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Texas weather dents Third Point Re profit

Flash flooding: Storms caused flooding in downtown Dallas in May. Third Point Re has reported $3.2 million in losses attributable to Texas weather during the second quarter

Reinsurance firm Third Point Re saw its profits almost halved in the second quarter of the year compared to the previous year.

The company posted profits of $15.7 million for the three months to the end of June — in the same period of 2014, profits amounted to $31.3 million.

The latest figures are equivalent to 15 cents per share, while the second quarter figure last year equalled 29 cents per share.

Premiums written totalled $184.3 million — up 26.7 per cent on the same period last year — and the firm said it “continued to develop a strong pipeline of new business.”

Net investment income for the second quarter was $38.6 million with the corresponding figure for 2014 at $40.5 million.

Third Point chairman and CEO John Berger said: “During the second quarter, we continued to build out our reinsurance platform in the US and generated significant growth in premiums primarily from our new US focused reinsurance company.

“Although our combined ratio was elevated in the quarter due to $3.2 million of losses from weather activity in Texas and $2 million of adverse reserve development, we remain committed to our goal of underwriting profitability.”

Mr Berger added: “Our investment manager Third Point LLC continued to outperform the broader market indices this year, producing a 1.7 per cent return on our investment portfolio for the quarter and 4.8 per cent for the year.”