Sirius International Insurance : Investor Financial Supplement Q3 2020

Sirius International Insurance Group, Ltd.

Investor Financial Supplement

September 30, 2020

(Unaudited)

This financial supplement is for informational purposes only. It should be read in conjunction with documents filed with the Securities and Exchange Commission by Sirius International Insurance Group, Ltd., including its Quarterly Report on Form 10-Q for the quarter ended September 30, 2020.

Sirius International Insurance Group, Ltd.
Table of Contents
Basis of Presentation and Cautionary Statements	Page
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Key Performance Indicators	3
Consolidated Financial Statements
Consolidated Statements of (Loss) Income	4
Consolidated Statements of Comprehensive (Loss) Income	5
Consolidated Balance Sheets	6
Consolidated Statements of Shareholders' Equity	7
Segment Information
Consolidated Statements of (Loss) Income - Segment Results Format	8
Consolidated Underwriting Results by Segment	9
Segment Data - Quarterly
Global Reinsurance	11
Global A&H	12
U.S. Specialty	13
Runoff & Other	14
Gross Written Premiums by Segment	15
Net Earned Insurance and Reinsurance Premiums by Segment	16
Investment Information
Net Investment Income	17
Investment Holdings - Cost to Fair Value Reconciliation	18
Investment Holdings - Quarterly
Investment Type	19
Credit Quality and Maturity Profile	20
Impact of Foreign Currency Translation	21
Net Realized and Unrealized Investment Gains (Losses)	22
Other
Book Value Per Common Share and Tangible Book Value Per Common Share	23
Basic and Diluted Earnings Per Share	24
Return on Common Shareholders' Equity - Consecutive Quarters	25
Reserves for Unpaid Losses and Loss Adjustment Expenses	26
Reconciliation of Non-GAAP Financial Measures	27

Sirius International Insurance Group, Ltd.

Basis of Presentation and Cautionary Statements

BASIS OF PRESENTATION AND NON-GAAP FINANCIAL MEASURES:

Sirius International Insurance Group, Ltd. (the "Company") is a Bermuda exempted company whose principal businesses are conducted through its wholly-owned insurance and reinsurance subsidiaries and other affiliates (collectively with the Company, "Sirius Group," "we," "our" and "us"). Sirius Group provides multi-line insurance and reinsurance on a worldwide basis.

We have made rounding adjustments to reach some of the figures included in this financial supplement and, unless otherwise indicated, percentages presented in this financial supplement are approximate.

In presenting Sirius Group's results, management has included and discussed non-GAAP financial measures: Tangible book value, Tangible book value per common share, and Operating (loss) attributable to common shareholders. The Company believes that these non-GAAP financial measures, which may be defined and calculated differently by other companies, better explain and enhance the understanding of the Company's results of operations. However, these measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles in the United States of America ("GAAP"). A reconciliation of Tangible book value, Tangible book value per common share and Operating (loss) attributable to common shareholders to the most comparable GAAP measures is included in the attached financial information in accordance with Regulation G.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

This financial supplement may contain forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, including statements about the optimization of Sirius Group's portfolio, market demand for Sirius Group's capacity, improved terms and conditions, the size of Sirius Group's balance sheet. the closing of the merger transaction and the preservation of Sirius Group's franchise. You can identify forward-looking statements by the use of forward-looking terminology such as "plan," "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "target," "continue," "could," "may," "might," "will," "possible," "potential," "predict," "should," "would," "seeks," "likely," and other similar words and expressions, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements are based on the current expectations of the management of Sirius Group and speak only as of the date of this document. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the following:

• the continued impact of the COVID-19 pandemic on Sirius Group's business, operations and loss reserve estimates;
• the effect of judicial, legislative and regulatory actions to address and contain the impact of COVID-19;
• the uncertainty as to the estimate of ultimate industry loss claims;
• the general economic conditions and market conditions in the markets in which Sirius Group operates;
• Sirius Group's exposure to unpredictable catastrophic and casualty events and unexpected accumulations of attritional losses;
• increased competition from existing insurers and reinsurers and from alternative capital providers, such as insurance-linked funds and collateralized special purpose insurers;
• decreased demand for Sirius Group's insurance or reinsurance products, consolidation and cyclical changes in the insurance and reinsurance industry;
• the inherent uncertainty of estimating loss and loss adjustment expenses reserves, including asbestos and environmental reserves, and the possibility that such reserves may be inadequate to cover Sirius Group's ultimate liability for losses;
• a decline in or withdrawal of Sirius Group's operating subsidiaries' ratings with rating agencies;

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• the exposure of Sirius Group's investments to interest rate, credit, equity risks and market volatility, which may limit Sirius Group's net income and may affect the adequacy of its capital and liquidity;
• losses related to cyber-attacks on Sirius Group's information technology systems;
• the impact of various risks associated with transacting business in foreign countries, including foreign currency exchange-rate risk and political risks on investments in, and revenues from, Sirius Group's operations outside the U.S.;
• the possibility that Sirius Group may become subject to additional onerous governmental or regulatory requirements or fail to comply with applicable regulatory and solvency requirements;
• Sirius Group's significant deferred tax assets may become materially impaired as a result of insufficient taxable income or a reduction in applicable corporate tax rates or other change in applicable tax law;
• a decrease in the fair value of Global A&H and/or Sirius Group's intangible assets may result in future impairments;
• the limited liquidity and trading of the Company's securities;
• China Minsheng Investment Group Corp., Ltd. ("CMIG") and CMIG International Holding Pte. Ltd.'s status as a direct and indirect majority shareholder, including their affiliates' liquidity issues, and actions taken by CMIG, CMIG International Holding Pte. Ltd. or any other parties in interest in connection with such liquidity issues including ownership changes;
• Sirius Group's status as a publicly traded company, foreign private issuer and controlled company;
• the consequences of the written resolution of Sirius Group's majority shareholder which may prohibit the Board of Sirius Group from issuing any form of equity without shareholder approval;
• the impact of lawsuits initiated by minority shareholders, including lawsuits claiming that they are being unfairly oppressed by Sirius Group's majority shareholder or lawsuits claiming a right of redemption of the Series B preference shares;
• the satisfaction or waiver of the conditions precedent to the consummation of the proposed transactions described in an Agreement and Plan of Merger entered into by and among the Company, TPRE and Yoga Merger Sub Limited dated August 6, 2020 and the terms and conditions included in a statutory merger agreement (collectively, the "Transactions"), including, without limitation, the receipt of shareholder and regulatory approvals (including approvals, authorizations and clearance by antitrust authorities and insurance regulators necessary to complete such proposed Transactions) on the terms desired or anticipated (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of such proposed Transactions);
• unanticipated difficulties or expenditures relating to such proposed Transactions;
• risks relating to the value of the shares of TPRE to be issued in such proposed Transactions;
• unanticipated negative reactions of rating agencies in response to such proposed Transactions;
• disruptions of the Company's and TPRE's current plans, operations and relationships with third persons caused by the announcement and pendency of such proposed Transactions, including, without limitation, the ability of the combined company to hire and retain any personnel;
• legal proceedings that may be instituted against the Company and TPRE following announcement of such proposed Transactions; and
• other risks identified in Sirius Group's Annual Report on Form 10-K for the year ended December 31, 2019, subsequent Quarterly Reports on Form 10-Q and other filings with the U.S. Securities and Exchange Commission.

Should one or more of these risks or uncertainties materialize, or should any of the assumptions made by the management of Sirius Group prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Except as required by applicable law or regulation, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, or new information, data or methods, future events or other circumstances after the date of this financial supplement.

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