Third Point Re sees recovery in mixed 2016 results

24-02-2017

Third Point Re recorded a profit of $27.6 million for its 2016 full year results, a recovery from the loss of $87.4 million it posted in 2015, but saw a number of unfavourable developments in other areas.

The company was boosted by a recovery in its net investment income, which went from a loss of 28.1 million in 2015 to a profit of $98.8 million in 2016.

However, the company also reported poor performance in its fourth quarter results, with a net loss of $46.7 million for the quarter, a substantial fall from the $42.2 million profit it posted in the same quarter of 2015.

Moreover, gross premiums written over the course of 2016 came to $617.4 million, a decrease of 13.1 percent on the $702.4 million it wrote in 2015. The company also saw its combined ratio weaken from 104.7 percent in 2015 to 108.5 percent in 2016.

According to Third Point Re the net underwriting loss for the year, as well as the fourth quarter, included $1.8 million related to Hurricane Matthew. In addition it said that there was minimal net favourable underwriting loss development for the three months ended December 31, 2016.

“During the fourth quarter, we generated gross premiums written of $80.8 million, bringing our full year gross premiums written to $617.4 million, which represented a decrease of 12.1 percent compared to the prior full year. In this challenging market, we believe that maintaining underwriting discipline is more important than premium growth. Our combined ratio for the quarter was 105.0 percent, which was in line with expectations given current market conditions and the lines of business on which we focus,” said chairman and CEO John Berger in a statement on the results.

“Our investment return for the quarter was [minus] 1.7 percent and we finished the year with a positive investment return of 4.2 percent. We are encouraged by a strong start to 2017 and remain confident in Third Point's ability to generate attractive returns even in volatile markets.”

Third Point Re, Results 2016, John Berger, Bermuda

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