Third Point Re 2017 Q1 Earnings Results
Bermuda-based Third Point Reinsurance Ltd. announced results for its first quarter ended March 31, 2017.
Third Point Re reported net income of $104.2 million, or $0.98 per diluted common share, for the first quarter of 2017, compared to a net loss of $51.1 million, or $[0.49] per diluted common share, for the first quarter of 2016.
For the three months ended March 31, 2017, diluted book value per share increased by $0.88 per share, or 6.7%, to $14.04 per share as of March 31, 2017, from $13.16 per share as of December 31, 2016.
“We are very pleased with our first quarter performance, which resulted in a return on beginning shareholders’ equity of 7.4% for the quarter. This was primarily driven by strong investment returns of 5.8% in the period,” commented Rob Bredahl, President and Chief Executive Officer.
“Reinsurance underwriting conditions remain challenging, and we have continued to maintain our underwriting discipline. As a result, our gross premiums written were $146.4 million in the first quarter, which represented a 25.8% decrease compared to the prior year’s first quarter.
“Our combined ratio for the quarter was 106.3%, which was in line with expectations given current market conditions and the lines of business on which we focus. We finished the quarter with an asset leverage ratio of 1.52, which is within our target range and allows us to remain selective in our underwriting without diminishing our potential for solid book value growth with continued investment performance.”
“Our first quarter performance demonstrates the strength of our total return model. Although reinsurance market conditions remain very difficult, we generated strong results due to solid performance from Third Point LLC, our investment manager. The management transitions we announced during the quarter have gone smoothly and Rob and I look forward to continuing to work closely together with the team to ensure the ongoing success of Third Point Re,” commented John Berger, Chairman of the Board of Directors.
