Third Point Re reports Q1 loss but emphasises improvement in combined ratio

Third Point Re reported a loss for Q1 2020, but cited an improved combined ratio as a cause for optimism about the prospects for the business going forward.

Third Point reported a loss of $183.6 million for Q1 2020, down from a profit of $132.9 million in Q1 2019.

Its combined ratio fell to 97 percent for the quarter, from 103.8 percent the previous year. Gross written premiums were down to $204.1 million, from $319.6 million in the same period of 2019.

The re/insurer pointed to market volatility caused by the COVID-19 pandemic and a resulting 7.3 percent investment loss as the main source of its difficulties in the quarter.

Dan Malloy, Third Point Re’s chief executive officer, said: “Despite the overall loss in the quarter, our capital and liquidity positions remain strong.” He called the fall in the company’s combined ratio “a significant milestone in the ongoing transformation of the company to a specialty reinsurer."