THIRD POINT SWINGS INTO BLACK ON INVESTMENT RETURNS

Bermudian hedge fund reinsurer Third Point Re swung to fourth-quarter net earnings of $44.3m from a loss of $46.7m, reflecting a swing to $67.2m in investment income from $35.8m in losses. Its underwriting loss narrowed slightly to $9.2m, while the combined ratio added 2.1 points to 107.1%. Gross written premiums more than doubled to $164.2m on the renewal of certain contracts that did not generate premiums a year earlier, but earned premiums fell 33% to $129.5m. For all of 2017, the group’s net income was 10 times higher at $277.8m as net investment income quadrupled to $392.0m. The annual combined ratio improved by 0.8 points to 107.7% as the underwriting loss narrowed to $42.6m from $50.1m. Gross written premiums grew 3.9% to $641.6m.