SiriusPoint Ltd - FORM 8-K - EX-99.2 - EXHIBIT 99.2 FINANCIAL SUPPLEMENT

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8-K - 8-K - SiriusPoint Ltd	form8-k26february2015.htm
EX-99.1 - EXHIBIT 99.1 EARNINGS RELEASE - SiriusPoint Ltd	exhibit99126feb2015.htm

Third Point Reinsurance Ltd.

Financial Supplement

December 31, 2014

(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 Annual Report on Form 10-K.

The Waterfront, Chesney House, 1st Floor Manoj Gupta - SVP Underwriting

96 Pitts Bays Road Tel: (441) 542-3701

Pembroke HM 08 Email: investorrelations@thirdpointre.bm

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. and its directly and indirectly owned subsidiaries, including Third Point Reinsurance Company Ltd. (“Third Point Re”) 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 refer to Third Point Reinsurance Investment Management Ltd. as the “Catastrophe Fund Manager,” Third Point Reinsurance Opportunities Fund Ltd. as the “Catastrophe Fund” and Third Point Re Cat Ltd. as the “Catastrophe Reinsurer.” 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 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 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.

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: (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) inability to service indebtedness; (xi) limited cash flow and liquidity due to indebtedness; (xii) unavailability of capital in the future; (xiii) fluctuations in market price of the Company's common shares; (xiv) dependence on clients’ evaluations of risks associated with such clients’ insurance underwriting; (xv) suspension or revocation of reinsurance licenses; (xvi) potentially being deemed an investment company under U.S. federal securities law; (xvii) potential characterization of the Company and/or Third Point Reinsurance Company Ltd. as a PFIC; (xviii) dependence on Third Point LLC to implement the Company’s investment strategy; (xix) termination by Third Point LLC of the investment management agreements; (xx) risks associated with the Company’s investment strategy being greater than those faced by competitors; (xxi) increased regulation or scrutiny of alternative investment advisers affecting the Company’s reputation; (xxii) the Company potentially becoming subject to U.S. federal income taxation; (xxiii) the Company potentially becoming subject to U.S. withholding and information reporting requirements under the FATCA provisions; and (xxiv) other risks and factors listed under “Risk Factors” in our most recent Annual Report on Form 10-K 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.

Page 1 of 18

Third Point Reinsurance Ltd.

Table of Contents



		Page:
Key Performance Indicators
Key Performance Indicators		3

Consolidated Financial Statements
Condensed Consolidated Balance Sheets - by Quarter		4
Condensed Consolidated Statements of Income (Loss)		5
Condensed Consolidated Statements of Income (Loss) - by Quarter		6

Operating Segment Information
Segment Reporting - Three Months ended December 31, 2014 and 2013		7
Segment Reporting - Years ended December 31, 2014 and 2013		8
Property and Casualty Reinsurance Segment - by Quarter		9
Catastrophe Risk Management Segment - by Quarter		10
Corporate Function - by Quarter		11
Gross Premiums Written by Lines of Business - by Quarter		12

Investments
Investments managed by Third Point LLC - by Quarter		13
Investment return by investment strategy - by Quarter		14

Other
General and administrative expenses - by Quarter		15
Book value per share and diluted book value per share - by Quarter		16
Earnings per share - by Quarter		17
Return on beginning shareholders' equity - by Quarter and Year		18

Page 2 of 18

Third Point Reinsurance Ltd.

Key Performance Indicators

December 31, 2014 and 2013

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



	For the three months ended						For the years ended
	December 31, 2014			December 31, 2013			December 31, 2014			December 31, 2013

Key underwriting metrics for Property and Casualty Reinsurance segments:
Net underwriting loss⁽¹⁾	$	(542	)	$	(3,593	)	$	(9,552	)	$	(15,828	)
Combined ratio⁽¹⁾	100.2		%	106.3		%	102.2		%	107.5		%

Key investment return metrics:
Net investment income (loss)⁽²⁾	$	(6,490	)	$	89,321		$	85,582		$	258,125
Net investment return on investments managed by Third Point LLC	(0.4		)%	6.0		%	5.1		%	23.9		%

Key shareholders' value creation metrics:
Book value per share⁽³⁾	$	14.04		$	13.48		$	14.04		$	13.48
Diluted book value per share⁽³⁾	$	13.55		$	13.12		$	13.55		$	13.12
Growth in diluted book value per share⁽³⁾	(1.0		)%	6.2		%	3.3		%	20.5		%
Return on beginning shareholders' equity⁽⁴⁾	(1.0		)%	6.1		%	3.6		%	23.4		%

(1) Refer to accompanying "Segment Reporting" results for an explanation and calculation of net underwriting loss and combined ratio.

(2) Prior to 2014, deposit liabilities and reinsurance contracts investment expense and changes in the estimated fair value of embedded derivatives were recorded in net investment income. As these amounts have become more prominent, the presentation has been modified, and deposit liabilities and reinsurance contracts investment expense and changes in the estimated fair value of embedded derivatives are now recorded in other expenses in the condensed consolidated statements of income (loss). As a result, investment expenses of $2.2 million and $4.9 million that were previously reported in net investment income for the three months and year ended December 31, 2013, respectively, are now reported in other expenses to conform to the current period’s presentation.

(3) Book value per share and diluted book value per share are non-GAAP financial measures. Refer to accompanying "Book value per share - by Quarter" for calculation of basic and diluted book value per share.

(4) Return on beginning shareholders’ equity is a non-GAAP financial measure. Refer to accompanying "Return on beginning shareholders' equity - by Quarter and Year" for calculation of return on beginning shareholders' equity.

Page 3 of 18

Third Point Reinsurance Ltd.

Condensed Consolidated Balance Sheets - by Quarter

(expressed in thousands of U.S. dollars)



	December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014		December 31, 2013
Assets
Equity securities, trading, at fair value	$	1,177,796	$	956,604	$	1,162,363	$	1,116,554	$	954,111
Debt securities, trading, at fair value	569,648		660,677		551,453		558,648		441,424
Other investments, at fair value	83,394		97,765		93,412		77,387		65,329
Total investments in securities and commodities	1,830,838		1,715,046		1,807,228		1,752,589		1,460,864
Cash and cash equivalents	28,734		32,693		35,977		33,938		31,625
Restricted cash and cash equivalents	417,307		261,966		222,124		221,044		193,577
Due from brokers	58,241		182,927		74,046		101,819		98,386
Securities purchased under an agreement to sell	29,852		19,897		33,850		36,778		38,147
Derivative assets, at fair value	21,130		37,260		22,516		28,134		39,045
Interest and dividends receivable	2,602		5,032		3,747		5,214		2,615
Reinsurance balances receivable	303,649		269,747		245,832		221,541		191,763
Deferred acquisition costs, net	155,901		124,373		130,860		93,283		91,193
Unearned premiums ceded	—		91		—		—		—
Loss and loss adjustment expenses recoverable	814		1,412		10,274		10,277		9,277
Other assets	3,512		3,701		3,283		2,950		3,398
Total assets	$	2,852,580	$	2,654,145	$	2,589,737	$	2,507,567	$	2,159,890
Liabilities and shareholders' equity
Liabilities
Accounts payable and accrued expenses	$	10,085	$	7,521	$	5,456	$	3,739	$	9,456
Reinsurance balances payable	27,040		21,651		26,856		25,647		9,081
Deposit liabilities	145,430		142,990		121,959		121,374		120,946
Unearned premium reserves	433,809		363,666		346,271		279,512		265,187
Loss and loss adjustment expense reserves	277,362		187,313		184,627		164,624		134,331
Securities sold, not yet purchased, at fair value	82,485		45,667		46,994		53,958		56,056
Due to brokers	312,609		306,927		281,091		333,478		44,870
Derivative liabilities, at fair value	11,015		12,346		10,528		7,569		8,819
Performance fee payable to related party	—		21,837		22,002		12,295		—
Interest and dividends payable	697		589		816		800		748
Total liabilities	1,300,532		1,110,507		1,046,600		1,002,996		649,494
Commitments and contingent liabilities
Shareholders' equity
Preference shares	—		—		—		—		—
Common shares	10,447		10,403		10,393		10,392		10,389
Additional paid-in capital	1,065,489		1,063,254		1,060,183		1,057,939		1,055,690
Retained earnings	375,977		390,656		396,653		365,361		325,582
Shareholders' equity attributable to shareholders	1,451,913		1,464,313		1,467,229		1,433,692		1,391,661
Non-controlling interests	100,135		79,325		75,908		70,879		118,735
Total shareholders' equity	1,552,048		1,543,638		1,543,137		1,504,571		1,510,396
Total liabilities and shareholders' equity	$	2,852,580	$	2,654,145	$	2,589,737	$	2,507,567	$	2,159,890

Page 4 of 18

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 Ended December 31,						Years ended December 31,
	2014			2013			2014			2013
Revenues
Gross premiums written	$	253,802		$	162,277		$	613,300		$	401,937
Gross premiums ceded	—			—			(150		)	(9,975		)
Net premiums written	253,802			162,277			613,150			391,962
Change in net unearned premium reserves	(70,230		)	(103,767		)	(168,618		)	(171,295		)
Net premiums earned	183,572			58,510			444,532			220,667
Net investment income (loss)⁽¹⁾	(6,490		)	89,321			85,582			258,125
Total revenues	177,082			147,831			530,114			478,792
Expenses
Loss and loss adjustment expenses incurred, net	132,364			36,133			283,147			139,812
Acquisition costs, net	43,875			18,833			137,206			67,944
General and administrative expenses	10,310			8,965			40,008			33,036
Other expenses⁽¹⁾	2,606			2,247			7,395			4,922
Total expenses	189,155			66,178			467,756			245,714
Income (loss) before income tax expense	(12,073		)	81,653			62,358			233,078
Income tax expense	(1,731		)	—			(5,648		)	—
Net income (loss) including non-controlling interests	(13,804		)	81,653			56,710			233,078
Income (loss) attributable to non-controlling interests	(875		)	(1,565		)	(6,315		)	(5,767		)
Net income (loss)	$	(14,679	)	$	80,088		$	50,395		$	227,311
Earnings (loss) per share⁽²⁾
Basic	$	(0.14	)	$	0.77		$	0.48		$	2.58
Diluted	$	(0.14	)	$	0.75		$	0.47		$	2.54
Weighted average number of common shares used in the determination of earnings (loss) per share
Basic	103,324,616			103,264,616			103,287,693			87,505,540
Diluted	103,324,616			106,390,339			106,391,059			88,970,531

(1) Prior to 2014, deposit liabilities and reinsurance contracts investment expense and changes in the estimated fair value of embedded derivatives were recorded in net investment income. As these amounts have become more prominent, the presentation has been modified, and deposit liabilities and reinsurance contracts investment expense and changes in the estimated fair value of embedded derivatives are now recorded in other expenses in the condensed consolidated statements of income (loss). As a result, investment expenses of $2.2 million and $4.9 million that were previously reported in net investment income for the three months and year ended December 31, 2013, respectively, are now reported in other expenses to conform to the current period’s presentation.

(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 convertible securities such as unvested restricted shares. Diluted earnings per share are based on the weighted average number of common shares and share equivalents including any dilutive effects of warrants, options and other awards under stock plans 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 included in the number of shares outstanding for both basic and diluted earnings per share calculations. We treat certain of our unvested restricted stock as participating securities. In the event of a net loss, the participating securities are excluded from the calculation of both basic and diluted loss per share.

Page 5 of 18

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
	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
Revenues
Gross premiums written	$	253,802		$	126,403		$	145,508		$	87,587		$	162,277
Gross premiums ceded	—			(150		)	—			—			—
Net premiums written	253,802			126,253			145,508			87,587			162,277
Change in net unearned premium reserves	(70,230		)	(17,305		)	(66,758		)	(14,325		)	(103,767		)
Net premiums earned	183,572			108,948			78,750			73,262			58,510
Net investment income (loss)⁽¹⁾	(6,490		)	1,552			40,485			50,035			89,321
Total revenues	177,082			110,500			119,235			123,297			147,831
Expenses
Loss and loss adjustment expenses incurred, net	132,364			60,115			44,409			46,259			36,133
Acquisition costs, net	43,875			38,317			29,583			25,431			18,833
General and administrative expenses	10,310			10,124			9,549			10,025			8,965
Other expenses⁽¹⁾	2,606			2,982			1,020			787			2,247
Total expenses	189,155			111,538			84,561			82,502			66,178
Income (loss) before income tax expense	(12,073		)	(1,038		)	34,674			40,795			81,653
Income tax expense	(1,731		)	(1,542		)	(2,375		)	—			—
Net income (loss) including non-controlling interests	(13,804		)	(2,580		)	32,299			40,795			81,653
Income (loss) attributable to non-controlling interests	(875		)	(3,417		)	(1,007		)	(1,016		)	(1,565		)
Net income (loss)	$	(14,679	)	$	(5,997	)	$	31,292		$	39,779		$	80,088
Earnings (loss) per share⁽²⁾
Basic	$	(0.14	)	$	(0.06	)	$	0.30		$	0.38		$	0.77
Diluted	$	(0.14	)	$	(0.06	)	$	0.29		$	0.37		$	0.75
Weighted average number of common shares used in the determination of earnings (loss) per share
Basic	103,324,616			103,295,920			103,264,616			103,264,616			103,264,616
Diluted	103,324,616			103,295,920			106,433,881			106,413,580			106,390,339

(1) Prior to 2014, deposit liabilities and reinsurance contracts investment expense and changes in the estimated fair value of embedded derivatives were recorded in net investment income. As these amounts have become more prominent, the presentation has been modified, and deposit liabilities and reinsurance contracts investment expense and changes in the estimated fair value of embedded derivatives are now recorded in other expenses in the condensed consolidated statements of income (loss). As a result, investment expenses of $2.2 million that were previously reported in net investment income for the three months ended December 31, 2013, are now reported in other expenses to conform to the current period’s presentation.

(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 convertible securities such as unvested restricted shares. Diluted earnings per share are based on the weighted average number of common shares and share equivalents including any dilutive effects of warrants, options and other awards under stock plans 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 included in the number of shares outstanding for both basic and diluted earnings per share calculations. We treat certain of our unvested restricted stock as participating securities. In the event of a net loss, the participating securities are excluded from the calculation of both basic and diluted loss per share.

Page 6 of 18

Third Point Reinsurance Ltd.

Segment Reporting - Three months ended December 31, 2014 and 2013

(expressed in thousands of U.S. dollars)



	Three Months Ended December 31, 2014												Three Months Ended December 31, 2013
	Total Property and Casualty Reinsurance⁽⁷⁾			Catastrophe Risk Management			Corporate			Total			Total Property and Casualty Reinsurance⁽⁷⁾			Catastrophe Risk Management			Corporate			Total
Revenues
Gross premiums written	$	253,810		$	(8	)	$	—		$	253,802		$	162,359		$	(82	)	$	—		$	162,277
Gross premiums ceded	—			—			—			—			—			—			—			—
Net premiums written	253,810			(8		)	—			253,802			162,359			(82		)	—			162,277
Change in net unearned premium reserves	(72,789		)	2,559			—			(70,230		)	(105,598		)	1,831			—			(103,767		)
Net premiums earned	181,021			2,551			—			183,572			56,761			1,749			—			58,510
Expenses
Loss and loss adjustment expenses incurred, net	132,391			(27		)	—			132,364			36,325			(192		)	—			36,133
Acquisition costs, net	43,677			198			—			43,875			18,628			205			—			18,833
General and administrative expenses	5,495			953			3,862			10,310			5,401			1,131			2,433			8,965
Total expenses	181,563			1,124			3,862			186,549			60,354			1,144			2,433			63,931
Net underwriting loss	(542		)	n/a			n/a			n/a			(3,593		)	n/a			n/a			n/a
Net investment income (loss)⁽¹⁾	(2,153		)	284			(4,621		)	(6,490		)	11,825			1,211			76,285			89,321
Other expenses⁽¹⁾	(2,606		)	—			—			(2,606		)	(2,247		)	—			—			(2,247		)
Income tax expense	—			—			(1,731		)	(1,731		)	—			—			—			—
Segment income (loss) including non-controlling interests	(5,301		)	1,711			(10,214		)	(13,804		)	5,985			1,816			73,852			81,653
Segment income (loss) attributable to non-controlling interests	—			(871		)	(4		)	(875		)	—			(1,019		)	(546		)	(1,565		)
Segment income (loss)	$	(5,301	)	$	840		$	(10,218	)	$	(14,679	)	$	5,985		$	797		$	73,306		$	80,088
Underwriting ratios:
Loss ratio⁽²⁾	73.1		%										64.0		%
Acquisition cost ratio⁽³⁾	24.1		%										32.8		%
Composite ratio⁽⁴⁾	97.2		%										96.8		%
General and administrative expense ratio⁽⁵⁾	3.0		%										9.5		%
Combined ratio⁽⁶⁾	100.2		%										106.3		%

(1) Prior to 2014, deposit liabilities and reinsurance contracts investment expense and changes in the estimated fair value of embedded derivatives were recorded in net investment income. As these amounts have become more prominent, the presentation has been modified, and deposit liabilities and reinsurance contracts investment expense and changes in the estimated fair value of embedded derivatives are now recorded in other expenses in the condensed consolidated statements of income (loss). As a result, investment expenses of $2.2 million that were previously reported in net investment income for the three months ended December 31, 2013, are now reported in other expenses to conform to the current period’s presentation.

(2) Loss ratio is calculated by dividing loss and loss adjustment expenses incurred, net by net premiums earned.

(3) Acquisition cost ratio is calculated by dividing acquisition costs, net by net premiums earned.

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

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

(6) 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.

(7) 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.

Page 7 of 18

Third Point Reinsurance Ltd.

Segment Reporting - Years ended December 31, 2014 and 2013

(expressed in thousands of U.S. dollars)



	Year Ended December 31, 2014												Year Ended December 31, 2013
	Total Property and Casualty Reinsurance⁽⁷⁾			Catastrophe Risk Management			Corporate			Total			Total Property and Casualty Reinsurance⁽⁷⁾			Catastrophe Risk Management			Corporate			Total
Revenues
Gross premiums written	$	601,305		$	11,995		$	—		$	613,300		$	393,588		$	8,349		$	—		$	401,937
Gross premiums ceded	(150		)	—			—			(150		)	(9,975		)	—			—			(9,975		)
Net premiums written	601,155			11,995			—			613,150			383,613			8,349			—			391,962
Change in net unearned premium reserves	(168,858		)	240			—			(168,618		)	(171,006		)	(289		)	—			(171,295		)
Net premiums earned	432,297			12,235			—			444,532			212,607			8,060			—			220,667
Expenses
Loss and loss adjustment expenses incurred, net	283,180			(33		)	—			283,147			139,616			196			—			139,812
Acquisition costs, net	136,154			1,052			—			137,206			66,981			963			—			67,944
General and administrative expenses	22,515			3,113			14,380			40,008			21,838			3,852			7,346			33,036
Total expenses	441,849			4,132			14,380			460,361			228,435			5,011			7,346			240,792
Net underwriting loss	(9,552		)	n/a			n/a			n/a			(15,828		)	n/a			n/a			n/a
Net investment income	11,305			1,227			73,050			85,582			26,953			4,421			226,751			258,125
Other expenses⁽¹⁾	(7,395		)	—			—			(7,395		)	(4,922		)	—			—			(4,922		)
Income tax expense	—			—			(5,648		)	(5,648		)	—			—			—			—
Segment income (loss) including non-controlling interests	(5,642		)	9,330			53,022			56,710			6,203			7,470			219,405			233,078
Segment income (loss) attributable to non-controlling interests	—			(4,725		)	(1,590		)	(6,315		)	—			(4,046		)	(1,721		)	(5,767		)
Segment income (loss)	$	(5,642	)	$	4,605		$	51,432		$	50,395		$	6,203		$	3,424		$	217,684		$	227,311
Underwriting ratios:
Loss ratio⁽²⁾	65.5		%										65.7		%
Acquisition cost ratio⁽³⁾	31.5		%										31.5		%
Composite ratio⁽⁴⁾	97.0		%										97.2		%
General and administrative expense ratio⁽⁵⁾	5.2		%										10.3		%
Combined ratio⁽⁶⁾	102.2		%										107.5		%

(1) Prior to 2014, deposit liabilities and reinsurance contracts investment expense and changes in the estimated fair value of embedded derivatives were recorded in net investment income. As these amounts have become more prominent, the presentation has been modified, and deposit liabilities and reinsurance contracts investment expense and changes in the estimated fair value of embedded derivatives are now recorded in other expenses in the condensed consolidated statements of income (loss). As a result, investment expenses of $4.9 million that were previously reported in net investment income for the year ended December 31, 2013, are now reported in other expenses to conform to the current period’s presentation.

(2) Loss ratio is calculated by dividing loss and loss adjustment expenses incurred, net by net premiums earned.

(3) Acquisition cost ratio is calculated by dividing acquisition costs, net by net premiums earned.

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

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

Page 8 of 18

Third Point Reinsurance Ltd.

Property and Casualty Reinsurance Segment - by Quarter

(expressed in thousands of U.S. dollars)



	Three Months Ended
	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
Revenues
Gross premiums written	$	253,810		$	124,931		$	140,422		$	82,142		$	162,359
Gross premiums ceded	—			(150		)	—			—			—
Net premiums written	253,810			124,781			140,422			82,142			162,359
Change in net unearned premium reserves	(72,789		)	(23,294		)	(62,934		)	(9,841		)	(105,598		)
Net premiums earned	181,021			101,487			77,488			72,301			56,761
Expenses
Loss and loss adjustment expenses incurred, net	132,391			60,121			44,409			46,259			36,325
Acquisition costs, net	43,677			37,571			29,507			25,399			18,628
General and administrative expenses	5,495			5,556			5,655			5,809			5,401
Total expenses	181,563			103,248			79,571			77,467			60,354
Net underwriting loss	(542		)	(1,761		)	(2,083		)	(5,166		)	(3,593		)
Net investment income (loss)⁽¹⁾⁽²⁾	(2,153		)	(137		)	6,282			7,313			11,825
Other expenses⁽²⁾	(2,606		)	(2,982		)	(1,020		)	(787		)	(2,247		)
Segment income (loss)	$	(5,301	)	$	(4,880	)	$	3,179		$	1,360		$	5,985

Underwriting ratios:
Loss ratio⁽³⁾	73.1		%	59.2		%	57.3		%	64.0		%	64.0		%
Acquisition cost ratio⁽⁴⁾	24.1		%	37.0		%	38.1		%	35.1		%	32.8		%
Composite ratio⁽⁵⁾	97.2		%	96.2		%	95.4		%	99.1		%	96.8		%
General and administrative expense ratio⁽⁶⁾	3.0		%	5.5		%	7.3		%	8.0		%	9.5		%
Combined ratio⁽⁷⁾	100.2		%	101.7		%	102.7		%	107.1		%	106.3		%

(1) 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.

(2) Prior to 2014, deposit liabilities and reinsurance contract’s investment expense and changes in the estimated fair value of embedded derivatives were recorded in net investment income. As these amounts have become more prominent, the presentation has been modified, and deposit liabilities and reinsurance contracts investment expense and changes in the estimated fair value of embedded derivatives are now recorded in other expenses in the condensed consolidated statements of income (loss). As a result, investment expenses of $2.2 million that were previously reported in net investment for the three months ended December 31, 2013, are now reported in other expenses to conform to the current period’s presentation.

(3) Loss ratio is calculated by dividing loss and loss adjustment expenses incurred, net by net premiums earned.

(4) Acquisition cost ratio is calculated by dividing acquisition costs, net by net premiums earned.

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

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

(7) 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.

Page 9 of 18

Third Point Reinsurance Ltd.

Catastrophe Risk Management Segment - by Quarter

(expressed in thousands of U.S. dollars)



	Three Months Ended
	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
Revenues
Gross premiums written	$	(8	)	$	1,472		$	5,086		$	5,445		$	(82	)
Gross premiums ceded	—			—			—			—			—
Net premiums written	(8		)	1,472			5,086			5,445			(82		)
Change in net unearned premium reserves	2,559			5,989			(3,824		)	(4,484		)	1,831
Net premiums earned	2,551			7,461			1,262			961			1,749
Expenses
Loss and loss adjustment expenses incurred, net	(27		)	(6		)	—			—			(192		)
Acquisition costs, net	198			746			76			32			205
General and administrative expenses	953			648			678			834			1,131
Total expenses	1,124			1,388			754			866			1,144
Net investment income	284			881			33			29			1,211
Other expenses	—			—			—			—			—
Income tax expense	—			—			—			—			—
Segment income including non-controlling interests	1,711			6,954			541			124			1,816
Segment income attributable to non-controlling interests	(871		)	(3,325		)	(338		)	(191		)	(1,019		)
Segment income (loss)	$	840		$	3,629		$	203		$	(67	)	$	797

Note: In December 2014, we announced that we would no longer accept investments in the Catastrophe Fund, that no new business would be written in the Catastrophe Reinsurer and that we would be redeeming all existing investments in the Catastrophe Fund. Despite the Catastrophe Fund’s solid investment returns from its inception, we are winding it down due to challenging market conditions and competition with other collateralized reinsurance and insurance-linked securities vehicles. The Catastrophe Fund Manager will continue to manage the runoff of the remaining exposure in the Catastrophe Fund.

Page 10 of 18

Third Point Reinsurance Ltd.

Corporate Function - by Quarter

(expressed in thousands of U.S. dollars)



	Three Months Ended
	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
Revenues
Gross premiums written	$	—		$	—		$	—		$	—		$	—
Gross premiums ceded	—			—			—			—			—
Net premiums written	—			—			—			—			—
Change in net unearned premium reserves	—			—			—			—			—
Net premiums earned	—			—			—			—			—
Expenses
Loss and loss adjustment expenses incurred, net	—			—			—			—			—
Acquisition costs, net	—			—			—			—			—
General and administrative expenses	3,862			3,920			3,216			3,382			2,433
Total expenses	3,862			3,920			3,216			3,382			2,433
Net investment income	(4,621		)	808			34,170			42,693			76,285
Other expenses	—			—			—			—			—
Income tax expense	(1,731		)	(1,542		)	(2,375		)	—			—
Segment income including non-controlling interests	(10,214		)	(4,654		)	28,579			39,311			73,852
Segment income attributable to non-controlling interests	(4		)	(92		)	(669		)	(825		)	(546		)
Segment income (loss)	$	(10,218	)	$	(4,746	)	$	27,910		$	38,486		$	73,306

Page 11 of 18

Third Point Reinsurance Ltd.

Gross Premiums Written by Lines of Business - by Quarter

(expressed in thousands of U.S. dollars)



	Three Months Ended
	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014		December 31, 2013

Property	$	28,258		$	(2,810	)	$	74,505		$	6,881	$	40,977

Workers Compensation	8,327			17,698			2,511			47,496		1,487
Auto	14,029			70,581			48,709			2,927		97,509
General Liability	172			40,190			14,123			—		—
Casualty	22,528			128,469			65,343			50,423		98,996

Agriculture	26			84			(1		)	1		(92		)
Credit & Financial lines	8,026			(141		)	(29		)	2,531		22,478
Multi-line	194,972			(671		)	604			22,306		—
Specialty	203,024			(728		)	574			24,838		22,386

Total property and casualty reinsurance segment	253,810			124,931			140,422			82,142		162,359
Catastrophe risk management	(8		)	1,472			5,086			5,445		(82		)
	$	253,802		$	126,403		$	145,508		$	87,587	$	162,277

Page 12 of 18

Third Point Reinsurance Ltd.

Investments managed by Third Point LLC - by Quarter

(expressed in thousands of U.S. dollars)



	December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014		December 31, 2013
Assets
Total investments in securities and commodities	$	1,828,761	$	1,713,000	$	1,805,225	$	1,752,589	$	1,460,864
Cash and cash equivalents	3		10,003		9		10		869
Restricted cash and cash equivalents⁽¹⁾	308,763		160,618		128,396		131,598		100,563
Due from brokers	58,241		182,927		74,046		101,819		98,386
Securities purchased under an agreement to sell	29,852		19,897		33,850		36,778		38,147
Derivative assets	21,130		37,260		22,516		28,134		39,045
Interest and dividends receivable	2,590		5,021		3,736		5,204		2,604
Other assets	325		799		1,562		752		933
Total assets	$	2,249,665	$	2,129,525	$	2,069,340	$	2,056,884	$	1,741,411
Liabilities and non-controlling interest
Accounts payable and accrued expenses	$	464	$	299	$	247	$	617	$	1,759
Securities sold, not yet purchased, at fair value	82,485		45,667		46,994		53,958		56,056
Due to brokers	312,609		306,927		281,091		333,478		44,870
Derivative liabilities	10,985		12,113		10,528		7,569		8,819
Performance fee payable to related party	—		21,837		22,002		12,295		—
Interest and dividends payable	697		589		816		800		748
Capital contribution received in advance	—		10,000		—		—		—
Non-controlling interest	40,242		20,302		20,210		19,541		69,717
Total liabilities and non-controlling interest	447,482		417,734		381,888		428,258		181,969
Total net investments managed by Third Point LLC	$	1,802,183	$	1,711,791	$	1,687,452	$	1,628,626	$	1,559,442

(1) Includes amounts advanced to the Company to fund collateral held in trust accounts.

Page 13 of 18

Third Point Reinsurance Ltd.

Investment return by investment strategy - by Quarter



Summary of investment return on investments managed by Third Point LLC	December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014		December 31, 2013

Long/short equities	0.9	%	0.3	%	0.8	%	0.8	%	4.7	%
Asset-backed securities	0.0	%	0.5	%	0.7	%	1.8	%	0.1	%
Corporate credit	(0.8	)%	(0.7	)%	0.7	%	0.8	%	0.7	%
Macro and other	(0.5	)%	(0.1	)%	0.1	%	(0.3	)%	0.5	%
	(0.4	)%	(0.04	)%	2.3	%	3.1	%	6.0	%

Page 14 of 18

Third Point Reinsurance Ltd.

General and administrative expenses - by Quarter

(expressed in thousands of U.S. dollars)



	December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014		December 31, 2013
Payroll and related	$	3,638	$	4,184	$	3,928	$	4,297	$	3,404
Share compensation expenses	2,279		2,481		2,246		2,252		2,186
Legal and accounting	1,691		1,462		968		1,129		1,412
Travel and entertainment	818		672		828		746		855
IT related	500		329		330		462		386
Corporate insurance	262		273		275		313		257
Credit facility fees	418		200		220		187		161
Board of director and related	157		193		162		133		127
Occupancy	123		124		164		121		72
Other general and administrative expenses	424		206		428		385		105
	$	10,310	$	10,124	$	9,549	$	10,025	$	8,965

Page 15 of 18

Third Point Reinsurance Ltd.

Book value per share and diluted book value per share - by Quarter

(expressed in thousands of U.S. dollars)



	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
Basic and diluted book value per share numerator:
Total shareholders' equity	$	1,552,048		$	1,543,638		$	1,543,137		$	1,504,571		$	1,510,396
Less: non-controlling interests	(100,135		)	(79,325		)	(75,908		)	(70,879		)	(118,735		)
Shareholders' equity attributable to shareholders	1,451,913			1,464,313			1,467,229			1,433,692			1,391,661
Effect of dilutive warrants issued to founders and an advisor	46,512			46,512			46,512			46,512			46,512
Effect of dilutive stock options issued to directors and employees	61,705			65,473			69,223			69,223			101,274
Fully diluted book value per share numerator:	$	1,560,130		$	1,576,298		$	1,582,964		$	1,549,427		$	1,539,447
Basic and diluted book value per share denominator:
Issued and outstanding shares	103,397,542			103,324,616			103,264,616			103,264,616			103,264,616
Effect of dilutive warrants issued to founders and an advisor	4,651,163			4,651,163			4,651,163			4,651,163			4,651,163
Effect of dilutive stock options issued to directors and employees	6,151,903			6,528,647			6,797,949			6,797,949			8,784,861
Effect of dilutive restricted shares issued to employees	922,610			706,840			666,770			660,281			657,156
Diluted book value per share denominator:	115,123,218			115,211,266			115,380,498			115,374,009			117,357,796

Basic book value per share	$	14.04		$	14.17		$	14.21		$	13.88		$	13.48
Diluted book value per share	$	13.55		$	13.68		$	13.72		$	13.43		$	13.12

Growth in diluted book value per share	(1.0		)%	(0.3		)%	2.2		%	2.4		%	6.2		%

(1) Book value per share and diluted book value per share are non-GAAP financial measures. Book value per share is calculated by dividing shareholders’ equity attributable to shareholders, adjusted for subscriptions receivable, by the number of issued and outstanding shares at period end. Diluted book value per share is calculated by dividing shareholders’ equity attributable to shareholders, adjusted for subscriptions receivable, and adjusted to include unvested restricted shares and the exercise of all in-the-money options and warrants. Prior to Third Point Re’s initial public offering, the market share price was assumed to be equal to the fully 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.

Page 16 of 18

Third Point Reinsurance Ltd.

Earnings (loss) per share - by Quarter

(expressed in thousands of U.S. dollars)



	December 31, 2014⁽¹⁾			September 30, 2014⁽¹⁾			June 30, 2014			March 31, 2014			December 31, 2013
Weighted-average number of common shares outstanding
Basic number of common shares outstanding	103,324,616			103,295,920			103,264,616			103,264,616			103,264,616
Dilutive effect of options	—			—			1,490,091			1,386,722			1,361,688
Dilutive effect of warrants	—			—			1,679,174			1,762,242			1,764,149
Diluted number of common shares outstanding	103,324,616			103,295,920			106,433,881			106,413,580			106,390,453

Basic net income (loss) per common share:
Net income (loss)	$	(14,679	)	$	(5,997	)	$	31,292		$	39,779		$	80,088
Income allocated to participating shares	—			—			(200		)	(252		)	(496		)
Net income (loss) available to common shareholders	$	(14,679	)	$	(5,997	)	$	31,092		$	39,527		$	79,592

Basic net income (loss) per common share	$	(0.14	)	$	(0.06	)	$	0.30		$	0.38		$	0.77

Diluted net income (loss) per common share:
Net income (loss)	$	(14,679	)	$	(5,997	)	$	31,292		$	39,779		$	80,088
Income allocated to participating securities	—			—			(194		)	(245		)	(482		)
Net income available to common shareholders	$	(14,679	)	$	(5,997	)	$	31,098		$	39,534		$	79,606

Diluted net income (loss) per common share	$	(0.14	)	$	(0.06	)	$	0.29		$	0.37		$	0.75

(1) As a result of the net loss in the three months ended September 30, 2014 and December 31, 2014, no allocation of the net loss has been made to participating shares in the calculation of basic and diluted net loss per common share.

Page 17 of 18

Third Point Reinsurance Ltd.

Return on beginning shareholders' equity - by Quarter and Year

(expressed in thousands of U.S. dollars)



	Quarters ended
	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
Net income (loss)	$	(14,679	)	$	(5,997	)	$	31,292		$	39,779		$	80,088
Shareholders' equity attributable to shareholders - beginning of period	$	1,464,313		$	1,467,229		$	1,433,692		$	1,391,661		$	1,309,384
Return on beginning shareholders' equity	(1.0		)%	(0.4		)%	2.2		%	2.9		%	6.1		%



	Years ended December 31,
	2014			2013			2012
Net income	$	50,395		$	227,311		$	99,401

Shareholders' equity attributable to shareholders - beginning of period	1,391,661			868,544			585,425
Subscription receivable	—			—			177,507
Impact of weighting related to shareholders' equity from IPO	—			104,502			—
Adjusted shareholders' equity attributable to shareholders - beginning of period	$	1,391,661		$	973,046		$	762,932

Return on beginning shareholders' equity	3.6		%	23.4		%	13.0		%

(1) 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 of period shareholders’ equity attributable to shareholders. For purposes of determining December 31, 2011 shareholders’ equity attributable to shareholders, we add back the impact of subscriptions receivable to shareholders’ equity attributable to shareholders. For the year ended December 31, 2013, we have also adjusted the beginning shareholders’ equity for the impact of the issuance of shares in our IPO on a weighted average basis. These adjustments lower the stated returns on beginning shareholders’ equity. We believe this metric is used by investors to supplement measures of our profitability.

Page 18 of 18

SiriusPoint Ltd - FORM 8-K - EX-99.2 - EXHIBIT 99.2 FINANCIAL SUPPLEMENT - February 26, 2015

Attached files

SiriusPoint Ltd Reports