Prepared remarks
Good morning, ladies and gentlemen, and welcome to SiriusPoint's First Quarter 2026 Earnings Conference Call. As a reminder, this conference call is being recorded, and a replay is available through 11:59 p.m. Eastern Time on May 22, 2026. With that, I would like to turn the call over to Liam Blackledge, Investor Relations and Strategy Manager. Please go ahead.
Good morning, and thank you for joining us for SiriusPoint's First Quarter 2026 Earnings Call. Last night, we released our earnings press release, Form 10-Q and financial supplement, all available on our website at investors.siriuspt.com, along with the slides that will accompany today's discussion. Joining me on the call are Scott Egan, our Chief Executive Officer; and Jim McKinney, our Chief Financial Officer. Before we begin, I'd like to remind you that today's remarks contain forward-looking statements based on current expectations, and actual results may differ materially. We will also reference certain non-GAAP financial measures, which we believe are useful in evaluating the performance of the business. Reconciliations can be found in the presentation and our SEC filings. Please refer to our earnings release and accompanying materials for a more complete discussion of forward-looking statements and non-GAAP measures. With that, I'll turn the call over to Scott.
Thank you, Liam, and welcome, everyone, to our first quarter 2026 results call. We've started the year with a strong first quarter, continuing to build on our performance momentum. We have delivered strong underwriting profits, disciplined growth and attractive capital returns, and I'm pleased with our delivery. Let me start with our headline results. We delivered a core combined ratio of 88.9%, the lowest we've reported in six quarters. We grew our Insurance & Services gross written premiums by 8%. Our operating return on equity of 15.3% puts us at the top end once again of our 12% to 15% across the cycle target range. Our GAAP return on equity was higher at 17.4%, reflecting the closure of the Arcadian sale we announced last year. Our balance sheet is very strong with a BSCR ratio of 242% for the first quarter. We have redeemed $200 million of preference shares and, as of earlier this week, have bought back over $40 million of common shares. We are announcing today that we are increasing our $100 million buyback intention we announced at full year results by the remainder of our existing authorization, which is another $74 million. Our book value per share is up 5%. And finally, our financial strength ratings have been upgraded to A over the past three months by S&P, Fitch and AM Best. These results continue to reinforce the progress we're making in building a best-in-class specialty underwriter with a diversified low-volatility portfolio. Turning to some of our headlines in more detail and starting with our top line. There is no question that certain parts of the P&C market are softening. In those areas, we will be disciplined. However, we believe that our product and distribution strategy and our nimble capital allocation model will allow us to grow top line and make attractive underwriting returns. Our first quarter gross written premium showed both of these dynamics. Our Insurance & Services gross written premium grew again by 8%, driven by the continued momentum in specialty lines with Accident & Health growing by 9%. Our Reinsurance gross written premium declined 10% as we remained disciplined, particularly in areas such as property catastrophe, where some risks did not offer adequate returns. Overall, our headline core gross written premiums grew 1%, although in Q1 this was impacted by some one-off noise, including reinstatement premiums in the prior year. The same was true for our net written premiums, which also includes the impact of the aggregate programs we announced at year-end and a one-time Surety item from the prior year. Adjusting for these items, both our gross and net written premiums grew around 4% year-over-year. As a reminder, the aggregate programs we purchased are part of our lower volatility return strategy and support our 12% to 15% across the cycle ROE target. As I look ahead to the rest of the year, we remain positive about our growth prospects. We have a strong pipeline of MGA opportunities that we are rigorously evaluating and we have the agility to deploy capital in Reinsurance should we see opportunities. We expect our overall gross written premium growth to be between 5% to 10% for the full year with strong growth in Insurance & Services. Our growth will be more weighted to the second half of the year, primarily driven by the shift in mix to Insurance from Reinsurance. Turning to underwriting performance. The results this quarter continue to reflect the benefits of the diversified portfolio we've been reshaping over the past few years. We have improved the quality of the portfolio and materially reduced volatility. The consistency of our core combined ratio over the past few years is a clear demonstration of this. In the first quarter, we delivered a core combined ratio of 88.9% and underwriting profits of $71 million. This marks our 14th consecutive quarter of underwriting profitability, an important proof point on the execution of our underwriting strategy. In Reinsurance, our combined ratio of 84.2% improved by around 13 points, driven by lower catastrophe losses. This was partially offset by lower prior year development and modestly higher acquisition costs and expenses. We remain opportunistic for the right risks priced appropriately with a focus on lower volatility outcomes. In Insurance & Services, the combined ratio improved to 92% with the ex-cat combined ratio improving by just over 0.5 point. Favorable prior year development reflects our conservative reserving approach in general, but particularly for newer MGA relationships where we reserve at higher than priced loss ratios in the early years. An improving attritional loss ratio and higher prior year releases resulted in higher profit commission accruals for our MGA partners, lifting acquisition costs. We structurally design our MGA partnerships in this way where we ensure an alignment of interest to underwriting performance. The higher acquisition costs simply reflect strong partner performance. We are happy to pay enhanced commissions for superior performance. Important to note, these are mostly accruals and not cash payments. Many of our profit commission structures include a carryforward feature, allowing profit and losses to be offset across accident years. Our other underwriting expenses were elevated in the quarter due mostly to timing items, and we reaffirm our full year guidance range of 6.5% to 7%. This quarter, we've introduced some additional slides, enhancing our disclosures as we try and give further insights into our business. First, we've introduced a new return on equity metric focused on our go-forward business. As a reminder, we label this our core business. Important to note that nothing has changed from a definition perspective. Our core business definition has been stable since the beginning of 2024 after the major underwriting reshaping that took place in late 2022 and during 2023. The reason for introducing the measure is to try and give people a better indication of the performance of our ongoing business without the impact of historically exited business. Eventually, runoff will run off, and I will come back to that later. Over the last nine quarters, the core portfolio has generated strong ROE, as you can see from the graph on Slide 9. For the first quarter, it was 17.9%, reflecting a strong trend and reinforcing the earnings power embedded in the go-forward portfolio today. Our second area of enhanced disclosure is around our approach to MGA partnering, an area we are often asked questions on. We strongly believe in the strength of the distribution channel, its growth and most importantly, our approach to it. Slide 13 shows some metrics linked to how we think about MGAs. From our selection process, where we choose less than 10% of partners we evaluate, to our onboarding, where we typically take six to nine months in getting to know potential partners, to our deal structuring, where there are no volume incentives in any of our relationships and where almost 90% of our partners have incentivization linked to underwriting profits. And finally, our prudent financial management, where we typically reserve above pricing level for new partners and prudently in general. It is this mix of measures and approach that we believe makes our strategy compelling and sustainable. But it's not just one way. We are also a partner of choice for many MGAs. As a reminder, last year we won the U.S. Program Carrier of the Year. We hope this slide is helpful. Finally, we've added a page on runoff, which I touched on earlier. Runoff performance sits outside of our core metrics. Again, nothing has been added to the runoff portfolio since the end of 2023, an important discipline. We did see some losses here in the first quarter, like we have seen over the past few years; there's nothing noteworthy to draw any specific comment on. Importantly, our net runoff reserves are now under $500 million, down from just over $1 billion at the end of 2023, and the portfolio should be 90% reported by mid-2027. Ending with the balance sheet. Our disciplined approach to capital management is a key part of our strategy. Our prudent approach to reserving saw our 20th consecutive quarter of prior year releases. It's also worth noting that we have minimal claims from the conflict in the Middle East, and there has been no significant impact on our loss reserves from the change in market estimate relating to the Baltimore Bridge Collapse. As I said earlier, so far in 2026, we've returned over $240 million of capital to shareholders, including the redemption of $200 million of preference shares and the buyback of over $40 million of common shares as part of our $100 million commitment we announced at year-end 2025. Supported by a stronger-than-expected year-end capital position, continued performance momentum and a BSCR capital ratio of 242%, we are pleased to deploy additional capital by increasing our $100 million buyback commitment to the full pre-authorization amount of $174 million. Our leverage of 23% is at a historic low, and since our full year results in February, S&P, AM Best and Fitch have upgraded our financial strength ratings to A, citing consistent earnings and balance sheet strength. To close, before I pass across to Jim, who will take you through the financials in more detail, I will leave you with a few key takeaways. Our strong underwriting focus and capability continues to show itself meaningfully through our results. Our approach in building a low volatility, diversified specialty platform focused on niche distribution means we can perform strongly during softer market conditions. We are positive about our growth opportunities for the remainder of the year and expect strong growth in our Insurance & Services business. Our prudent reserving and capital management, coupled with our rating agency upgrades, position us strongly in the market. And finally, our drive, ambition and attention to detail across the company is a key differentiator in our journey to be a leading specialty player. My final comment, as always, goes to our biggest asset, our people. I am deeply grateful again to all of my colleagues for another strong quarter and for their continuing levels of energy and commitment. I'm immensely proud to lead them on this journey. And with that, I'll turn it over to Jim to walk through the financials in more detail.
Thank you, Scott, and good morning or good afternoon, everyone. I'll start with our first quarter financial results, then cover underwriting, investments, capital and the balance sheet. We delivered a strong first quarter, reflecting disciplined underwriting, lower catastrophe volatility and continued progress in reshaping the portfolio towards higher return, lower volatility specialty insurance. Gross written premium was $1 billion, up 1% year-over-year. Net written premium declined 7%, driven by the preannounced aggregate cover and a one-time Surety item in the prior year. Net earned premium increased 2% with growth in Insurance & Services more than offsetting deliberate pullback in Reinsurance. Most importantly, underwriting performance significantly enhanced. Core combined ratio improved 6.5 points to 88.9%, driven primarily by lower catastrophe activity and continued improvement in attritional loss performance despite 1.2 points of mix headwind. We generated $71 million of underwriting income, a 149% increase year-over-year, which marks our 14th consecutive quarter of underwriting profitability. Operating performance followed directly from our underwriting discipline. Operating net income was $86 million or $0.70 per diluted share, up 37% year-over-year. Operating ROE for the quarter was 15.3% and core operating ROE was 17.9%, comfortably within and above our 12% to 15% across the cycle target. Net service fee income reached $8 million, with service revenues at $54 million at a 14.6% margin. Excluding the Arcadian sale, net service revenues rose 26%. Net fee income increased 34% and margins improved by 80 basis points. Net investment income totaled $66 million, leading to an overall investment result of $78 million. The fixed income portfolio's average credit quality remains AA-. Finally, book value per diluted share, excluding AOCI, increased 5% sequentially to $18.98, reflecting both earnings and disciplined capital management. Turning to our core specialty lines with details available on Page 11. Accident & Health, our largest line at approximately 28% of the premium mix, continues to perform well. Premiums grew 9% year-over-year, driven by strong opportunities in travel and U.S. medical. Importantly, this remains a low capital intensity, low correlation line that enhances portfolio resilience. Employer stop loss has been challenged for several years with premiums generally flat since 2021. We maintain a strong book and based on available U.S. statutory data, our loss ratio has run more than 10 points favorable to the market average for multiple years. The market is showing early signs of hardening. Given our underwriting expertise, we may selectively lean back in as conditions improve. General Liability conditions are mixed. Competition is intensifying as the E&S market continues to expand with early and selective softening emerging in terms and conditions. Primary and umbrella pricing remained technically adequate, while excess continues to achieve double-digit though moderating rate increases that exceed loss cost trends. We are underwriting cautiously and maintaining strict return thresholds. In Other Property, pro rata reinsurance pricing has softened, particularly in commercial lines, and we adjusted accordingly. Property insurance niches continue to offer attractive opportunities. While premiums were flat this quarter, we expect selective growth through the remainder of the year, driven primarily by insurance. Financial and professional lines remain competitive, particularly in D&O and professional. We believe the cycle is nearing a bottom, and we are underwriting selectively. In transactional liability, pricing remains competitive, and we continue to prioritize risk selection over volume. Within other casualty, auto remains challenged with loss cost inflation running ahead of rates, and we have and continue to pull back exposure accordingly. Surety continues to be an attractive diversifying line with disciplined growth. In aviation, we remain cautious. Major airline pricing has improved, and we continue to reduce exposure where returns do not meet our criteria. Credit remains well priced with rate adequacy intact. Marine and energy market conditions are mixed. We see attractive opportunities in energy liability and select niche segments, while upstream remains competitive. Marine, particularly cargo and hull, continues to experience elevated competitive pressure. Finally, Property Catastrophe Reinsurance, now approximately 4% of the portfolio, saw rate declines of about 15%. Gross written premium declined 31%, reflecting lower reinstatement premiums as well as a deliberate pullback consistent with our continued focus on capital discipline over top line growth. Slide 19 highlights the impact of the deliberate actions we've taken since 2022 to reduce catastrophe exposure. In the first quarter, catastrophe losses were $63 million lower year-over-year and represented just 0.8 points on the combined ratio compared to 10.9 points in the first quarter of last year. The enhancements we've made materially improved the stability and predictability of earnings, a central objective of our portfolio reshaping. Turning to reserving on Slide 20. We reported favorable prior year development of $32 million within core and $18 million consolidated, marking 20 consecutive quarters of favorable development. This track record exceeds the average duration of our liabilities and reflects a consistently prudent reserving approach, supported by quarterly bottom-up actuarial reviews, independent external validation and the continued benefit of our loss portfolio transfers, all of which retain significant protection in excess of booked reserves. Investment performance found on Slide 21 remains strong and stable. Net investment income was $66 million, contributing to a $78 million total investment result. We experienced no defaults in the quarter. Ninety-nine percent of the fixed income portfolio remains investment grade with an average credit rating of AA-. Portfolio duration remained steady at 3.1 years and reinvestment yields continue to exceed 4.5%. We continue to prioritize quality, liquidity and downside protection in the investment portfolio. Slides 22 and 23 provide capital and balance sheet details. Our capital position remains a clear strength. The estimated BSCR ratio was 242% even after the preference share redemption and includes net capital generation during the quarter. We continue to operate the business against the capital framework consistent with S&P's AAA model assumptions. Leverage declined further. Debt to capital decreased to 22.8%, the lowest level in several years. Liquidity increased to over $1 billion, driven by upstream dividends and holding company investments. Importantly, we continue to believe the balance sheet undervalues our MGA platform, particularly IMG. In the quarter, book value increased by $25 million from the completion of the Arcadian sale. This is in addition to the $96 million uplift recorded upon Arcadian's deconsolidation in 2024. To summarize, this quarter reflects the results of a multiyear strategy focused on underwriting excellence, capital discipline and volatility reduction. We delivered strong underwriting profitability, continued improvement in attritional loss performance, returns within and above our through-the-cycle targets, continued capital strength and balance sheet flexibility. While we're pleased with the progress, our focus remains on execution as we continue building a best-in-class specialty insurance franchise. With that, I'll turn the call back to the operator, and we'll open the lines for questions.
Questions and answers
Our first question comes from the line of Michael Phillips with Oppenheimer & Co.
I want to start with the comments in the press release about the areas of growth, and then I heard some of Jim's comments through the lines of business. Particularly, you mentioned in the press release a growth in general liability, and that's an area where there is some concern. We even had a CEO just yesterday say, hey, by growing in general liability is crazy. I'm paraphrasing. Maybe you can talk about that line given the comments that Jim made about intensifying competition and where you're seeing growth in GL and why anyone shouldn't be concerned about that.
Mike, thanks for your question. As always, thanks for joining the call. Let me make a couple of general comments on growth before we dive into the details. In Q1 we were pleased with our position, with a tale of two dynamics between Insurance and Reinsurance. If you look at our growth in Q1, we are pleased with where the Insurance business has grown, and we are very happy with both the relationships and the pockets. In Reinsurance, Q1 is probably the most extreme shrinkage that we'll see, driven by property catastrophe 1/1s. We probably expect it to be stronger year-over-year in the remainder of the year. Ultimately, we will remain very disciplined in that marketplace, with property catastrophe being the dominant line. Regarding growth, the momentum we have in Insurance remains strong. We brought on two new relationships in Q1, and we remain with a strong pipeline. We think double-digit growth in Insurance is our aim for the year, and we are well positioned for that. On GL specifically, we are very alert. We are seeing competition intensifying, particularly as E&S continues to expand, and we are seeing selective softening in terms and conditions. We do not view it as a broad panacea; we are staying disciplined. We are happy with the MGAs we are working with to access the market. Excess casualty, for example, our largest segment, continues to price ahead of loss cost trends and is the largest portion of the portfolio. Jim commented on this in his overview. For GL we are disciplined and alert, and we will not chase risk where price does not match the risk. The advantage of the MGA distribution strategy is access to niche business and niche markets, which we believe is a core strength of the company. If we do not see appropriate pricing, we will move capital around the group. The great news is there are opportunities and a strong pipeline. Does that answer your question?
I'd add a couple of things. We are a specialty underwriter, so we will not follow some of the broader market trends because we write very specialized risks through experienced partners. We are not trying to write commoditized products; we focus on specialty areas where we have requisite expertise and remain price disciplined. Regarding growth, the change in property catastrophe down 31% year-over-year has shifted the composition of the book toward Insurance, and as a result the book is much less seasonally weighted. You will see more stability in gross and net written premiums throughout the year. Some of the growth you saw in the second half of last year should continue and be more evenly distributed through the year. Think of premium distribution as more even-weighted than in prior years.
Mike, I hope that gives you context. We covered more than GL but it should give you a flavor of how we're thinking about overall growth: strong in Insurance, disciplined in Reinsurance, and we expect improvement beyond the 1/1 property catastrophe date while remaining disciplined in capital allocation.
Yes, that's helpful. The second question is more on the modeling but has higher level implications. In Insurance because of the higher acquisition costs because your profitability is strong and likely going to continue, should we expect that higher acquisition cost to continue over the foreseeable future?
It's a good question. The answer depends on the specific relationships and prior years' results. If a partner has historical losses, a prior year release wouldn't necessarily produce an automatic profit share accrual. If there are prior year profits and you add prior year release, your accrual can increase. We see this as a strength of our deal structures, which are multi-year and aligned with underwriting performance. Importantly, these are accruals, not cash payments in many cases. It's complex and partner-by-partner, so you should not simply extrapolate the Q1 prior year development and acquisition lines across future quarters. The strategic logic is that the business is performing well at a high ROE, and when prior year development is favorable, it can increase profit share accruals, but it's not an exact science.
To add, when you look at the composite ratios you continue to see improvement. If you add prior year development in Insurance & Services and the breakout we give in the supplement, you're seeing about 3.3 points of prior year development and a related offset in profit commission. When you look at the total combined ratio and aggregate effects, you continue to see roughly a point improvement year-over-year in underlying performance. There can be geography or timing elements, but think about the equation being solved in total: some prior year favorability may increase profit commissions, but overall the trend is toward continued underwriting profitability.
Okay. That's helpful. Lastly, on the restructuring recently to focus more on the Lloyd's market and the London Market specialty division you created, what do you expect to get out of that, when might we see impact to models over the next couple of years, and what are the initial strategies and longer-term expectations?
This is a strategic journey. The relaunch of London Market specialty does not mean it didn't exist before; it's now a higher profile part of the group. When I joined three years ago our Lloyd's syndicate and managing agent required remediation to improve underwriting, processes and reputation with Lloyd's. Over that period we've moved from fourth quartile performance toward second quartile performance. We want to be first quartile, but the improvement is demonstrable. We recently had our group board in London and relaunched London Market specialty with a market event attended by the CEO of Lloyd's, which reaffirmed mutual commitment. The London market is a large specialty market and is attractive strategically alongside the U.S. specialty market. The rebadging reflects progress and gives the business the profile it now merits. If the effort gains momentum, we'll be transparent and provide disclosure on future calls.
Our next question comes from the line of Gregory Peters with Raymond James.
I know you're targeting profitable, low volatility results for the company. Listening to some other calls, war risk and political violence markets in the Middle East seem to be on a tear from a pricing perspective. I'm not saying you're necessarily looking at that specific market, but when we hear anecdotal evidence of certain markets where rates are going up substantially, how do you view those opportunities given they might work against the low volatility target you have in mind?
That's a good question. Low volatility does not mean we will not take higher volatility risks. Property catastrophe is the most obvious higher volatility area; political violence is another form of catastrophe. We are aware of opportunities in higher volatility markets and are not afraid to take volatility where it is priced appropriately. The lower volatility characterization describes how we manage the overall portfolio, including protective layers like retro protection or aggregate covers. When Accident & Health grows, for example, we can take more volatility while keeping overall portfolio volatility consistent. We will not be constrained from taking appropriately priced opportunities, but we manage them within an overall envelope of lower volatility.
On the MGA piece from a different angle: MGAs currently have many options for carriers to partner with. How do you win relationships against other carriers if good MGAs have alternatives?
We are not arrogant; we do not win every relationship. Some MGAs will go elsewhere depending on product and expertise needs. Winning comes down to behavioral choice, responsiveness, agility and the ability to work with partners on product flexibility and design. Some carriers offer a rigid box; we try to be nimble and partner-oriented. We are careful about who we work with; we have criteria for partners and a disciplined selection process. The fact that we've had double-digit growth in our Insurance and MGA business for the last two years indicates we are doing something right. The U.S. Program Carrier of the Year award last year is evidence of that focus. Our design aligns incentives: when our partners perform, they earn enhanced commissions; when we perform, shareholders benefit. Our pipeline is strong and we remain upbeat about top line and bottom line performance for the rest of the year.
Our next question comes from the line of Andrew Andersen with Jefferies.
This is Charlie on for Andrew. Could you provide more color on the attritional loss trends you're seeing in insurance lines and whether you're seeing early signs of changes in the spread of rate versus loss cost trend?
Big picture, we continue to see enhancements in our attritional loss performance, with about 30 to 40 basis points of net improvement. When you look deeper, there is roughly 1.2 to 1.3 points of mix headwind being offset. That mix headwind is not negative per se; as we reduce property catastrophe, which tends to have a lower attritional loss ratio, it is replaced by lines that run higher attritional loss ratios but deliver strong ROE. Even with that shift, we improved about 40 basis points year-over-year due to continued underwriting improvements and the insight we share with our partners that supports strong underwriting discipline.
On the guide for the 6.5% to 7% other underwriting expense, what are the underlying levers to pull and what is embedded in that outlook?
In the quarter, there are a couple of elements to note. There is some variable compensation due to outperformance and underwriting results. A secondary component is timing related to hiring and when premium and other elements come on. We are a bit higher at 7.2% in the quarter, but we expect lower expense in the second half of the year, and our internal view is a full year outcome within the 6.5% to 7% range. There is nothing fundamentally changed in our assumptions; we will remain disciplined on expense lines.
I would add we are investing in data integration between ourselves and MGAs with the view of industrializing the process. About 10% of our MGAs are already on that platform. Over time this should yield both data and speed advantages and cost benefits as we reduce rekeying and manual processes. Those investments are a planned tailwind to our cost ratio and will benefit from economies of scale as we grow the business.
Our next question comes from the line of Timothy D'Agostino with B. Riley Securities.
Apologies if I joined a little late. Regarding returning capital to shareholders, you've redeemed preference shares, repurchased common shares and increased the share repurchase commitment back to the fully authorized $174 million. As we think toward the end of 2026, are share buybacks the main avenue for returning capital? And looking to 2027 and 2028, if performance keeps up, have conversations about a potential dividend or special dividend come up? Once shares are adequately priced and you've done buybacks, does a dividend become more in focus?
Thanks, Tim. We have returned a lot of capital to shareholders over the journey, including the redemption and buybacks you mentioned. We increased the buyback to the pre-authorization levels because of a stronger year-end capital position and confidence in the balance sheet. As of today, we've executed about $135 million of the $174 million program, which gives you an order of magnitude. Looking forward, we decide mechanisms when the time comes, not in advance. We are agnostic to whether returns take the form of buybacks, dividends or specials; all options are on the table. For now we are deploying the buyback given valuation and believe it's a good use of capital for shareholders. As we mature, we will engage with shareholders, and if a dividend makes sense we would consider it.
To build on that, when we evaluate capital deployment we first consider the attractiveness of opportunities in our specialty markets and how they compare to returns from buybacks or dividends. We ensure we have the right capital reserved for organic growth and then evaluate investment opportunities that could strengthen the organization. If we see strong return-on-capital opportunities we will pursue them; if not, we will consider buybacks or dividends in the best interest of shareholders. We will make thoughtful, disciplined decisions.
That's helpful. A second question on the smaller specialty lines shown on Slide 11 — aviation, credit, marine and energy — any lines or regions that are particularly interesting in terms of pricing or opportunities?
On aviation, the market needed to price and we saw material rate improvement at the major airline renewals in Q4 with high double-digit to teens rate increases, which was important. We expect aviation rates to continue to firm before the market fully normalizes, so we remain cautious but see improvement. Marine and energy are different: Marine pricing has softened, particularly in the London market, so we are selective. That does not mean there are no good risks, but we need to search for pockets. Credit has been profitable for us and remains well priced; we had prior year releases in the credit book in Q1. We take a prudent reserving approach in credit and will act selectively. These smaller lines each have their own dynamics, and we have specialists focused on them daily.
To add, within credit we see pockets such as trade credit, political risk and international mortgage that remain well priced. Energy liability continues to see rate strength, especially in U.S. risk, which we find attractive.
And we have Michael Phillips back on the line with a follow-up.
Just a quick numbers question. Scott, you mentioned reinstatement premium in the core moved it up to about 4% for gross. What was the impact, if you could say, on Insurance?
It moved it from 8% to double-digit, Mike. We did not break down every underlying number on the call, but the underlying performance of Insurance & Services in Q1 was double-digit, and we expect it to be double-digit for the rest of the year.
We have reached the end of the question-and-answer session. Therefore, I'll turn the call back over to management for closing remarks.
As always, thank you for joining the call and for your questions. In summary, a good and strong first quarter. The momentum within the business is continuing and we feel in a very good position for the rest of the year. I wish you all a good weekend, and we'll speak soon. Thank you very much.
Thank you. This concludes today's conference, and you may disconnect your lines at this time. We thank you for your participation.