Third Point Reinsurance Ltd. reported solid gains in net income and new business during its 2015 first quarter, driven in part by its U.S. expansion efforts.
The Bermuda-based reinsurer reported first quarter net income of $50.5 million, or $0.47 per diluted common share, compared with net income of $39.8 million, or $0.37 per diluted common share, for the first quarter of 2014, an increase of 26.9 percent.
For the three months ended March 31, 2015, diluted book value per share increased by $0.42 per share, or 3.1%, to $13.97 per share from $13.55 per share as of December 31, 2014.
“Through our total return business model, we aim to generate superior returns for investors by writing profitable reinsurance business and successfully investing the float generated from our reinsurance operations and our capital base through an exclusive arrangement with Third Point LLC, our investment manager,” commented John Berger, chairman and chief executive officer.
“In the first quarter, we generated net income of $50.5 million and a return on beginning shareholders’ equity of 3.5 percent by successfully executing on our business model. Compared to last year’s first quarter, our combined ratio improved to 102.8 percent from 107.1 percent, we generated $161.6 million of float versus $20.0 million and we produced a very solid 3.0 percent return on our investment portfolio, down slightly from 3.1 percent.”
Berger said that premiums written in the first quarter were $213.3 million, an increase of 143.6 percent from the $87.6 million in premiums written for the same period in 2014.
“We continue to develop a strong pipeline of new business due in part to the expansion of our underwriting platform to include a new U.S. office,” he went on to say.
Source: Third Point Reinsurance