Third Point Re CEO promises improvement after Q1 loss
Bermuda-based Third Point Re made a loss in the first quarter of 2018 as investment income plummeted and underwriting continued producing losses, but CEO Rob Bredahl promised improvements “over time”.
Third Point Re reported a net loss of $26 million for the first quarter of 2018 compared to net income of $104.2 million in the same period a year ago.
The combined ratio improved slightly to 104.5 percent from 106.3 percent over the period, reducing the underwriting loss to $6.4 million from a negative $8.7 million in the first quarter of 2017.
The first quarter 2018 results were impacted by a net investment loss of $2.2 million compared to a net investment income of $128.5 million in the same period of 2017.
At the same time, gross premiums written jumped to $378.4 million from $146.4 million over the period, primarily due to new contracts, including one large multi-line quota share contract for $91.6 million and a net increase of $125.3 million for contracts renewed in the current year period with no comparable premium in the prior year period.
"We experienced significant premium growth in the first quarter compared to the prior year, driven by new business and the timing of certain renewals,” said Bredahl.
“We were pleased with the business written during the quarter, which was generally at improved terms and underlying pricing. We expect this to contribute to an improvement in our underwriting results as this premium is earned. Our investment returns and overall return on equity reflected a modest loss for the quarter, however, we remain confident that the improvements in our underwriting results as well as Third Point's proven track record will generate attractive returns to our shareholders over time."
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