SiriusPoint looks to Lloyd’s platform to fuel London/International $1bn growth bid
SiriusPoint wants its London/international division to become a $1bn business over the next three years, with the expansion fuelled by the continued build-out of its Lloyd’s operation as it aims to again increase its One Lime Street stamp capacity for 2025.
Talking to The Insurer during the Rendez-Vous de Septembre in Monte Carlo, SiriusPoint CEO Scott Egan said the company’s A&H business generates just under $1bn in premium, while its North American P&C platform generates around the same amount.
Its reinsurance book currently stands at around $750mn, Egan said.
SiriusPoint’s London/international division, which covers the Nordics, continental Europe, the London market and Lloyd’s, last year generated around $500mn of premium, the vast majority of which came from aviation and space, casualty, energy and marine insurance.
But Egan said SiriusPoint has plans to significantly increase the size of that platform.
“Ultimately, I would like the London/International business to be $1bn within the next three years,” said Egan.
A key element of that growth will be the build-out of SiriusPoint’s Lloyd’s Syndicate 1945, along with its wider London Market platform.
Last year, Syndicate 1945 wrote gross £159.8mn ($209.2mn) in gross premiums, up from 2022’s £109.7mn. The company expects further growth to be generated this year and next.
Syndicate 1945 is forecast to play an important role in SiriusPoint’s London/international division build-out, representing a notable turnaround from just two years ago, when the former was poised to be sold.
Prior to Egan’s arrival at the company in 2022, SiriusPoint had agreed to sell its Lloyd’s managing agency to Mosaic, but the deal was scrapped later that year.
“[I’m] a huge believer in Lloyd’s… Strategically, it would have been, I think, a mistake to not have [the Lloyd’s business],” he declared.
“I've been very clear that Lloyds is a really important market for us, and so we have expanded our stamp with Lloyd’s during the last 18 months, and our ambitions are very clear, which is, we'd like to do more,” Egan said.
To do that, Egan said SiriusPoint will have to prove to Lloyd’s management that the company is “credible”.
“I'm a great respecter of that challenge by Lloyds, and obviously our background has been chequered.
“We’re right in the midst of those stamp discussions now, [and] I can't predict what the outcome will be.
“But what I can tell you is our ambition is for it to be more than it was last year, and quite frankly, I'd like it to be more every year based on what we're doing for customers, but also based on our credibility with Lloyd’s.”
The Lime Street market has long sought to modernise its operations, with Lloyd’s CEO John Neal and COO Bob James confirming in August that there is now a “credible timeline” to complete the remaining technology build and testing associated with phase one of its Blueprint Two market modernisation programme.
“I do think as a market, including Lloyd’s, we need to do all we can to be as efficient and effective as we can, whether it's AI or all the other tools that we have because the transaction costs need to come down,” said Egan.
“I don't think there's an industry in the world that isn't under a pressure to make sure it's being as efficient as it possibly can be, and I think our industry is no exception to that,” he added.