NEW YORK (Bloomberg) — Third Point Reinsurance Ltd, the Bermuda-based reinsurer that counts on hedge fund manager Dan Loeb to oversee investments, posted its worst loss as a publicly traded company on declines in the hedge-fund manager’s portfolio.

The third-quarter net loss widened to $195.7 million, or $1.88 a share, from $6 million, or 6 cents, a year earlier, the company said yesterday in a regulatory filing. The loss per share matched the average estimate in a Bloomberg survey of six analysts was for a loss of $1.88 a share.

Loeb has endured declines in holdings such as hospital-supply maker Baxter International, SunEdison and Yum! Brands at the same time that a wave of fresh capital in the reinsurance industry increased competition for business and squeezed margins. Third Point Re slipped about 3.5 per cent this year through the close of trading yesterday, after falling 22 per cent in 2014.

“During the third quarter, the equity portfolio posted negative returns in most sectors amidst a broader market decline,” the company said in the filing. “Specifically, several large positions in the healthcare sector detracted meaningfully from investment returns.”

Third Point Re had an initial public offering in 2013. Until the latest report, its worst period since the IPO was a $14.7 million loss in last year’s fourth quarter. The highest profit was $80.1 million in the last three months of 2013.

Investments generated a loss of $193.2 million in the third quarter, compared with profit of $1.55 million a year earlier. Yum!, owner of the KFC, Pizza Hut and Taco Bell chains, fell 11 per cent in the period, then extended its drop in October as sales in China missed analysts’ estimates. SunEdison, the developer of renewable energy power plants, dropped 76 per cent in the three months ended September 30. Baxter slumped 14 per cent.

The return on investments was negative 8.7 per cent in the third quarter and negative 4.3 per cent for the first nine months of the year. A rebound in October brought the return to 0.1 per cent since December 31, the company said.

Premium revenue rose 92 per cent to $208.8 million. The combined ratio at the property-and-casualty reinsurance segment worsened to 102.8, meaning the business had an underwriting loss of 2.8 cents for every premium dollar after paying claims and expenses. A year earlier, the combined ratio was 101.7.

Reinsurers are paid to take on obligations from primary carriers that are seeking to reduce risks or improve capital levels. The business can provide hedge-fund managers with a source of funds that is less vulnerable to client withdrawals, and also offers tax advantages.

Ventures like Loeb’s and David Einhorn’s Greenlight Capital Re Ltd. have been pressured, however, as more established reinsurers combine to gain scale, and volatile markets hurt stock bets. Cayman Islands-based Greenlight Re has posted three straight quarterly losses, and has dropped 33 per cent this year in New York trading.