segments. Both segments currently operate at combined ratios in the low nineties and we plan to publish unaudited recast financials prior to the issuance of the Form 10 k. We will continue to provide supplementary premium growth trends on an insurance and reinsurance basis for continuity. We believe this change will demonstrate more clearly to all stakeholders how our business has changed as it is more congruent with how we manage the business internally and aligns with how we talk and describe ourselves externally. It will also help investors evaluate our performance against other US specialty peers who report in a similar manner as we continue our market education on the evolution of our business. It will position us more appropriately alongside peers that better reflect our business mix performance profile, and valuation potential. Before I hand over to Jim, let me close with some key takeaways as we reflect on our performance through the first 9 months and look to close out another strong performance year. The third quarter is yet another strong low volatility quarter operating above our return on equity guidance. Our track record continues to demonstrate the consistency and predictability between what we say and what we deliver. This matters. The continued disciplined growth of our insurance is creating real shareholder value and our pipeline remains strong. Our capital position balance sheet, and ratings are strong, coupled with an ability to deploy capital quickly, we see opportunity. Our LPT announcement today with respect to our runoff reserves removed the last part of our legacy portfolio and highlights unambiguously the strong performance of our core business. And finally, we are not standing still. We are not a team who are complacent in any way. Our ambition runs deep, and we are determined to continue to improve the business providing attractive underwriting returns across the cycle and continue to compound shareholder value. Our track record on all of these points is there to be seen. And with that, I will pass over to Jim

Thank you, Scott, and good morning or good afternoon, everyone. I will provide a bit of additional detail to our third quarter and 9 months financial results. Then cover underwriting investments, capital, the balance sheet. Turning to our financial results. The quality and diversification of the portfolio Scott described are reflected in another quarter of solid operating performance. Gross written premium growth accelerated in the third quarter driven by continued strong growth in insurance, and a return to modest growth in reinsurance. Core gross written premium increased 14% to $991 million. While net written premium increased 2% reflecting growth in lower retention lines such as surety, as well as changes in business mix. Earned premiums increased 19% including the impact of changes in premium earning estimates recognized in the quarter. The core combined ratio was 90.1%, resulting in underwriting income of $76 million. A 9% increase from the prior year period. The results reflect the combination of current period underwriting performance, and favorable prior year development which I will discuss in more detail shortly. Our diversified earning engines also contributed to the quarter, Net services fee income increased 21% year over year to $12 million. Growth was 44% on an adjusted, go-forward MGA basis. Total investment income was $69 million, including $66 million of net investment income. Operating net income was $103 million for the third quarter, Operating earnings per diluted share were $0.88 up 19% year over year. As Scott noted, diluted book value per share excluding AOCI increased by $0.73 during the quarter to $20.21. Together, our operating performance and disciplined capital management continue to support growth in per share value. The quarter's key takeaway is that our diversified underwriting, services, and investment earnings translated into consistent operating performance, attractive returns, and growth in shareholder value. Turning to Slide 19. The first 9-month results reinforce the broader themes evident in the third quarter strong underwriting profitability, growing fee-based earnings, and a meaningful contribution from investments. Core gross written premium grew 7% at nearly $3 billion, with net earned premiums also growing at 7%. Our growth remains subject to attractive underwriting conditions and our continued focus on profitability. Core underwriting income increased 22% to $202 million with the combined ratio improving 1.3 points to 90.1%. The improvement was led by reinsurance where the combined ratio improved 4.3 points to 87.4% benefiting from lower attritional loss experience and significantly lower catastrophe losses. Insurance and services underwriting income remained broadly stable, while favorable prior year development across both segments continue to support the overall result. We continue to see strong contributions from both our fee based and investment earning engines. As a result, operating earnings per share increased 17% year over year to $2.29. And diluted book value per share, excluding AOCI, increased by $2.11 to $20.21. Overall, the first 9 months demonstrate the quality of our franchise reflected in strong underwriting profitability, increasing diversified earnings streams, and continued growth per share value. Our strong performance and robust balance sheet provide us with substantial flexibility in how we deploy capital and maximize shareholder value. Turning to segment performance on slide 20. The results continue to reinforce the theme Scott and I have discussed today. Growth driven by our insurance and services business, continued discipline in reinsurance. Gross written premium in insurance and services grew 20% in the third quarter driven by credit, surety, and increases in premium estimates for FinPro. This was partly offset by lower A&H premiums following the nonrenewal of a specific large program. We expect A&H premiums to return to low single digit growth in the fourth quarter, while the pipeline entering 2027 remains encouraging. The segment produced a strong combined ratio of 92.8% for the quarter and 92% year to date. The higher acquisition costs include profit commissions associated with favorable underwriting performance across multiple accident years. Those commissions should therefore be considered together with the corresponding improvement in loss experience when assessing the overall underwriting result. The combination of strong growth and underwriting performance, reflects both the quality of opportunities we are pursuing and the discipline with which we are deploying capital. Reinsurance gross written premium returned to growth, Increasing 3% in the quarter. While year to date premiums declined 6% as we maintained our focus on profitability over volume. The combined ratio improved 1.9 percentage points in the quarter and 4.3 points year to date. Primarily due to lower catastrophe losses. The acquisition ratio increased as favorable loss experience drove higher variable commissions and business mix shifted toward more stable structured business partly offset by lower attritional losses. Across both segments, losses recognized to date in relation to the Middle East conflict remain limited. Overall, these results reflect the quality of the portfolio we have built. The strong growth in attractive areas of the market active portfolio management, and continued discipline where risk adjusted returns are becoming less compelling. Circling back and double clicking into our core specialty lines shown on page 12. Accident and health, our largest line at 26% of premium mix, combines attractive profitability with relatively low capital intensity. Employer stop loss continues to show signs of firming, and we remain well positioned to capitalize on improving market conditions. Within US medical, excess of loss, we are seeing rate expectations in excess of 20%. As Scott mentioned earlier, we plan to update our underwriting segments in the fourth quarter. Under the contemplated structure, Accident and Health will become a standalone segment with our remaining 9 specialties comprising a new specialty P&C segment. General liability continues to benefit from disciplined pricing. With rate broadly keeping pace with loss trends. Despite some moderation in the pace of increases. We remain selective, focusing on areas where our underwriting expertise, and market positions support attractive risk adjusted returns. Financial and professional lines remain competitive. Particularly in D&O and professional liability. While market conditions are showing signs of stabilization, we continue to prioritize margin over growth. Other property remains mixed. We have reduced participation where reinsurance pricing has softened. While selectively pursuing insurance opportunities where returns remain attractive. Surety pricing remains stable and continues to provide attractive diversification. While we are monitoring emerging loss trends, our portfolio remains differentiated, with an emphasis on commercial surety, limited exposure to larger project related risks. In aviation, we continue to expect double digit rate increases for major airlines during the fourth quarter renewal season. Despite the improving rate environment, we remain disciplined in our deployment of capacity. Credit remains well priced and delivered strong growth in the quarter, supported by favorable market conditions. Within other casualty, we continue to reduce auto exposure in response to unfavorable loss cost trend. While environmental continues to deliver strong growth and performance. Marine and energy remains mixed. We continue to see attractive opportunities in selected energy and specialty niches. While competitive pressure persists in ports and terminals and upstream energy. Marine war pricing remains elevated amid continued regional geopolitical instability. Finally, property catastrophe reinsurance, which now represents approximately 4% of the portfolio, we expect continued pricing pressure Consistent with our strategy, we have reduced participation and reallocated capital towards more attractive opportunities across the portfolio. Overall, market conditions vary across our specialties. But our approach remains consistent. Maintain underwriting discipline, prioritize the opportunities offering the strongest risk adjusted returns, and continue improving the quality and resilience of our earnings. Looking specifically to the fourth quarter, the nonrenewal of a FinPro program together with certain 1-off premium in the prior year comparison is expected to result in specialty P&C premiums being modestly lower year over year. We expect growth to resume in 2027 as these comparison effects normalize. Turning to slide 21. We recorded our 20 second consecutive quarter of favorable prior year development. We believe that a track record is consistent with the disciplined reserving approach we have maintained. While recognizing the inherent uncertainty and reserve estimates. Favorable development in the third quarter came from multiple lines of business, including A&H, energy, credit, and property. The consistency of our reserving approach supports confidence in the quality of our balance sheet, and our ability to manage capital through the cycle. Turning to Slide 22. Our investment portfolio continues to perform as intended. Providing a stable and predictable contribution to earnings alongside our underwriting and fee income. For the first 9 months, net investment income was $198 million, and total investment income was $220 million. Portfolio credit quality remains unchanged, Average credit quality is double a minus. Approximately 99% of the portfolio is investment grade, Private creditor exposure remains limited, and there were no fixed income defaults during the period. Our reinvestment rate exceeded 5% during the quarter, as interest rates have risen globally. Together, with strong liquidity and a short duration profile, the investment portfolio remains well positioned to support durable earnings. Focusing on slides 23 and 24. Our strong performance and balance sheet provide flexibility to allocate capital across the attractive growth opportunities and shareholder returns. Our estimated BSCR ratio was 232%. Providing a meaningful buffer against severe stress scenarios. The LPT transaction Scott mentioned earlier further strengthens our well capitalized balance sheet. We estimate that the LPT will increase the BSCR ratio by approximately 20 points on a pro-forma basis upon close. Touching briefly on the LPT. On a go forward basis, we expect runoff losses to have a negligible impact. That expectation should be distinguished from the retained claims administration responsibility. The expected day 1 cost of the LPT is approximately $60 million. And the structure of the transaction provides SiriusPoint with potential future upside. We view that upfront cost in the context of the transaction's broader benefits. Including reduced legacy volatility, and the expected improvement in our capital position. Following $27 million of common share repurchases in the quarter, $74 million remains under our authorization. With the announcement of the LPT, we plan to resume share repurchases while continuing to prioritize capital required to support profitable growth and maintain our strong balance sheet. We will continue to return excess capital to shareholders when appropriate. Our debt to capital ratio remains historically low at 23%. $1 billion in liquidity, we have significant flexibility to fund the business pursue market opportunities, and deliver on our strategic priorities. Importantly, we continue to believe our current valuation does not fully reflect the value of our consolidated MGA platform, particularly IMG, or the quality and earnings power of the broader franchise. Our focus remains on demonstrating that value through consistent execution and disciplined capital allocation. To conclude, underwriting excellence, volatility reduction and balanced capital management continue to drive strong results. We are proud of what we have delivered in the third quarter and across the first 9 months. This quarter, we once again delivered disciplined, yet attractive premium growth, strong underwriting profits, and healthy margins with a continued focus on sustaining profitability. Net investment income well supported by portfolio yields Returns comfortably meeting our across-the-cycle targets, and continued capital strength and balance sheet flexibility. Subject to the customary regulatory approvals and completion, the announced LPT transaction is expected to unlock capital and further improve the group's capital flexibility. We enter the fourth quarter with a strong balance sheet, and a well positioned underwriting and investment portfolios. Building on the quality of our franchise and our track record, our priorities are to maintain underwriting discipline, complete the legacy portfolio transfer, and allocate capital to compound shareholder value supporting profitable growth and returning excess capital to shareholders when appropriate. With that, I will turn the call back to the operator, and we will open the lines for questions.

Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press 1 on your telephone keypad A confirmation tone will indicate your line is in the question queue You may press 2 if you would like to remove your question from the queue For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. 1 moment, please, while we poll for questions. Our first question is from Michael Phillips with Oppenheimer and Co. Please proceed with your question.

Yeah. Thanks. Good morning, everybody. I guess first question on the top line on the insurance segment, the international A&H. Can you talk about that a bit? Why was it exited? The size of it? Was there any prior year development in that? You mentioned PYD in A&H. Was there any in the international And just, you know, was it a profitability issue that you exited that business, that business, and how big was it?

Hi, Mike. Thanks for the question. Good to hear from you. Look, I would not over-index, Mike, if I am honest on any 1 specific thing. I mean, look, we will always going to have accounts and relationships that we--that we exit, et cetera. I think the overall message in A&H is it had positive PYD again, and that is a long track record of PYD that it is had You know, we exit relationships because for a multitude of reasons, sometimes it is performance, sometimes they choose to exit and go other places. For us, this is a performance reason. We were not getting the traction that we wanted and the underwriting actions. I think the thing you take from it is the A&H segment has performed again really strongly in the quarter, really strongly year to date. So, you know, we have been very transparent in calling it out, but it is not really a huge deal.

Okay. Thank you. Couple questions around the LPT. The claims administration that you will do, it looks like a mid teens, I guess, millions of administrative calls. Does that does that feel about right for that?

Jim, do you wanna give the guidance on the claims Yeah.

Sure. In terms of I guess, when you say mid teens, can you help me clarify? Are you thinking from can you just help me clarify what you are looking at?

Yeah. I am just looking in the--in the corporate section. If you look at the other underwriting costs, it is, you know, around $15, $16 million a year. Is that is that Yep. The right number to please?

Okay. Yeah. Sorry. that is relatively the right number to consider. That is correct.

And can you talk about the tail of that? Like, how long does this you know, business written before 2023? I do not know what is in that. How long Yeah.

So I would generally expect that, Mike, to amortize over roughly a 3-year period. Or when I say amortize, it will come down you know, somewhat. I would not say exactly linear because it follows, obviously, the settlement of claims. But it basically has about a 3-year, 2.5- to 3-year, tail with it, and you will see on a year over year basis, I would expect that number to come down correspondingly with claims and settlements, as they occur.

Okay. Thanks. Thanks, Jim. And maybe last 1, a little more higher level, I guess, with the with the recast of your segments. You know, Scott, you have talked about the strategic value of continuing with reinsurance. And you said you will continue to provide reinsurance. But does this does this recap team and think about the strategic rationale the way you view reinsurance with your MTA business?

Definitely. No. Mike, and I will reinforce a few really important messages. Look. We are we are leaning out in parts of the insurance failed really clearly in the first half of the year, but that be seen as strategic. That is normal cycle management for segments within reinsurance. Think we are happy to deploy capital in reinsurance where we see attractive returns and we are, and you saw that in Q3. And for us, and I have I have mentioned this before, we actually see the way that we approach clients and customers. For example, NGAs is often a blend of both reinsurance and insurance solutions. And so you should see the important strategic importance of reinsurance in that regard as well. So I would not read that reinsurance in any way is not strategically important to the business. Hopefully, that answers your question.

Yeah. It sure does. Yeah. Thank you. Thanks both, and congrats again.

Okay. Thanks, Mike. Appreciate the questions.

Our next question is from Roland Meyer with RBC Capital Markets. Please proceed with your question.

Hi. Good morning. I was Scott, this LPT transaction sounds like it is the culmination of the underwriting turnaround. You have also been active in cleaning up your various financing vehicles. Is there any further balance sheet optimization going forward? Or should we think about the capital decisions now as largely purely forward looking options?

Yes. I will pass it close to Jim in a second. Roland. there is definitely a little bit more work that we would probably do in the deck stack, but Jim can explain that. But look, I think you absolutely should see the LPT as the sort of closure of the past. And as I said, know, for me, when I came in, we repivoted the business from an underwriting perspective. Doing an LPT on that sort of 3 years ago, Roland was not really an option. We think this is an optimal time to do it. it is 1 of the reasons why we have been sort of trailing the information and some of the metrics like the core operating ROE, and hopefully, you can see the earnings power and potential of that business. And so for us, this allows us to close off the past from an underwriting perspective, and you should definitely see it as the closure of that I think it also allows us to redirect capital backing what I would call historical strategy and repoint it towards future strategy and other capital actions. So we are really pleased to get it done, Roland. We think it is optimal at this point in our journey And, Jim, why do not I pass across to you for just some balance sheet? But there is nothing I would say to on the high level for Jim answers. there is nothing significant. All the big work, you know, obviously, we did things like China and Shanghai, our past and other bits and pieces. there is nothing of that type of significance anymore. And, you know, 99% of our efforts are in the go forward potential of the business. But, Jim, do you wanna give a bit of color?

Yeah. Happy to. So I would I think I would break it down into a couple of components. I think when you look at our balance sheet, you are going to see that there are still some strategic minority interests MGA elements that we hold. And that those are anticipated to kind of monetize at what would be their normal portfolio event. And so that will give us an opportunity as we work through there to have additional components of our fund deployed to you know, NII, consistent NII as we go forward. Again, relatively immaterial in terms of where we started this. So think about a balance sheet that has less than kind of $100 million of it deployed relative to those activities. As Scott indicated, the second piece that I think will be more meaningful through time is we do have the ability and we will take that ability as we go forward to further optimize you know, the debt stack of the company. It was put on with credit spreads in that. You know, prior to reaching kind of the financial status and the strength that we have today. And I think with the natural you know, components as you see elements come to their natural maturity, we will be able to take advantage of that and further optimize our balance sheet and the cost of capital that is coming through. To essentially maintain more of the earnings that we generate for effectively the equity holders versus where we are paying out a higher percentage of those today from a debt perspective and an interest cost perspective. Thank you. that is very helpful. And then, Jim, I believe you said you plan to resume repurchases So was the $27 million in the quarter impacted by the LPT? You still expect to complete the authorization this year? The answer to both of those questions is yes. Whenever you have material nonpublic information and as we got to a level of kind of certainty, on kind of where we are headed, that obviously plays an impact in terms of what we are able to do from a market perspective. And so that did impact you know, our ability to execute the program in the quarter to the extent of 1. In terms of the end of the year and where we are at, we intend you know, to effectively restart the program and would expect to at least whether it is a meaningful component or all of it to execute that component between now and the end of the year. If there is a component of it that trickles over into 1 queue, that is more about market conditions and other limitations that we would have versus what do we think know, is an attractive place for us to be in the market from an economic perspective.

Thank you. that is very helpful. And then this might just be a housekeeping item I might have missed it, but I did not see an expected close on the LPT I assume it is fairly quick in $400 million of assets transfer at close.

Yeah. No. We yeah. Look. We never try and forecast regulatory approval, Roland. We are not trying to be evasive in an ideal world. We would get it done in Q4. Could it slip into Q1? Maybe we will have keep you posted on that. I promise you. I do not control that part of it, but we will do it absolute best. Get it done. In this year. Thank you, and congrats again.

Okay. Thank you, Roland. Appreciate the questions.

Our next question is from Andrew Andersen with Jefferies LL. Please proceed with your question.

Hey. Good morning. You had described the 27 pipeline as encouraging. Maybe you could just talk a bit more about which businesses are contributing most to that pipeline, how you think about level of organic premium growth into next year? And I suppose I am particularly looking at just the 9 month core GPW of about 7%, but net was down about 1%, I think, because of some new reinsurance So maybe just some thoughts on net premium opportunities into next year.

Yeah. So it is a good question, Andrew. Thank you. Look. Think 1 of the things I would say is we are we are right in the midst of our 2027 planning. In fact, we were through it with the board this week. I would probably highlight our NGA global programs business as having a very strong and healthy pipeline As you know, we are very selective about who we work with and what that looks like. But we have got plenty of opportunities to work through. So we do feel encouraged by that pipeline. We do not obsess about that on a quarter by quarter basis. I know we to stand in front of you guys in the market and talk about it, but we actually look at growth over a year, and we think that sort of irons out any anomalies, etcetera. I think our A&H business, we are feeling quite upbeat going into 2027. Think we have got good opportunities driven by many of the portfolios there, IMG. We are seeing things that can employ employer stock loss where capacity has reduced in the marketplace. I would not say the markets hard or hardening, but we are starting to see green shoots in that regard. So actually, we are seeing ANH as encouraging as well. I think the market that is probably harder for us is reinsurance We were definitely seeing the trends that you guys are seeing across. Right across the marketplace we think property cat, which obviously is not as material for us as it was, roughly 4%. We think that will be another tough set of renewals at 1. But we are seeing opportunities in the structured markets, which we which we like. We are very selective. And, obviously, David Evan Govrin and the team walked them through very selectively. So we might some opportunities, but I would highlight the insurance as probably the area that is tougher in terms of market conditions. And look in terms of London market business, we had a stamp capacity increase I think, out of the fifth or the sixth time by Lloyd's. And so that is a continuation of a journey that we have been on for several years. The early part of that was very much remediation. Andrew, but I think we are really getting into a stride now with Lloyd's syndicate. And obviously, we are actually attracting as I think we have on the last call, we are attracting individuals to set this point that we believe over time will bring good quality business to the organization. So that would be my pen picture at the moment. I am afraid we are still in the midst of our plans, and we will get a bit more color, Andrew, when we stand up our full year results at the beginning of year.

And, Andrew, what I would highlight in terms or add to what Scott's indicated The mix shift that has come across this year has led to essentially kind of that difference or it is kinda more accentuated in terms of the difference as it relates to would you expect generally the gross written premium growth to then you know, come in on the same element from the net written premium? So I would say this year, there was a little bit of a normalization kind of with changes at the earlier component of the year relative to renewal cycles the reinsurance market and other components as we essentially pivoted more of the business towards the insurance side and what we saw were attractive opportunities within that space. So an example of that would be surety. Surety is a line that we tend to hold a little bit less of in terms of the total amount from a when you are looking at just kind of what the average ratios are coming across. And so I would just say that normalization has largely played out this year based on what I would expect. And then as we go into 2027, there is an opportunity there such that you will see more of our gross premium written essentially work its way into the net written premium. On a go forward basis. Again, kind of assuming that we do not see the same type of mix change that we saw this year which is And that.

I started And I would say And, Andrew, I would say that is an important for us that I think we have talked about in a few of our investor meetings, which is we take our time when we bring on relationships, and we mature into them. And so we are always asking ourselves the question, as to whether we can take more net risk and certainly the answer is we can. And it is a question of timing, and that is some of the evaluation that is going on at the moment as Jim alluded to. As we walk through and finalize and sign off for 27 plans. So look, I filled some answer, but I hope that gives you some additional color, Andrew.

Yep. Thank you. And just on employer stop loss, it sounded like you are seeing rate around 20%. How does that compare with your view of underlying medical or pharmacy trends? And how could that impact kind of the combined ratio profile on employer stop loss? But A&H more broadly?

Yeah. Look. I think we are not we are not getting ahead of ourselves with employer stock loss. I think I would pause and say, look. I think the time to give you a further update will be our results when we give you them full year results. So we will know a bit more by then. As I say, I am I am a bit reticent to say too much because I think it is early days, but we probably feel more hopeful given some of the capacity changes in the market. And as a reminder, we have outperformed the market on a profitability perspective in employer stock loss by about 10 percentage points. it is there for people to sort of read and see. And we have done that because we actually we actually did not grow. Unlike others. So we. That was a very deliberate of cycle management by us and employer stock loss. So we feel pretty trained if the market starts to happen. In terms of the wider ANH portfolio, I would say, Andrew, we are broadly tallying rates. In laying the claims inflation. And where we have to we. We are happy to lean in. there is been moments in our past where we have had to carry more rate and we have seen examples about I would say, particularly post COVID etcetera. But I would say we are carrying rate at least in line in some cases slightly more. Than claims inflation and, obviously, the starting point. Point of the overall ENH portfolio. 1 of high profitability. So those are some of the dynamics that we have seen across our A&H book, which is also well diversified. Thank you.

Super. Thank you, Andrew. Appreciate the questions.

Our next question is from Timothy D'Agostino with B. Riley Securities.

Hi, good morning. Thanks for taking the questions. And all the color today. I guess just on my end, stepping back to business today, looks more like a specialty insurer than maybe, you know, a Bermuda reinsurer. So as we think about the recast, how do you think about corporate structure going forward? And I guess 1 area there that I would be interested to hear about is, you know, you are you are muted domicile. Do you. Like, is there benefits to potentially domiciling? Or you know, does it make sense to continue to be domiciled in Bermuda? Trying to think, you know, how you position Sirius Point investors over the next few years as again, the business just continues to look more like a specialty?

Sure. Thank you. Yeah. Timothy, listen, very good and very fair question, and I am not going to get drawn on details and specifics. But what I would say is, obviously, we very deliberately pivoted our underwriting strategy, which is really what I am focusing on when I say we are we are moving away from being a traditional Bermuda reinsurer to a specialty underwriter, and we have been doing that both in action within the company and, obviously, some of the data and information that we give and present to you guys hopefully gives the tangible evidence that we are doing that, and we think the segmental change that we are announcing today, which I should also say, Jim and the team will be as helpful as we possibly can be. In Q4 and giving you as much help. We appreciate these things can be an annoyance sometimes, so I promise you the team will do everything they can to help. But look, in terms of our legal entity structure, that is something that we will continue to evaluate and look at over time. And, obviously, all of our legal entities are really important to us, but, you know, and they all work incredibly hard for us. So I think if anything changes, we would obviously talk to the market, but we are happy with the structure as it stands at the moment, and it is an enabling us to perform strongly as a business and grow the business.

Okay. No. that is super helpful. I appreciate taking the question today.

Timothy, I think the key takeaway I would have is. And I think you are highlighting it. is the composition of the business and where we are focused. Is aligned with the specialty insurer. And that is what we are. Relative to the legal entity structure that supports that, I would not overly focus on whether that is US or Bermuda or another. I think the key element is what is the mix of the business going on? What are the specialty underwriting capabilities that we bring to the forefront and what is the competitive advantages that we have to delivering that. And I think when you look at that across and in comparison to other specialty insurers, that we are going to compare in a favorable way.

Once again, if you would like to ask a question, please press 1 on your telephone keypad Our next question is from Gregory Peters with Raymond James. Please proceed with your question.

Well, good morning or afternoon depending on where you are. Most of my questions have been asked. I guess you know, you put a lot of effort into slide 21 on your prior development. Obviously, you are doing a lot of work with the LPT. Can you speak to what pockets your favorable development is, what lines of business you are getting favorable development from, It just feels like with you know, accelerating price competition, in the marketplace, that the opportunities to continue to book favorable development are going to be diminishing. But maybe you have some different perspectives.

No. Great. Listen. Good question. Thank you. Appreciate it. Look, I will say a few overarching remarks, and happy, Jim, if you then wanna come in. So let me make a couple of points here, Greg, which I think are really important. 1 is we manage reserves and balance sheet prudently, and we are very deliberate about that. And I think we have talked about it on these calls before. Wanna give you a very clear example. So in some of our NGAs, particularly our newer relationships, we actually reserved above a price loss ratio. So inherently, we carry reserves in excess of what our pricing is. And so we do that very deliberately because we want to be cautious. We wanna make sure that there is any bumps as we go through and mature those relationships that we have got adequate reserves to cover them. And therefore, I do think that you should see the PYD track record as being linked to some of those actions. So that is the first thing I would say. Second thing, I would highlight and both Jim and I touched on it, which is the LPT transaction and the removal of those reserves and the uncertainty associated with them. Actually improves the strength of our reserves. So we see that as additive and a tailwind as opposed to a headwind And so, look, nothing is gonna change in terms of our reserving approach even with tougher market conditions And as I say, I think a 22 quarter track record is something that we can point to and see is not an accident. it is a fundamental way that we manage the company and the way that we manage the balance sheet. But, Jim, anything you wanna add to that?

Yeah. So just a couple of things that I would highlight. 1, I 100% agree with you when we double down. We have a very prudent approach, we think, in terms of how we establish our reserve position which starts with a prudent pricing position and then depending on risk, time, other components, it either gets basically 1 additional kind of reserve load or 2. And that is a meaningful element, and it is an amount that we hold until and up through the points that we kind of hit the top end of the confidence intervals that we see from a US accounting and other perspective that is appropriate. The second element to answer your question more directly in terms of the areas of that. I would say, in general, we are seeing it favorable development across the portfolio. And so I think that is as much about kind of the reserving philosophy that we have and that we try to be prudent and thoughtful not just in terms of what the total number is, but you know, at a reserving class level, we try to be very thoughtful there as well. And that is really playing out across the portfolio and you know, gives us a really strong balance sheet.

Thank you for the additional detail. Super. Thanks for the question, Greg.

We have reached the end of the question-and-answer session. I would like to turn the floor back over to Scott Egan for closing comments.

Super. Thank you very much, operator. Just really a quick wrap up for me. Look, thank you as always for your questions. Thank you for joining the call. I would probably end with 4 key takeaways. 1, we believe Q3 is again strong evidence of our low-volatility, high performing approach. To underwriting discipline. And I think the numbers and the evidence, I hope, speaks for itself. The second thing today is the LPT, which we have touched on throughout the questions. It really does for us close off the past, and I hope emphasizes the strong performance of our go-forward book and, in particular, our core operating ROE. Our balance sheet, which we have touched on with some of the questions, is strong. I believe after the LPT even stronger. And really well positioned both in terms of strength and agility to take advantage of the opportunities. And we look forward as a team to ending the year strongly and updating you on our full-year results. And with that, I would like to thank you very much for joining, and appreciate all your questions and support. Thank you.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.