Mixed Q2 results for Third Point Re
Third Point Re has reported a net loss of $26.0 million for the first three months of 2018, a severe fall from the profit of $104.2 million that it made for the same period of 2017.
Commenting on the results Rob Bredahl, president and chief executive officer focussed on the positive. “During the first quarter, we generated premiums written of $378 million, an increase of 159 percent compared to the prior year’s quarter,” said Bredahl. “Our combined ratio for the quarter was 104.5 percent, compared to 106.3 percent in the prior year’s first quarter. We experienced significant premium growth in the first quarter compared to the prior year, driven by new business and the timing of certain renewals.
“We were pleased with the business written during the quarter, which was generally at improved terms and underlying pricing. We expect this to contribute to an improvement in our underwriting results as this premium is earned. Our investment returns and overall return on equity reflected a modest loss for the quarter, however, we remain confident that the improvements in our underwriting results as well as Third Point LLC’s proven track record will generate attractive returns to our shareholders over time.”
Gross premiums written over the quarter came to $378.4 million, up from the $146.4 million it wrote for the same period of 2017, whilst net premiums earned totalled $142.5 million, again up from the $138 million earned from the first three months of 2018.
Looking at the company’s property and casualty reinsurance segment, gross premiums written increased by $232.0 million, or 158.5 percent, to $378.4 million for the three months ended March 31, 2018 from $146.4 million for the three months ended March 31, 2017.
According to Third Point Re the increase in gross premiums written was primarily due to new contracts, including one large multi-line quota share contract for $91.6 million and a net increase of $125.3 million for contracts renewed in the current year period with no comparable premium in the prior year period.
The increase in net premiums earned for the three months ended March 31, 2018 compared to the three months ended March 31, 2017 was primarily due to a higher in-force underwriting portfolio.
Third Point Re also recorded a $0.5 million improvement in the net underwriting results for the three months ended March 31, 2018, related to changes in estimates of prior years’ loss reserves and the related impact of acquisition costs.
Third Point Re, Q1, results, 2018, underwriting, GWP