Reinsurer Third Point swings to loss in first quarter

Hamilton, Bermuda-based Third Point Reinsurance Ltd. reported a $51.1 million net loss for the first quarter, compared with net income of $50.5 million for the comparable period a year ago.

The company said Thursday gross written premiums for the period decreased 7.6%, to $197.2 million. The combined ratio for the quarter was 104.9% vs. 102.8% for the comparable period, which chairman and CEO John Berger said in a statement was “in line with our expectations given current market conditions and the lines of business on which we focus.”

The company also reported a net investment loss of $40.1 million, vs. net investment income of $64.9 million for the comparable period.

Mr. Berger said, “Despite challenging conditions in both the financial and reinsurance markets, we continue to believe in our total return model.”

On Tuesday, the company’s board of directors authorized a new common share repurchase program for up to $100 million of its outstanding shares.

Third Point was founded in October 2011 with funds from New York-based hedge fund Third Point L.L.C.