Investment returns drive Third Point Re to profit in Q1
Bermuda-based property/casualty reinsurer Third Point Re has reported a profit in the first quarter of 2017 after a loss in the same period a year ago due to significant improvements in investment returns.
Net income was $104.2 million in the first quarter of 2017 compared to a loss of $51.1 million in the same period of 2016.
"We are very pleased with our first quarter performance, which resulted in a return on beginning shareholders' equity of 7.4 percent for the quarter. This was primarily driven by strong investment returns of 5.8 percent in the period," said Rob Bredahl, president and CEO of Third Point Re.
Net investment income for the first quarter came to $128.5 million compared to a loss of $40.1 million in the same period of 2016.
However, gross premiums written over the first three months of the year dropped 25.8 percent year-on-year to $146.4 million.
Third Point Re said that this decrease was primarily due to one contract that did not renew as a result of underlying terms and conditions, partially offset by contracts renewed in the quarter that did not have comparable premiums in the prior year period and new contracts bound in the quarter.
"Reinsurance underwriting conditions remain challenging, and we have continued to maintain our underwriting discipline,” Bredahl said.
The combined ratio deteriorated further in the first quarter to 106.3 percent after 104.9 percent in the same period a year earlier.
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