The Weather Channel is likely to get more attention in the offices of Third Point Reinsurance Ltd in the future.
That observation was cause for a light-hearted chuckle, but it was more than a throwaway line for chief executive officer Daniel Malloy.
Third Point Re is beefing up its presence in property catastrophe and specialty lines. In the first six months of this year it had gross premiums written of $402.2 million, of which property catastrophe totalled about $57 million.
The reinsurer yesterday reported second-quarter profit of $53.1 million, or 57 cents per share, up from $19.6 million a year ago. Although it made a net underwriting loss, the gap has narrowed, reflected in a combined ratio that has dropped from 103.6 per cent a year ago, to 101.1 per cent. Mr Malloy said the company is on target to hit its goal of underwriting profitability, subject to catastrophe events, by year end.
“This will be an important milestone for the company and a validation of our strategy to deliver value from both sides of our balance sheet,” he said.
“We have continued to build out our underwriting team over the past year, where we have successfully recruited talented underwriters, to allow us to expand our portfolio into new profitable lines of business including property catastrophe and specialty. We are encouraged with our progress to date with the build out of our team and portfolio positioning going better than expected.”
He became CEO of the Bermudian-based company in May, following the resignation of Robert Bredahl. He also continues as CEO of Third Point Reinsurance Company Ltd, a position he has held since 2017.
Speaking to The Royal Gazette, he said the calibre of people that have joined the company on the underwriting side meant it now punched above its weight. He mentioned the teams and new hires in Bermuda and the US helping to drive its property catastrophe and specialty lines. Tracey Gibbons joined in April and leads a specialty team for Third Point Re in Bermuda. She has been a lead in the class for 15 years and “clients and brokers want to trade with her”, said Mr Malloy. The company has also added a senior risk modeller.
Asked about the increased presence in property catastrophe and specialty lines, Mr Malloy said: “We are seeing, on the property catastrophe market, reinsurance capacity being withdrawn due to the losses in 2017 and 2018. That has given us an opportunity to step in.
“I’m excited by our prospects, watching the plans we started 12-plus months ago roll out. I’ll be watching The Weather Channel now, that’s something new for us. In a way we are inching a little bit closer to what is a more typical offering for a Bermuda reinsurer, but we still understand our roots and our DNA, which includes a relationship with Third Point [LLC], and they have been great producers of very profitable investment returns over the years.”
Third Point Re’s investments are managed by Dan Loeb’s Third Point LLC hedge fund. The reinsurer’s investment return for the first six months of the year was 10.3 per cent.
As it released its second-quarter results, the company announced that Sid Sankaran, formerly chief risk officer and chief financial officer at AIG, has joined its board.