Bermudian reinsurer Third Point Re has reported a net income of $68.7 million for the third quarter of 2020, compared to a net loss of $15.1 million for the same period last year.
For the first nine months of the year, Third Point Re’s net income stands at $9.1 million, versus $170.9 million last year.
The reinsurer booked $29.6 million of catastrophe losses in the third quarter, including from Hurricane Laura, which pushed the Q3 combined ratio up by 20.9 points to 119.9%.
This resulted in a net underwriting loss of $28.1 million for the quarter, following a $21.3 million loss in Q3 2019.
Third Point Re also recorded catastrophe losses of $12.7 million related to Hurricane Dorian and Typhoon Faxai, which added 6.2 points and 2.5 points to the Q3 and 9M combined ratios, respectively.
Furthermore, the company recognized net losses of $15.6 million and $35.0 million for these periods relating to the COVID-19 pandemic, adding 11.0 points and 8.2 points to the Q3 and 9M combined ratios.
These losses were driven primarily by event cancellation, property business interruption, and certain casualty and multi-line quota share contracts.
Q3 results were saved, however, by investment income, which totaled $122.0 million, compared with $74.1 million last year.
For the 9M period, Third Point Re has recorded an overall investment loss of $3.1 million, compared with an income of $220.9 for the nine-month period last year.
“We produced solid third quarter results with a return on equity for the quarter of 5.1% driven by strong investment performance,” said CEO Dan Malloy.
“The impact on our results from catastrophe losses and ongoing impacts of COVID-19 were within expectations given the large number of events during the quarter. We continue to see improvements in market conditions across many lines of business.
“In particular, our recently announced partnership to form a new MGA, Arcadian Risk Capital, will allow us to take advantage of opportunities in excess casualty and professional lines insurance,” he continued.
“Our previously announced merger with the Sirius Group remains on track to close in the first quarter of 2021. Our capital position remains strong and SiriusPoint will be well-positioned to take advantage of improving underwriting conditions.”
