Third Point Re results damaged by investment losses
Third Point Re has posted a net loss of $51.1 million for the first quarter of 2016 compared with a net profit of $50.5 million for the three months ended March 31, 2015.
The Bermuda-based reinsurer also posted a reduction in its gross written premiums (GWP) for the quarter, down to $197.2 million, compared with $213.2 million in the first quarter of 2015, a decrease of 7.6 percent.
Its combined ratio for the quarter was 104.9 percent, for the first quarter of the year, up from 102.8 percent in the first quarter of last year. John Berger, chairman and chief executive officer of Third Point Re said this result was in line with the company’s expectations “given current market conditions and the lines of business on which we focus."
The company’s results were affected by an increase in underwriting losses and negative investment returns.
Third Point Re reported an underwriting loss of $6.6 million for the first quarter of the year, compared with a loss of $3.9 million in the first quarter of 2015.
For the three months ended March 31, 2016 it recorded a net investment loss of $40.1 million, compared with net investment income of $64.9 million for the three months ended March 31, 2015.
The firm generated a negative investment return of 2 percent in the quarter, compared to a 3 percent increase in the prior-year quarter.
Berger said that despite challenging conditions in both the financial and reinsurance markets, the firm continues to believe in its total return model.