Investment income drop weighs on Third Point Re in Q2
A significant drop in investment income has pushed down Third Point Re’s earnings in the second quarter of 2018 while the Bermuda-based reinsurer managed to reduce the underwriting loss.
Net investment income dropped to $31.2 million in the second quarter of 2018 from $107.3 million in the second quarter of 2017. The group’s net income fell to $19.6 million from $74.6 million over the period.
At the same time, net underwriting losses were reduced to a negative $5.1 million in the second quarter of 2018 from a loss of $12.1 million in the same period of 2017. The combined ratio improved to 103.6 percent from 107.0 percent over the period.
"We had modest gains in our investment portfolio in the second quarter and our underwriting results continued to improve as we incrementally add higher-margin business,” said Third Point Re CEO Rob Bredahl.
Overall, the group reduced gross premiums written to $49.8 million in the second quarter of 2018 from $156.6 million in the same period a year ago.
