Bermuda-based reinsurer Third Point Re posted a fall in profits in the second quarter of 2015 and deterioration in its combined ratio driven by higher losses.
Its profits fell nearly 50 percent to $15.7 million in the second quarter of 2015, compared with profits of $31.3 million in the second quarter of 2014.
The reinsurer’s combined ratio deteriorated to 107.8 percent in the quarter, compared with 102.7 percent in the same period of the prior year. Third Point Re said this was driven by $3.2 million of losses from weather activity in Texas and $2 million of adverse reserve development.
However, its gross written premiums hiked to $184.3 million in the second quarter of 2015, compared with $145.5 million in the same period of the prior year.
This was mainly driven by its property and casualty reinsurance segment, which posted 31.2 percent growth to $184.2 million for the three months ended June 30, 2015, compared with $140.4 million for the three months ended June 30, 2014.
Third Point Re attributed the growth to new business written in 2015, predominantly written by its new US office where it has seen additional opportunities.
John Berger, chairman and chief executive officer, said: "During the second quarter, we continued to build out our reinsurance platform in the US and generated significant growth in premiums primarily from our new US focused reinsurance company.
"In the second quarter, we generated premiums written of $184.3 million, an increase of 26.7 percent, and we continued to develop a strong pipeline of new business. Our investment manager, Third Point, continued to outperform the broader market indices this year producing a 1.7 percent return on our investment portfolio for the quarter and 4.8 percent for the year."
Third Point Re, John Berger, Bermuda