Third Point Re has released initial loss estimates for third quarter catastrophe activity and year to date investment returns net losses from recent catastrophe events of under $10 million.
The reinsurer said 2017 net return on investments managed by Third Point was 14.4% through to September 30th, which is set to significantly boost its results this year as long as Q4 investment performance is stable.
Rob Bredahl, President and Chief Executive Officer of Third Point Re, explained Third Point Re doesn’t write any catastrophe excess of loss contracts and so had only modest losses from the recent catastrophe events.
The reinsurers strategy, of underwriting mid to long-tailed business in order to accumulate premium float that can be invested in sponsoring hedge fund Third Point LLC, means that the company has avoided much of the impacts that are affecting the rest of the reinsurance industry right now.
He said; “Our total return business model is to manage our investment portfolio for higher expected returns while avoiding highly volatile forms of reinsurance such as catastrophe excess of loss treaties and other event covers.
“The estimated net investment return, as reported by our investment manager, on our more than $2.5 billion investment portfolio was 14.4% year to date through September and we estimate our total third quarter catastrophe losses at less than $10 million against total industry losses that many industry experts believe could exceed $100 billion.”
