Third Point Re sees profits dip in 2020 but bullish on prospects following Sirius merger

Third Point Re saw its profits slip a little in 2020, as the business prepares for its merger with Sirius Group.

Third Point Re made a profit of $143.5 million in the full year 2020, down from the $200.6 million profit reported in 2019. However, in the fourth quarter of 2020 it made a profit of $134.4 million, a significant increase on the $29.7 million profit reported in the same period of 2019.

Gross written premiums were $588 million for the full year 2020, compared to $631.8 million in 2019. For Q4 2020 gross written premiums were $165.6 million, up from $134.2 million in the same period of 2019.

Third Point Re’s combined ratio was 110.3 percent in 2020, compared to 103.2 percent in 2019. For Q4 2020 its combined ratio was 123 percent, up from 104.8 percent in Q4 2019.

The Q4 combined ratio included $37.2 million related to prior year reserve development where Third Point Re increased certain casualty reserves in response to its accumulated loss experience and the broader industry trends of social inflation, said Dan Malloy, Third Point Re’s chief executive officer.

Sid Sankaran, Third Point Re’s chairman, added: “While we are not satisfied with the underwriting results in 2020, with the exceptional talent, global footprint and robust balance sheet of the combined company, we will have a strong base for building an innovative, disciplined and sustainable business. We are aiming to enhance our existing relationships and improve the economics of our key lines of business, while looking at ways that we can grow intelligently and leverage technology to improve how we manage risk, use data and develop new strategic opportunities."