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

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EX-99.3 - EXHIBIT 99.3 PRESS RELEASE - SiriusPoint Ltd	exhibit993-pressrelease223.htm
EX-99.1 - EXHIBIT 99.1 EARNINGS PRESS RELEASE - SiriusPoint Ltd	exhibit991-earningsrelease.htm
8-K - 8-K - SiriusPoint Ltd	form8-kfebruary232017.htm

Third Point Reinsurance Ltd.

Financial Supplement

December 31, 2016

(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.



Point House		Manoj Gupta - Head of Investor Relations and Business Development
3 Waterloo Lane		Tel: (441) 542-3333
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 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 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: (i) limited historical information about the Company; (ii) fluctuation in results of operations; (iii) more established competitors; (iv) losses exceeding reserves; (v) downgrades or withdrawal of ratings by rating agencies; (vi) dependence on key executives; (vii) dependence on letter of credit facilities that may not be available on commercially acceptable terms; (viii) potential inability to pay dividends; (ix) inability to service the Company’s indebtedness; (x) limited cash flow and liquidity due to indebtedness; (xi) unavailability of capital in the future; (xii) fluctuations in market price of the Company’s common shares; (xiii) dependence on clients’ evaluations of risks associated with such clients’ insurance underwriting; (xiv) suspension or revocation of reinsurance licenses; (xv) potentially being deemed an investment company under United States federal securities law; (xvi) potential characterization of Third Point Re and/or Third Point Reinsurance Company Ltd. as a passive foreign investment company; (xvii) future strategic transactions such as acquisitions, dispositions, merger or joint ventures; (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) Third Point Reinsurance Ltd. potentially becoming subject to United States federal income taxation; (xxiii) potentially becoming subject to United States withholding and information reporting requirements under the Foreign Account Tax Compliance Act provisions; (xxiv) changes in Bermuda or other law regulation that may have an adverse impact on the Company's operations; and (xxv) 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 17

Third Point Reinsurance Ltd.

Table of Contents




Key Performance Indicators
Key Performance Indicators		Page 3

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

Operating Segment Information
Segment Reporting - Three months ended December 31, 2016 and 2015		Page 7
Segment Reporting - Twelve months ended December 31, 2016 and 2015		Page 8
Property and Casualty Reinsurance Segment - by Quarter		Page 9
Corporate Function - by Quarter		Page 10
Gross Premiums Written by Lines and Type of Business - by Quarter		Page 11

Investments
Investments Managed by Third Point LLC - by Quarter		Page 12
Investment Return by Investment Strategy - by Quarter		Page 13

Other
General and Administrative Expenses - by Quarter		Page 14
Book Value per Share and Diluted Book Value per Share - by Quarter		Page 15
Earnings (Loss) per Share - by Quarter		Page 16
Return on Beginning Shareholders’ Equity - by Quarter		Page 17

Page 2 of 17

Third Point Reinsurance Ltd.

Key Performance Indicators

December 31, 2016 and 2015

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



	Three months ended						Twelve months ended
	December 31, 2016			December 31, 2015			December 31, 2016			December 31, 2015

Key underwriting metrics for Property and Casualty Reinsurance segment:
Net underwriting loss⁽¹⁾	$	(9,514	)	$	(9,175	)	$	(50,052	)	$	(28,257	)
Combined ratio⁽¹⁾	105.0		%	106.9		%	108.5		%	104.7		%

Key investment return metrics:
Net investment income (loss)	$	(35,767	)	$	61,553		$	98,825		$	(28,074	)
Net investment return on investments managed by Third Point LLC	(1.7		)%	2.8		%	4.2		%	(1.6		)%

Key shareholders’ value creation metrics:
Book value per share^{(2) (3)}	$	13.57		$	13.23		$	13.57		$	13.23
Diluted book value per share^{(2) (3)}	$	13.16		$	12.85		$	13.16		$	12.85
Increase (decrease) in diluted book value per share⁽²⁾	(2.9		)%	3.2		%	2.4		%	(5.2		)%
Return on beginning shareholders’ equity⁽²⁾	(3.2		)%	3.2		%	2.0		%	(6.0		)%


(1)	Refer to accompanying “Segment Reporting - Three and twelve months ended December 31, 2016 and 2015” for a calculation of net underwriting loss and combined ratio.

(2)

Book value per share, diluted book value per share and return on beginning shareholders’ equity are non-GAAP financial measures. There are no comparable GAAP measures. Refer to accompanying “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.


(3)	Prior year comparatives represent amounts as of December 31, 2015.

Page 3 of 17

Third Point Reinsurance Ltd.

Consolidated Balance Sheets - by Quarter

(expressed in thousands of U.S. dollars)



	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016		December 31, 2015
Assets
Equity securities, trading, at fair value	$	1,506,854		$	1,622,938		$	1,458,015		$	1,483,076	$	1,231,077
Debt securities, trading, at fair value	1,057,957			1,079,132			1,250,883			1,185,102		1,034,247
Other investments, at fair value	82,701			49,664			64,320			49,965		51,920
Total investments in securities	2,647,512			2,751,734			2,773,218			2,718,143		2,317,244
Cash and cash equivalents	9,951			20,982			7,038			7,658		20,407
Restricted cash and cash equivalents	298,940			365,451			280,069			316,923		330,915
Due from brokers	284,591			284,170			337,264			424,205		326,971
Derivative assets, at fair value	27,432			22,565			26,122			26,877		35,337
Interest and dividends receivable	6,505			11,756			7,492			14,092		10,687
Reinsurance balances receivable	381,951			448,450			429,358			326,066		294,313
Deferred acquisition costs, net	221,618			255,379			221,651			216,689		197,093
Other assets	17,144			17,101			14,159			16,594		12,141
Total assets	$	3,895,644		$	4,177,588		$	4,096,371		$	4,067,247	$	3,545,108
Liabilities and shareholders’ equity
Liabilities
Accounts payable and accrued expenses	$	10,321		$	13,508		$	9,878		$	9,639	$	11,966
Reinsurance balances payable	43,171			47,713			45,747			30,733		24,119
Deposit liabilities	104,905			105,207			88,817			86,594		83,955
Unearned premium reserves	557,076			668,980			655,397			591,970		531,710
Loss and loss adjustment expense reserves	605,129			565,682			536,955			489,907		466,047
Securities sold, not yet purchased, at fair value	92,668			198,393			262,748			235,919		314,353
Securities sold under an agreement to repurchase	—			55,880			168,356			170,305		8,944
Due to brokers	899,601			894,856			794,141			960,703		574,962
Derivative liabilities, at fair value	16,050			11,472			16,401			28,524		15,392
Performance fee payable to related party	—			24,846			2,954			—		—
Interest and dividends payable	3,443			1,772			4,517			2,397		4,400
Senior notes payable, net of deferred costs	113,555			113,510			113,465			113,421		113,377
Total liabilities	2,445,919			2,701,819			2,699,376			2,720,112		2,149,225
Commitments and contingent liabilities
Shareholders’ equity
Preference shares	—			—			—			—		—
Common shares	10,650			10,638			10,629			10,621		10,548
Treasury shares	(7,389		)	(7,389		)	(7,389		)	—		—
Additional paid-in capital	1,094,568			1,090,975			1,086,258			1,083,168		1,080,591
Retained earnings	316,222			362,915			290,834			237,458		288,587
Shareholders’ equity attributable to shareholders	1,414,051			1,457,139			1,380,332			1,331,247		1,379,726
Non-controlling interests	35,674			18,630			16,663			15,888		16,157
Total shareholders’ equity	1,449,725			1,475,769			1,396,995			1,347,135		1,395,883
Total liabilities and shareholders’ equity	$	3,895,644		$	4,177,588		$	4,096,371		$	4,067,247	$	3,545,108

Page 4 of 17

Third Point Reinsurance Ltd.

Consolidated Statements of Income (Loss)

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



	Three months ended						Twelve months ended
	December 31, 2016			December 31, 2015			December 31, 2016			December 31, 2015
Revenues
Gross premiums written	$	80,779		$	99,155		$	617,374		$	702,414
Gross premiums ceded	27			(24		)	(2,325		)	(1,876		)
Net premiums written	80,806			99,131			615,049			700,538
Change in net unearned premium reserves	111,277			35,235			(24,859		)	(97,714		)
Net premiums earned	192,083			134,366			590,190			602,824
Net investment income (loss)	(35,767		)	61,553			98,825			(28,074		)
Total revenues	156,316			195,919			689,015			574,750
Expenses
Loss and loss adjustment expenses incurred, net	122,110			98,855			395,932			415,191
Acquisition costs, net	76,854			38,552			222,150			191,216
General and administrative expenses	5,482			10,236			39,367			46,033
Other expenses	2,161			2,928			8,387			8,614
Interest expense	2,068			2,074			8,231			7,236
Foreign exchange gains	(5,162		)	(2,396		)	(19,521		)	(3,196		)
Total expenses	203,513			150,249			654,546			665,094
Income (loss) before income tax (expense) benefit	(47,197		)	45,670			34,469			(90,344		)
Income tax (expense) benefit	272			(2,863		)	(5,593		)	2,905
Income (loss) including non-controlling interests	(46,925		)	42,807			28,876			(87,439		)
(Income) loss attributable to non-controlling interests	232			(614		)	(1,241		)	49
Net income (loss)	$	(46,693	)	$	42,193		$	27,635		$	(87,390	)
Earnings (loss) per share
Basic	$	(0.45	)	$	0.40		$	0.26		$	(0.84	)
Diluted	$	(0.45	)	$	0.39		$	0.26		$	(0.84	)
Weighted average number of ordinary shares used in the determination of earnings (loss) per share
Basic	104,072,283			104,217,321			104,060,052			104,003,820
Diluted	104,072,283			106,635,451			105,563,784			104,003,820

(1)

Basic earnings (loss) 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 (loss) 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.

Page 5 of 17

Third Point Reinsurance Ltd.

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, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
Revenues
Gross premiums written	$	80,779		$	142,573		$	196,866		$	197,156		$	99,155
Gross premiums ceded	27			(927		)	(1,425		)	—			(24		)
Net premiums written	80,806			141,646			195,441			197,156			99,131
Change in net unearned premium reserves	111,277			(13,463		)	(62,319		)	(60,354		)	35,235
Net premiums earned	192,083			128,183			133,122			136,802			134,366
Net investment income (loss)	(35,767		)	88,356			86,346			(40,110		)	61,553
Total revenues	156,316			216,539			219,468			96,692			195,919
Expenses
Loss and loss adjustment expenses incurred, net	122,110			85,015			104,131			84,676			98,855
Acquisition costs, net	76,854			45,127			48,482			51,687			38,552
General and administrative expenses	5,482			12,354			10,243			11,288			10,236
Other expenses	2,161			347			3,173			2,706			2,928
Interest expense	2,068			2,069			2,046			2,048			2,074
Foreign exchange gains	(5,162		)	(3,905		)	(8,068		)	(2,386		)	(2,396		)
Total expenses	203,513			141,007			160,007			150,019			150,249
Income (loss) before income tax (expense) benefit	(47,197		)	75,532			59,461			(53,327		)	45,670
Income tax (expense) benefit	272			(2,484		)	(5,310		)	1,929			(2,863		)
Income (loss) including non-controlling interests	(46,925		)	73,048			54,151			(51,398		)	42,807
(Income) loss attributable to non-controlling interests	232			(967		)	(775		)	269			(614		)
Net income (loss)	$	(46,693	)	$	72,081		$	53,376		$	(51,129	)	$	42,193
Earnings (loss) per share
Basic	$	(0.45	)	$	0.69		$	0.51		$	(0.49	)	$	0.40
Diluted	$	(0.45	)	$	0.68		$	0.51		$	(0.49	)	$	0.39
Weighted average number of ordinary shares used in the determination of earnings (loss) per share
Basic	104,072,283			103,780,196			104,132,797			104,257,874			104,217,321
Diluted	104,072,283			105,795,313			105,233,921			104,257,874			106,635,451

(1)

Page 6 of 17

Third Point Reinsurance Ltd.

Segment Reporting - Three months ended December 31, 2016 and 2015

(expressed in thousands of U.S. dollars)



	Three months ended December 31, 2016											Three months ended December 31, 2015
	Property and Casualty Reinsurance			Catastrophe Risk Management⁽²⁾		Corporate			Total			Property and Casualty Reinsurance			Catastrophe Risk Management			Corporate			Total
Revenues
Gross premiums written	$	80,779		$	—	$	—		$	80,779		$	99,155		$	—		$	—		$	99,155
Gross premiums ceded	27			—		—			27			(24		)	—			—			(24		)
Net premiums written	80,806			—		—			80,806			99,131			—			—			99,131
Change in net unearned premium reserves	111,277			—		—			111,277			35,235			—			—			35,235
Net premiums earned	192,083			—		—			192,083			134,366			—			—			134,366
Expenses
Loss and loss adjustment expenses incurred, net	122,110			—		—			122,110			98,855			—			—			98,855
Acquisition costs, net	76,854			—		—			76,854			38,552			—			—			38,552
General and administrative expenses	2,633			—		2,849			5,482			6,134			(16		)	4,118			10,236
Total expenses	201,597			—		2,849			204,446			143,541			(16		)	4,118			147,643
Net underwriting loss	(9,514		)	n/a		n/a			n/a			(9,175		)	n/a			n/a			n/a
Net investment income (loss)	(15,937		)	—		(19,830		)	(35,767		)	12,813			—			48,740			61,553
Other expenses	(2,161		)	—		—			(2,161		)	(2,928		)	—			—			(2,928		)
Interest expense	—			—		(2,068		)	(2,068		)	—			—			(2,074		)	(2,074		)
Foreign exchange gains	—			—		5,162			5,162			—			—			2,396			2,396
Income tax benefit (expense)	—			—		272			272			—			—			(2,863		)	(2,863		)
Segment income (loss) including non-controlling interests	(27,612		)	—		(19,313		)	(46,925		)	710			16			42,081			42,807
Segment income attributable to non-controlling interests	—			—		232			232			—			(54		)	(560		)	(614		)
Segment income (loss)	$	(27,612	)	$	—	$	(19,081	)	$	(46,693	)	$	710		$	(38	)	$	41,521		$	42,193

Property and Casualty Reinsurance - Underwriting Ratios (1):
Loss ratio	63.6		%									73.6		%
Acquisition cost ratio	40.0		%									28.7		%
Composite ratio	103.6		%									102.3		%
General and administrative expense ratio	1.4		%									4.6		%
Combined ratio	105.0		%									106.9		%


(1)	Underwriting ratios are calculated by dividing the related expense by net premiums earned.


(2)	As of December 31, 2015, all investments in the Catastrophe Fund had been redeemed. In February 2016, the Company completed the dissolution of the Catastrophe Fund and Catastrophe Reinsurer. As a result, there is no further activity in the Catastrophe Risk Management segment

Page 7 of 17

Third Point Reinsurance Ltd.

Segment Reporting - Twelve months ended December 31, 2016 and 2015

(expressed in thousands of U.S. dollars)



	Twelve months ended December 31, 2016											Twelve months ended December 31, 2015
	Property and Casualty Reinsurance			Catastrophe Risk Management⁽²⁾		Corporate			Total			Property and Casualty Reinsurance			Catastrophe Risk Management			Corporate			Total
Revenues
Gross premiums written	$	617,374		$	—	$	—		$	617,374		$	702,458		$	(44	)	$	—		$	702,414
Gross premiums ceded	(2,325		)	—		—			(2,325		)	(1,876		)	—			—			(1,876		)
Net premiums written	615,049			—		—			615,049			700,582			(44		)	—			700,538
Change in net unearned premium reserves	(24,859		)	—		—			(24,859		)	(97,766		)	52			—			(97,714		)
Net premiums earned	590,190			—		—			590,190			602,816			8			—			602,824
Expenses
Loss and loss adjustment expenses incurred, net	395,932			—		—			395,932			415,041			150			—			415,191
Acquisition costs, net	222,150			—		—			222,150			191,217			(1		)	—			191,216
General and administrative expenses	22,160			—		17,207			39,367			24,815			447			20,771			46,033
Total expenses	640,242			—		17,207			657,449			631,073			596			20,771			652,440
Net underwriting loss	(50,052		)	n/a		n/a			n/a			(28,257		)	n/a			n/a			n/a
Net investment income (loss)	16,931			—		81,894			98,825			(10,810		)	69			(17,333		)	(28,074		)
Other expenses	(8,387		)	—		—			(8,387		)	(8,614		)	—			—			(8,614		)
Interest expense	—			—		(8,231		)	(8,231		)	—			—			(7,236		)	(7,236		)
Foreign exchange gains	—			—		19,521			19,521			—			—			3,196			3,196
Income tax benefit (expense)	—			—		(5,593		)	(5,593		)	—			—			2,905			2,905
Segment income (loss) including non-controlling interests	(41,508		)	—		70,384			28,876			(47,681		)	(519		)	(39,239		)	(87,439		)
Segment (income) loss attributable to non-controlling interests	—			—		(1,241		)	(1,241		)	—			102			(53		)	49
Segment income (loss)	$	(41,508	)	$	—	$	69,143		$	27,635		$	(47,681	)	$	(417	)	$	(39,292	)	$	(87,390	)

Property and Casualty Reinsurance - Underwriting Ratios (1):
Loss ratio	67.1		%									68.9		%
Acquisition cost ratio	37.6		%									31.7		%
Composite ratio	104.7		%									100.6		%
General and administrative expense ratio	3.8		%									4.1		%
Combined ratio	108.5		%									104.7		%


(1)	Underwriting ratios are calculated by dividing the related expense by net premiums earned.


(2)	As of December 31, 2015, all investments in the Catastrophe Fund had been redeemed. In February 2016, the Company completed the dissolution of the Catastrophe Fund and Catastrophe Reinsurer. As a result, there is no further activity in the Catastrophe Risk Management segment

Page 8 of 17

Third Point Reinsurance Ltd.

Property and Casualty Reinsurance Segment - by Quarter

(expressed in thousands of U.S. dollars)



	Three Months Ended
	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
Revenues
Gross premiums written	$	80,779		$	142,573		$	196,866		$	197,156		$	99,155
Gross premiums ceded	27			(927		)	(1,425		)	—			(24		)
Net premiums written	80,806			141,646			195,441			197,156			99,131
Change in net unearned premium reserves	111,277			(13,463		)	(62,319		)	(60,354		)	35,235
Net premiums earned	192,083			128,183			133,122			136,802			134,366
Expenses
Loss and loss adjustment expenses incurred, net	122,110			85,015			104,131			84,676			98,855
Acquisition costs, net	76,854			45,127			48,482			51,687			38,552
General and administrative expenses	2,633			6,380			6,085			7,062			6,134
Total expenses	201,597			136,522			158,698			143,425			143,541
Net underwriting loss	(9,514		)	(8,339		)	(25,576		)	(6,623		)	(9,175		)
Net investment income (loss)	(15,937		)	22,031			19,098			(8,261		)	12,813
Other expenses	(2,161		)	(347		)	(3,173		)	(2,706		)	(2,928		)
Segment income (loss)	$	(27,612	)	$	13,345		$	(9,651	)	$	(17,590	)	$	710

Underwriting ratios (1):
Loss ratio	63.6		%	66.3		%	78.2		%	61.9		%	73.6		%
Acquisition cost ratio	40.0		%	35.2		%	36.4		%	37.8		%	28.7		%
Composite ratio	103.6		%	101.5		%	114.6		%	99.7		%	102.3		%
General and administrative expense ratio	1.4		%	5.0		%	4.6		%	5.2		%	4.6		%
Combined ratio	105.0		%	106.5		%	119.2		%	104.9		%	106.9		%


(1)	Underwriting ratios are calculated by dividing the related expense by net premiums earned.

Page 9 of 17

Third Point Reinsurance Ltd.

Corporate Function - by Quarter

(expressed in thousands of U.S. dollars)



	Three Months Ended
	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
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	2,849			5,974			4,158			4,226			4,118
Total expenses	2,849			5,974			4,158			4,226			4,118
Net investment income (loss)	(19,830		)	66,325			67,248			(31,849		)	48,740
Interest expense	(2,068		)	(2,069		)	(2,046		)	(2,048		)	(2,074		)
Foreign exchange gains	5,162			3,905			8,068			2,386			2,396
Income tax (expense) benefit	272			(2,484		)	(5,310		)	1,929			(2,863		)
Segment income (loss) including non-controlling interests	(19,313		)	59,703			63,802			(33,808		)	42,081
Segment (income) loss attributable to non-controlling interests	232			(967		)	(775		)	269			(560		)
Segment income (loss)	$	(19,081	)	$	58,736		$	63,027		$	(33,539	)	$	41,521

Page 10 of 17

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
	December 31, 2016			September 30, 2016		June 30, 2016		March 31, 2016			December 31, 2015
Line and Type of Business
Property	$	34,620		$	56,632	$	7,257	$	(175	)	$	43,361

Workers Compensation	(1,690		)	6,153		50,366		1,240			(321		)
Auto	6,065			7,350		68,074		10,137			7,395
General Liability	18,672			—		29,239		—			—
Professional Liability	2,857			13,137		1,450		—			(1,000		)
Casualty	25,904			26,640		149,129		11,377			6,074

Credit & Financial Lines	13,177			58,896		14,543		32,091			15,937
Multi-line	7,078			405		25,937		153,863			33,783
Specialty	20,255			59,301		40,480		185,954			49,720

Total property and casualty reinsurance segment	$	80,779		$	142,573	$	196,866	$	197,156		$	99,155

Page 11 of 17

Third Point Reinsurance Ltd.

Investments Managed by Third Point LLC - by Quarter

(expressed in thousands of U.S. dollars)



	December 31, 2016		September 30, 2016		June 30, 2016		March 31, 2016		December 31, 2015
Assets
Total investments in securities	$	2,619,839	$	2,724,518	$	2,746,271	$	2,691,431	$	2,290,779
Cash and cash equivalents	5		11		11		11		57
Restricted cash and cash equivalents	298,940		365,451		280,069		316,923		330,915
Due from brokers	284,591		284,170		337,264		424,205		326,971
Derivative assets	27,432		22,565		26,122		26,877		35,337
Interest and dividends receivable	6,505		11,756		7,492		14,092		10,687
Total assets	$	3,237,312	$	3,408,471	$	3,397,229	$	3,473,539	$	2,994,746
Liabilities and non-controlling interest
Accounts payable and accrued expenses	$	1,374	$	783	$	902	$	1,102	$	770
Securities sold, not yet purchased	92,668		198,393		262,748		235,919		314,353
Securities sold under an agreement to repurchase	—		55,880		168,356		170,305		8,944
Due to brokers	899,601		894,856		794,141		960,703		574,962
Derivative liabilities	16,050		11,472		16,401		28,524		15,392
Performance fee payable to related party	—		24,846		2,954		—		—
Interest and dividends payable	386		737		1,482		1,363		1,345
Non-controlling interest	35,674		18,630		16,663		15,888		16,157
Total liabilities and non-controlling interest	1,045,753		1,205,597		1,263,647		1,413,804		931,923
Total net investments managed by Third Point LLC	$	2,191,559	$	2,202,874	$	2,133,582	$	2,059,735	$	2,062,823

Net investments - Capital	$	1,595,874	$	1,620,441	$	1,560,681	$	1,504,321	$	1,537,349
Net investments - Float	595,685		582,433		572,901		555,414		525,474
Total net investments managed by Third Point LLC	$	2,191,559	$	2,202,874	$	2,133,582	$	2,059,735	$	2,062,823

Page 12 of 17

Third Point Reinsurance Ltd.

Investment Return by Investment Strategy - by Quarter



Summary of investment return on investments managed by Third Point LLC	December 31, 2016		September 30, 2016		June 30, 2016		March 31, 2016		December 31, 2015

Long/short equities	(2.6	)%	1.9	%	0.3	%	(1.1	)%	2.9	%
Credit	0.2	%	2.0	%	3.8	%	0.0	%	0.1	%
Other	0.7	%	0.1	%	(0.1	)%	(0.9	)%	(0.2	)%
	(1.7	)%	4.0	%	4.0	%	(2.0	)%	2.8	%

Page 13 of 17

Third Point Reinsurance Ltd.

General and Administrative Expenses - by Quarter

(expressed in thousands of U.S. dollars)



	December 31, 2016			September 30, 2016		June 30, 2016		March 31, 2016		December 31, 2015
Payroll and related	$	(182	)	$	7,259	$	4,510	$	5,001	$	3,816
Share compensation expenses	2,342			1,894		2,051		2,651		2,266
Legal and accounting	1,421			1,069		1,194		928		1,115
Travel and entertainment	768			417		640		676		722
Occupancy	251			267		281		262		209
Corporate insurance	211			220		232		247		229
Board of director and related	146			166		191		163		169
Credit facility fees	103			266		385		553		391
IT related	66			472		381		457		888
Other general and administrative expenses	356			324		378		350		431
	$	5,482		$	12,354	$	10,243	$	11,288	$	10,236

Page 14 of 17

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, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
Basic and diluted book value per share numerator:
Total shareholders’ equity	$	1,449,725		$	1,475,769		$	1,396,995		$	1,347,135		$	1,395,883
Less: non-controlling interests	(35,674		)	(18,630		)	(16,663		)	(15,888		)	(16,157		)
Shareholders’ equity attributable to shareholders	1,414,051			1,457,139			1,380,332			1,331,247			1,379,726
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	52,930			54,189			57,024			57,272			58,070
Fully diluted book value per share numerator:	$	1,513,493		$	1,557,840		$	1,483,868		$	1,435,031		$	1,484,308
Basic and diluted book value per share denominator:
Issued and outstanding shares, net of treasury shares	104,173,748			104,000,129			103,716,629			104,336,577			104,256,745
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	5,274,333			5,400,240			5,683,740			5,708,559			5,788,391
Effect of dilutive restricted shares issued to employees	878,529			937,377			1,157,384			1,273,248			837,277
Diluted book value per share denominator:	114,977,773			114,988,909			115,208,916			115,969,547			115,533,576

Basic book value per share⁽¹⁾	$	13.57		$	14.01		$	13.31		$	12.76		$	13.23
Diluted book value per share⁽¹⁾	$	13.16		$	13.55		$	12.88		$	12.37		$	12.85

Increase (decrease) in diluted book value per share	(2.9		)%	5.2		%	4.1		%	(3.7		)%	3.2		%

(1)

Book value per share and diluted book value per share are non-GAAP financial measures and there are no comparable GAAP measures. Book value per share is calculated by dividing shareholders’ equity attributable to shareholders by the number of issued and outstanding shares at period end, net of treasury shares. Diluted book value per share represents book value per share combined with the impact from dilution of all in-the-money share options issued, warrants and unvested restricted shares outstanding as of any period end. For unvested restricted shares with a performance condition, we include the unvested restricted shares for which we consider vesting to be probable. 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 15 of 17

Third Point Reinsurance Ltd.

Earnings (Loss) per Share - by Quarter

(expressed in thousands of U.S. dollars)



	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016(1)			December 31, 2015
Weighted-average number of common shares outstanding
Basic number of common shares outstanding, net of treasury shares	104,072,283			103,780,196			104,132,797			104,257,874			104,217,321
Dilutive effect of options	—			940,627			403,547			—			1,166,940
Dilutive effect of warrants	—			912,286			556,829			—			1,251,190
Dilutive effect of restricted shares with service and performance condition	—			162,204			140,748			—			—
Diluted number of common shares outstanding	104,072,283			105,795,313			105,233,921			104,257,874			106,635,451

Basic earnings (loss) per common share:
Net income (loss)	$	(46,693	)	$	72,081		$	53,376		$	(51,129	)	$	42,193
Income allocated to participating shares	—			(241		)	(169		)	—			(137		)
Net income (loss) available to common shareholders	$	(46,693	)	$	71,840		$	53,207		$	(51,129	)	$	42,056

Basic earnings (loss) per common share	$	(0.45	)	$	0.69		$	0.51		$	(0.49	)	$	0.40

Diluted earnings (loss) per common share
Net income (loss)	$	(46,693	)	$	72,081		$	53,376		$	(51,129	)	$	42,193
Income allocated to participating shares	—			(237		)	(167		)	—			(134		)
Net income (loss) available to common shareholders	$	(46,693	)	$	71,844		$	53,209		$	(51,129	)	$	42,059

Diluted earnings (loss) per common share	$	(0.45	)	$	0.68		$	0.51		$	(0.49	)	$	0.39

(1)

Page 16 of 17

Third Point Reinsurance Ltd.

Return on Beginning Shareholders’ Equity - by Quarter

(expressed in thousands of U.S. dollars)



	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
Net income (loss)	$	(46,693	)	$	72,081		$	53,376		$	(51,129	)	$	42,193
Shareholders’ equity attributable to shareholders - beginning of period	1,457,139			1,380,332			1,331,247			1,379,726			1,335,269
Impact of weighting related to shareholders’ equity from shares repurchased	—			—			(2,609		)	—			—
Adjusted shareholders’ equity attributable to shareholders - beginning of period	$	1,457,139		$	1,380,332		$	1,328,638		$	1,379,726		$	1,335,269
Return on beginning shareholders’ equity	(3.2		)%	5.2		%	4.0		%	(3.7		)%	3.2		%

(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 shareholders’ equity attributable to shareholders. We believe this metric is used by investors to supplement measures of our profitability. For the current year periods, we have also adjusted the beginning shareholders’ equity for the impact of the shares repurchased on a weighted average basis. This adjustment increased the stated returns on beginning shareholders’ equity.

Page 17 of 17

SiriusPoint Ltd - FORM 8-K - EX-99.2 - EXHIBIT 99.2 FINANCIAL SUPPLEMENT - February 23, 2017

Attached files

SiriusPoint Ltd Reports