Third Point Re has been hit by a fall of 82.8 percent in its gross written premium (GWP) in the third quarter of 2018, because of unsatisfactory underlying pricing, terms and conditions.
GWP for the period came to $30.1 million in the third quarter of 2018, down from the $174.5 million in the same period of 2017. According to the company the decrease in GWP was primarily due to Third Point Re’s decision not to renew an $89.3 million contract as a result of underlying pricing, terms and conditions and a net decrease of $41.0 million for contracts written or renewed in the prior year period with no comparable premium in the current year period, according to a corporate statement.
At the same time, net premiums earned grew to $128.0 million in the third quarter from $106.0 million, primarily due to a higher in-force underwriting portfolio, the company said.
Third Point Re reported a net loss of $13.3 million for the third quarter of 2018 after a net profit of $54.7 million in the same period a year ago.
“Recent investment performance has been disappointing, including a small net investment loss for the third quarter,” said Rob Bredahl, chief executive officer. “However, we remain on target to reduce our combined ratio by gradually shifting our reinsurance portfolio towards higher margin business.
“As part of our plan to reduce our combined ratio, we expect to begin writing a modest amount of property cat excess of loss beginning next year. To date, we have not written this class of business. Consequently, our exposure to third quarter cat events was insignificant and we estimate that our exposure to hurricane Michael and other recent fourth quarter cat events will be less than $4 million.”
Third Point Re, Q3, 2018, GWP, results