THIRD POINT RE’S INCOME FALLS 74% ON LOWER PREMIUMS AND INVESTMENTS

Bermudian hedge-fund insurer Third Point Re’s second-quarter net earnings dropped 74% to $19.6m as gross written premiums fell 68% to $49.8m and investment income declined by 71% to $31.2m. Earnings per share fell to 19¢ from 71¢ and missed analysts’ estimate of 50¢. The underwriting loss narrowed to $5.1m from $12.1m and the combined ratio improved by 3.4 points to 103.6%. The company attributed the decline in premiums to a $105.1m reduction in premiums from contracts with retroactive exposure. For the first half, Third Point Re swung to a net loss of $6.4m from income of $178.8m, as investment income fell 88% to $29.0m. The underwriting loss narrowed to $11.4m from $20.8m as the combined ratio improved by 2.6 points to 104.0%.