Third Point Re enjoys profitable start to life as a public company
Third Point Reinsurance Ltd posted third-quarter net income of $46.6 million yesterday, as it declared its first quarterly financial results as a public company.
The earnings, which broke down to 46 cents per share, were up 17.7 percent compared to the same quarter last year.
The reinsurer, whose investments are managed by Daniel Loeb's hedge fund Third Point, began underwriting in January 2012.
The return on investments for the quarter achieved by Third Point was 4.3 percent.
“Following our initial public offering in August 2013, we are off to a strong start as a public company thanks to improving underwriting results and excellent investment results,” said John Berger, chairman, CEO and chief underwriting officer. “While reinsurance market conditions remain challenging, we expect further improvement in our underwriting results as our reinsurance operation continues to gain scale.”
For the nine months ended September 30, 2013, Third Point Re reported net income of $147.2 million, or $1.59 per diluted common share, compared with $38.7 million, or $0.44 per diluted common share, for the nine months ended September 30,2012.
The reinsurer's combined ratio, which reflects the proportion of premium dollars spent on claims and expenses, was 107.9 percent for the quarter.
Diluted book value per share was $12.35 as of September 30, 2013, an increase of 28 cents, or 2.3 percent, for the third quarter and an increase of $1.46, or 13.4 percent, for the first nine months of 2013.
The company said that increase in diluted book value per share reflected earnings per share for the quarter partially offset by the costs associated with Third Point Re's IPO, including underwriting and exchange listing, legal, accounting and related fees.
Third Point Re's share price fell two cents in New York Stock Exchange trading yesterday to close on $15.10.