Hedge fund-backed reinsurer Third Point Re has posted a 217.3% increase in gross written premiums for the third quarter.
This $65.3 million increase was primarily driven by a single retroactive reinsurance contract written in the period.
Third Point Re reported a Q3 net loss of $15.1 million, compared to a $13.3 million net loss for the same period in 2018.
The firm incurred net catastrophe losses of $12.7 million, net of reinstatement premiums and profit commission adjustments, related to Hurricane Dorian and Typhoon Faxai compared to no catastrophe losses in the prior year periods.
This resulted in a 6.2 point increase of the combined ratio to 102.7% for the quarter .
At $203.2 million, net premiums earned during the quarter was up $75.2 million and driven by the aforementioned retroactive reinsurance contract that was written and earned in the current year period as well as a higher in-force underwriting portfolio.
For the third quarter Third Point Re recorded a net $3.8 million improvement in the net underwriting results, respectively, related to favourable development of prior years’ loss reserves net of the related impact of acquisition costs.
“We are very pleased with the continued progress we are making in deploying underwriting capacity into higher margin lines of business. We remain on track to achieve our goal of underwriting profitability in 2020, subject to catastrophe events,” commented Dan Malloy, Chief Executive Officer.
“Our quarter to date return on equity was negative 1.1%, slightly reducing our year to date return to 14.2% and our diluted book value per share at the end of the period was $14.76. Our combined ratio for the third quarter was 102.7%, of which 6.2 percentage points, or $12.7 million, was attributable to catastrophe events that occurred during the period, net of reinstatement premiums and profit commission adjustments.
“Although our investments returned a small loss during the quarter, our year to date investment return of 10.2% has contributed significantly to overall profits for the year. With both underlying and reinsurance market conditions improving across many of the lines of business that we write, we believe we are well positioned to deliver increasingly attractive returns to shareholders.”
The firm has also announced the appointment of Joseph L. Dowling to the board of directors.
Dowling has served as the Chief Executive Officer of the Brown University Investment Office since July 2018 and between June 2013 and uly 2018 served as the Chief Investment Officer of Brown University, where he was responsible for the University’s endowment.
He brings extensive investment experience to the Board and will serve on Third Point Re’s investment and finance committee.
Josh Targoff, Chairman of the Board of Directors, commented, “I am pleased to welcome Joe to the Board.
“Joe brings essential expertise in capital allocation, asset management and portfolio construction through his role as CEO of Brown University’s Investment Office.
“The Board will benefit from his many years of investing in public markets and specifically his expertise in alternative assets as the Company continues to evolve and adapt to market conditions.”
