Third Point Reinsurance Ltd (TPRE) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $104.19 million, or $ 0.98 a share in the quarter, against a net loss of $51.13 million, or $0.49 a share in the last year period.
Revenue during the quarter surged 175.64 percent to $266.52 million from $96.69 million in the previous year period. Net premium earned for the quarter went up marginally by 0.88 percent or $1.21 million to $138.01 million. During the quarter, the company has written premium worth $145.23 million on net basis, down 26.34 percent or $51.93 million.
Total expenses move up marginally
Operating income for the quarter was $110.67 million, compared with an operating loss of $55.71 million in the previous year period. Net investment income was at $128.51 million for the quarter, up 420.39 percent or $168.62 million from year-ago period.
“We are very pleased with our first quarter performance, which resulted in a return on beginning shareholders’ equity of 7.4% for the quarter. This was primarily driven by strong investment returns of 5.8% in the period,” commented Rob Bredahl, President and Chief Executive Officer. “Reinsurance underwriting conditions remain challenging, and we have continued to maintain our underwriting discipline. As a result, our gross premiums written were $146.4 million in the first quarter, which represented a 25.8% decrease compared to the prior year’s first quarter. Our combined ratio for the quarter was 106.3%, which was in line with expectations given current market conditions and the lines of business on which we focus. We finished the quarter with an asset leverage ratio of 1.52, which is within our target range and allows us to remain selective in our underwriting without diminishing our potential for solid book value growth with continued investment performance.”
Total assets stood at $3,909.36million as on Mar. 31, 2017. On the other hand, total liabilities were at $2,390.82 million as on Mar. 31, 2017.
Return on assets was at 2.75 percent in the quarter. At the same time, return on equity was at 6.86 percent in the quarter.
Investments stood at $2,477.62 million as on Mar. 31, 2017. Meanwhile, yield on investments was at 5.19 percent in the quarter.
Net premiums and other receivables were at $421.03 million on Mar. 31, 2017.
Total debt was at $113.60 million as on Mar. 31, 2017. Shareholders equity was at $1,518.53 million as on Mar. 31, 2017. As a result, debt to equity ratio was at 0.07 percent in the quarter.
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