Third Point Re 'not satisfied' with 2020 results as profits dip 28%

Bermuda-based reinsurer Third Point Re admitted discontentment with its performance in 2020 but said the company is looking at ways to grow intelligently as it embarks on the next chapter following its anticipated merger with Sirius Group.

Third Point Re saw its profits slip by more than 28 percent to $143.5 million in full-year 2020, from $200.6 million profit in 2019.

However, in the fourth quarter of 2020 it generated a profit of $134.4 million, a significant increase on the $29.7 million profit reported in the same period of 2019.

Gross written premiums came in at $588 million for the full year 2020, compared with $631.8 million in 2019.

For Q4 2020 gross written premiums were $165.6 million, up from $134.2 million in the same period of 2019.

Third Point Re’s combined ratio deteriorated to 110.3 percent in 2020, compared with 103.2 percent in 2019.

For Q4 2020 its combined ratio jumped to 123 percent, from 104.8 percent in Q4 2019.

The Q4 combined ratio included $37.2 million related to prior year reserve development where Third Point Re increased certain casualty reserves in response to its accumulated loss experience and the broader industry trends of social inflation.

The company's current chief executive Dan Malloy, who is to become the president of global distribution and head of runoff at SiriusPoint, highlighted the company's strong investment performance as he looks forward to the closing of merger with Sirius Group, which is expected on February 26.

Sid Sankaran, Third Point Re’s chairman, who is to become chief executive of the merged company SiriusPoint, said: “While we are not satisfied with the underwriting results in 2020, with the exceptional talent, global footprint and robust balance sheet of the combined company, we will have a strong base for building an innovative, disciplined and sustainable business.

"We are aiming to enhance our existing relationships and improve the economics of our key lines of business, while looking at ways that we can grow intelligently and leverage technology to improve how we manage risk, use data and develop new strategic opportunities."

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