Third Point Re posts solid Q3 profit despite COVID and cat losses

Third Point Re reported a healthy third quarter profit for 2020 despite significant losses related to COVID-19 and natural catastrophes that the re/insurer insisted were within expectations.

Third Point Re reported a net profit of $68.7 million for the third quarter of 2020, compared with a net loss of $15.1 million in the same period of 2019.

For the nine months ended September 30 the re/insurer reported a net profit of $9.1 million, down from $170.9 million for the same period the previous year.

Gross written premiums were $60.8 million for Q3 and $422.5 million year to date as at the end of September (YTD). In the same period of 2019 Third Point Re had reported gross written premiums of $95.4 million and $497.6 million, respectively.

Its combined ratio was 119.9 percent in Q3 2020 and 105 percent YTD, compared to 102.7 percent and 102.6 percent, respectively, in 2019.

Dan Malloy, Third Point Re’s chief executive officer, said its Q3 combined ratio figure had been impacted by $29.6 million of catastrophe losses and $15.6 million from impacts related to COVID-19, for a total impact of 31.9 percent.

"The impact on our results from catastrophe losses and ongoing impacts of COVID-19 were within expectations given the large number of events during the quarter,” he said. “We continue to see improvements in market conditions across many lines of business.”

Its partnership with Arcadian Risk Capital will present new opportunities in excess casualty and professional lines insurance, he noted, while the merger with the Sirius Group remains on track to close in Q1 2021.