Third Point Re posts disappointing Q1 results
Third Point Re, the reinsurance firm backed by Dan Loeb’s hedge fund Third Point, posted disappointing results for the first quarter of 2014 as its profits declined, its gross written premiums fell and its chairman warned on challenging conditions in the market.
The company made a net profit of $39.8 million for the quarter compared with $74.4 million for the first quarter of 2013, a decrease of 46.6 percent. Its gross written premiums fell to $87.6 million compared with $96 million a year earlier mainly because of the cancellation of some contracts because of market conditions.
Its combined ratio for the period fell but remained at a comparatively high 107.1 percent compared with 111.6 percent in the first quarter in 2013.
John Berger, chairman, chief executive and chief underwriting officer of Third Point Re, highlighted the positives and said he remains optimistic. He noted that its diluted book value per share increased by $0.31 per share, or 2.4 percent, to $13.43per share in the quarter compared with a year earlier.
“We continue to develop our business according to plan,” Berger said. “In the first quarter of 2014, our 'Total Return' approach generated growth in diluted book value per share of 2.4 percent. Investment returns remained solid and our combined ratio improved to 107.1 percent from 111.6 percent in the previous year's first quarter. Reinsurance market conditions remain challenging, particularly with new capital entering the market, but we remain pleased with the number of attractive opportunities we are seeing.”
Third Point Re’s property/casualty reinsurance unit’s gross written premiums decreased by $10.7 million, or 11.6 percent, to $82.1 million. The firm said this was due to the non-renewal of three existing contracts partially offset by growth from new business written in the quarter. It said the largest contract not renewed was its crop contract. It has exited the line of business given current market conditions.
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk
Editor's picks
Editor's picks
More articles
Intelligent Insurer
Newton Media Ltd
Kingfisher House
21-23 Elmfield Road
BR1 1LT
United Kingdom