Sirius International Insurance Group, Ltd.

Schedule II

Condensed Financial Information of Registrant

Balance Sheets

As at December 31, 2018 and 2017


(Expressed in millions of U.S. dollars, except share and per share information)	2018		2017
Assets
Fixed maturity investments, at fair value	$	2.8	$	3.9
Short-term investments, at fair value (Amortized cost 2018: $5.3; 2017: $30.8)		5.3		30.8
Total investments		8.1		34.7
Cash		—		0.1
Investments in unconsolidated affiliates		1,911.2		2,030.4
Other assets		42.5		1.1
Total assets	$	1,961.8	$	2,066.3
Liabilities
Other liabilities	$	25.1	$	43.2
Total liabilities		25.1		43.2
Commitments and Contingencies
Mezzanine equity
Series B preference shares		232.2		—
Series A redeemable preference shares		—		106.1
Total mezzanine equity		232.2		106.1
Common shareholders’ equity
Common shares (shares issued and outstanding: 2018: 115,151,251; 2017: 120,000,000)		1.2		1.2
Additional paid-in surplus		1,089.1		1,197.9
Retained earnings		816.6		858.4
Accumulated other comprehensive (loss)		(202.4)		(140.5)
Total common shareholders' equity		1,704.5		1,917.0
Total liabilities, mezzanine equity, and common shareholders’ equity	$	1,961.8	$	2,066.3

See Notes to Condensed Financial Information of Registrant

Sirius International Insurance Group, Ltd.

Schedule II

Condensed Financial Information of Registrant

Statements of (Loss) Income

For the years ended December 31, 2018, 2017, and 2016


(Expressed in millions of U.S. dollars)	2018		2017		2016
Revenues
Net investment income (losses)	$	0.5	$	0.3	$	(0.2)
Net realized investment gains		—		0.2		0.3
Net unrealized investment gains (losses)		—		12.8		(0.1)
Net foreign exchange (losses)		—		(0.2)		—
Gain on revaluation of contingent consideration		6.1		13.6		—
Other revenue		41.4		0.9		—
Total revenues		48.0		27.6		—
Expenses
Other underwriting expenses		—		(0.2)		—
General and administrative expenses		13.6		13.0		36.6
Total expenses		13.6		12.8		36.6
Income (loss) before equity earnings of unconsolidated affiliates, net of tax		34.4		14.8		(36.6)
Equity in earnings of unconsolidated affiliates, net of tax		(52.5)		(164.8)		69.1
Net (loss) income attributable to Sirius Group		(18.1)		(150.0)		32.5
Less: Accrued dividends on Series A redeemable preference shares		(2.6)		(6.1)		—
Less: Change in carrying value of Series B preference shares		(36.4)		—		—
Add: Redemption of Series A redeemable preference shares		13.8		—		—
Net (loss) income attributable to Sirius Group's common shareholders	$	(43.3)	$	(156.1)	$	32.5

See Notes to Condensed Financial Information of Registrant

Sirius International Insurance Group, Ltd.

Schedule II

Condensed Financial Information of Registrant

Statements of Comprehensive (Loss) Income

For the years ended December 31, 2018, 2017, and 2016


(Expressed in millions of U.S. dollars)	2018		2017		2016
Comprehensive (loss) income
Net (loss) income attributable to Sirius Group	$	(18.1)	$	(150.0)	$	32.5
Other comprehensive (loss) income
Change in foreign currency translation, net of tax		(61.9)		71.7		(67.3)
Net change in other, net of tax		—		—		1.2
Comprehensive (loss) income attributable to Sirius Group	$	(80.0)	$	(78.3)	$	(33.6)

See Notes to Condensed Financial Information of Registrant

Sirius International Insurance Group, Ltd.

Schedule II

Condensed Financial Information of Registrant

Statements of Cash Flows

For the years ended December 31, 2018, 2017, and 2016


(Expressed in millions of U.S. dollars)	2018		2017		2016
Cash flows from operations:
Net (loss) income attributable to Sirius Group	$	(18.1)	$	(150.0)	$	32.5
Adjustments to reconcile net income to net cash provided from (used for) operations:
Equity in earnings of subsidiaries		52.5		164.8		(69.1)
Dividends received from subsidiaries		150.0		110.0		20.0
Net realized and unrealized investment (losses)		—		(13.0)		(0.2)
Amortization of premium on fixed maturity investments		(0.3)		(0.1)		—
Share-based compensation		2.0		—		—
Revaluation of contingent consideration		(6.1)		(13.6)		—
Other operating items:
Net change in other assets and liabilities, net		(57.5)		12.6		(6.8)
Net cash provided from (used for) operations		122.5		110.7		(23.6)
Cash flows from investing activities:
Net change in short-term investments		25.6		2.5		(4.5)
Sales of fixed maturities and convertible fixed maturity investments		65.9		1.1		16.3
Sales of common equity securities		—		59.6		3.2
Purchases of common equity securities		—		(54.4)		(8.0)
Purchases of fixed maturities and convertible fixed maturity investments		(64.9)		—		(6.3)
Contributions to subsidiaries		(143.5)		(132.7)		(42.1)
Net cash (used for) provided from investing activities		(116.9)		(123.9)		(41.4)
Cash flows from financing activities:
Capital contribution from former parent		1.4		13.3		89.6
Proceeds from issuance of common shares, net of expenses		61.2		—		—
Proceeds from issuance of Series B preference shares		195.8		—		—
Redemption of common shares from CM Bermuda		(164.0)		—		—
Return of capital to CM Bermuda		(1.6)		—		—
Redemption of Series A redeemable preference shares		(95.0)		—		—
Payment of contingent consideration		(3.5)		—		—
Cash dividends paid to former parent		—		—		(27.0)
Net cash (used for) provided from financing activities		(5.7)		13.3		62.6
Net (decrease) increase in cash during year		(0.1)		0.1		(2.4)
Cash balance at beginning of year		0.1		—		2.4
Cash balance at end of year	$	—	$	0.1	$	—

See Notes to Condensed Financial Information of Registrant

Notes to Condensed Financial Information of Registrant

Sirius International Insurance Group, Ltd. (the Registrant) investments in consolidated subsidiaries are stated at cost plus equity in income of consolidated subsidiaries. The accompanying condensed financial statements of the Registrant should be read in conjunction with the Consolidated Financial Statements and Notes thereto of Sirius International Insurance Group, Ltd. included in the Annual Report on Form 10-K