Third Point Re makes loss but grows

Third Point Re made a loss in the third quarter, which its CEO described as disappointing. But it also wrote a lot more business and said a high volume of opportunities are coming its way.

The company made a net loss of $6 million in the third quarter of 2014, compared with a net profit of $46.6 million in the third quarter of 2013, a decrease of 112.9 percent. For the first nine months of the year, Third Point Re reported a net profit of $65.1 million compared with $147.2 million, a year earlier, a decrease of 55.8 percent.

But the gross premiums written by its property/casualty reinsurance unit increased substantially by $81.2 million, or 185.8 percent, to $124.9 million for the three months ended September 30, 2014. For the first nine months of the year, its gross written premiums increased by $116.3 million, or 50.3 percent, to $347.5 million.

It said the increase was primarily due to new business written and a contract that was cancelled and rewritten during the third quarter partially offset by business not renewed. It added that since Third Point Re is a developing company and focuses on large transactions, which in some cases will not renew, period over period comparisons may not be meaningful.

“While the overall result for the quarter is disappointing, I am pleased with the high volume of opportunities we are seeing and the continued improvement in our combined ratio,” said John Berger, chief executive of Third Point Re.

“Our combined ratio dropped to 101.7 percent in the quarter from 107.9 percent in the prior year's third quarter as our earned premium grew and our general and administrative expense ratio continued to decline. The return on our investment portfolio managed by Third Point was flat for the quarter, consistent with the performance of the broader markets.”