Third Point Re returns to profitability as CEO eyes underwriting turnaround in 2020
Third Point Re’s net income soared in 2019 and its combined ratio improved by several points on the previous year, despite the numbers reflecting the impact of catastrophe events. CEO Dan Malloy said the company is on track to achieve its goal of underwriting profitability in 2020.
The company’s net income for 2019 was $200.6 million, compared with a net loss of $317.7 million for 2018.
Gross premiums written were $631.8 million, up from $578.3 in 2018. The combined ratio for 2019 was 103.2 percent, an improvement on the previous year’s figure of 106.8 percent.
"We are very pleased with our results for the fourth quarter and full year of 2019," said Malloy. "Our return on equity was 2.1 percent in the fourth quarter bringing the full year to 16.7 percent and our diluted book value per share at the end of the year was $15.04. Our combined ratio for the year was 103.2 percent, of which 4.1 percentage points, or $29.0 million, was attributable to catastrophe events that occurred during the year. Our combined ratio continues to improve as we execute on our shift in underwriting strategy.
“Our year to date investment return of 12.8 percent has contributed significantly to overall profits for the year. With underlying insurance and reinsurance market conditions both improving across many of the lines of business that we write, we believe we are well positioned to deliver increasingly attractive returns to shareholders and remain on track to achieve our goal of underwriting profitability in 2020."
