Good morning, ladies and gentlemen, and welcome to the SiriusPoint Limited Second Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the call over to Ms. Clare Kerrigan, Head of Investor Relations for SiriusPoint. Please go ahead ma'am.

Thank you, operator. Welcome to the SiriusPoint Limited earnings call for the second quarter of 2021. Last night, we issued our second quarter Form 10-Q and earnings press release and financial supplement and an announcement on a loss portfolio transfer transaction with Compre, all of which are available on our website, www.siriuspt.com. With me here today are Sid Sankaran, our Chairman and Chief Executive Officer; and David Junius, our Chief Financial Officer. Before we begin, I would like to remind you that many of the remarks today will contain forward-looking statements based on current expectations. Actual results may differ materially from those projected as a result of certain risks and uncertainties. Please refer to the earnings press release and the company's other public filings, including the recent Form 10-Q and the Form 10-Q for the period ended March 31, 2021, where you will find risk factors that could cause actual results to differ materially from those forward-looking statements. In addition, management will refer to certain non-GAAP financial measures, which management believe allow for a more complete understanding of the company's financial results. A reconciliation of these non-GAAP measures to the most comparable GAAP measure is presented in the company's earnings press release that is available on our website. At this time, I will turn the call over to Sid.

Thank you, Claire, and good morning, everyone. On today's call, I'll provide a high-level overview of our second quarter financial results and provide an update on our progress executing on our 3-pillar strategy, as we work to establish sustained underwriting profitability. David will then review our second quarter results in more detail. We were also pleased to announce yesterday a loss portfolio transfer transaction with Compre, a legacy runoff specialist, which eliminates our highest-risk long-tail reserves. The deal between Sirius America and Sirius Bermuda with palacry, a subsidiary of Compre covers $417 million of loss reserves, subject to or associated with the transaction, including much of the legacy Sirius Group Runoff business, including Asbestos and Environmental for a premium of $430 million. The transfer, which is subject to regulatory approval and other closing conditions, covers the bulk of the economic risk of the reserves in the Runoff segment, including most of SiriusPoint's legacy A&E exposure to our runoff specialists better able to focus on these blocks. Assuming we receive timely regulatory approvals, this transaction will be reflected in our third quarter results. Importantly, we will free up approximately $100 million of rating agency capital to deploy into higher growth and more profitable lines of business, allowing us to optimize capital allocation and focus on rebalancing toward insurance and higher margin and growth levels, while providing further clarity on SiriusPoint's reserve position. Turning to our results. I'm very pleased with our team's execution and strong delivery in our first full quarter. We achieved a combined ratio of 92.8% in the second quarter of 2021, which keeps us well on track to deliver an underwriting profit in 2021 after multiple years of underwriting losses at our predecessor companies. On a reported basis, Catastrophe losses were $12.7 million or 2.7 percentage points on…

Thanks, Sid. For the second quarter, we generated net income of $65 million or $0.37 per diluted share versus $131 million or $1.05 per diluted share in the first quarter of 2021. The sequential decline was largely attributable to our investment results normalizing off of highly elevated levels achieved in the first quarter. Additionally, our average fully diluted shares outstanding rose to $161 million as compared to $118 million in the first quarter reflecting a full quarter for the purchase of Sirius Group in the issued share count. Importantly, we had better balance in our earnings with stronger underwriting results, including favorable prior year development and light cat losses, reduced transaction expenses and favorable movement in the value of liability classified capital instruments. Our annualized return on average common equity was 10.6% for the quarter. We generated a net underwriting profit of $33 million, and our combined ratio was 92.8%, which compares to 96.6% in the first quarter of 2021. Our first half combined ratio was 94.2%, keeping us on track to deliver an underwriting profit for the full year 2021. Our current quarter combined ratio included $13 million of catastrophe losses or three percentage points compared to eight percentage points in the first quarter after adjustments for three months of Sirius Group results. We also benefited from $10 million or 2.2 percentage points of favorable development primarily from recent accident years in our European property book, which has been a strong performer over time. Our ultimate loss pick on COVID reserves remains unchanged, and we recognized $3 million of COVID losses in the quarter earning in on our multiyear mortgage insurance book. While we continue to monitor overall developments and recent court rulings on COVID, particularly on impacted property business interruption. We did not see anything in the quarter…

Thank you, David. I'm very pleased with our execution this quarter. We've made solid progress delivering on elements of all three of our strategic pillars: stabilizing our portfolio and improving our profitability, revitalizing and growing our core insurance and reinsurance book and building alternative business models, partnering with and investing in innovative businesses and teams in the insurance industry. This delivery is an important first step as we work to establish SiriusPoint's underwriting profitability and future development and growth by being best-in-class allocators of capital, diligently managing our risk and growing higher margin and differentiated businesses, while investing in technology. I'm extremely proud of the top team and partnerships we have assembled and the talent in the organization. I believe we're going to continue to be the partner of choice for entrepreneurial and best-in-class capital allocators who intend to build disruptive and innovative businesses. I look forward to updating you on our continued progress next quarter. Thank you for your time, and I'll turn the call back to the operator.

Thank you for attending today's presentation. The conference has now concluded. You may disconnect. End of Q&A: