Third Point Re hails ‘strong’ Q3 results as Berger steps down
Third Point Re has announced that its third quarter 2017 net income was $54.7 million, down on the $72.1 million it made for the same period of 2016.
Despite this fall the company’s net income for the first nine months of 2017 was $233.4 million, a substantial increase on the $74.3 million it made for the nine months ended September 30, 2016.
"Our strong performance for 2017 continued through the third quarter with a return on beginning shareholders' equity of 3.5 percent, bringing our nine month return to 16.8 percent," said Rob Bredahl, president and chief executive officer. "Our investment manager, Third Point LLC continues to have a great year and has generated an investment return of 14.6 percent through the first nine months of the year and 17.6 percent through October 2017. We reported a combined ratio of 111.9 percent for the quarter ended September 30, 2017, which included $5.3 million, or 5.0 percentage points on our combined ratio, related to third quarter catastrophes. The small net loss from these events was within expectations given our limited exposure and reflects our decision to avoid highly volatile forms of reinsurance such as catastrophe excess of loss treaties."
In Third Point Re’s property and casualty section, gross premiums written increased by $32.0 million, or 22.4 percent, to $174.5 million for the three months ended September 30, 2017 from $142.6 million for the three months ended September 30, 2016. Gross premiums written decreased by $59.1 million, or 11.0 percent, to $477.5 million for the nine months ended September 30, 2017 from $536.6 million for the nine months ended September 30, 2016.
The company said that the increase for the three months ended September 30, 2017 compared to the same period of last year was primarily due to new contracts, partially offset by timing differences. The decrease for the nine months ended September 30, 2017 compared to the prior year period was primarily due to contracts that the company did not renew as a result of underlying terms and conditions, lower premium adjustments in the current year period and other timing differences partially offset by new premium.
Third Point Re also announced that chairman John Berger will be stepping down from the board effective December 22, 2017. Steven Fass, a current board director, will succeed Berger as interim chairman. Bredahl will replace Berger on the Board as of December 22, 2017.
In a statement Third Point Re said: “The Board would like to thank Mr. Berger for his work as Chairman and he leaves with their best wishes. John was instrumental in the formation of Third Point Re and the Board sincerely appreciates all of Mr. Berger's hard work in getting Third Point Re to its current position.”
