Segment information

On December 31, 2019, Sirius Group completed an internal reorganization and beginning on January 1, 2020, Sirius Group's reportable segments consist of four reportable segments – Global Reinsurance, Global Accident & Health ("Global A&H"), U.S. Specialty, and Runoff & Other. The accounting policies of the reportable segments are the same as those used for the preparation of the Company's consolidated financial statements.

The Company's Global Reinsurance, Global A&H, U.S. Specialty, and Runoff & Other reportable segments each have managers who are responsible for the overall profitability of their respective segments and who are directly accountable to the Company's chief operating decision maker, the Chief Executive Officer ("CEO") of the Company. The CEO assesses segment operating performance, allocates capital, and makes resource allocation decisions based on Technical income (loss), Underwriting income (loss), and Underwriting profit (loss), including net service fee revenue.

Segment results are shown prior to corporate eliminations. Corporate eliminations are shown to reconcile to consolidated Technical profit (loss), consolidated Underwriting income (loss) and consolidated Underwriting income (loss), including net service fee revenue.

Sirius Group does not allocate its assets by segment, with the exception of goodwill and intangible assets, and, accordingly, investment income is not allocated to each segment. The internal reorganization had no impact to the allocation of goodwill and intangible assets to the Global A&H segment. Where applicable, all prior periods presented have been revised to conform to this new presentation.

Global Reinsurance

Global Reinsurance consists of Sirius Group's underwriting lines of business that offer Other Property, Property Catastrophe Excess Reinsurance, Agriculture Reinsurance, Aviation & Space, Marine & Energy, Trade Credit, Contingency, and Casualty Reinsurance:

Other Property—Sirius Group participates in the broker market for property reinsurance treaties written on a proportional and excess of loss basis. For Sirius Group's international business, the book consists of treaty, written on both a proportional and excess of loss basis, facultative, and primary business, primarily in Europe, Asia and Latin America. In the United States, the book predominantly centers on significant participations on proportional and excess of loss treaties mostly in the excess and surplus lines segment of the market.

Property Catastrophe Excess Reinsurance—Property catastrophe excess of loss reinsurance treaties cover losses from catastrophic events. Sirius Group writes a worldwide book with the largest concentration of exposure in Europe and the United States. The U.S. book written in Bermuda has a national account focus supporting principally the lower and/or middle layers of large capacity programs. Additionally, Stockholm writes a U.S. book mainly consisting of select small regional and standard lines carriers. The exposures written in the international book are diversified across many countries, regions, perils and layers.

Agriculture Reinsurance—Sirius Group provides stop-loss reinsurance coverage to companies writing U.S. government-sponsored multi-peril crop insurance ("MPCI"). Sirius Group's participation is net of the government's stop-loss reinsurance protection. Sirius Group also provides coverage for crop-hail and certain named perils when bundled with MPCI business. Sirius Group also writes agriculture business outside of the United States.

Aviation & Space—Sirius Group provides aviation insurance that covers loss of or damage to an aircraft and the aircraft operations' liability to passengers, cargo and hull as well as to third parties. Additionally, liability arising out of non-aircraft operations such as hangars, airports and aircraft products can be covered. Space insurance primarily covers loss of or damage to a satellite during launch and in orbit. The book consists of treaty, written on both a proportional and excess of loss basis, facultative, and primary business.

Marine & Energy—Sirius Group provides marine & energy reinsurance, primarily written on an excess of loss and proportional basis. Coverage offered includes damage to ships and goods in transit, marine liability lines, and offshore energy industry insurance. Sirius Group also writes yacht business, both on reinsurance and a primary basis. The marine & energy portfolio is diversified across many countries and regions.

Trade Credit—Sirius Group writes credit and bond reinsurance worldwide. The bulk of the business is traditional short-term commercial credit insurance, covering pre-agreed domestic and export sales of goods and services with typical coverage periods of 60 to 120 days. Losses under these policies are correlated to adverse changes in a respective country's gross national product.

Contingency—Sirius Group underwrote a contingency insurance book primarily for event cancellation and non-appearance. Additionally, coverage for probability based risks with prize redemption was also offered. The contingency insurance business was exited in 2018; however, Sirius Group continues to offer this class on a treaty reinsurance basis on a selective basis for a few key clients.

Casualty Reinsurance—Sirius Group underwrites a cross section of all casualty lines, including general liability, umbrella, auto, workers compensation, professional liability, and other specialty classes, written on a proportional and excess of loss basis.

Global A&H

Global A&H consists of Sirius Group’s insurance and reinsurance business, and the managing general underwriting (“MGU”) units (which include ArmadaCorp Capital, LLC ("Armada") and International Medical Group, Inc. ("IMG")). Armada’s products are offered in the United States while IMG and the insurance and reinsurance business write accident and health products on a worldwide basis:

Accident and Health insurance and reinsurance—Sirius Group is an insurer of accident and health business in the United States and internationally, on either an admitted or surplus lines basis, as well as a reinsurer of medical expense, travel and personal accident on a treaty or facultative basis worldwide. The MGU unit writes health insurance business worldwide through IMG and within the United States via Armada.

U.S. Specialty

U.S. Specialty consists of Sirius Group's specialty insurance product offerings, which currently includes Environmental, Surety, and Workers’ Compensation.

Environmental underwrites a pure environmental insurance book in the United States consisting of four core products that revolve around pollution coverage, which are premises pollution liability, contractor's pollution liability, contractor's pollution and professional liability.

Surety underwrote commercial surety bonds, including non-construction contract bonds, in a broad range of business segments in the United States. In April 2020, the Company decided to exit the Surety business due to competitive market conditions in that business line and recent economic downturn which presented new risks and challenges for this line of business.

Workers' Compensation, is a state-mandated insurance program that provides medical, disability, survivor, burial, and rehabilitation benefits to employees who are injured or killed due to a work-related injury or illness.

Runoff & Other

Runoff & Other includes the results of Sirius Global Solutions Holding Company ("Sirius Global Solutions"), which specializes in the acquisition and management of runoff liabilities for insurance and reinsurance companies, both in the United States and internationally, as well as asbestos risks, environmental risks and other long-tailed liability exposures.

The following tables summarize the segment results for the three months ended June 30, 2020 and 2019:



	For the three months ended June 30, 2020
(Expressed in millions of U.S. dollars)	Global Reinsurance			Global A&H			U.S. Specialty			Runoff & Other			Corporate Eliminations			Total
Gross written premiums	$	213.5		$	83.7		$	25.5		$	(0.1	)	$	—		$	322.6
Net written premiums	$	220.5		$	62.0		$	23.8		$	(0.3	)	$	—		$	306.0
Net earned insurance and reinsurance premiums	$	240.9		$	113.2		$	15.2		$	0.5		$	—		$	369.8
Loss and allocated LAE⁽¹⁾	(148.5		)	(69.6		)	(10.4		)	0.5			—			(228.0		)
Insurance and reinsurance acquisition expenses	(53.7		)	(31.5		)	(3.4		)	0.3			10.2			(78.1		)
Technical profit (loss)	38.7			12.1			1.4			1.3			10.2			63.7
Unallocated LAE⁽²⁾	(5.2		)	(0.6		)	(0.1		)	(1.7		)	(4.7		)	(12.3		)
Other underwriting expenses	(20.5		)	(6.7		)	(2.9		)	(1.5		)	(4.7		)	(36.3		)
Underwriting income (loss)	13.0			4.8			(1.6		)	(1.9		)	0.8			15.1
Service fee revenue⁽³⁾	—			23.1			—			—			(11.7		)	11.4
Managing general underwriter unallocated LAE	—			(6.2		)	—			—			6.2			—
Managing general underwriter other underwriting expenses	—			(4.7		)	—			—			4.7			—
General and administrative expenses, MGU + Runoff & Other⁽⁴⁾	—			(11.0		)	—			(1.4		)	—			(12.4		)
Underwriting income (loss), including net service fee income	13.0			6.0			(1.6		)	(3.3		)	—			14.1
Net investment income																14.8
Net realized investment gains																7.1
Net unrealized investment gains																8.7
Net foreign exchange (losses)																(16.1		)
Other revenue⁽⁵⁾																(1.2		)
General and administrative expenses⁽⁶⁾																(11.5		)
Intangible asset amortization expenses																(4.0		)
Interest expense on debt																(7.9		)
Pre-tax income																$	4.0
Underwriting Ratios⁽⁷⁾
Loss ratio	63.8		%	62.0		%	69.1		%	NM			NM			65.0		%
Acquisition expense ratio	22.3		%	27.8		%	22.4		%	NM			NM			21.1		%
Other underwriting expense ratio	8.5		%	5.9		%	19.1		%	NM			NM			9.8		%
Combined ratio⁽⁷⁾	94.6		%	95.7		%	110.6		%	NM			NM			95.9		%
Goodwill and intangible assets⁽⁸⁾	$	—		$	564.6		$	—		$	8.1		$	—		$	572.7

⁽¹⁾Loss and allocated loss adjustment expenses ("LAE") are part of Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income (the sum of Loss and allocated LAE and Unallocated LAE is equal to Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income).

⁽²⁾Unallocated LAE are part of Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income (the sum of Loss and allocated LAE and Unallocated LAE is equal to Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income).

⁽³⁾Service fee revenue is part of Other revenue on the Consolidated Statements of (Loss) Income (the sum of Service fee revenue and Other revenue is equal to Other revenue on the Consolidated Statements of (Loss) Income).

⁽⁴⁾General and administrative expenses, MGU + Runoff & Other is part of General and administrative expenses on the Consolidated Statements of (Loss) Income (the sum of General and administrative expenses, MGU + Runoff & Other and General and administrative expenses is equal to General and administrative expenses on the Consolidated Statements of (Loss) Income).

⁽⁵⁾Other revenue is presented net of Service fee revenue and is comprised mainly of losses from derivatives (see Note 12) (the sum of Service fee revenue and Other revenue is equal to Other revenue on the Consolidated Statements of (Loss) Income).

⁽⁶⁾General and administrative expenses are presented net of General and administrative expenses, MGU + Runoff & Other (the sum of General and administrative expenses, MGU + Runoff & Other and General and administrative expenses is equal to General and administrative expenses on the Consolidated Statements of (Loss) Income).

⁽⁷⁾Ratios considered not meaningful ("NM") to Runoff & Other and Corporate Eliminations.

⁽⁸⁾Sirius Group does not allocate its assets by segment, with the exception of goodwill and intangible assets.



	For the three months ended June 30, 2019
(Expressed in millions of U.S. dollars)	Global Reinsurance			Global A&H			U.S. Specialty			Runoff & Other			Corporate Eliminations			Total
Gross written premiums	$	317.1		$	152.8		$	16.0		$	1.2		$	—		$	487.1
Net written premiums	$	266.7		$	120.6		$	14.1		$	0.3		$	—		$	401.7
Net earned insurance and reinsurance premiums	$	244.9		$	118.8		$	6.7		$	0.3		$	—		$	370.7
Loss and allocated LAE⁽¹⁾	(188.5		)	(71.8		)	(4.1		)	(2.4		)	—			(266.8		)
Insurance and reinsurance acquisition expenses	(50.0		)	(36.0		)	(1.8		)	(1.8		)	12.6			(77.0		)
Technical profit (loss)	6.4			11.0			0.8			(3.9		)	12.6			26.9
Unallocated LAE⁽²⁾	(4.7		)	(2.0		)	(0.1		)	(0.2		)	(4.2		)	(11.2		)
Other underwriting expenses	(21.6		)	(5.9		)	(2.1		)	(1.1		)	(4.8		)	(35.5		)
Underwriting income (loss)	(19.9		)	3.1			(1.4		)	(5.2		)	3.6			(19.8		)
Service fee revenue⁽³⁾	—			30.3			—			—			(13.7		)	16.6
Managing general underwriter unallocated LAE	—			(5.3		)	—			—			5.3			—
Managing general underwriter other underwriting expenses	—			(4.8		)	—			—			4.8			—
General and administrative expenses, MGU + Runoff & Other⁽⁴⁾	—			(15.0		)	—			(1.0		)	—			(16.0		)
Underwriting income (loss), including net service fee income	(19.9		)	8.3			(1.4		)	(6.2		)	—			(19.2		)
Net investment income																24.4
Net realized investment gains																15.6
Net unrealized investment gains																15.5
Net foreign exchange (losses)																(0.6		)
Other revenue⁽⁵⁾																(1.2		)
General and administrative expenses⁽⁶⁾																(12.2		)
Intangible asset amortization expenses																(4.0		)
Interest expense on debt																(8.0		)
Pre-tax income																$	10.3
Underwriting Ratios⁽⁷⁾
Loss ratio	78.9		%	62.1		%	62.7		%	NM			NM			75.0		%
Acquisition expense ratio	20.4		%	30.3		%	26.9		%	NM			NM			20.8		%
Other underwriting expense ratio	8.8		%	5.0		%	31.3		%	NM			NM			9.6		%
Combined ratio⁽⁷⁾	108.1		%	97.4		%	120.9		%	NM			NM			105.4		%
Goodwill and intangible assets⁽⁸⁾	$	—		$	580.2		$	—		$	8.1		$	—		$	588.3

⁽⁵⁾Other revenue is presented net of Service fee revenue and is comprised mainly of a change in contingent consideration (see Note 9) and gains (losses) from derivatives (see Note 12) (the sum of Service fee revenue and Other revenue is equal to Other revenue on the Consolidated Statements of (Loss) Income).

⁽⁷⁾Ratios considered not meaningful ("NM") to Runoff & Other and Corporate Eliminations.

⁽⁸⁾Sirius Group does not allocate its assets by segment, with the exception of goodwill and intangible assets.

The following tables summarize the segment results for the six months ended June 30, 2020 and 2019:



	For the six months ended June 30, 2020
(Expressed in millions of U.S. dollars)	Global Reinsurance			Global A&H			U.S. Specialty			Runoff & Other			Corporate Eliminations			Total
Gross written premiums	$	678.8		$	345.8		$	46.3		$	69.3		$	—		$	1,140.2
Net written premiums	$	565.9		$	262.7		$	39.0		$	68.3		$	—		$	935.9
Net earned insurance and reinsurance premiums	$	475.9		$	231.1		$	28.0		$	69.5		$	—		$	804.5
Loss and allocated LAE⁽¹⁾	(405.7		)	(149.9		)	(18.1		)	(68.4		)	—			(642.1		)
Insurance and reinsurance acquisition expenses	(104.6		)	(62.3		)	(6.4		)	(0.1		)	20.6			(152.8		)
Technical profit (loss)	(34.4		)	18.9			3.5			1.0			20.6			9.6
Unallocated LAE⁽²⁾	(10.2		)	(2.3		)	(0.2		)	(2.5		)	(10.1		)	(25.3		)
Other underwriting expenses	(41.8		)	(12.3		)	(8.1		)	(2.4		)	(9.7		)	(74.3		)
Underwriting (loss) income	(86.4		)	4.3			(4.8		)	(3.9		)	0.8			(90.0		)
Service fee revenue⁽³⁾	—			59.0			—			—			(22.7		)	36.3
Managing general underwriter unallocated LAE	—			(12.2		)	—			—			12.2			—
Managing general underwriter other underwriting expenses	—			(9.7		)	—			—			9.7			—
General and administrative expenses, MGU + Runoff & Other⁽⁴⁾	—			(25.2		)	—			(2.9		)	—			(28.1		)
Underwriting (loss) income, including net service fee income	(86.4		)	16.2			(4.8		)	(6.8		)	—			(81.8		)
Net investment income																28.3
Net realized investment gains																27.4
Net unrealized investment (losses)																(35.1		)
Net foreign exchange gains																2.4
Other revenue⁽⁵⁾																(21.8		)
General and administrative expenses⁽⁶⁾																(27.9		)
Intangible asset amortization expenses																(7.9		)
Interest expense on debt																(15.7		)
Pre-tax (loss) income																$	(132.1	)
Underwriting Ratios⁽⁷⁾
Loss ratio	87.4		%	65.9		%	65.4		%	NM			NM			83.0		%
Acquisition expense ratio	22.0		%	27.0		%	22.9		%	NM			NM			19.0		%
Other underwriting expense ratio	8.8		%	5.3		%	28.9		%	NM			NM			9.2		%
Combined ratio⁽⁷⁾	118.2		%	98.2		%	117.2		%	NM			NM			111.2		%
Goodwill and intangible assets⁽⁸⁾	$	—		$	564.6		$	—		$	8.1		$	—		$	572.7

⁽⁷⁾Ratios considered not meaningful ("NM") to Runoff & Other and Corporate Eliminations.

⁽⁸⁾Sirius Group does not allocate its assets by segment, with the exception of goodwill and intangible assets.



	For the six months ended June 30, 2019
(Expressed in millions of U.S. dollars)	Global Reinsurance			Global A&H			U.S. Specialty			Runoff & Other			Corporate Eliminations			Total
Gross written premiums	$	752.1		$	322.1		$	32.6		$	2.6		$	—		$	1,109.4
Net written premiums	$	602.6		$	255.5		$	27.7		$	0.7		$	—		$	886.5
Net earned insurance and reinsurance premiums	$	456.2		$	214.9		$	10.8		$	0.7		$	—		$	682.6
Loss and allocated LAE⁽¹⁾	(296.3		)	(135.0		)	(6.5		)	(3.5		)	—			(441.3		)
Insurance and reinsurance acquisition expenses	(95.6		)	(62.6		)	(2.5		)	(2.5		)	22.9			(140.3		)
Technical profit (loss)	64.3			17.3			1.8			(5.3		)	22.9			101.0
Unallocated LAE⁽²⁾	(8.7		)	(3.5		)	(0.1		)	(0.7		)	(7.6		)	(20.6		)
Other underwriting expenses	(43.2		)	(12.0		)	(4.9		)	(3.2		)	(7.5		)	(70.8		)
Underwriting (loss) income	12.4			1.8			(3.2		)	(9.2		)	7.8			9.6
Service fee revenue⁽³⁾	—			66.6			—			—			(24.7		)	41.9
Managing general underwriter unallocated LAE	—			(9.4		)	—			—			9.4			—
Managing general underwriter other underwriting expenses	—			(7.5		)	—			—			7.5			—
General and administrative expenses, MGU + Runoff & Other⁽⁴⁾	—			(31.2		)	—			(1.8		)	—			(33.0		)
Underwriting (loss) income, including net service fee income	12.4			20.3			(3.2		)	(11.0		)	—			18.5
Net investment income																44.5
Net realized investment gains																24.6
Net unrealized investment (losses)																89.5
Net foreign exchange gains																4.5
Other revenue⁽⁵⁾																(6.9		)
General and administrative expenses⁽⁶⁾																(19.6		)
Intangible asset amortization expenses																(7.9		)
Interest expense on debt																(15.6		)
Pre-tax (loss) income																$	131.6
Underwriting Ratios⁽⁷⁾
Loss ratio	66.9		%	64.4		%	61.1		%	NM			NM			67.7		%
Acquisition expense ratio	21.0		%	29.1		%	23.1		%	NM			NM			20.6		%
Other underwriting expense ratio	9.5		%	5.6		%	45.4		%	NM			NM			10.4		%
Combined ratio⁽⁷⁾	97.4		%	99.1		%	129.6		%	NM			NM			98.7		%
Goodwill and intangible assets⁽⁸⁾	$	—		$	580.2		$	—		$	8.1		$	—		$	588.3

⁽⁷⁾Ratios considered not meaningful ("NM") to Runoff & Other and Corporate Eliminations.

⁽⁸⁾Sirius Group does not allocate its assets by segment, with the exception of goodwill and intangible assets.

The following tables provide summary information regarding net premiums written by client location and underwriting location by reportable segment for the three months ended June 30, 2020 and 2019:



	For the three months ended June 30, 2020
(Expressed in millions of U.S. dollars)	Global Reinsurance		Global A&H		U.S. Specialty		Runoff & Other			Total
Total net written premiums by client location:
United States	$	106.9	$	50.7	$	23.8	$	(0.5	)	$	180.9
Europe	42.7		5.2		—		0.1			48.0
Canada, the Caribbean, Bermuda and Latin America	18.9		1.3		—		—			20.2
Asia and Other	52.0		4.8		—		0.1			56.9
Total net written premiums by client location for the three months ended June 30, 2020	$	220.5	$	62.0	$	23.8	$	(0.3	)	$	306.0
Total net written premiums by underwriting location:
United States	$	83.2	$	25.4	$	23.8	$	(0.4	)	$	132.0
Europe	83.2		36.5		—		—			119.7
Canada, the Caribbean, Bermuda and Latin America	36.6		—		—		—			36.6
Asia and Other	17.5		0.1		—		0.1			17.7
Total net written premiums by underwriting location for the three months ended June 30, 2020	$	220.5	$	62.0	$	23.8	$	(0.3	)	$	306.0



	For the three months ended June 30, 2019
(Expressed in millions of U.S. dollars)	Global Reinsurance		Global A&H		U.S. Specialty		Runoff & Other		Total
Total net written premiums by client location:
United States	$	152.7	$	102.5	$	14.1	$	0.2	$	269.5
Europe	28.5		5.1		—		—		33.6
Canada, the Caribbean, Bermuda and Latin America	16.7		2.0		—		—		18.7
Asia and Other	68.8		11.0		—		0.1		79.9
Total net written premiums by client location for the three months ended June 30, 2019	$	266.7	$	120.6	$	14.1	$	0.3	$	401.7
Total net written premiums by underwriting location:
United States	$	104.9	$	62.1	$	14.1	$	0.2	$	181.3
Europe	102.6		58.4		—		—		161.0
Canada, the Caribbean, Bermuda and Latin America	40.7		—		—		—		40.7
Asia and Other	18.5		0.1		—		0.1		18.7
Total net written premiums by underwriting location for the three months ended June 30, 2019	$	266.7	$	120.6	$	14.1	$	0.3	$	401.7

The following tables provide summary information regarding net premiums written by client location and underwriting location by reportable segment for the six months ended June 30, 2020 and 2019:



	For the six months ended June 30, 2020
(Expressed in millions of U.S. dollars)	Global Reinsurance		Global A&H		U.S. Specialty		Runoff & Other		Total
Total net written premiums by client location:
United States	$	211.2	$	231.4	$	39.0	$	67.6	$	549.2
Europe	215.5		12.4		—		0.4		228.3
Canada, the Caribbean, Bermuda and Latin America	48.3		7.8		—		—		56.1
Asia and Other	90.9		11.1		—		0.3		102.3
Total net written premiums by client location for the six months ended June 30, 2020	$	565.9	$	262.7	$	39.0	$	68.3	$	935.9
Total net written premiums by underwriting location:
United States	$	155.8	$	156.6	$	39.0	$	67.6	$	419.0
Europe	291.4		106.0		—		0.4		397.8
Canada, the Caribbean, Bermuda and Latin America	84.7		—		—		—		84.7
Asia and Other	34.0		0.1		—		0.3		34.4
Total net written premiums by underwriting location for the six months ended June 30, 2020	$	565.9	$	262.7	$	39.0	$	68.3	$	935.9



	For the six months ended June 30, 2019
(Expressed in millions of U.S. dollars)	Global Reinsurance		Global A&H		U.S. Specialty		Runoff & Other		Total
Total net written premiums by client location:
United States	$	269.3	$	213.6	$	27.7	$	0.4	$	511.0
Europe	178.0		13.1		—		0.1		191.2
Canada, the Caribbean, Bermuda and Latin America	45.7		7.0		—		—		52.7
Asia and Other	109.6		21.8		—		0.2		131.6
Total net written premiums by client location for the six months ended June 30, 2019	$	602.6	$	255.5	$	27.7	$	0.7	$	886.5
Total net written premiums by underwriting location:
United States	$	180.6	$	133.1	$	27.7	$	0.4	$	341.8
Europe	309.6		122.0		—		0.1		431.7
Canada, the Caribbean, Bermuda and Latin America	76.6		—		—		—		76.6
Asia and Other	35.8		0.4		—		0.2		36.4
Total net written premiums by underwriting location for the six months ended June 30, 2019	$	602.6	$	255.5	$	27.7	$	0.7	$	886.5