Third Point Re's investment income offsets widening underwriting loss in 2016
Third Point Re recorded a net profit of $27.6 million for its 2016 full year results, an improvement from a loss of $87.4 million in 2015, despite a widening underwriting loss.
The net underwriting loss expanded to $50.1 million in 2016 from $28.3 million in the previous year. It included net adverse development of $12.5 million related to changes in estimates of prior years' loss reserves and the related impact of acquisition costs, the company said.
According to Third Point Re, the net underwriting loss for the year included $1.8 million related to Hurricane Matthew.
Net investment income, however was $98.8 million in 2016 compared to a loss of $28.1 million in the same period of 2015.
Gross premiums written over the course of 2016 dropped 13.1 percent to $617.4 million.
“In this challenging market, we believe that maintaining underwriting discipline is more important than premium growth,” said chairman and CEO John Berger in a statement on the results.
Nevertheless, the company also saw its combined ratio weaken from 104.7 percent in 2015 to 108.5 percent in 2016.
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