Mixed Q2 results for Third Point Re

01-08-2018

Third Point Re has reported that it made a profit of $19.6 million for the second quarter of 2018, a severe fall from the $74.6 million it made over the same period of 2017.

For the six months ended June 30, 2018, Third Point Re reported a net loss $6.4 million, compared to net profit of $178.8 million for the same period of 2017.

“We had modest gains in our investment portfolio in the second quarter and our underwriting results continued to improve as we incrementally add higher margin business,” said Rob Bredahl, president and chief executive officer. “Our combined ratio for the second quarter was 103.6 percent, compared to 107.0 percent in the prior year's second quarter and 104.5 percent for the first quarter of 2018.

“During the second quarter, we generated gross premiums written of $50 million, bringing our gross premium written for the year to date period to $428 million, an increase of 41 percent compared to the prior year's first half. Lastly, we repurchased $37 million of our common shares in the second quarter at a significant discount to our diluted book value per share, which we continue to believe is an appropriate use of our capital given our recent share price.”

Gross written premiums for the second quarter totalled $49.8 million, down heavily on the $156.6 million it wrote for the same period of 2017. However, the company saw half-year 2018 gross written premiums come to $428.1 million, an increase from the $302.9 million it wrote for the first half of 2018.

According to Third Point Re the decrease in gross premiums written for the three months ended June 30, 2018 compared to the three months ended June 30, 2017 was primarily due to $109.4 million of premium from contracts with retroactive exposure in the prior year period compared to $4.3 million of premium from contracts with retroactive exposure in the three months ended June 30, 2018.

The company attributed the increase for the six months ended June 30, 2018 compared to the prior year period as primarily due to new contracts, including one large multi-line quota share contract for $91.6 million, and a net increase of $44.3 million for contracts renewed in the current year period with no comparable premium in the prior year period, partially offset by contracts not renewed.

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