New Third Point Re CEO Malloy 'pleased' with Q2 and H1 2019 results as profits improve
Third Point Re's new CEO Daniel Malloy is "pleased" with the company's performance as he highlighted improved underwriting profitability for both the second quarter and first half of 2019.
The reinsurer reported a net income of $53.1 million for the three months ended June 30, 2019, compared with $19.6 million in the prior year. For the first half of 2019, the company's net income was $186 million, up on the net loss of $6.4 million it reported for the same period of 2018.
The company's combined ratio was 101.1 percent for second quarter of 2019, an improvement from 103.6 in the same quarter last year.
Gross written premiums (GWP) for the quarter came to $82.6 million, up on the $49.8 the company reported for the same period of 2018. However, the GWP total for the first half of 2018 came to $402.2 million, down from the $428.1 million it reported for the first six months of 2018.
The firm stated that improvement in the net underwriting results for the second quarter and first half of 2019 compared to prior year periods was primarily due to a shift in the mix of business, including earnings on new property catastrophe and specialty business.
Third Point Re CEO Malloy, whose appointment has now been confirmed by the company's board of directors, said: "I am pleased with our second quarter results as we improved our combined ratio to 101.1% and Third Point LLC delivered another solid quarterly investment return of 2.9%, bringing our year-to-date return to 10.3%. We delivered a return on equity of 4.0% for the quarter and 15.4% for the first half of the year."
Malloy added: "I would like to highlight that our 101.1% combined ratio for the quarter means we are on track to achieve our goal of delivering underwriting profitability, subject to catastrophe events, by year end. This will be an important milestone for the company and a validation of our strategy to deliver value from both sides of our balance sheet.
"We have continued to build out our underwriting team over the past year, where we have successfully recruited talented underwriters, to allow us to expand our portfolio into new profitable lines of business including property catastrophe and specialty. We are encouraged with our progress to date with the build out of our team and portfolio positioning going better than expected."
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