Bermuda-based Third Point Re has reported a net loss of $87.4 million in 2015, compared with net income of $50.4 million in 2014.
The reinsurer attributed the fall to investment losses, challenging market conditions, and tough competition. It also suffered an increased combined ratio of 104.7 percent last year, compared with 102.2 percent in 2014.
Despite this, Third Point Re also reported growth in 2015, with gross written premiums (GWP) of $702.4 million, compared with GWP of $613.3 million in the previous year.
GWP increased by 16.8 percent in 2015 in the firm’s property and casualty (P/C) reinsurance segment to $702.5 million. Third Point Re said that this increase was mainly due to new business written, including one new reserve cover and new business written by its US office, where it has seen additional opportunities as a result of its US presence.
In 2015, Third Point Re recorded a net investment loss of $28.1 million, compared to net investment income of $85.6 million for the twelve months ended December 31, 2014. The return on investments managed by the company's investment manager, Third Point, was (1.6) percent for the twelve months ended December 31, 2015 compared to 5.1 percent for the twelve months ended December 31, 2014.
John Berger, chairman and chief executive officer, said: “Market conditions continue to be challenging and competition in the areas on which we focus has put pressure on margins.
"During the fourth quarter, we generated an investment return of 2.8 percent resulting in a negative 1.6 percent investment return for the year.”
He added: “Although we're disappointed with the results for the year, we've managed to avoid significant investment losses experienced by many others and remain committed to Third Point given their long-term track record and their ability to navigate challenging investment conditions."
Third Point Re, Full Year 2015 Results, Results, John Berger, Bermuda