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Change in accounting policy
 12 Months Ended
Dec. 31, 2020
Accounting Changes and Error Corrections [Abstract]  
Change in accounting policy
3. Change in accounting policy
Premium revenue recognition
Effective January 1, 2021, the Company changed its accounting policy for assumed written premium recognition. Previously, the Company estimated ultimate premium written for the entire contract period and recorded this estimate at inception of the contract. For contracts where the full premium written was not estimable at inception, the Company recorded premium written for the portion of the contract period for which the amount was estimable.
The Company changed its accounting policy to recognize premiums written ratably over the term of the related policy or reinsurance treaty consistent with the timing of when the ceding company has recognized the written premiums. Premiums written include amounts reported by brokers and ceding companies, supplemented by the Company's own estimates of premiums where reports have not been received. The determination of premium estimates requires a review of the Company's experience with the ceding companies, managing general underwriters, familiarity with each market, the timing of the reported information, an analysis and understanding of the characteristics of each class of business and management's judgment of the impact of various factors, including premium or loss trends, on the volume of business written and ceded to the Company. On an ongoing basis, the Company's underwriters review the amounts reported by these third parties for reasonableness based on their experience and knowledge of the subject class of business, taking into account the Company's historical experience with the brokers or ceding companies.
The change in policy has been made because it is management’s opinion that the revised policy reflects the timing of when premiums are written by the cedent and reduces uncertainty regarding the assets and liabilities recorded.
The following tables provide a summary of the retrospective impact from the change in accounting policy on the Company’s consolidated financial statements:
Consolidated balance sheet
December 31, 2020
As previously reportedAdjustmentAs adjusted
Insurance and reinsurance balances receivable, net$559,388 $(117,453)$441,935 
Deferred acquisition costs, net 134,308 (65,758)68,550 
Unearned premiums ceded27,659 (7,195)20,464 
Total assets3,725,594 (190,406)3,535,188 
Reinsurance balances payable80,408 (2,293)78,115 
Unearned premium reserves472,948 (188,113)284,835 
Total liabilities2,160,308 (190,406)1,969,902 
Shareholders’ equity attributable to SiriusPoint common shareholders$1,563,925 $— $1,563,925 
December 31, 2019
As previously reportedAdjustmentAs adjusted
Insurance and reinsurance balances receivable, net$596,120 $(117,668)$478,452 
Deferred acquisition costs, net154,717 (62,553)92,164 
Unearned premiums ceded16,945 (13,822)3,123 
Total assets3,439,694 (194,043)3,245,651 
Reinsurance balances payable81,941 (5,425)76,516 
Unearned premium reserves524,768 (188,618)336,150 
Total liabilities2,025,620 (194,043)1,831,577 
Shareholders’ equity attributable to SiriusPoint common shareholders$1,414,074 $— $1,414,074 

Consolidated statement of income (loss)
Year ended December 31, 2020
As previously reportedAdjustmentAs adjusted
Gross premiums written$588,035 $505 $588,540 
Gross premiums ceded(39,717)(6,627)(46,344)
Net premiums written548,318 (6,122)542,196 
Change in net unearned premium reserves62,534 6,122 68,656 
Net premiums earned$610,852 $— $610,852 
Net income available to SiriusPoint common shareholders$143,517 $— $143,517 
Year ended December 31, 2019
As previously reportedAdjustmentAs adjusted
Gross premiums written$631,846 $36,568 $668,414 
Gross premiums ceded(9,265)(2,111)(11,376)
Net premiums written622,581 34,457 657,038 
Change in net unearned premium reserves77,561 (34,457)43,104 
Net premiums earned$700,142 $— $700,142 
Net income available to SiriusPoint common shareholders$200,619 $— $200,619 
Year ended December 31, 2018
As previously reportedAdjustmentAs adjusted
Gross premiums written$578,252 $71,935 $650,187 
Gross premiums ceded(19,895)15,726 (4,169)
Net premiums written558,357 87,661 646,018 
Change in net unearned premium reserves63,085 (87,661)(24,576)
Net premiums earned$621,442 $— $621,442 
Net loss attributable to SiriusPoint common shareholders$(317,692)$— $(317,692)
Consolidated statement of cash flows
Year ended December 31, 2020
As previously reportedAdjustmentAs adjusted
Insurance and reinsurance balances receivable$38,825 $(215)$38,610 
Deferred acquisition costs, net20,409 3,205 23,614 
Unearned premiums ceded(10,714)(6,627)(17,341)
Unearned premium reserves(51,820)505 (51,315)
Reinsurance balances payable(1,352)3,132 1,780 
Net cash provided by operating activities$73,356 $— $73,356 
Year ended December 31, 2019
As previously reportedAdjustmentAs adjusted
Insurance and reinsurance balances receivable$30,039 $(9,684)20,355 
Deferred acquisition costs, net49,125 (24,343)24,782 
Unearned premiums ceded607 (2,111)(1,504)
Unearned premium reserves(78,168)36,568 (41,600)
Reinsurance balances payable11,964 (430)11,534 
Net cash provided by operating activities$141,112 $— $141,112 
Year ended December 31, 2018
As previously reportedAdjustmentAs adjusted
Insurance and reinsurance balances receivable$(120,620)$(36,594)$(157,214)
Deferred acquisition costs, net54,951 (46,205)8,746 
Unearned premiums ceded(16,503)15,726 (777)
Unearned premium reserves(46,582)71,935 25,353 
Reinsurance balances payable28,728 (4,862)23,866 
Net cash provided by operating activities$13,387 $— $13,387 
The change in accounting policy had no impact on the previously reported net income (loss) or shareholders’ equity attributable to SiriusPoint common shareholders.