Third Point Reinsurance Ltd. (TPRE) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $46.69 million, or $ 0.45 a share in the quarter, against a net profit of $42.19 million, or $0.39 a share in the last year period.
Revenue during the quarter dropped 20.21 percent to $156.32 million from $195.92 million in the previous year period. Net premium earned for the quarter jumped 42.96 percent or $57.72 million to $192.08 million. During the quarter, the company has written premium worth $80.81 million on net basis, down 18.49 percent or $18.33 million.
Total expenses increase substantially
Operating loss for the quarter was $52.36 million, compared with an operating income of $43.27 million in the previous year period. Net investment income was at $35.77 million for the quarter, down 158.11 percent or $97.32 million from year-ago period.
"During the fourth quarter, we generated gross premiums written of $80.8 million, bringing our full year gross premiums written to $617.4 million, which represented a decrease of 12.1% compared to the prior full year. In this challenging market, we believe that maintaining underwriting discipline is more important than premium growth. Our combined ratio for the quarter was 105.0%, which was in line with expectations given current market conditions and the lines of business on which we focus," commented John Berger, chairman and chief executive officer. "Our investment return for the quarter was (1.7)% and we finished the year with a positive investment return of 4.2%. We are encouraged by a strong start to 2017 and remain confident in Third Point LLC’s ability to generate attractive returns even in volatile markets."
Liabilities outpace assets growth
Total assets increased 9.89 percent or $350.54 million to $3,895.64 million on Dec. 31, 2016. On the other hand, total liabilities were at $2,445.92 million as on Dec. 31, 2016, up 13.80 percent or $296.69 million from year-ago. Return on assets was negative at 1.15 percent in the quarter against a positive 1.27 percent in the last year period. Return on equity was negative at 3.22 percent in the quarter against a positive 3.02 percent in the last year period.
Investments move up
Investments stood at $2,674.94 million as on Dec. 31, 2016, up 13.70 percent or $322.36 million from year-ago. Net premiums and other receivables increased 29.78 percent or $87.64 million over the year to $381.95 million on Dec. 31, 2016.
Total debt was almost stable over the past one year at $113.56 million on Dec. 31, 2016. Shareholders equity stood at $1,449.72 million as on Dec. 31, 2016, up 3.86 percent or $53.84 million from year-ago. As a result, debt to equity ratio was almost stable at 0.08 percent in the quarter, when compared with the last year period.
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