2015 reserve cover hits Third Point Re’s Q3 GPW
Third Point Re had a profitable third quarter in 2016, although the premiums written decreased by 30.6 percent compared to the same quarter of 2016.
Chairman and CEO John Berger attributed this fall to a large reserve cover that was written in the prior year period.
Third Point Re's net income for the third quarter was $72.1 million, compared to a net loss of $195.7 million year-over-year.
Third Point Re's gross premiums written for the three-month period ending September 30 were $142.6 million, down from 205.6 million for same period last year.
For the property and casualty reinsurance segment, gross premiums written were $142.6 million, down 30.7 percent from $205.7 million for the previous year.
The company attributes this decrease primarily to a results of contracts that were not subject to renewal, and contracts that did not renew due to pricing and/or terms and conditions, partially offset by new and renewal business.
The group's combined ratio for its property casualty reinsurance segment was 106.5 percent, up 3.7 percentage points.
“During the third quarter, we generated premiums written of $142.6 million, a decrease of 30.6 percent compared to the prior year’s third quarter, primarily due to one large reserve cover that was written in the prior year period,” commented Berger.
“Our combined ratio for the quarter was 106.5 percent, which was in line with expectations given current market conditions and lines of business on which we focus.
“Our investments continued to perform well through the third quarter resulting in a 5.2 percent increase in diluted book value per share for the quarter.”
