Reinsurance firm Third Point Re has reported a loss of $14.7 million in the last quarter of 2014.

The loss, equivalent to 14 cents per diluted common share, compared to a net income of $80.1 million (75 cents per share) in the same period in 2013 — a decrease of 118.3 per cent.

The year-end figures showed that the firm had net income of $504 million (47 cents per share), down 77.8 per cent on 2013’s $227.3 million.

For the last three months of 2014, diluted book value per share dropped 13 cents to $13.55 compared to $13.68 per share in the previous quarter.

Third Point Re chairman and CEO John Berger said: “The overall results for the quarter were disappointing due to challenging investment market conditions.

“While slightly higher than the returns of the broader hedge fund indices, the return on our investment portfolio managed by Third Point LLC was slightly negative for the quarter.”

But he said: “We’re making significant progress in developing our reinsurance business and believe we are well-positioned to benefit from future investment portfolio gains.”

The firm said gross premiums rose by half in the fourth quarter of 2014 to $253.8 million.

Mr Berger added that initial capitalisation for Third Point Reinsurance (USA), an underwriting platform, had been completed.

He said: “We expect continued growth in the near term due to this expansion of our underwriting platform and a robust deal pipeline.”