Third Point Re Reports Second Quarter 2014 Earnings Results

2014 / 08 / 07

Net Income of $31.3 million, or $0.29 Per Diluted Common Share

HAMILTON, Bermuda, Aug. 7, 2014 /PRNewswire/ -- Third Point Reinsurance Ltd. ("Third Point Re" or the "Company") (NYSE: TPRE) today announced results for its fiscal second quarter ended June 30, 2014.

Third Point Re reported net income of $31.3 million, or $0.29 per diluted common share, for the second quarter of 2014, compared with $26.2 million, or $0.33 per diluted common share, for the second quarter of 2013, an increase of 19.3%.  For the six months ended June 30, 2014, Third Point Re reported net income of $71.1 million, or $0.66 per diluted common share, compared with $100.7 million, or $1.26 per diluted common share, for the six months ended June 30, 2013, a decrease of 29.4%.

For the three months ended June 30, 2014, diluted book value per share increased by $0.29 per share, or 2.2%, to $13.72 per share from $13.43 per share as of March 31, 2014.  For the six months ended June 30, 2014, diluted book value per share increased by $0.60 per share, or 4.6%, to $13.72 per share from $13.12 per share as of December 31, 2013.

"Our Total Return approach continued to generate growth in diluted book value per share in the second quarter," commented John Berger, Chairman, Chief Executive Officer and Chief Underwriting Officer.  "Our combined ratio dropped to 102.7% from 105.5% in the prior year's second quarter as we continue to gain scale and Third Point LLC, our investment manager, successfully navigated market volatility through selective investments in securities and market hedges.  We have managed to maintain our underwriting margins so far in 2014, despite challenging market conditions."

The following table shows certain key financial metrics for the three and six months ended June 30, 2014 and 2013:



For the three months ended


For the six months ended



June 30, 2014


June 30, 2013


June 30, 2014


June 30, 2013



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

Gross premiums written


$

145.5



$

98.2



$

233.1



$

194.2


Net premiums earned


$

78.8



$

62.3



$

152.0



$

95.8


Net underwriting loss (1) (2)


$

(2.1)



$

(3.4)



$

(7.2)



$

(7.2)


Combined ratio (1) (2)


102.7

%


105.5

%


104.9

%


107.7

%














Net investment return on investments managed by Third Point LLC


2.3

%


3.2

%


5.5

%


12.2

%

Net investment income (3)


$

40.5



$

32.8



$

90.5



$

114.2


Net investment income on float (4)


$

6.3



$

2.5



$

13.6



$

8.1















Net income


$

31.3



$

26.2



$

71.1



$

100.7


Diluted earnings per share


$

0.29



$

0.33



$

0.66



$

1.26


Growth in diluted book value per share (4)


2.2

%


2.7

%


4.6

%


10.9

%

Return on beginning shareholders' equity (4)

2.2

%


2.8

%


5.1

%


11.6

%

Net investments managed by Third Point LLC (5)


$

1,687.5



$

1,559.4



$

1,687.5



$

1,559.4















(1)

Property and Casualty Reinsurance segment only.

(2)

Net underwriting loss and combined ratio are Non-GAAP financial measures. See the accompanying Segment Reporting for an explanation and calculation of net underwriting loss and combined ratio.

(3)

Prior to 2014, changes in estimated fair value of embedded derivatives were recorded in net investment income.  As these embedded derivatives have become more prominent, the presentation has been modified and changes in the estimated fair value of embedded derivatives are now recorded in other expenses in the condensed consolidated statements of income.  As a result, investment expenses of $0.8 million and $1.4 million, that were previously reported in net investment income for the three and six months ended June 30, 2013, respectively, are now being reported in other expenses to conform to the current year's presentation.

(4)

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.

(5)

Prior year comparative represents amounts as of December 31, 2013.

Segment Highlights

Property and Casualty Reinsurance Segment

Gross premiums written increased by $45.8 million, or 48.4%, to $140.4 million for the three months ended June 30, 2014 from $94.6 million for the three months ended June 30, 2013.  Gross premiums written increased by $35.0 million, or 18.7%, to $222.6 million for the six months ended June 30, 2014 from $187.5 million for the six months ended June 30, 2013. The increase was primarily due to new business written and increased premium on business renewed partially offset by business not renewed. Since Third Point Re is a developing company and focuses on large transactions, which in some cases will not renew, period over period comparisons may not be meaningful.

Net premiums earned for the three months ended June 30, 2014 increased $16.1 million, or 26.1%, to $77.5 million and increased $55.7 million, or 59.2%, to $149.8 million for the six months ended June 30, 2014.  The three and six months ended June 30, 2014 reflects net premiums earned on a larger in-force underwriting portfolio compared to the three and six months ended June 30, 2013.

The net underwriting loss from the Property and Casualty Reinsurance segment was $2.1 million and $7.2 million for the three and six months ended June 30, 2014, respectively.  These results compare to a net underwriting loss of $3.4 million and $7.2 million for the three and six month periods ended June 30, 2013, respectively.

Catastrophe Risk Management

The Catastrophe Risk Management segment includes the combined results of Third Point Reinsurance Opportunities Fund Ltd. (the "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 $0.2 million and $0.1 million for the three and six months ended June 30, 2014, respectively, compared to net loss of $0.3 million and $0.1 million for the three and six months ended June 30, 2013, respectively.  Net assets under management for the Catastrophe Fund were $111.4 million as of June 30, 2014 (December 31, 2013 - $104.0).

Investments

For the three months ended June 30, 2014, Third Point Re recorded net investment income of $40.5 million, compared to $32.8 million for the three months ended June 30, 2013. The return on investments managed by the Company's investment manager, Third Point LLC, was 2.3% for the three months ended June 30, 2014 compared to 3.2% for the three months ended June 30, 2013.

For the six months ended June 30, 2014, Third Point Re recorded net investment income of $90.5 million, compared to $114.2 million for the six months ended June 30, 2013. The return on investments managed by the Company's investment manager, Third Point LLC, was 5.5% for the six months ended June 30, 2014 compared to 12.2% for the six months ended June 30, 2013.

Performance in the investment portfolio continued to be driven primarily by positive returns in both the corporate and structured credit portfolios during the second quarter of 2014.  Our equity portfolio is well diversified across sectors and successful positions in the Energy and Industrials & Commodities sectors more than offset losses in the Technology, Media and Telecommunications and Financial sectors.  Net investment income for the three and six months ended June 30, 2014 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.  We mark to market our entire investment portfolio managed by Third Point LLC and therefore, our investment results can vary significantly from period to period.

Conference Call Details

The Company will hold a conference call to discuss its second quarter 2014 results at 9:00 a.m. Eastern Time on August 8, 2014. The call will be webcast live over the internet from the Company's website at www.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 13586476. Participants should ask for the Third Point Reinsurance Ltd. second quarter earnings conference call.

A replay of the live conference call will be available approximately three hours 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 13586476. The telephonic replay will be available until 11:59 p.m. (Eastern Time) on August 15, 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 passive foreign investment company; (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 advisors 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 (xxi) other risks and factors listed under "Risk Factors" in our most recent Annual Report on Form 10-K and other periodic disclosures filed with the U.S. Securities and Exchange Commission. 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., writes property and casualty reinsurance business.  Third Point Reinsurance Company Ltd. 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.

Contact
Third Point Reinsurance Ltd.
Rob Bredahl
Chief Financial Officer and Chief Operating Officer
investorrelations@thirdpointre.bm
+1 441-542-3333

 

THIRD POINT REINSURANCE LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

As of June 30, 2014 and December 31, 2013

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








June 30,
 2014


December 31,
2013

Assets





Equity securities, trading, at fair value (cost - $1,035,700; 2013 - $824,723)

$

1,162,363


$

954,111

Debt securities, trading, at fair value (cost -  $494,101; 2013 - $408,754)

551,453


441,424

Other investments, at fair value


93,412


65,329

Total investments in securities and commodities


1,807,228


1,460,864

Cash and cash equivalents


35,977


31,625

Restricted cash and cash equivalents


222,124


193,577

Due from brokers


74,046


98,386

Securities purchased under an agreement to sell


33,850


38,147

Derivative assets, at fair value


22,516


39,045

Interest and dividends receivable


3,747


2,615

Reinsurance balances receivable


245,832


191,763

Deferred acquisition costs, net


130,860


91,193

Loss and loss adjustment expenses recoverable


10,274


9,277

Other assets


3,283


3,398

Total assets


$

2,589,737


$

2,159,890

Liabilities and shareholders' equity






Liabilities






Accounts payable and accrued expenses


$

5,456


$

9,456

Reinsurance balances payable


26,856


9,081

Deposit liabilities


121,959


120,946

Unearned premium reserves


346,271


265,187

Loss and loss adjustment expense reserves


184,627


134,331

Securities sold, not yet purchased, at fair value


46,994


56,056

Due to brokers


281,091


44,870

Derivative liabilities, at fair value


10,528


8,819

Performance fee payable to related party


22,002


Interest and dividends payable


816


748

Total liabilities


1,046,600


649,494

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, 103,931,386 (2013: 103,888,916))

10,393


10,389

Additional paid-in capital


1,060,183


1,055,690

Retained earnings


396,653


325,582

Shareholders' equity attributable to shareholders


1,467,229


1,391,661

Non-controlling interests


75,908


118,735

Total shareholders' equity


1,543,137


1,510,396

Total liabilities and shareholders' equity


$

2,589,737


$

2,159,890

 

 

THIRD POINT REINSURANCE LTD.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

For the three and six months ended June 30, 2014 and 2013

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






For the three months ended


For the six months ended


June 30,
2014


June 30,
2013


June 30,
2014


June 30,
2013

Revenues








Gross premiums written

$

145,508


$

98,215


$

233,095


$

194,235

Gross premiums ceded




(9,975)

Net premiums written

145,508


98,215


233,095


184,260

Change in net unearned premium reserves

(66,758)


(35,928)


(81,083)


(88,432)

Net premiums earned

78,750


62,287


152,012


95,828

Net investment income

40,485


32,826


90,520


114,187

Total revenues

119,235


95,113


242,532


210,015

Expenses










Loss and loss adjustment expenses incurred, net

44,409


45,692


90,668


64,330

Acquisition costs, net

29,583


14,921


55,014


27,994

General and administrative expenses

9,549


7,217


19,574


14,225

Other expenses

1,020


759


1,807


1,429

Total expenses

84,561


68,589


167,063


107,978

Income before income tax expense

34,674


26,524


75,469


102,037

Income tax expense

(2,375)



(2,375)


Income including non-controlling interests

32,299


26,524


73,094


102,037

Income attributable to non-controlling interests

(1,007)


(301)


(2,023)


(1,384)

Net income

$

31,292


$

26,223


$

71,071


$

100,653

Earnings per share











Basic

$

0.30


$

0.33


$

0.68


$

1.27

Diluted

$

0.29


$

0.33


$

0.66


$

1.26

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











Basic

103,264,616


78,432,132


103,264,616


78,432,132

Diluted

106,433,881


79,254,268


106,505,715


79,147,972












 

 

THIRD POINT REINSURANCE LTD.
SEGMENT REPORTING




Three Months Ended June 30, 2014


Property and
Casualty
Reinsurance (6)


Catastrophe Risk
Management


Corporate


Total

Revenues

($ in thousands)

Gross premiums written

$          140,422


$               5,086


$                —


$       145,508

Gross premiums ceded




Net premiums written

140,422


5,086



145,508

Change in net unearned premium reserves

(62,934)


(3,824)



(66,758)

Net premiums earned

77,488


1,262



78,750

Expenses








Loss and loss adjustment expenses incurred, net

44,409




44,409

Acquisition costs, net

29,507


76



29,583

General and administrative expenses

5,655


678


3,216


9,549

Total expenses

79,571


754


3,216


83,541

Net underwriting loss

(2,083)


n/a


n/a


n/a

Net investment income

6,282


33


34,170


40,485

Other expenses

(1,020)




(1,020)

Income tax expense



(2,375)


(2,375)

Segment income including non-controlling interests

3,179


541


28,579


32,299

Segment income attributable to non-controlling interests


(338)


(669)


(1,007)

Segment income

$              3,179


$                  203


$         27,910


$         31,292









Property and Casualty Reinsurance - Underwriting Ratios:







Loss ratio (1)

57.3 %







Acquisition cost ratio (2)

38.1 %







Composite ratio (3)

95.4 %







General and administrative expense ratio (4)

7.3 %







Combined ratio (5)

102.7 %
















Six Months Ended June 30, 2014


Property and
Casualty
Reinsurance (6)


Catastrophe Risk
Management


Corporate


Total

Revenues

($ in thousands)

Gross premiums written

$          222,564


$             10,531


$                —


$       233,095

Gross premiums ceded




Net premiums written

222,564


10,531



233,095

Change in net unearned premium reserves

(72,775)


(8,308)



(81,083)

Net premiums earned

149,789


2,223



152,012

Expenses








Loss and loss adjustment expenses incurred, net

90,668




90,668

Acquisition costs, net

54,906


108



55,014

General and administrative expenses

11,464


1,512


6,598


19,574

Total expenses

157,038


1,620


6,598


165,256

Net underwriting loss

(7,249)


n/a


n/a


n/a

Net investment income

13,595


62


76,863


90,520

Other expenses

(1,807)




(1,807)

Income tax expense



(2,375)


(2,375)

Segment income including non-controlling interests

4,539


665


67,890


73,094

Segment income attributable to non-controlling interests


(529)


(1,494)


(2,023)

Segment income

$              4,539


$                  136


$         66,396


$         71,071









Property and Casualty Reinsurance - Underwriting Ratios:







Loss ratio (1)

60.5 %







Acquisition cost ratio (2)

36.7 %







Composite ratio (3)

97.2 %







General and administrative expense ratio (4)

7.7 %







Combined ratio (5)

104.9 %
















Three Months Ended June 30, 2013


Property and
Casualty
Reinsurance (6)


Catastrophe Risk
Management


Corporate


Total

Revenues

($ in thousands)

Gross premiums written

$           94,644


$               3,571


$                —


$        98,215

Gross premiums ceded




Net premiums written

94,644


3,571



98,215

Change in net unearned premium reserves

(33,206)


(2,722)



(35,928)

Net premiums earned

61,438


849



62,287

Expenses








Loss and loss adjustment expenses incurred, net

45,304


388



45,692

Acquisition costs, net

14,821


100



14,921

General and administrative expenses

4,710


987


1,520


7,217

Total expenses

64,835


1,475


1,520


67,830

Net underwriting loss

(3,397)


n/a


n/a


n/a

Net investment income

2,530


359


29,937


32,826

Other expenses

(759)




(759)

Segment income (loss) including non-controlling interests

(1,626)


(267)


28,417


26,524

Segment income attributable to non-controlling interests


(80)


(221)


(301)

Segment income (loss)

$            (1,626)


$                (347)


$        28,196


$        26,223

Property and Casualty Reinsurance - Underwriting ratios:







Loss ratio (1)

73.7 %







Acquisition cost ratio (2)

24.1 %







Composite ratio (3)

97.8 %







General and administrative expense ratio (4)

7.7 %







Combined ratio (5)

105.5 %
















Six Months Ended June 30, 2013


Property and
Casualty
Reinsurance (6)


Catastrophe Risk
Management


Corporate


Total

Revenues

($ in thousands)

Gross premiums written

$          187,515


$               6,720


$                —


$       194,235

Gross premiums ceded

(9,975)




(9,975)

Net premiums written

177,540


6,720



184,260

Change in net unearned premium reserves

(83,459)


(4,973)



(88,432)

Net premiums earned

94,081


1,747



95,828

Expenses








Loss and loss adjustment expenses incurred, net

63,942


388



64,330

Acquisition costs, net

27,811


183



27,994

General and administrative expenses

9,526


1,772


2,927


14,225

Total expenses

101,279


2,343


2,927


106,549

Net underwriting loss

(7,198)


n/a


n/a


n/a

Net investment income

8,056


1,122


105,009


114,187

Other expenses

(1,429)




(1,429)

Segment income (loss) including non-controlling interests

(571)


526


102,082


102,037

Segment income attributable to non-controlling interests


(595)


(789)


(1,384)

Segment income (loss)

$               (571)


$                  (69)


$       101,293


$       100,653

Property and Casualty Reinsurance - Underwriting ratios:







Loss ratio (1)

68.0 %







Acquisition cost ratio (2)

29.6 %







Composite ratio (3)

97.6 %







General and administrative expense ratio (4)

10.1 %







Combined ratio (5)

107.7 %















(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)

Composite ratio is calculated by dividing the sum of loss and loss adjustment expenses incurred, net and acquisition costs, net by net premiums earned.

(4)

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

(5)

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.

(6)

Effective January 1, 2014, the Company modified the presentation of its operating segments to allocate net investment income from float to the Property and Casualty Reinsurance segment.  Prior period segment results have been adjusted to conform to this presentation.

 

 








THIRD POINT REINSURANCE LTD.

RECONCILIATION OF NON-GAAP MEASURES








June 30,
2014


December 31,
2013

Basic and diluted book value per share numerator:

($ in thousands, except share and per
share amounts)

Total shareholders' equity

$

1,543,137


$

1,510,396

Less: non-controlling interests

(75,908)


(118,735)

Shareholders' equity attributable to shareholders

1,467,229


1,391,661

Effect of dilutive warrants issued to founders and an advisor

46,512


46,512

Effect of dilutive stock options issued to directors and employees

69,223


101,274

Diluted book value per share numerator

$

1,582,964


$

1,539,447

Basic and diluted book value per share denominator:


Issued and outstanding shares

103,264,616


103,264,616

Effect of dilutive warrants issued to founders and an advisor

4,651,163


4,651,163

Effect of dilutive stock options issued to directors and employees

6,797,949


8,784,861

Effect of dilutive restricted shares issued to directors and employees

666,770


657,156

Diluted book value per share denominator

115,380,498


117,357,796






Basic book value per share

$

14.21


$

13.48

Diluted book value per share

$

13.72


$

13.12

 

 


For the three months ended


For the six months ended


June 30,
2014


June 30,
2013


June 30,
2014


June 30,
2013


($ in thousands)

Net investment income on float

$

6,282


$

2,530


$

13,595


$

8,056

Net investment income on capital

34,170


29,937


76,863


105,009

Net investment income on investments managed by Third Point LLC

40,452


32,467


90,458


113,065

Investment income on cash held by the Catastrophe Reinsurer and
Catastrophe Fund

28


13


57


16

Net gain on reinsurance contract derivatives written by the
Catastrophe Reinsurer


346



1,106

Net gain on catastrophe bond held by the Catastrophe Reinsurer

5



5



$

40,485


$

32,826


$

90,520


$

114,187















 

 


For the three months ended


For the six months ended


June 30,
2014


June 30,
2013


June 30,
2014


June 30,
2013


($ in thousands)

Net income

$

31,292



$

26,223



$

71,071



$

100,653


Shareholders' equity attributable to shareholders - beginning of period

1,433,692



944,726



1,391,661



868,544


Return on beginning shareholders' equity

2.2

%


2.8

%


5.1

%


11.6

%

 

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. 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.

SOURCE Third Point Reinsurance Ltd.