tpre-20201105
0001576018false00015760182020-11-052020-11-05

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
 FORM 8-K
  
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): November 5, 2020 (November 5, 2020)
 
 THIRD POINT REINSURANCE LTD.
(Exact name of registrant as specified in its charter)
  
Bermuda 001-36052 98-1039994
(State or other jurisdiction
of incorporation)		 (Commission
File Number)		 (I.R.S. Employer
Identification No.)
Point House
3 Waterloo Lane
Pembroke HM 08 Bermuda
(Address of principal executive offices and Zip Code)
Registrant’s telephone number, including area code: +1 441 542-3300
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of each exchange on which registered
Common Shares, $0.10 par valueTPRENew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02Results of Operations and Financial Condition.
On November 5, 2020, Third Point Reinsurance Ltd. issued a press release reporting its financial results as of and for the third quarter ended September 30, 2020. A copy of the press release is furnished herewith as Exhibit 99.1. In addition, a copy of the Third Point Reinsurance Ltd. Financial Supplement as of and for the third quarter ended September 30, 2020 is furnished herewith as Exhibit 99.2.
The information hereunder is not deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, is not otherwise subject to the liabilities of that section and is not incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01Financial Statements and Exhibits.
(d) Exhibits
 
Exhibit
No.		  Description
99.1  Earnings Press Release dated November 5, 2020.
99.2Financial Supplement.
101Pursuant to Rule 406 of Regulation S-T, the cover page information in formatted in Inline XBRL
104Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101)



SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Date: November 5, 2020 /s/ Christopher S. Coleman
 Name:Christopher S. Coleman
 Title:Chief Financial Officer


EXHIBIT INDEX
Exhibit
No.		  Description
99.1  
99.2
101Pursuant to Rule 406 of Regulation S-T, the cover page information in formatted in Inline XBRL
104Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101)




Third Point Re Announces Third Quarter 2020 Earnings Results

Net income of $68.7 million, or $0.73 per diluted common share, for the third quarter of 2020
Return on beginning shareholders’ equity of 5.1% for the third quarter of 2020

HAMILTON, Bermuda, November 5, 2020, Third Point Reinsurance Ltd. (“Third Point Re” or the “Company”) (NYSE:TPRE) today announced results for its third quarter ended September 30, 2020.
Earnings Summary
Third Point Re reported net income available to common shareholders of $68.7 million, or $0.73 per diluted common share, for the three months ended September 30, 2020, compared to a net loss attributable to common shareholders of $15.1 million, or $0.16 per diluted common share, for the three months ended September 30, 2019. For the nine months ended September 30, 2020, Third Point Re reported net income available to common shareholders of $9.1 million, or $0.10 per diluted common share, compared to net income available to common shareholders of $170.9 million, or $1.84 per diluted common share, for the nine months ended September 30, 2019.
“We produced solid third quarter results with a return on equity for the quarter of 5.1% driven by strong investment performance. Our diluted book value per share at the end of the quarter was $15.06. The combined ratio for the third quarter was 119.9%, of which $29.6 million was attributable to catastrophe losses and $15.6 million was attributable to the ongoing impacts of COVID-19, for a total impact of 31.9% on the combined ratio,” commented Dan Malloy, Chief Executive Officer. “The impact on our results from catastrophe losses and ongoing impacts of COVID-19 were within expectations given the large number of events during the quarter. We continue to see improvements in market conditions across many lines of business. In particular, our recently announced partnership to form a new MGA, Arcadian Risk Capital, will allow us to take advantage of opportunities in excess casualty and professional lines insurance. Our previously announced merger with the Sirius Group remains on track to close in the first quarter of 2021. Our capital position remains strong and SiriusPoint will be well-positioned to take advantage of improving underwriting conditions.”
Additional Information on Financial Results
The following table shows certain key financial metrics for the three and nine months ended September 30, 2020 and 2019:
Three months endedNine months ended
September 30, 2020September 30, 2019September 30, 2020September 30, 2019
($ in millions, except for per share data and ratios)
Gross premiums written$60.8 $95.4 $422.5 $497.6 
Net premiums earned$141.7 $203.2 $428.8 $501.8 
Net underwriting loss (1)
$(28.1)$(5.5)$(21.3)$(12.9)
Combined ratio (1)
119.9 %102.7 %105.0 %102.6 %
Net investment return on investments managed by Third Point LLC4.8 %(0.2)%2.8 %10.2 %
Net investment income (loss)$122.0 $(3.1)$74.1 $220.9 
Net income (loss) available to Third Point Re common shareholders$68.7 $(15.1)$9.1 $170.9 
Diluted earnings (loss) per share available to Third Point Re common shareholders$0.73 $(0.16)$0.10 $1.84 
Change in diluted book value per share (2)
4.8 %(0.8)%0.1 %13.7 %
Return on beginning shareholders’ equity attributable to Third Point Re common shareholders (2)
5.1 %(1.1)%0.6 %14.2 %
Net investments managed by Third Point LLC (3)
$2,673.0 $2,590.1 $2,673.0 $2,590.1 
(1)See the accompanying Segment Reporting for a calculation of net underwriting loss and combined ratio.
(2)Change in diluted book value per share and return on beginning shareholders’ equity attributable to Third Point Re common shareholders are non-GAAP financial measures. There are no comparable GAAP measures. See the accompanying Reconciliation of Non-GAAP Measures and Key Performance Indicators for an explanation and calculation of diluted book value per share and return on beginning shareholders’ equity attributable to Third Point Re common shareholders.
(3)Prior year comparatives represent amounts as of December 31, 2019.




Property and Casualty Reinsurance Segment
Gross premiums written
Gross premiums written decreased by $34.6 million, or 36.3%, to $60.8 million for the three months ended September 30, 2020 from $95.4 million for the three months ended September 30, 2019. The decrease in gross premiums written was primarily due to one retroactive reinsurance contract of $58.7 million recognized in the prior year quarter with no comparable premium in the current period. This decrease was partially offset by new contracts bound in the current year period and other timing differences.
Gross premiums written decreased by $75.1 million, or 15.1%, to $422.5 million for the nine months ended September 30, 2020 from $497.6 million for the nine months ended September 30, 2019. The decrease in gross premiums written was primarily due to certain contracts that we did not renew, including certain contracts which no longer fit our underwriting criteria as a result of our shift in underwriting strategy. In addition, the prior year period included $58.7 million related to one retroactive reinsurance contract that did not have a comparable premium in the current year period. These decreases were partially offset by new contracts bound in the current year period and other timing differences.
Net underwriting results
For the three and nine months ended September 30, 2020, we incurred net catastrophe losses of $29.6 million, net of reinstatement premiums and profit commission adjustments, related to Hurricane Laura and other third quarter catastrophes. This resulted in an increase in the combined ratio of 20.9 and 6.9 percentage points for the three and nine months ended September 30, 2020, respectively.
For the three and nine months ended September 30, 2019, we incurred net catastrophe losses of $12.7 million, net of reinstatement premiums and profit commission adjustments, related to Hurricane Dorian and Typhoon Faxai. This resulted in an increase in the combined ratio of 6.2 and 2.5 percentage points for the three and nine months ended September 30, 2019, respectively.
The COVID-19 outbreak is causing unprecedented social disruption, global economic volatility, reduced liquidity of capital markets and intervention by various governments around the world. For the three and nine months ended September 30, 2020, we recognized net losses of $15.6 million and $35.0 million, respectively, net of additional premiums, or 11.0 and 8.2 percentage points, respectively, on the combined ratio, relating to COVID-19. These losses were driven primarily by event cancellation, property business interruption, and certain casualty and multi-line quota share contracts.
The economic impact of the ongoing pandemic will continue to create uncertainty around the ultimate scope of claims and potential for additional insurance losses. Our estimate is based on currently available information derived from information provided by cedents. These estimates include losses only related to our estimate of claims incurred as of September 30, 2020.
For the three and nine months ended September 30, 2020, we recorded improvement in the net underwriting results of $0.1 million and $2.6 million, respectively, related to net favorable development of prior years’ loss reserves net of the related impact of acquisition costs.
For the three and nine months ended September 30, 2019, we recorded a net $3.8 million and $4.3 million improvement in the net underwriting results, respectively, related to net favorable development of prior years’ loss reserves net of the related impact of acquisition costs.
Investments
The following is a summary of our total net investments managed by Third Point LLC as of September 30, 2020 and December 31, 2019:
September 30,
2020		December 31, 2019
($ in thousands)
TP Fund$868,971 $860,630 
Collateral and other investment assets (1)
1,804,053 1,729,497 
Total net investments managed by Third Point LLC$2,673,024 $2,590,127 
(1)Collateral assets primarily consist of fixed income securities such as U.S. Treasuries, money markets funds, and sovereign debt. Other investment assets primarily consist of U.S Treasuries, structured and corporate credit fixed income securities such as corporate bonds, asset-backed securities and bank debt as well as interest rate hedges in the form of short positions on U.S. Treasuries.




The following is a summary of the net investment return for our total net investments managed by Third Point LLC for the three and nine months ended September 30, 2020 and 2019:
Three months endedNine months ended
September 30, 2020September 30, 2019September 30, 2020September 30, 2019
TP Fund14.6 %(0.7)%1.0 %16.9 %
Collateral and other investments0.6 %0.2 %3.8 %1.2 %
Net investment return on investments managed by Third Point LLC (1)
4.8 %(0.2)%2.8 %10.2 %
(1)Refer to “Non-GAAP Financial Measures and Other Financial Metrics” for a description of the net investment return on investments managed by Third Point LLC.
The following is a summary of the net investment income (loss) for our total net investments managed by Third Point LLC for the three and nine months ended September 30, 2020 and 2019:
Three months endedNine months ended
September 30, 2020September 30, 2019September 30, 2020September 30, 2019
($ in thousands)
TP Fund$110,552 $(5,751)$8,341 $207,597 
Collateral and other investments (1)
11,216 2,289 65,274 12,452 
Net investment income (loss) on investments managed by Third Point LLC (2)
$121,768 $(3,462)$73,615 $220,049 
(1)Includes foreign exchange gains (losses) of $6.8 million and $(4.1) million in the three and nine months ended September 30, 2020, respectively (2019 - $(5.2) million and $(5.9) million, respectively) resulting from the revaluation of foreign currency reinsurance collateral held in trust accounts. Non-U.S. dollar reinsurance assets, or balances held in trust accounts securing reinsurance liabilities generally offset reinsurance liabilities in the same non-U.S. dollar currencies resulting in minimal net exposure. As a result, the foreign exchange gains (losses) from the revaluation of foreign currency reinsurance collateral held in trust accounts are offset by corresponding foreign exchange gains (losses) from the revaluation of foreign currency loss and loss adjustment expense reserves.
(2)Refer to “Non-GAAP Financial Measures and Other Financial Metrics” for a description of the net investment return on investments managed by Third Point LLC.
The following is a summary of the net investment return by investment strategy on total net investments managed by Third Point LLC for the three and nine months ended September 30, 2020 and 2019:
Three months ended
September 30, 2020September 30, 2019
LongShortNetLongShortNet
Equity4.2 %(1.2)%3.0 %1.4 %(0.7)%0.7 %
Credit0.8 %— %0.8 %(0.7)%— %(0.7)%
Other0.9 %0.1 %1.0 %(0.1)%(0.1)%(0.2)%
Net investment return on investments managed by Third Point LLC5.9 %(1.1)%4.8 %0.6 %(0.8)%(0.2)%
Nine months ended
September 30, 2020September 30, 2019
LongShortNetLongShortNet
Equity(1.5)%(0.5)%(2.0)%13.3 %(4.1)%9.2 %
Credit4.6 %(0.2)%4.4 %0.9 %(0.5)%0.4 %
Other0.5 %(0.1)%0.4 %1.0 %(0.4)%0.6 %
Net investment return on investments managed by Third Point LLC3.6 %(0.8)%2.8 %15.2 %(5.0)%10.2 %
For the three months ended September 30, 2020, the investment portfolio generated positive results across each strategy with long equity investments driving the majority of gains for the quarter. Within equities, most sectors contributed to positive results on the long side while short equity investments and hedges partially offset overall gains for the equity strategy. The credit strategy contributed gains from both the corporate credit and structured credit portfolios. Investments in residential mortgage backed securities also produced profits. In the other strategy, gains were driven by private investments.

For the nine months ended September 30, 2020, gains were driven primarily by the credit portfolio. Investments in investment grade corporate credit and residential mortgage backed securities contributed strong performance. The equities strategy




detracted from overall positive performance for the portfolio as losses from investments in industrials and consumer discretionary offset gains from technology investments. The other strategy contributed modestly to net gains for the year to date due to private investments.
Sirius Merger
On August 6, 2020, Third Point Re, entered into an Agreement and Plan of Merger (the “Merger Agreement”), by and among the Company, Sirius International Insurance Group, Ltd. (“Sirius”), a Bermuda exempted company limited by shares, and Yoga Merger Sub Limited (“Merger Sub”), a Bermuda exempted company limited by shares and wholly owned subsidiary of the Company. Pursuant to the Merger Agreement, Merger Sub will be merged with and into Sirius (the “Merger”), with Sirius continuing as the surviving company in the Merger, as a wholly owned subsidiary of the Company. The Company is to be renamed SiriusPoint Ltd. following the Merger.

The total deal consideration was estimated at the time of announcement as $788.0 million, which comprises stock, cash, and other contingent value components.
The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first quarter of 2021. Please refer to our Current Report on Form 8-K filed with the SEC on August 7, 2020, for additional description of the Merger and related transactions.
Conference Call Details
The Company will hold a conference call to discuss its third quarter 2020 results at 8:30 a.m. Eastern Time on November 6, 2020. The call will be webcast live over the Internet from the Company’s website at www.thirdpointre.bm under the “Investors” section. Participants should follow the instructions provided on the website to download and install any necessary audio applications. The conference call will also be available by dialing 1-877-407-0789 (domestic) or 1-201-689-8562 (international). Participants should ask for the Third Point Reinsurance Ltd. third quarter earnings conference call.
A replay of the live conference call will be available approximately two hours after the call. The replay will be available on the Company’s website or by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and entering the replay passcode 13711826. The telephonic replay will be available until 11:59 p.m. (Eastern Time) on November 13, 2020.
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 the Company’s 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: results of operations fluctuate and may not be indicative of our prospects; a pandemic or other catastrophic event, such as the ongoing COVID-19 outbreak, may adversely impact our financial condition or results of operations; more established competitors; losses exceeding reserves; highly cyclical property and casualty reinsurance industry; losses from catastrophe exposure; downgrade, withdrawal of ratings or change in rating outlook by rating agencies; significant decrease in our capital or surplus; dependence on key executives; inability to service our indebtedness; limited cash flow and liquidity due to our indebtedness; inability to raise necessary funds to pay principal or interest on debt; potential lack of availability of capital in the future; credit risk associated with the use of reinsurance brokers; future strategic transactions such as acquisitions, dispositions, mergers or joint ventures; technology breaches or failures, including cyber-attacks; lack of control over Third Point Enhanced LP (“TP Fund”); lack of control over the allocation and performance of TP Fund’s investment portfolio; dependence on Third Point LLC to implement TP Fund’s investment strategy; limited ability to withdraw our capital accounts from TP Fund; decline in revenue due to poor performance of TP Fund’s investment portfolio; TP Fund’s investment strategy involves risks that are greater than those faced by competitors; termination by Third Point LLC of our or TP Fund’s investment management agreements; potential conflicts of interest with Third Point LLC; losses resulting from significant investment positions; credit risk associated with the default on obligations of counterparties; ineffective investment risk management systems; fluctuations in the market value of TP Fund’s investment portfolio; trading restrictions being placed on TP Fund’s investments; limited termination provisions in our investment management agreements; limited liquidity and lack of valuation data on certain TP Fund’s investments; fluctuations in market value of our fixed-income securities; U.S. and global economic downturns; specific characteristics of investments in mortgage-backed securities and other asset-backed securities, in securities of issues based outside the U.S., and in special situation or distressed companies; loss of key employees at Third Point LLC; Third Point LLC’s compensation arrangements may incentivize investments that are risky or speculative; increased regulation or scrutiny of alternative investment advisers affecting our reputation; suspension or revocation of our reinsurance licenses; potentially being deemed an investment company under U.S. federal securities law; failure of reinsurance subsidiaries to meet minimum capital and surplus requirements; changes in Bermuda or other law and regulation that may have an adverse impact




on our operations; Third Point Re and/or Third Point Re BDA potentially becoming subject to U.S. federal income taxation; potential characterization of Third Point Re and/or Third Point Re BDA as a passive foreign investment company; subjection of our affiliates to the base erosion and anti-abuse tax; potentially becoming subject to U.S. withholding and information reporting requirements under the Foreign Account Tax Compliance Act; risks associated with the failure to complete, or the failure to realize the expected benefits of the merger with Sirius International Insurance Group, Ltd.; and other risks and factors listed under “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, as updated by our Quarterly Report on Form 10-Q for the periods ended March 31, 2020 and June 30, 2020, and other periodic and current disclosures filed with the 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 and Other Financial Metrics
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 basic and diluted book value per share and return on beginning shareholders’ equity attributable to Third Point Re common shareholders, 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 subsidiaries Third Point Re BDA and Third Point Reinsurance (USA) Ltd. (“Third Point Re USA”), writes property and casualty reinsurance business. Third Point Re BDA and Third Point Re USA each have an “A-” (Excellent) financial strength rating from A.M. Best Company, Inc.
Contact
Third Point Reinsurance Ltd.
Christopher S. Coleman - Chief Financial Officer
[email protected]
+1 441-542-3333




THIRD POINT REINSURANCE LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
As of September 30, 2020 and December 31, 2019
(expressed in thousands of U.S. dollars, except per share and share amounts)
(Unaudited)(Audited)
September 30,
2020		December 31, 2019
Assets
Investment in related party investment fund, at fair value (cost - $891,850; 2019 - $891,850)$868,971 $860,630 
Debt securities, trading, at fair value (cost - $176,521; 2019 - $129,330)186,260 125,071 
Other investments, at fair value4,000 4,000 
Total investments1,059,231 989,701 
Cash and cash equivalents513,783 639,415 
Restricted cash and cash equivalents1,101,693 1,014,543 
Due from brokers81,142 — 
Interest and dividends receivable1,835 2,178 
Reinsurance balances receivable, net572,672 596,120 
Deferred acquisition costs, net142,846 154,717 
Unearned premiums ceded27,463 16,945 
Loss and loss adjustment expenses recoverable, net13,626 5,520 
Other assets20,171 20,555 
Total assets$3,534,462 $3,439,694 
Liabilities
Accounts payable and accrued expenses$13,963 $17,816 
Reinsurance balances payable120,469 81,941 
Deposit liabilities155,697 172,259 
Unearned premium reserves498,893 524,768 
Loss and loss adjustment expense reserves1,186,149 1,111,692 
Securities sold, not yet purchased, at fair value15,389 — 
Interest and dividends payable1,110 3,055 
Senior notes payable, net of deferred costs114,222 114,089 
Total liabilities2,105,892 2,025,620 
Commitments and contingent liabilities
Shareholders' equity
Preference shares (par value $0.10; authorized, 30,000,000; none issued)— — 
Common shares (issued and outstanding: 95,314,893; 2019 - 94,225,498)9,531 9,423 
Additional paid-in capital931,972 927,704 
Retained earnings486,068 476,947 
Shareholders’ equity attributable to Third Point Re common shareholders1,427,571 1,414,074 
Noncontrolling interests999 — 
Total shareholders' equity1,428,570 1,414,074 
Total liabilities, noncontrolling interests and shareholders’ equity$3,534,462 $3,439,694 




THIRD POINT REINSURANCE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)
For the three and nine months ended September 30, 2020 and 2019
(expressed in thousands of U.S. dollars, except per share and share amounts)
Three months endedNine months ended
September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Revenues
Gross premiums written$60,779 $95,388 $422,481 $497,616 
Gross premiums ceded185 (1,116)(30,037)(3,301)
Net premiums written60,964 94,272 392,444 494,315 
Change in net unearned premium reserves80,748 108,976 36,393 7,435 
Net premiums earned141,712 203,248 428,837 501,750 
Net investment income (loss) from investment in related party investment fund110,552 (5,751)8,341 207,597 
Net realized and unrealized investment gains (losses)6,965 (2,646)54,554 2,700 
Other net investment income4,439 5,259 11,245 10,649 
Net investment income (loss)121,956 (3,138)74,140 220,946 
Total revenues263,668 200,110 502,977 722,696 
Expenses
Loss and loss adjustment expenses incurred, net110,487 85,703 287,379 263,105 
Acquisition costs, net54,817 118,271 147,741 233,775 
General and administrative expenses21,320 9,237 44,934 41,019 
Other (income) expense(283)5,058 6,410 12,994 
Interest expense2,068 2,074 6,162 6,154 
Foreign exchange (gains) losses5,885 (4,921)(3,129)(6,663)
Total expenses194,294 215,422 489,497 550,384 
Income (loss) before income tax (expense) benefit69,374 (15,312)13,480 172,312 
Income tax (expense) benefit(652)213 (4,380)(1,431)
Net income (loss)68,722 (15,099)9,100 170,881 
Net loss attributable to noncontrolling interests21 — 21 — 
Net income (loss) available to Third Point Re common shareholders$68,743 $(15,099)$9,121 $170,881 
Earnings (loss) per share available to Third Point Re common shareholders
Basic earnings (loss) per share available to Third Point Re common shareholders$0.74 $(0.16)$0.10 $1.86 
Diluted earnings (loss) per share available to Third Point Re common shareholders$0.73 $(0.16)$0.10 $1.84 
Weighted average number of common shares used in the determination of earnings (loss) per share
Basic92,613,393 91,903,556 92,466,813 91,784,268 
Diluted92,969,646 91,903,556 92,877,674 92,709,421 






THIRD POINT REINSURANCE LTD.
SEGMENT REPORTING
Three months ended September 30, 2020Three months ended September 30, 2019
Property and Casualty ReinsuranceTotalProperty and Casualty ReinsuranceTotal
Revenues($ in thousands)($ in thousands)
Gross premiums written$60,779 $60,779 $95,388 $95,388 
Gross premiums ceded185 185 (1,116)(1,116)
Net premiums written60,964 60,964 94,272 94,272 
Change in net unearned premium reserves80,748 80,748 108,976 108,976 
Net premiums earned141,712 141,712 203,248 203,248 
Expenses
Loss and loss adjustment expenses incurred, net110,487 110,487 85,703 85,703 
Acquisition costs, net54,817 54,817 118,271 118,271 
General and administrative expenses4,556 4,556 4,769 4,769 
Total expenses169,860 169,860 208,743 208,743 
Net underwriting loss$(28,148)(28,148)$(5,495)(5,495)
Net investment income (loss)121,956 (3,138)
Corporate expenses(16,764)(4,468)
Other income (expense)283 (5,058)
Interest expense(2,068)(2,074)
Foreign exchange gains (losses)(5,885)4,921 
Income tax benefit (expense)(652)213 
Net loss attributable to noncontrolling interests21 — 
Net income (loss) available to Third Point Re common shareholders$68,743 $(15,099)
Property and Casualty Reinsurance - Underwriting Ratios (1):
Loss ratio78.0 %42.2 %
Acquisition cost ratio38.7 %58.2 %
Composite ratio116.7 %100.4 %
General and administrative expense ratio3.2 %2.3 %
Combined ratio119.9 %102.7 %
Nine months ended September 30, 2020Nine months ended September 30, 2019
Property and Casualty ReinsuranceTotal Property and Casualty ReinsuranceTotal
Revenues($ in thousands)($ in thousands)
Gross premiums written$422,481 $422,481 $497,616 $497,616 
Gross premiums ceded(30,037)(30,037)(3,301)(3,301)
Net premiums written392,444 392,444 494,315 494,315 
Change in net unearned premium reserves36,393 36,393 7,435 7,435 
Net premiums earned428,837 428,837 501,750 501,750 
Expenses
Loss and loss adjustment expenses incurred, net287,379 287,379 263,105 263,105 
Acquisition costs, net147,741 147,741 233,775 233,775 
General and administrative expenses15,031 15,031 17,762 17,762 
Total expenses450,151 450,151 514,642 514,642 
Net underwriting loss$(21,314)(21,314)$(12,892)(12,892)
Net investment income74,140 220,946 
Corporate expenses(29,903)(23,257)
Other expenses(6,410)(12,994)
Interest expense(6,162)(6,154)
Foreign exchange gains3,129 6,663 
Income tax expense(4,380)(1,431)
Net loss attributable to noncontrolling interests21 — 
Net income available to Third Point Re common shareholders$9,121 $170,881 
Property and Casualty Reinsurance - Underwriting Ratios (1):
Loss ratio67.0 %52.4 %
Acquisition cost ratio34.5 %46.6 %
Composite ratio101.5 %99.0 %
General and administrative expense ratio3.5 %3.6 %
Combined ratio105.0 %102.6 %
(1) Underwriting ratios are calculated by dividing the related expense by net premiums earned.




THIRD POINT REINSURANCE LTD.
NON-GAAP MEASURES AND RECONCILIATIONS & KEY PERFORMANCE INDICATORS
Non-GAAP Measures
Basic Book Value per Share and Diluted Book Value per Share
Basic book value per share and diluted book value per share are non-GAAP financial measures and there are no comparable GAAP measures. Basic book value per share, as presented, is a non-GAAP financial measure and is calculated by dividing shareholders’ equity attributable to Third Point Re common shareholders by the number of common shares outstanding, excluding the total number of unvested restricted shares, at period end. Diluted book value per share, as presented, is a non-GAAP financial measure and is calculated using the treasury stock method. Under the treasury stock method, we assume that proceeds received from in-the-money options and/or warrants exercised are used to repurchase common shares in the market. For unvested restricted shares with a performance condition, we include the unvested restricted shares for which we consider vesting to be probable. Change in basic book value per share is calculated by taking the difference in basic book value per share for the periods presented divided by the beginning of period book value per share. Change in diluted book value per share is calculated by taking the difference in diluted book value per share for the periods presented divided by the beginning of period diluted book value per share. 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.
September 30,
2020		December 31, 2019
Basic and diluted book value per share numerator:($ in thousands, except share and per share amounts)
Shareholders’ equity attributable to Third Point Re common shareholders$1,427,571 $1,414,074 
Basic and diluted book value per share denominator:
Common shares outstanding95,314,893 94,225,498 
Unvested restricted shares(2,695,127)(2,231,296)
Basic book value per share denominator:92,619,766 91,994,202 
Effect of dilutive warrants issued to founders and an advisor (1)— 172,756 
Effect of dilutive stock options issued to directors and employees (1)— 225,666 
Effect of dilutive restricted shares issued to directors and employees2,182,214 1,654,803 
Diluted book value per share denominator94,801,980 94,047,427 
Basic book value per share$15.41 $15.37 
Diluted book value per share$15.06 $15.04 
(1)As of September 30, 2020, there was no dilution as a result of the Company’s share price being under the lowest exercise price for warrants and options.
Return on Beginning Shareholders’ Equity Attributable to Third Point Re Common Shareholders
Return on beginning shareholders’ equity attributable to Third Point Re common shareholders, as presented, is a non-GAAP financial measure. Return on beginning shareholders’ equity attributable to Third Point Re common shareholders is calculated by dividing net income (loss) available to Third Point Re common shareholders by the beginning shareholders’ equity attributable to Third Point Re common shareholders. We believe that return on beginning shareholders’ equity attributable to Third Point Re common shareholders is an important measure because it assists our management and investors in evaluating the Company’s profitability. When we repurchase our common shares, we also adjust the beginning shareholders’ equity attributable to Third Point Re common shareholders for the impact of the shares repurchased on a weighted average basis. For a period where there was a loss, this adjustment decreased the stated returns on beginning shareholders’ equity and for a period where there was a gain, this adjustment increased the stated returns on beginning shareholders’ equity.




Three months endedNine months ended
September 30, 2020September 30, 2019September 30, 2020September 30, 2019
($ in thousands)
Net income (loss) available to Third Point Re common shareholders$68,743 $(15,099)$9,121 $170,881 
Shareholders’ equity attributable to Third Point Re common shareholders - beginning of period$1,357,304 $1,395,898 $1,414,074 $1,204,574 
Return on beginning shareholders’ equity attributable to Third Point Re common shareholders5.1 %(1.1)%0.6 %14.2 %
Key Performance Indicator
Net Investment Return on Investments Managed by Third Point LLC
Net investment return represents the return on our net investments managed by Third Point LLC, net of fees. The net investment return on net investments managed by Third Point LLC is the percentage change in value of a dollar invested over the reporting period on our net investment assets managed by Third Point LLC. The net investment return reflects the combined results of our investments in TP Fund, collateral assets and certain other investment assets managed by Third Point LLC. Net investment return is the key indicator by which we measure the performance of Third Point LLC, our investment manager.



image1e431a.jpg



Third Point Reinsurance Ltd.




Financial Supplement
September 30, 2020



(UNAUDITED)



This financial supplement is for informational purposes only. It should be read in conjunction with documents filed with the Securities and Exchange Commission by Third Point Reinsurance Ltd., including the Company’s Quarterly Report on Form 10-Q.



Point HouseChristopher S. Coleman - Chief Financial Officer
3 Waterloo LaneTel: (441) 542-3333
Pembroke HM 08 Email: [email protected]
Bermuda Website: www.thirdpointre.bm



Third Point Reinsurance Ltd.
Basis of Presentation and Non-GAAP Financial Measures:
Unless the context otherwise indicates or requires, as used in this financial supplement references to “we,” “our,” “us,” and the “Company,” refer to Third Point Reinsurance Ltd. (“Third Point Re”) and its directly and indirectly owned subsidiaries, including Third Point Reinsurance Company Ltd. (“Third Point Re BDA”) and Third Point Reinsurance (USA) Ltd. (“Third Point Re USA”), as a combined entity, except where otherwise stated or where it is clear that the terms mean only Third Point Reinsurance Ltd. exclusive of its subsidiaries. We have made rounding adjustments to reach some of the figures included in this financial supplement and, unless otherwise indicated, percentages presented in this financial supplement are approximate.
In presenting the Company’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 basic book value per share, diluted book value per share and return on beginning shareholders’ equity, are referred to as non-GAAP measures. These non-GAAP financial 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, if any, are included in the attached financial information in accordance with Regulation G.
Safe Harbor Statement Regarding Forward-Looking Statements:
This Financial Supplement 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:
results of operations fluctuate and may not be indicative of our prospects; a pandemic or other catastrophic event, such as the ongoing COVID-19 outbreak, may adversely impact our financial condition or results of operations; more established competitors; losses exceeding reserves; highly cyclical property and casualty reinsurance industry; losses from catastrophe exposure; downgrade, withdrawal of ratings or change in rating outlook by rating agencies; significant decrease in our capital or surplus; dependence on key executives; inability to service our indebtedness; limited cash flow and liquidity due to our indebtedness; inability to raise necessary funds to pay principal or interest on debt; potential lack of availability of capital in the future; credit risk associated with the use of reinsurance brokers; future strategic transactions such as acquisitions, dispositions, mergers or joint ventures; technology breaches or failures, including cyber-attacks; lack of control over Third Point Enhanced LP (“TP Fund”); lack of control over the allocation and performance of TP Fund’s investment portfolio; dependence on Third Point LLC to implement TP Fund’s investment strategy; limited ability to withdraw our capital accounts from TP Fund; decline in revenue due to poor performance of TP Fund’s investment portfolio; TP Fund’s investment strategy involves risks that are greater than those faced by competitors; termination by Third Point LLC of our or TP Fund’s investment management agreements; potential conflicts of interest with Third Point LLC; losses resulting from significant investment positions; credit risk associated with the default on obligations of counterparties; ineffective investment risk management systems; fluctuations in the market value of TP Fund’s investment portfolio; trading restrictions being placed on TP Fund’s investments; limited termination provisions in our investment management agreements; limited liquidity and lack of valuation data on certain TP Fund’s investments; fluctuations in market value of our fixed-income securities; U.S. and global economic downturns; specific characteristics of investments in mortgage-backed securities and other asset-backed securities, in securities of issues based outside the U.S., and in special situation or distressed companies; loss of key employees at Third Point LLC; Third Point LLC’s compensation arrangements may incentivize investments that are risky or speculative; increased regulation or scrutiny of alternative investment advisers affecting our reputation; suspension or revocation of our reinsurance licenses; potentially being deemed an investment company under U.S. federal securities law; failure of reinsurance subsidiaries to meet minimum capital and surplus requirements; changes in Bermuda or other law and regulation that may have an adverse impact on our operations; Third Point Re and/or Third Point Re BDA potentially becoming subject to U.S. federal income taxation; potential characterization of Third Point Re and/or Third Point Re BDA as a passive foreign investment company; subjection of our affiliates to the base erosion and anti-abuse tax; potentially becoming subject to U.S. withholding and information reporting requirements under the Foreign Account Tax Compliance Act; risks associated with the failure to complete, or the failure to realize the expected benefits of the merger with Sirius International Insurance Group, Ltd.; and and other risks and factors listed under “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, as updated by our Quarterly Report on Form 10-Q for the periods ended March 31, 2020 and June 30, 2020, and other periodic and current disclosures filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the date made and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
image1e431a.jpg
Page 1 of 15

Third Point Reinsurance Ltd.
Table of Contents
Key Performance Indicators
Consolidated Financial Statements
Operating Segment Information
Segment Reporting - Three and nine months ended September 30, 2020 and 2019
Gross Premiums Written by Lines and Type of Business - by Quarter
Underwriting Ratios - by Quarter
Investments
Net Investment Return by Investment Strategy - by Quarter
Other
Basic and Diluted Book Value per Share - by Quarter
Earnings (Loss) per Share - by Quarter
Return on Beginning Shareholders’ Equity - by Quarter

image1e431a.jpg
Page 2 of 15

Third Point Reinsurance Ltd.
Key Performance Indicators
September 30, 2020 and 2019
(expressed in thousands of U.S. dollars, except per share data and ratios)
Three months endedNine months ended
September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Key underwriting metrics for Property and Casualty Reinsurance segment:
Net underwriting loss (1)
$(28,148)$(5,495)$(21,314)$(12,892)
Combined ratio (1)
119.9 %102.7 %105.0 %102.6 %
Key investment return metrics:
Net investment income (loss)$121,956 $(3,138)$74,140 $220,946 
Net investment return on net investments managed by Third Point LLC4.8 %(0.2)%2.8 %10.2 %
Key shareholders’ value creation metrics:
Basic book value per share (2) (3)
$15.41 $15.37 $15.41 $15.37 
Diluted book value per share (2) (3)
$15.06 $15.04 $15.06 $15.04 
Increase (decrease) in diluted book value per share (2)
4.8 %(0.8)%0.1 %13.7 %
Return on beginning shareholders’ equity attributable to Third Point Re common shareholders (2)
5.1 %(1.1)%0.6 %14.2 %

(1)Refer to accompanying “Segment Reporting - Three and nine months ended September 30, 2020 and 2019” for a calculation of net underwriting loss and combined ratio.
(2)Basic book value per share, diluted book value per share and return on beginning shareholders’ equity attributable to Third Point Re common shareholders are non-GAAP financial measures. There are no comparable GAAP measures. Refer to accompanying “Basic book value per share and diluted book value per share - by Quarter” for calculation of basic and diluted book value per share and “Return on beginning shareholders’ equity - by Quarter” for calculation of return on beginning shareholders' equity attributable to Third Point Re common shareholders.
(3)Prior year comparatives represent amounts as of December 31, 2019.



image1e431a.jpg
Page 3 of 15

Third Point Reinsurance Ltd.
Condensed Consolidated Balance Sheets - by Quarter
(expressed in thousands of U.S. dollars)
September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019		September 30,
2019
Assets
Investment in related party investment fund, at fair value$868,971 $758,419 $659,815 $860,630 $818,600 
Debt securities, trading, at fair value186,260 238,574 363,121 125,071 220,045 
Other investments, at fair value4,000 4,000 4,000 4,000 3,500 
Total investments1,059,231 1,000,993 1,026,936 989,701 1,042,145 
Cash and cash equivalents513,783 584,809 445,776 639,415 693,105 
Restricted cash and cash equivalents1,101,693 887,308 975,109 1,014,543 816,519 
Due from brokers81,142 169,078 57,929 — — 
Interest and dividends receivable1,835 2,195 3,732 2,178 2,932 
Reinsurance balances receivable, net572,672 613,204 622,883 596,120 680,630 
Deferred acquisition costs, net142,846 172,288 168,505 154,717 166,968 
Unearned premiums ceded27,463 35,817 13,411 16,945 14,370 
Loss and loss adjustment expenses recoverable, net13,626 10,064 6,865 5,520 4,270 
Other assets20,171 17,807 21,388 20,555 17,808 
Total assets$3,534,462 $3,493,563 $3,342,534 $3,439,694 $3,438,747 
Liabilities
Accounts payable and accrued expenses$13,963 $12,167 $8,868 $17,816 $14,607 
Reinsurance balances payable120,469 94,810 78,323 81,941 98,766 
Deposit liabilities155,697 168,910 170,402 172,259 174,405 
Unearned premium reserves498,893 587,995 579,315 524,768 592,319 
Loss and loss adjustment expense reserves1,186,149 1,133,983 1,107,911 1,111,692 1,060,000 
Securities sold, not yet purchased, at fair value15,389 19,597 47,427 — — 
Due to brokers— 1,456 3,150 — — 
Interest and dividends payable1,110 3,164 1,304 3,055 1,026 
Senior notes payable, net of deferred costs114,222 114,177 114,133 114,089 114,044 
Total liabilities2,105,892 2,136,259 2,110,833 2,025,620 2,055,167 
Commitments and contingent liabilities
Shareholders’ equity
Preference shares— — — — — 
Common shares9,531 9,492 9,488 9,423 9,422 
Additional paid-in capital931,972 930,487 928,903 927,704 926,949 
Retained earnings486,068 417,325 293,310 476,947 447,209 
Shareholders’ equity attributable to Third Point Re common shareholders1,427,571 1,357,304 1,231,701 1,414,074 1,383,580 
Noncontrolling interests999 — — — — 
Total shareholders’ equity1,428,570 1,357,304 1,231,701 1,414,074 1,383,580 
Total liabilities, noncontrolling interests and and shareholders’ equity$3,534,462 $3,493,563 $3,342,534 $3,439,694 $3,438,747 
image1e431a.jpg
Page 4 of 15

Third Point Reinsurance Ltd.
Condensed Consolidated Statements of Income (Loss)
(expressed in thousands of U.S. dollars, except share and per share data)
Three months endedNine months ended
September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Revenues
Gross premiums written$60,779 $95,388 $422,481 $497,616 
Gross premiums ceded185 (1,116)(30,037)(3,301)
Net premiums written60,964 94,272 392,444 494,315 
Change in net unearned premium reserves80,748 108,976 36,393 7,435 
Net premiums earned141,712 203,248 428,837 501,750 
Net investment income (loss) from investment in related party investment fund110,552 (5,751)8,341 207,597 
Net realized and unrealized investment gains (losses) (1)6,965 (2,646)54,554 2,700 
Other net investment income4,439 5,259 11,245 10,649 
Net investment income (loss)121,956 (3,138)74,140 220,946 
Total revenues263,668 200,110 502,977 722,696 
Expenses
Loss and loss adjustment expenses incurred, net110,487 85,703 287,379 263,105 
Acquisition costs, net54,817 118,271 147,741 233,775 
General and administrative expenses21,320 9,237 44,934 41,019 
Other (income) expenses(283)5,058 6,410 12,994 
Interest expense2,068 2,074 6,162 6,154 
Foreign exchange (gains) losses5,885 (4,921)(3,129)(6,663)
Total expenses194,294 215,422 489,497 550,384 
Income (loss) before income tax (expense) benefit69,374 (15,312)13,480 172,312 
Income tax (expense) benefit(652)213 (4,380)(1,431)
Net income (loss)68,722 (15,099)9,100 170,881 
Net loss attributable to noncontrolling interests21 — 21 — 
Net income (loss) available to Third Point Re common shareholders$68,743 $(15,099)$9,121 $170,881 
Earnings (loss) per share available to Third Point Re common shareholders
Basic earnings (loss) per share available to Third Point Re common shareholders (2)$0.74 $(0.16)$0.10 $1.86 
Diluted earnings (loss) per share available to Third Point Re common shareholders (2)$0.73 $(0.16)$0.10 $1.84 
Weighted average number of common shares used in the determination of earnings (loss) per share
Basic92,613,393 91,903,556 92,466,813 91,784,268 
Diluted92,969,646 91,903,556 92,877,674 92,709,421 
(1) The Company previously included net realized and unrealized investment gains (losses) in other net investment income (loss) in the condensed consolidated statements of income (loss). These balances are now shown as a separate line item.
(2)    Basic earnings per share is based on the weighted average number of common shares and participating securities outstanding during the period. The weighted average number of common shares excludes any dilutive effect of outstanding warrants, options and unvested restricted shares. Diluted earnings per share is based on the weighted average number of common shares and participating securities outstanding and includes any dilutive effects of warrants, options and unvested restricted shares under share plans and are determined using the treasury stock method. U.S. GAAP requires that unvested share awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (referred to as “participating securities”), be treated in the same manner as outstanding shares for earnings per share calculations. The Company treats certain of its unvested restricted shares as participating securities. In the event of a net loss, all participating securities, outstanding warrants, options and restricted shares are excluded from both basic and diluted loss per share since their inclusion would be anti-dilutive.
image1e431a.jpg
Page 5 of 15

Third Point Reinsurance Ltd.
Condensed Consolidated Statements of Income (Loss) - by Quarter
(expressed in thousands of U.S. dollars, except share and per share data)
Three months ended
September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019		September 30,
2019
Revenues
Gross premiums written$60,779 $157,571 $204,131 $134,230 $95,388 
Gross premiums ceded185 (30,487)265 (5,964)(1,116)
Net premiums written60,964 127,084 204,396 128,266 94,272 
Change in net unearned premium reserves80,748 13,726 (58,081)70,126 108,976 
Net premiums earned141,712 140,810 146,315 198,392 203,248 
Net investment income (loss) from investment in related party investment fund110,552 98,604 (200,815)42,029 (5,751)
Net realized and unrealized investment gains (losses) (1)6,965 35,992 11,597 12,637 (2,646)
Other net investment income4,439 2,615 4,191 6,948 5,259 
Net investment income (loss)121,956 137,211 (185,027)61,614 (3,138)
Total revenues263,668 278,021 (38,712)260,006 200,110 
Expenses
Loss and loss adjustment expenses incurred, net110,487 89,106 87,786 140,394 85,703 
Acquisition costs, net54,817 43,671 49,253 61,851 118,271 
General and administrative expenses21,320 13,455 10,159 12,744 9,237 
Other (income) expenses(283)3,216 3,477 3,625 5,058 
Interest expense2,068 2,046 2,048 2,074 2,074 
Foreign exchange (gains) losses5,885 (797)(8,217)10,298 (4,921)
Total expenses194,294 150,697 144,506 230,986 215,422 
Income (loss) before income tax (expense) benefit69,374 127,324 (183,218)29,020 (15,312)
Income tax (expense) benefit(652)(3,309)(419)718 213 
Net income (loss)68,722 124,015 (183,637)29,738 (15,099)
Net loss attributable to noncontrolling interests21 — — — — 
Net income (loss) available to Third Point Re common shareholders$68,743 $124,015 $(183,637)$29,738 $(15,099)
Earnings (loss) per share available to Third Point Re common shareholders
Basic earnings (loss) per share available to Third Point Re common shareholders (2)$0.74 $1.33 $(1.99)$0.32 $(0.16)
Diluted earnings (loss) per share available to Third Point Re common shareholders (2)$0.73 $1.33 $(1.99)$0.32 $(0.16)
Weighted average number of common shares used in the determination of earnings (loss) per share
Basic92,613,393 92,593,599 92,191,837 91,989,469 91,903,556 
Diluted92,969,646 92,738,293 92,191,837 92,696,491 91,903,556 
(1) The Company previously included net realized and unrealized investment gains (losses) in other net investment income (loss) in the condensed consolidated statements of income (loss). These balances are now shown as a separate line item.
(2)     Basic earnings per share is based on the weighted average number of common shares and participating securities outstanding during the period. The weighted average number of common shares excludes any dilutive effect of outstanding warrants, options and unvested restricted shares. Diluted earnings per share is based on the weighted average number of common shares and participating securities outstanding and includes any dilutive effects of warrants, options and unvested restricted shares under share plans and are determined using the treasury stock method. U.S. GAAP requires that unvested share awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (referred to as “participating securities”), be treated in the same manner as outstanding shares for earnings per share calculations. The Company treats certain of its unvested restricted shares as participating securities. In the event of a net loss, all participating securities, outstanding warrants, options and restricted shares are excluded from both basic and diluted loss per share since their inclusion would be anti-dilutive.
image1e431a.jpg
Page 6 of 15

Third Point Reinsurance Ltd.
Segment Reporting - Three and nine months ended September 30, 2020 and 2019
(expressed in thousands of U.S. dollars)
Three months endedNine months ended
September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Property and Casualty Reinsurance
Total (1)
Property and Casualty Reinsurance
Total (1)
Property and Casualty Reinsurance
Total (1)
Property and Casualty Reinsurance
Total (1)
Revenues
Gross premiums written$60,779 $60,779 $95,388 $95,388 $422,481 $422,481 $497,616 $497,616 
Gross premiums ceded185 185 (1,116)(1,116)(30,037)(30,037)(3,301)(3,301)
Net premiums written60,964 60,964 94,272 94,272 392,444 392,444 494,315 494,315 
Change in net unearned premium reserves80,748 80,748 108,976 108,976 36,393 36,393 7,435 7,435 
Net premiums earned141,712 141,712 203,248 203,248 428,837 428,837 501,750 501,750 
Expenses
Loss and loss adjustment expenses incurred, net110,487 110,487 85,703 85,703 287,379 287,379 263,105 263,105 
Acquisition costs, net54,817 54,817 118,271 118,271 147,741 147,741 233,775 233,775 
General and administrative expenses4,556 4,556 4,769 4,769 15,031 15,031 17,762 17,762 
Total expenses169,860 169,860 208,743 208,743 450,151 450,151 514,642 514,642 
Net underwriting loss$(28,148)(28,148)$(5,495)(5,495)$(21,314)(21,314)$(12,892)(12,892)
Net investment income (loss)121,956 (3,138)74,140 220,946 
Corporate expenses(16,764)(4,468)(29,903)(23,257)
Other income (expense)283 (5,058)(6,410)(12,994)
Interest expense(2,068)(2,074)(6,162)(6,154)
Foreign exchange gains (losses)(5,885)4,921 3,129 6,663 
Income tax (expense) benefit(652)213 (4,380)(1,431)
Net loss attributable to noncontrolling interests21 — 21 — 
Net income (loss) available to Third Point Re common shareholders$68,743 $(15,099)$9,121 $170,881 
Property and Casualty Reinsurance - Underwriting Ratios (1):
Loss ratio78.0 %42.2 %67.0 %52.4 %
Acquisition cost ratio38.7 %58.2 %34.5 %46.6 %
Composite ratio116.7 %100.4 %101.5 %99.0 %
General and administrative expense ratio3.2 %2.3 %3.5 %3.6 %
Combined ratio119.9 %102.7 %105.0 %102.6 %
(1) Underwriting ratios are calculated by dividing the related expense by net premiums earned.
image1e431a.jpg
Page 7 of 15

Third Point Reinsurance Ltd.
Property and Casualty Reinsurance Segment - by Quarter (1)
(expressed in thousands of U.S. dollars)
Three months ended
September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019		September 30,
2019
Revenues
Gross premiums written$60,779 $157,571 $204,131 $134,230 $95,388 
Gross premiums ceded185 (30,487)265 (5,964)(1,116)
Net premiums written60,964 127,084 204,396 128,266 94,272 
Change in net unearned premium reserves80,748 13,726 (58,081)70,126 108,976 
Net premiums earned141,712 140,810 146,315 198,392 203,248 
Expenses
Loss and loss adjustment expenses incurred, net110,487 89,106 87,786 140,394 85,703 
Acquisition costs, net54,817 43,671 49,253 61,851 118,271 
General and administrative expenses4,556 5,596 4,880 5,724 4,769 
Total expenses169,860 138,373 141,919 207,969 208,743 
Net underwriting income (loss)$(28,148)$2,437 $4,396 $(9,577)$(5,495)
Underwriting ratios (1)
Loss ratio78.0 %63.3 %60.0 %70.7 %42.2 %
Acquisition cost ratio38.7 %31.0 %33.7 %31.2 %58.2 %
Composite ratio116.7 %94.3 %93.7 %101.9 %100.4 %
General and administrative expense ratio3.2 %4.0 %3.3 %2.9 %2.3 %
Combined ratio119.9 %98.3 %97.0 %104.8 %102.7 %
(1) Underwriting ratios are calculated by dividing the related expense by net premiums earned.



image1e431a.jpg
Page 8 of 15

Third Point Reinsurance Ltd.
Gross Premiums Written by Lines and Type of Business - by Quarter
(expressed in thousands of U.S. dollars)
Three months ended
September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019		September 30,
2019
Line and Type of Business
Property Catastrophe$11,246 $39,706 $31,164 $4,831 $6,127 
Other Property5,608 45,745 15,209 36,892 578 
Property16,854 85,451 46,373 41,723 6,705 
Workers Compensation12,572 7,915 21,320 121 3,519 
Auto12,308 (3,817)21,249 (2,897)10,574 
Other Casualty6,398 23,045 24,371 35,315 2,931 
Casualty31,278 27,143 66,940 32,539 17,024 
Credit & Financial Lines12,682 38,653 9,012 3,633 7,265 
Multi-line(4,163)4,726 66,746 16,268 2,345 
Other Specialty1,208 1,598 15,060 5,768 3,357 
Specialty9,727 44,977 90,818 25,669 12,967 
Total prospective reinsurance contracts$57,859 $157,571 $204,131 $99,931 $36,696 
Retroactive reinsurance contracts2,920 — — 34,299 58,692 
Total property and casualty reinsurance segment$60,779 $157,571 $204,131 $134,230 $95,388 





image1e431a.jpg
Page 9 of 15

Third Point Reinsurance Ltd.
Underwriting Ratios - by Quarter (1)
(expressed in thousands of U.S. dollars)
Three months ended
September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019		September 30,
2019
Underwriting ratios (1)
Loss ratio78.0 %63.3 %60.0 %70.7 %42.2 %
Acquisition cost ratio38.7 %31.0 %33.7 %31.2 %58.2 %
Composite ratio116.7 %94.3 %93.7 %101.9 %100.4 %
General and administrative expense ratio3.2 %4.0 %3.3 %2.9 %2.3 %
Combined ratio119.9 %98.3 %97.0 %104.8 %102.7 %
Impact of catastrophe losses (2)
Loss ratio21.3 %— %— %9.1 %7.1 %
Acquisition cost ratio(0.4)%— %— %(0.9)%(0.9)%
Composite ratio20.9 %— %— %8.2 %6.2 %
Impact of reserve developments (2)
Loss ratio(14.3)%0.7 %(7.5)%(4.9)%(37.6)%
Acquisition cost ratio14.2 %(0.8)%6.0 %4.3 %35.7 %
Composite ratio(0.1)%(0.1)%(1.5)%(0.6)%(1.9)%
Accident year ex-CAT underwriting ratios (3)
Loss ratio71.0 %62.6 %67.5 %66.5 %72.7 %
Acquisition cost ratio24.9 %31.8 %27.7 %27.8 %23.4 %
Composite ratio95.9 %94.4 %95.2 %94.3 %96.1 %
General and administrative expense ratio3.2 %4.0 %3.3 %2.9 %2.3 %
Combined ratio99.1 %98.4 %98.5 %97.2 %98.4 %
(1)Underwriting ratios are calculated by dividing the related expense by net premiums earned.
(2)General and administrative expense ratio excluded because catastrophe losses and impact of reserve developments do not impact this ratio.
(3)The accident year ex-CAT underwriting ratios exclude catastrophe losses, net of reinstatement premiums and profit commission adjustments, and prior year loss development. We believe that the adjusted ratios are meaningful measures of our underwriting results on an ongoing basis as they exclude catastrophes losses which are outside of management’s control. We also exclude prior year development to provide transparency related to current accident year results.
image1e431a.jpg
Page 10 of 15

Third Point Reinsurance Ltd.
Net Investments Managed by Third Point LLC - by Quarter(1)
(expressed in thousands of U.S. dollars)

September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019		September 30,
2019
Assets
TP Fund$868,971 $758,419 $659,815 $860,630 $818,600 
Debt securities, trading, at fair value186,260 238,574 363,121 125,071 220,045 
Total investments1,055,231 996,993 1,022,936 985,701 1,038,645 
Cash and cash equivalents450,018 502,937 366,894 588,196 611,442 
Restricted cash and cash equivalents1,101,693 887,308 975,109 1,014,543 816,519 
Due from brokers81,142 169,078 57,929 — — 
Interest and dividends receivable1,650 2,195 3,732 2,178 2,932 
Other assets— — — 18 6 
Total assets$2,689,734 $2,558,511 $2,426,600 $2,590,636 $2,469,544 
Liabilities
Accounts payable and accrued expenses$1,245 $933 $761 $509 $324 
Securities sold, not yet purchased15,389 19,597 47,427 — — 
Due to brokers— 1,456 3,150 — — 
Interest and dividends payable76 129 270 — — 
Total liabilities16,710 22,115 51,608 509 324 
Total net investments managed by Third Point LLC$2,673,024 $2,536,396 $2,374,992 $2,590,127 $2,469,220 


image1e431a.jpg
Page 11 of 15

Third Point Reinsurance Ltd.
Net Investment Return by Investment Strategy - by Quarter



Summary of net investment return on investments managed by Third Point LLC (1)September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019		September 30,
2019
Long
Equity4.2 %6.1 %(11.2)%3.3 %1.4 %
Credit0.8 %3.8 %0.1 %0.1 %(0.7)%
Other0.9 %— %(0.3)%0.7 %(0.1)%
5.9 %9.9 %(11.4)%4.1 %0.6 %
Short
Equity(1.2)%(4.0)%4.4 %(1.8)%(0.7)%
Credit— %— %(0.1)%— %— %
Other0.1 %(0.1)%(0.2)%0.1 %(0.1)%
(1.1)%(4.1)%4.1 %(1.7)%(0.8)%
Net
Equity3.0 %2.1 %(6.8)%1.5 %0.7 %
Credit0.8 %3.8 %— %0.1 %(0.7)%
Other1.0 %(0.1)%(0.5)%0.8 %(0.2)%
4.8 %5.8 %(7.3)%2.4 %(0.2)%
(1) Net investment return represents the return on our net investments managed by Third Point LLC, net of fees. The net investment return on net investments managed by Third Point LLC is the percentage change in value of a dollar invested over the reporting period on our net investment assets managed by Third Point LLC. The net investment return reflects the combined results of our investments in TP Fund, collateral assets and certain other investment assets managed by Third Point LLC. Net investment return is the key indicator by which we measure the performance of Third Point LLC, our investment manager.



image1e431a.jpg
Page 12 of 15

Third Point Reinsurance Ltd.
Basic and Diluted Book Value per Share - by Quarter
(expressed in thousands of U.S. dollars)



September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019		September 30,
2019
Basic and diluted book value per share numerator:
Shareholders' equity attributable to Third Point Re common shareholders$1,427,571 $1,357,304 $1,231,701 $1,414,074 $1,383,580 
Basic and diluted book value per share denominator:
Common shares outstanding95,314,893 94,920,203 94,881,229 94,225,498 94,220,567 
Unvested restricted shares(2,695,127)(2,319,354)(2,315,172)(2,231,296)(2,240,410)
Basic book value per share denominator:92,619,766 92,600,849 92,566,057 91,994,202 91,980,157 
Effect of dilutive warrants issued to founders and an advisor (1)— — — 172,756 — 
Effect of dilutive stock options issued to directors and employees (1)— — — 225,666 — 
Effect of dilutive restricted shares issued to directors and employees (2)2,182,214 1,825,128 1,815,741 1,654,803 1,731,384 
Diluted book value per share denominator:94,801,980 94,425,977 94,381,798 94,047,427 93,711,541 
Basic book value per share (2)
$15.41 $14.66 $13.31 $15.37 $15.04 
Diluted book value per share (2)
$15.06 $14.37 $13.05 $15.04 $14.76 
Increase (decrease) in diluted book value per share4.8 %10.1 %(13.2)%1.9 %(0.8)%

(1)As of September 30, 2020, June 30, 2020, March 31, 2020, and September 30, 2019 there was no dilution as a result of the Company’s share price being under the lowest exercise price for warrants and options.
(2)Basic book value per share and diluted book value per share are non-GAAP financial measures and there are no comparable GAAP measures. Basic book value per share, as presented, is a non-GAAP financial measure and is calculated by dividing shareholders’ equity attributable to Third Point Re common shareholders by the number of common shares outstanding, excluding the total number of unvested restricted shares, at period end. Diluted book value per share, as presented, is a non-GAAP financial measure and is calculated using the treasury stock method. Under the treasury stock method, we assume that proceeds received from in-the-money options and/or warrants exercised are used to repurchase common shares in the market. For unvested restricted shares with a performance condition, we include the unvested restricted shares for which we consider vesting to be probable. Change in basic book value per share is calculated by taking the difference in basic book value per share for the periods presented divided by the beginning of period book value per share. Change in diluted book value per share is calculated by taking the difference in diluted book value per share for the periods presented divided by the beginning of period diluted book value per share. 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.



image1e431a.jpg
Page 13 of 15

Third Point Reinsurance Ltd.
Earnings (Loss) per Share - by Quarter
(expressed in thousands of U.S. dollars)
September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019		September 30,
2019
Weighted-average number of common shares outstanding:
Basic number of common shares outstanding92,613,393 92,593,599 92,191,837 91,989,469 91,903,556 
Dilutive effect of options (1)
— — — — — 
Dilutive effect of warrants (1)
— — — — — 
Dilutive effect of restricted shares with service and performance condition356,253 144,694 — 707,022 — 
Diluted number of common shares outstanding92,969,646 92,738,293 92,191,837 92,696,491 91,903,556 
Basic earnings (loss) per common share:
Net income (loss) available to Third Point Re common shareholders$68,743 $124,015 $(183,637)$29,738 $(15,099)
Net income allocated to Third Point Re participating common shareholders(574)(721)— (111)— 
Net income (loss) allocated to Third Point Re common shareholders$68,169 $123,294 $(183,637)$29,627 $(15,099)
Basic earnings (loss) per share available to Third Point Re common shareholders (2)
$0.74 $1.33 $(1.99)$0.32 $(0.16)
 Diluted earnings (loss) per common share:
Net income (loss) available to Third Point Re common shareholders$68,743 $124,015 $(183,637)$29,738 $(15,099)
Net income allocated to Third Point Re participating common shareholders(572)(720)— (110)— 
Net income (loss) allocated to Third Point Re common shareholders$68,171 $123,295 $(183,637)$29,628 $(15,099)
Diluted earnings (loss) per share available to Third Point Re common shareholders (2)
$0.73 $1.33 $(1.99)$0.32 $(0.16)

(1)As of March 31, 2020 and September 30, 2019, there was no dilution as a result of the net loss allocated to Third Point Re common shareholders in the quarter. As of September 30, 2020, June 30, 2020, March 31, 2020 and September 30, 2019, there was no dilution as a result of the Company’s average share price for the quarter being under the lowest exercise price for warrants and options.
(2)Basic earnings per share is based on the weighted average number of common shares and participating securities outstanding during the period. The weighted average number of common shares excludes any dilutive effect of outstanding warrants, options and unvested restricted shares. Diluted earnings per share is based on the weighted average number of common shares and participating securities outstanding and includes any dilutive effects of warrants, options and unvested restricted shares under share plans and are determined using the treasury stock method. U.S. GAAP requires that unvested share awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (referred to as “participating securities”), be treated in the same manner as outstanding shares for earnings per share calculations. The Company treats certain of its unvested restricted shares as participating securities. In the event of a net loss, all participating securities, outstanding warrants, options and restricted shares are excluded from both basic and diluted loss per share since their inclusion would be anti-dilutive.
image1e431a.jpg
Page 14 of 15

Third Point Reinsurance Ltd.
Return on Beginning Shareholders’ Equity - by Quarter
(expressed in thousands of U.S. dollars)

September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019		September 30,
2019
Net income (loss) available to Third Point Re common shareholders$68,743 $124,015 $(183,637)$29,738 $(15,099)
Shareholders’ equity attributable to Third Point Re common shareholders - beginning of period$1,357,304 $1,231,701 $1,414,074 $1,383,580 $1,395,898 
Return on beginning shareholders’ equity attributable to Third Point Re common shareholders (1)
5.1 %10.1 %(13.0)%2.1 %(1.1)%

(1)Return on beginning shareholders’ equity attributable to Third Point Re common shareholders, as presented, is a non-GAAP financial measure. Return on beginning shareholders’ equity attributable to Third Point Re common shareholders is calculated by dividing net income (loss) available to Third Point Re common shareholders by the beginning shareholders’ equity attributable to Third Point Re common shareholders. We believe that return on beginning shareholders’ equity attributable to Third Point Re common shareholders is an important measure because it assists our management and investors in evaluating the Company’s profitability. We adjust the beginning shareholders’ equity for the impact of the shares repurchased on a weighted average basis. For period where there is a loss, this adjustment decreased the stated returns on beginning shareholders’ equity and for period where there is a gain, this adjustment increased the stated returns on beginning shareholders’ equity.
image1e431a.jpg
Page 15 of 15