SYS-CON MEDIA Authors: Mat Mathews, PR.com Newswire, David Smith, Tim Crawford, Kevin Benedict

News Feed Item

Third Point Re Reports Fourth Quarter 2013 Earnings Results

Net Income of $80.1 million, or $0.75 Per Diluted Common Share

HAMILTON, Bermuda, Feb. 26, 2014 /PRNewswire/ -- Third Point Reinsurance Ltd. ("Third Point Re" or the "Company") (NYSE:TPRE) today announced results for its fiscal fourth quarter and full year ended December 31, 2013.

Third Point Re reported net income of $80.1 million, or $0.75 per diluted common share, for the fourth quarter of 2013, compared with $60.7 million, or $0.76 per diluted common share, for the fourth quarter of 2012, an increase of 32.0%. For the year ended December 31, 2013, Third Point Re reported net income of $227.3 million, or $2.54 per diluted common share, compared with $99.4 million, or $1.26 per diluted common share, for the year ended December 31, 2012, an increase of 128.7%.

Diluted book value per share was $13.12 as of December 31, 2013, an increase of $0.77, or 6.2%, for the fourth quarter and an increase of $2.23, or 20.5%, for the year ended December 31, 2013. The increase in diluted book value per share for the quarter reflects earnings per share for the quarter.  The increase in diluted book value per share for the year reflects earnings per share for the year partially offset by the costs associated with Third Point Re's initial public offering (IPO), including underwriting and exchange listing, legal, accounting and related fees. These non-recurring costs were netted against the capital raised and were not expensed through the income statement.

"In 2013, our second year of operation, we made great strides in establishing our "Total Return" platform, a combination of best in class reinsurance underwriting and market leading investment management", commented John Berger, Chairman, Chief Executive Officer and Chief Underwriting Officer.  "Thanks to improving underwriting results and exceptional investment returns, we increased diluted book value per share by more than 20% for the year."

The following table shows certain key financial metrics for the three months and years ended December 31, 2013 and 2012:

 



For the three months ended


For the years ended



December 31,
2013


December 31,
2012


December 31,
2013


December 31, 2012



(In millions, except for per share data and ratios)

Gross premiums written


$

162.3


$

27.9


$

401.9


$

190.4

Net premiums earned


$

58.5


$

33.5


$

220.7


$

96.5

Underwriting loss (1) (2)


$

(3.6)


$

(9.0)


$

(15.8)


$

(28.7)

Combined ratio (1) (2)


106.3%


127.0%


107.5%


129.7%










Net investment return on investments
   managed by Third Point LLC


6.0%


8.3%


23.9%


17.7%

Net investment income


$

87.1


$

72.5


$

253.2


$

136.4

Net investment income on float (3)


$

11.8


$

4.8


$

27.0


$

4.9










Net income


$

80.1


$

60.7


$

227.3


$

99.4

Diluted earnings per share (4)


$

0.75


$

0.76


$

2.54


$

1.26

Growth in diluted book value per share (3)


6.2%


7.1%


20.5%


11.9%

Return on beginning shareholders' equity (3)


6.1%


7.5%


23.4%


13.0%










(1) - Property and Casualty Reinsurance segment only.

(2) - Underwriting loss and combined ratio are Non-GAAP financial measures. See the accompanying Segment Reporting for an explanation and calculation of underwriting loss and combined ratio.

(3) - Net investment income on float, diluted book value per share and return on beginning shareholders' equity are non-GAAP financial measures. See the accompanying Reconciliation of Non-GAAP Measures for an explanation and calculation of net investment income on float, diluted book value per share and return on beginning shareholders' equity.

(4) - During the quarter, it was determined that diluted earnings per share for the prior periods had been calculated incorrectly, which resulted in an understatement of diluted earnings per share. Diluted earnings per share for prior periods are correctly presented in the above key financial metric table.

 

Segment Highlights

Property and Casualty Reinsurance Segment

Gross premiums written increased by $134.5 million, or 482.0%, to $162.4 million for the three months ended December 31, 2013 from $27.9 million for the three months ended December 31, 2012. Gross premiums written increased by $203.2 million, or 106.7%, to $393.6 million for the year ended December 31, 2013 from $190.4 million for the year ended December 31, 2012. Third Point Re, through its Class 4 reinsurance company Third Point Reinsurance Company Ltd., began underwriting on January 1, 2012. Increases in gross premiums written in 2013 are the result of the successful development of underwriting relationships with intermediaries and reinsurance buyers and the timing of the completion of several large transactions.  Since Third Point Re is a developing company and focuses on large transactions, period over period comparisons may not be meaningful.

Net premiums earned for the three months ended December 31, 2013 increased $23.3 million, or 69.5%, to $56.8 million. Net premiums earned for the year ended December 31, 2013 increased $116.1 million, or 120.4%, to $212.6 million . The three months and year ended December 31, 2013 reflect net premiums earned on a larger in-force underwriting portfolio compared to the three months and year ended December 31, 2012.

The underwriting loss from the Property and Casualty Reinsurance segment for the fourth quarter was $3.6 million and for the year ended December 31, 2013 was $15.8 million. These results compare to underwriting losses of $9.0 million and $28.7 million in the three months and year ended December 31, 2012, respectively. The combined ratio for the year ended 2013 was 107.5% compared to 129.7% for the year ended 2012. The improvement in underwriting results was primarily due to lower crop losses recorded in the 2013 periods and a decrease in general and administrative expenses as a percentage of net premiums earned. For the year ended December 31, 2012, Third Point Re recorded a $10.0 million underwriting loss from its crop reinsurance portfolio due to the severe drought suffered by most of the United States farm belt. 

Catastrophe Risk Management

The Catastrophe Risk Management segment includes the combined results of Third Point Reinsurance Opportunities Fund Ltd. ("Catastrophe Fund"), Third Point Reinsurance Investment Management Ltd., and Third Point Re Cat Ltd. (the "Catastrophe Reinsurer").  After attributing income to non-controlling interests, net income from the Catastrophe Risk Management segment was $0.8 million for the fourth quarter of 2013 and $3.4 million for the year ended December 31, 2013.  Net assets under management for the Catastrophe Fund were $104.0 million as of December 31, 2013.   The Catastrophe Risk Management segment began operations on January 1, 2013 and, therefore, there are no prior period underwriting results.

Investments

For the three months ended December 31, 2013, Third Point Re recorded net investment income of $87.1 million, compared to $72.5 million for the three months ended December 31, 2012. The return on investments managed by the Company's investment manager, Third Point LLC, was 6.0% for the three months ended December 31, 2013 compared to 8.3% for the three months ended December 31, 2012.

For the year ended December 31, 2013, the Company recorded net investment income of $253.2 million, compared to $136.4 million for the year ended December 31, 2012. The return on the Company's investments, managed by its investment manager, Third Point LLC, was 23.9% for the year ended December 31, 2013 compared to 17.7% for the year ended December 31, 2012.

The returns for the year ended December 31, 2013 were driven primarily by equity positions and to a lesser extent by gains in structured credit, corporate credit and macro positions.  Net investment income for the three months and year ended December 31, 2013 also benefited from higher average investments managed by Third Point LLC compared to the prior year periods due to the net proceeds generated by Third Point Re's IPO and float contributed by its reinsurance operations and net investment income.

Conference Call Details

The Company will hold a conference call to discuss its fourth quarter and full year 2013 results at 8:30 a.m. Eastern Time on February 27, 2014. The call will be webcast live over the internet from the Company's website at thirdpointre.bm under "Investors". Participants should follow the instructions provided on the website to download and install any necessary audio applications. The conference call is also available by dialing 1-877-407-0789 (domestic) or 1-201-689-8562 (international) and entering passcode 13576148. Participants should ask for the Third Point Reinsurance Ltd. fourth quarter earnings conference call.

A replay of the live conference call will be available approximately one hour after the call. The replay will be available on the Company's website or by dialing 1-877-870-5176 (domestic) or 1-858-384-5517 (international) and entering the replay passcode 13576148. The telephonic replay will be available until 11:59 pm (Eastern Time) on March 6, 2014.

Safe Harbor Statement Regarding Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the Company's control. The Company cautions you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "plan," "seek," "comfortable with," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or the negative thereof or variations thereon or similar terminology. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, the following: (i) limited historical information about the Company; (ii) operational structure currently is being developed; (iii) fluctuation in results of operations; (iv) more established competitors; (v) losses exceeding reserves; (vi) downgrades or withdrawal of ratings by rating agencies; (vii) dependence on key executives; (viii) dependence on letter of credit facilities that may not be available on commercially acceptable terms; (ix) potential inability to pay dividends; (x) unavailability of capital in the future; (xi) dependence on clients' evaluations of risks associated with such clients' insurance underwriting; (xii) suspension or revocation of reinsurance license; (xiii) potentially being deemed an investment company under United States federal securities law; (xiv) potential characterization of Third Point Re and/or Third Point Reinsurance Company Ltd. as a PFIC; (xv) dependence on Third Point LLC to implement the Company's investment strategy; (xvi) termination by Third Point LLC of the investment management agreement; (xvii) risks associated with the Company's investment strategy being greater than those faced by competitors (xviii) increased regulation or scrutiny of alternative investment advisers affecting the Company's reputation; (xix) potentially becoming subject to United States federal income taxation; (xx) potentially becoming subject to United States withholding and information reporting requirements under the FATCA provisions; and other risks and factors listed under "Risk Factors" in the prospectus on Form 424(b) dated as of August 14, 2013 and filed with the Securities and Exchange Commission on August 19, 2013. All forward-looking statements speak only as of the date made and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

In presenting Third Point Re's results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP). Such measures, including underwriting loss, combined ratio, net investment income on float, diluted book value per share and return on beginning shareholders' equity are referred to as non-GAAP measures. These non-GAAP measures may be defined or calculated differently by other companies. Management believes these measures allow for a more complete understanding of the underlying business. These measures are used to monitor our results and should not be viewed as a substitute for those determined in accordance with GAAP. Reconciliations of such measures to the most comparable GAAP figures are included in the attached financial information in accordance with Regulation G.

About the Company

The Company is a public company listed on the New York Stock Exchange which, through its wholly owned subsidiary Third Point Reinsurance Company Ltd. ("Third Point Re"), writes property and casualty reinsurance business.  Third Point Re was incorporated in October 2011 and commenced underwriting business on January 1, 2012 with an "A-"(Excellent) financial strength rating from A.M. Best Company, Inc.

Contacts 
Third Point Reinsurance Ltd.
Rob Bredahl 
Chief Financial Officer & Chief Operating Officer 
[email protected] 
441-542-3333 

 

THIRD POINT REINSURANCE LTD.

CONSOLIDATED BALANCE SHEETS

As of December 31, 2013 and 2012

(expressed in thousands of U.S. dollars, except per share and share amounts)








December 31,
2013


December 31,
2012

Assets





Equity securities, trading, at fair value (cost - $824,723; 2012 - $450,766)


$

954,111



$

500,929


Debt securities, trading, at fair value (cost -  $408,754; 2012 - $249,110)


441,424



279,331


Other investments, at fair value


65,329



157,430


Total investments in securities and commodities


1,460,864



937,690


Cash and cash equivalents


31,625



34,005


Restricted cash and cash equivalents


193,577



77,627


Due from brokers


98,386



131,785


Securities purchased under an agreement to sell


38,147



60,408


Derivative assets, at fair value


39,045



25,628


Interest and dividends receivable


2,615



2,088


Reinsurance balances receivable


191,763



84,280


Deferred acquisition costs, net


91,193



45,383


Loss and loss adjustment expenses recoverable


9,277




Other assets


3,398



3,123


Total assets


$

2,159,890



$

1,402,017


Liabilities and shareholders' equity





Liabilities





Accounts payable and accrued expenses


$

9,456



$

5,278


Reinsurance balances payable


9,081




Deposit liabilities


120,946



50,446


Unearned premium reserves


265,187



93,893


Loss and loss adjustment expense reserves


134,331



67,271


Securities sold, not yet purchased, at fair value


56,056



176,454


Due to brokers


44,870



66,107


Derivative liabilities, at fair value


8,819



12,992


Interest and dividends payable


748



1,255


Total liabilities


649,494



473,696


Commitments and contingent liabilities





Shareholders' equity





Preference shares (par value $0.10; authorized, 30,000,000; none issued)


$



$


Common shares (par value $0.10; authorized, 300,000,000; issued and outstanding, 103,888,916 (2012: 78,432,132))


10,389



7,843


Additional paid-in capital


1,055,690



762,430


Retained earnings


325,582



98,271


Shareholders' equity attributable to shareholders


1,391,661



868,544


Non-controlling interests


118,735



59,777


Total shareholders' equity


1,510,396



928,321


Total liabilities and shareholders' equity


$

2,159,890



$

1,402,017


 

 

THIRD POINT REINSURANCE LTD.

CONSOLIDATED STATEMENTS OF INCOME

For the three months and years ended December 31, 2013 and 2012

(expressed in thousands of U.S. dollars, except per share and share amounts)










Three months ended


Years ended


December 31,
2013


December 31,
2012


December 31,
2013


December 31,
2012

Revenues








Gross premiums written

$

162,277



$

27,895



$

401,937



$

190,374


Gross premiums ceded





(9,975)




Net premiums written

162,277



27,895



391,962



190,374


Change in net unearned premium reserves

(103,767)



5,590



(171,295)



(93,893)


Net premiums earned

58,510



33,485



220,667



96,481


Net investment income

87,074



72,511



253,203



136,422


Total revenues

145,584



105,996



473,870



232,903


Expenses








Loss and loss adjustment expenses incurred, net

36,133



26,626



139,812



80,306


Acquisition costs, net

18,833



10,898



67,944



24,604


General and administrative expenses

8,965



7,155



33,036



27,376


Total expenses

63,931



44,679



240,792



132,286


Income including non-controlling interests

81,653



61,317



233,078



100,617


Income attributable to non-controlling interests

(1,565)



(607)



(5,767)



(1,216)


Net income

$

80,088



$

60,710



$

227,311



$

99,401


Earnings per share








Basic

$

0.77



$

0.77



$

2.58



$

1.26


Diluted (1)

$

0.75



$

0.76



$

2.54



$

1.26


Weighted average number of common shares used in the determination of earnings per share








Basic

103,264,616



78,432,132



87,505,540



78,432,132


Diluted (1)

106,390,339



78,820,844



88,970,531



78,598,236










(1) - During the quarter, it was determined that diluted earnings per share for the prior periods had been calculated incorrectly, which resulted in an understatement of diluted earnings per share. Diluted earnings per share for prior periods are correctly presented in the above Consolidated Statements of Income.

 

 

THIRD POINT REINSURANCE LTD.

SEGMENT REPORTING




Three Months Ended December 31, 2013


Property and Casualty Reinsurance


Catastrophe Risk Management


Corporate


Total

Revenues

($ in thousands)

Gross premiums written

$

162,359



$

(82)



$



$

162,277


Gross premiums ceded








Net premiums written

162,359



(82)





162,277


Change in net unearned premium reserves

(105,598)



1,831





(103,767)


Net premiums earned

56,761



1,749





58,510


Net investment income



1,211



85,863



87,074


Total revenues

56,761



2,960



85,863



145,584


Expenses








Loss and loss adjustment expenses incurred, net

36,325



(192)





36,133


Acquisition costs, net

18,628



205





18,833


General and administrative expenses

5,401



1,131



2,433



8,965


Total expenses

60,354



1,144



2,433



63,931


Underwriting loss

(3,593)



n/a



n/a



n/a


Income including non-controlling interests

n/a



1,816



83,430



81,653


Income attributable to non-controlling interests

n/a



(1,019)



(546)



(1,565)


Net income (loss)

$

(3,593)



$

797



$

82,884



$

80,088


Property and Casualty Reinsurance - Underwriting Ratios:







Loss ratio (1)

64.0%








Acquisition cost ratio (2)

32.8%








General and administrative expense ratio (3)

9.5%








Combined ratio (4)

106.3%

































Year Ended December 31, 2013


Property and Casualty Reinsurance


Catastrophe Risk Management


Corporate


Total

Revenues

($ in thousands)

Gross premiums written

$

393,588



$

8,349



$



$

401,937


Gross premiums ceded

(9,975)







(9,975)


Net premiums written

383,613



8,349





391,962


Change in net unearned premium reserves

(171,006)



(289)





(171,295)


Net premiums earned

212,607



8,060





220,667


Net investment income



4,421



248,782



253,203


Total revenues

212,607



12,481



248,782



473,870


Expenses









Loss and loss adjustment expenses incurred, net

139,616



196





139,812


Acquisition costs, net

66,981



963





67,944


General and administrative expenses

21,838



3,852



7,346



33,036


Total expenses

228,435



5,011



7,346



240,792


Underwriting loss

(15,828)



n/a



n/a



n/a


Income including non-controlling interests

n/a



7,470



241,436



233,078


Income attributable to non-controlling interests

n/a



(4,046)



(1,721)



(5,767)


Net income (loss)

$

(15,828)



$

3,424



$

239,715



$

227,311


Property and Casualty Reinsurance - Underwriting ratios:







Loss ratio (1)

65.7%








Acquisition cost ratio (2)

31.5%








General and administrative expense ratio (3)

10.3%








Combined ratio (4)

107.5%

















(1) Loss ratio is calculated by dividing loss and loss adjustment expenses incurred, net by net premiums earned.

(2) Acquisition cost ratio is calculated by dividing acquisition costs, net by net premiums earned.

(3) General and administrative expense ratio is calculated by dividing general and administrative expenses related to underwriting activities by net premiums earned.

(4) Combined ratio is calculated by dividing the sum of loss and loss adjustment expenses incurred, net, acquisition costs, net and general and administrative expenses related to underwriting activities by net premiums earned.

 

 

THIRD POINT REINSURANCE LTD.

SEGMENT REPORTING




Three Months Ended December 31, 2012


Property and Casualty Reinsurance


Catastrophe Risk Management


Corporate


Total

Revenues

($ in thousands)

Gross premiums written

$

27,895



$



$



$

27,895


Gross premiums ceded








Net premiums written

27,895







27,895


Change in net unearned premium reserves

5,590







5,590


Net premiums earned

33,485







33,485


Net investment income





72,511



72,511


Total revenues

33,485





72,511



105,996


Expenses








Loss and loss adjustment expenses incurred, net

26,626







26,626


Acquisition costs, net

10,898







10,898


General and administrative expenses

4,991



539



1,625



7,155


Total expenses

42,515



539



1,625



44,679


Underwriting loss

(9,030)



n/a



n/a



n/a


Income (loss) including non-controlling interests

n/a



(539)



70,886



61,317


Income attributable to non-controlling interests

n/a





(607)



(607)


Net income (loss)

$

(9,030)



$

(539)



$

70,279



$

60,710


Property and Casualty Reinsurance - Underwriting ratios:







Loss ratio (1)

79.5%








Acquisition cost ratio (2)

32.5%








General and administrative expense ratio (3)

15.0%








Combined ratio (4)

127.0%




































Year Ended December 31, 2012


Property and Casualty Reinsurance


Catastrophe Risk Management


Corporate


Total

Revenues

($ in thousands)

Gross premiums written

$

190,374



$



$



$

190,374


Gross premiums ceded








Net premiums written

190,374







190,374


Change in net unearned premium reserves

(93,893)







(93,893)


Net premiums earned

96,481







96,481


Net investment income





136,422



136,422


Total revenues

96,481





136,422



232,903


Expenses








Loss and loss adjustment expenses incurred, net

80,306







80,306


Acquisition costs, net

24,604







24,604


General and administrative expenses

20,290



1,534



5,552



27,376


Total expenses

125,200



1,534



5,552



132,286


Underwriting loss

(28,719)



n/a



n/a



n/a


Income (loss) including non-controlling interests

n/a



(1,534)



130,870



100,617


Income attributable to non-controlling interests

n/a





(1,216)



(1,216)


Net income (loss)

$

(28,719)



$

(1,534)



$

129,654



$

99,401


Property and Casualty Reinsurance - Underwriting ratios:







Loss ratio (1)

83.2%








Acquisition cost ratio (2)

25.5%








General and administrative expense ratio (3)

21.0%








Combined ratio (4)

129.7%

















(1) Loss ratio is calculated by dividing loss and loss adjustment expenses incurred, net by net premiums earned.

(2) Acquisition cost ratio is calculated by dividing acquisition costs, net by net premiums earned.

(3) General and administrative expense ratio is calculated by dividing general and administrative expenses related to underwriting activities by net premiums earned.

(4) Combined ratio is calculated by dividing the sum of loss and loss adjustment expenses incurred, net, acquisition costs, net and general and administrative expenses related to underwriting activities by net premiums earned.

 

 

THIRD POINT REINSURANCE LTD.

RECONCILIATION OF NON-GAAP MEASURES






December 31,
2013


December 31,
2012

Basic and diluted book value per share numerator:

(In thousands, except share and per share amounts)

Total shareholders' equity

$

1,510,396



$

928,321


Less:  non-controlling interests

118,735



59,777


Shareholders' equity attributable to shareholders

1,391,661



868,544


Effect of dilutive warrants issued to founders and an advisor

46,512



36,480


Effect of dilutive stock options issued to directors and employees

101,274



51,670


Diluted book value per share numerator:

$

1,539,447



$

956,694


Basic and diluted book value per share denominator:








Issued and outstanding shares

103,264,616



78,432,132


Effect of dilutive warrants issued to founders and an advisor

4,651,163



3,648,006


Effect of dilutive stock options issued to directors and employees

8,784,861



5,167,045


Effect of dilutive restricted shares issued to employees and directors

657,156



619,300


Diluted book value per share denominator:

117,357,796



87,866,483










Basic book value per share

$

13.48



$

11.07


Diluted book value per share

$

13.12



$

10.89


 


For the three months ended


For the years ended


December 31,
2013


December 31,
2012


December 31,
2013


December 31,
2012


($ in thousands)

Net investment income on float

$

11,825



$

4,810



$

26,953



$

4,901


Net investment income on capital

76,286



68,147



226,751



131,967


Net investment income on investments managed by Third Point LLC

88,111



72,957



253,704



136,868


Deposit liabilities and reinsurance contracts investment expense

(2,247)



(446)



(4,922)



(446)


Investment income on cash collateral held by the Catastrophe Reinsurer

42





86




Net gain on reinsurance contract derivatives written by the Catastrophe Reinsurer

1,168





4,335





$

87,074



$

72,511



$

253,203



$

136,422



























For the three months ended


For the years ended


December 31,
2013


December 31,
2012


December 31,
2013


December 31,
2012


($ in thousands)

Net income

$

80,088



$

60,710



$

227,311



$

99,401


Shareholders' equity attributable to shareholders - beginning of period

1,309,384



806,020



868,544



585,425


Subscriptions receivable







177,507


Impact of weighting related to shareholders' equity from IPO





104,502




Adjusted shareholders' equity attributable to shareholders - beginning of period

$

1,309,384



$

806,020



$

973,046



$

762,932


Return on beginning shareholders' equity

6.1%



7.5%



23.4%



13.0%


 

 

Book Value per Share

Book value per share as used by our management is a non-GAAP measure, as it is calculated after deducting the impact of non-controlling interests, and adding back subscriptions receivable. In addition, diluted book value per share is a non-GAAP measure and represents book value per share combined with the impact from dilution of all in-the-money share options issued, warrants and unvested restricted shares outstanding as of any period end. We believe that long-term growth in diluted book value per share is the most important measure of our financial performance because it allows our management and investors to track over time the value created by the retention of earnings. In addition, we believe this metric is used by investors because it provides a basis for comparison with other companies in our industry that also report a similar measure.

Net Investment Income on Float

Insurance float is an important aspect of our property and casualty reinsurance operation. In an insurance or reinsurance operation, float arises because premiums from reinsurance contracts and proceeds from deposit accounted contracts are collected before losses are paid. In some instances, the interval between receipts and payments can extend over many years. During this time interval, insurance and reinsurance companies invest the premiums received and generate investment returns. Although float can be calculated using numbers determined under U.S. GAAP, float is a non-GAAP financial measure and, therefore, there is no comparable U.S. GAAP measure.

Return on Beginning Shareholders' Equity

Return on beginning shareholders' equity as presented is a non-GAAP financial measure. Return on beginning shareholders' equity is calculated by dividing net income by the beginning shareholders' equity attributable to shareholders and is a commonly used calculation to measure profitability. For purposes of this calculation, we add back the impact of subscriptions receivable to shareholders' equity attributable to shareholders as of December 31, 2011. For the year ended December 31, 2013, we have also adjusted the beginning shareholders' equity for the impact of the issuance of shares in our IPO on a weighted average basis. These adjustments lower the stated returns on beginning shareholders' equity.

SOURCE Third Point Reinsurance Ltd.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.