Third Point Re posts record profit in Q1 results; GWP shrink as it tweaks portfolio
Third Point Reinsurance posted a record profit for a single quarter in the first quarter of 2019 as its CEO stressed its plans to focus on higher margin business going forward.
The Bermuda re/insurer made a net profit of $132.9 million in the quarter, a big improvement on the $26.0 million net loss the company made in the same period a year earlier. Its combined ratio was 103.8 percent, compared with 104.5 percent the year before, but it stressed it wants this to improve further.
Its gross written premiums in the quarter were $319.6 million, a decrease of $58.5 million on the $378.4 million it posted a year earlier. It said this was due to certain contracts that did not renew due to underlying pricing, terms and conditions and contracts written in the prior year period on a multi-year basis with no comparable premium in the current year period. This decrease was partially offset by new contracts bound in the current year period, it noted.
The company also used the results to reveal that Daniel Malloy, currently CEO of the company's main operating subsidiary, will be appointed as CEO of Third Point Reinsurance succeeding Robert Bredahl, whose resignation has been accepted by the Board.
Malloy said: "We are pleased with our first quarter performance, which resulted in a return on beginning shareholders' equity of 11 percent for the period driven by strong investment returns. We generated net income of $132.9 million in the quarter which was a record quarter for Third Point Re.
"Consistent with our ongoing plans to increase our focus on higher margin business, we wrote a modestly sized property cat portfolio at 1/1 and announced the hiring of a specialty lines underwriting team. Both of these efforts to expand our underwriting platform have gone better than expected and were critical steps in reshaping our underwriting portfolio in order to achieve underwriting profitability.
“Our combined ratio for the quarter was 103.8 percent and we expect this to improve over time as we execute on our underwriting plan."
