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

Attached files

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EX-99.1 - EXHIBIT 99.1 EARNINGS PRESS RELEASE - SiriusPoint Ltd	exhibit991-earningspressre.htm
8-K - 8-K - SiriusPoint Ltd	form8-kmay42017.htm

Third Point Reinsurance Ltd.

Financial Supplement

March 31, 2017

(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 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 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 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) fluctuation in results of operations; (ii) more established competitors; (iii) losses exceeding reserves; (iv) downgrades or withdrawal of ratings by rating agencies; (v) dependence on key executives; (vi) dependence on letter of credit facilities that may not be available on commercially acceptable terms; (vii) dependence on financing available through our investment accounts to secure letters of credit and collateral for reinsurance contracts; (viii) potential inability to pay dividends; (ix) inability to service our indebtedness; (x) limited cash flow and liquidity due to our indebtedness; (xi) unavailability of capital in the future; (xii) fluctuations in market price of our common shares; (xiii) dependence on clients’ evaluations of risks associated with such clients’ insurance underwriting; (xiv) suspension or revocation of our reinsurance licenses; (xv) potentially being deemed an investment company under U.S. federal securities law; (xvi) potential characterization of Third Point Reinsurance Ltd. and/or Third Point Re 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 our investment strategy; (xix) termination by Third Point LLC of our investment management agreements; (xx) risks associated with our investment strategy being greater than those faced by competitors; (xxi) increased regulation or scrutiny of alternative investment advisers affecting our reputation; (xxii) Third Point Reinsurance Ltd. and/or Third Point Re potentially becoming subject to U.S. federal income taxation; (xxiii) potentially becoming subject to U.S. withholding and information reporting requirements under the Foreign Account Tax Compliance Act; (xxiv) changes in Bermuda or other law and regulation that may have an adverse impact on our 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 we undertake 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 16

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 March 31, 2017 and 2016		Page 7
Property and Casualty Reinsurance Segment - by Quarter		Page 8
Corporate Function - by Quarter		Page 9
Gross Premiums Written by Lines and Type of Business - by Quarter		Page 10

Investments
Investments Managed by Third Point LLC - by Quarter		Page 11
Investment Return by Investment Strategy - by Quarter		Page 12

Other
General and Administrative Expenses - by Quarter		Page 13
Book Value per Share and Diluted Book Value per Share - by Quarter		Page 14
Earnings (Loss) per Share - by Quarter		Page 15
Return on Beginning Shareholders’ Equity - by Quarter		Page 16

Page 2 of 16

Third Point Reinsurance Ltd.

Key Performance Indicators

March 31, 2017 and 2016

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



	Three months ended
	March 31, 2017			March 31, 2016

Key underwriting metrics for Property and Casualty Reinsurance segment:
Net underwriting loss⁽¹⁾	$	(8,650	)	$	(6,623	)
Combined ratio⁽¹⁾	106.3		%	104.9		%

Key investment return metrics:
Net investment income (loss)	$	128,510		$	(40,110	)
Net investment return on investments managed by Third Point LLC	5.8		%	(2.0		)%

Key shareholders’ value creation metrics:
Book value per share^{(2) (3)}	$	14.57		$	13.57
Diluted book value per share^{(2) (3)}	$	14.04		$	13.16
Increase (decrease) in diluted book value per share⁽²⁾	6.7		%	(3.7		)%
Return on beginning shareholders’ equity⁽²⁾	7.4		%	(3.7		)%


(1)	Refer to accompanying “Segment Reporting - Three months ended March 31, 2017 and 2016” 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, 2016.

Page 3 of 16

Third Point Reinsurance Ltd.

Consolidated Balance Sheets - by Quarter

(expressed in thousands of U.S. dollars)



	March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016
Assets
Equity securities, trading, at fair value	$	1,484,378		$	1,506,854		$	1,622,938		$	1,458,015		$	1,483,076
Debt securities, trading, at fair value	921,221			1,057,957			1,079,132			1,250,883			1,185,102
Other investments, at fair value	72,020			82,701			49,664			64,320			49,965
Total investments in securities	2,477,619			2,647,512			2,751,734			2,773,218			2,718,143
Cash and cash equivalents	11,829			9,951			20,982			7,038			7,658
Restricted cash and cash equivalents	334,813			298,940			365,451			280,069			316,923
Due from brokers	387,102			284,591			284,170			337,264			424,205
Derivative assets, at fair value	34,122			27,432			22,565			26,122			26,877
Interest and dividends receivable	8,003			6,505			11,756			7,492			14,092
Reinsurance balances receivable	421,034			381,951			448,450			429,358			326,066
Deferred acquisition costs, net	220,754			221,618			255,379			221,651			216,689
Other assets	14,079			17,144			17,101			14,159			16,594
Total assets	$	3,909,355		$	3,895,644		$	4,177,588		$	4,096,371		$	4,067,247
Liabilities and shareholders’ equity
Liabilities
Accounts payable and accrued expenses	$	11,509		$	10,321		$	13,508		$	9,878		$	9,639
Reinsurance balances payable	51,173			43,171			47,713			45,747			30,733
Deposit liabilities	105,778			104,905			105,207			88,817			86,594
Unearned premium reserves	565,243			557,076			668,980			655,397			591,970
Loss and loss adjustment expense reserves	625,786			605,129			565,682			536,955			489,907
Securities sold, not yet purchased, at fair value	217,836			92,668			198,393			262,748			235,919
Securities sold under an agreement to repurchase	16,524			—			55,880			168,356			170,305
Due to brokers	639,320			899,601			894,856			794,141			960,703
Derivative liabilities, at fair value	10,839			16,050			11,472			16,401			28,524
Performance fee payable to related party	30,857			—			24,846			2,954			—
Interest and dividends payable	2,361			3,443			1,772			4,517			2,397
Senior notes payable, net of deferred costs	113,599			113,555			113,510			113,465			113,421
Total liabilities	2,390,825			2,445,919			2,701,819			2,699,376			2,720,112
Commitments and contingent liabilities
Shareholders’ equity
Preference shares	—			—			—			—			—
Common shares	10,718			10,650			10,638			10,629			10,621
Treasury shares	(26,273		)	(7,389		)	(7,389		)	(7,389		)	—
Additional paid-in capital	1,096,828			1,094,568			1,090,975			1,086,258			1,083,168
Retained earnings	420,408			316,222			362,915			290,834			237,458
Shareholders’ equity attributable to shareholders	1,501,681			1,414,051			1,457,139			1,380,332			1,331,247
Non-controlling interests	16,849			35,674			18,630			16,663			15,888
Total shareholders’ equity	1,518,530			1,449,725			1,475,769			1,396,995			1,347,135
Total liabilities and shareholders’ equity	$	3,909,355		$	3,895,644		$	4,177,588		$	4,096,371		$	4,067,247

Page 4 of 16

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
	March 31, 2017			March 31, 2016
Revenues
Gross premiums written	$	146,354		$	197,156
Gross premiums ceded	(1,125		)	—
Net premiums written	145,229			197,156
Change in net unearned premium reserves	(7,220		)	(60,354		)
Net premiums earned	138,009			136,802
Net investment income (loss)	128,510			(40,110		)
Total revenues	266,519			96,692
Expenses
Loss and loss adjustment expenses incurred, net	85,895			84,676
Acquisition costs, net	54,452			51,687
General and administrative expenses	10,572			11,288
Other expenses	2,901			2,706
Interest expense	2,026			2,048
Foreign exchange (gains) losses	15			(2,386		)
Total expenses	155,861			150,019
Income (loss) before income tax (expense) benefit	110,658			(53,327		)
Income tax (expense) benefit	(5,298		)	1,929
Income (loss) including non-controlling interests	105,360			(51,398		)
(Income) loss attributable to non-controlling interests	(1,174		)	269
Net income (loss)	$	104,186		$	(51,129	)
Earnings (loss) per share
Basic	$	1.00		$	(0.49	)
Diluted	$	0.98		$	(0.49	)
Weighted average number of ordinary shares used in the determination of earnings (loss) per share
Basic	104,013,871			104,257,874
Diluted	105,701,599			104,257,874

(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 16

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
	March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016
Revenues
Gross premiums written	$	146,354		$	80,779		$	142,573		$	196,866		$	197,156
Gross premiums ceded	(1,125		)	27			(927		)	(1,425		)	—
Net premiums written	145,229			80,806			141,646			195,441			197,156
Change in net unearned premium reserves	(7,220		)	111,277			(13,463		)	(62,319		)	(60,354		)
Net premiums earned	138,009			192,083			128,183			133,122			136,802
Net investment income (loss)	128,510			(35,767		)	88,356			86,346			(40,110		)
Total revenues	266,519			156,316			216,539			219,468			96,692
Expenses
Loss and loss adjustment expenses incurred, net	85,895			122,110			85,015			104,131			84,676
Acquisition costs, net	54,452			76,854			45,127			48,482			51,687
General and administrative expenses	10,572			5,482			12,354			10,243			11,288
Other expenses	2,901			2,161			347			3,173			2,706
Interest expense	2,026			2,068			2,069			2,046			2,048
Foreign exchange gains	15			(5,162		)	(3,905		)	(8,068		)	(2,386		)
Total expenses	155,861			203,513			141,007			160,007			150,019
Income (loss) before income tax (expense) benefit	110,658			(47,197		)	75,532			59,461			(53,327		)
Income tax (expense) benefit	(5,298		)	272			(2,484		)	(5,310		)	1,929
Income (loss) including non-controlling interests	105,360			(46,925		)	73,048			54,151			(51,398		)
(Income) loss attributable to non-controlling interests	(1,174		)	232			(967		)	(775		)	269
Net income (loss)	$	104,186		$	(46,693	)	$	72,081		$	53,376		$	(51,129	)
Earnings (loss) per share
Basic	$	1.00		$	(0.45	)	$	0.69		$	0.51		$	(0.49	)
Diluted	$	0.98		$	(0.45	)	$	0.68		$	0.51		$	(0.49	)
Weighted average number of ordinary shares used in the determination of earnings (loss) per share
Basic	104,013,871			104,072,283			103,780,196			104,132,797			104,257,874
Diluted	105,701,599			104,072,283			105,795,313			105,233,921			104,257,874

(1)

Page 6 of 16

Third Point Reinsurance Ltd.

Segment Reporting - Three months ended March 31, 2017 and 2016

(expressed in thousands of U.S. dollars)



	Three months ended March 31, 2017									Three months ended March 31, 2016
	Property and Casualty Reinsurance			Corporate			Total			Property and Casualty Reinsurance			Corporate			Total
Revenues
Gross premiums written	$	146,354		$	—		$	146,354		$	197,156		$	—		$	197,156
Gross premiums ceded	(1,125		)	—			(1,125		)	—			—			—
Net premiums written	145,229			—			145,229			197,156			—			197,156
Change in net unearned premium reserves	(7,220		)	—			(7,220		)	(60,354		)	—			(60,354		)
Net premiums earned	138,009			—			138,009			136,802			—			136,802
Expenses
Loss and loss adjustment expenses incurred, net	85,895			—			85,895			84,676			—			84,676
Acquisition costs, net	54,452			—			54,452			51,687			—			51,687
General and administrative expenses	6,312			4,260			10,572			7,062			4,226			11,288
Total expenses	146,659			4,260			150,919			143,425			4,226			147,651
Net underwriting loss	(8,650		)	n/a			n/a			(6,623		)	n/a			n/a
Net investment income (loss)	36,120			92,390			128,510			(8,261		)	(31,849		)	(40,110		)
Other expenses	(2,901		)	—			(2,901		)	(2,706		)	—			(2,706		)
Interest expense	—			(2,026		)	(2,026		)	—			(2,048		)	(2,048		)
Foreign exchange gains (losses)	—			(15		)	(15		)	—			2,386			2,386
Income tax benefit (expense)	—			(5,298		)	(5,298		)	—			1,929			1,929
Segment income (loss) including non-controlling interests	24,569			80,791			105,360			(17,590		)	(33,808		)	(51,398		)
Segment income attributable to non-controlling interests	—			(1,174		)	(1,174		)	—			269			269
Segment income (loss)	$	24,569		$	79,617		$	104,186		$	(17,590	)	$	(33,539	)	$	(51,129	)

Property and Casualty Reinsurance - Underwriting Ratios (1):
Loss ratio	62.2		%							61.9		%
Acquisition cost ratio	39.5		%							37.8		%
Composite ratio	101.7		%							99.7		%
General and administrative expense ratio	4.6		%							5.2		%
Combined ratio	106.3		%							104.9		%


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

Page 7 of 16

Third Point Reinsurance Ltd.

Property and Casualty Reinsurance Segment - by Quarter

(expressed in thousands of U.S. dollars)



	Three Months Ended
	March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016
Revenues
Gross premiums written	$	146,354		$	80,779		$	142,573		$	196,866		$	197,156
Gross premiums ceded	(1,125		)	27			(927		)	(1,425		)	—
Net premiums written	145,229			80,806			141,646			195,441			197,156
Change in net unearned premium reserves	(7,220		)	111,277			(13,463		)	(62,319		)	(60,354		)
Net premiums earned	138,009			192,083			128,183			133,122			136,802
Expenses
Loss and loss adjustment expenses incurred, net	85,895			122,110			85,015			104,131			84,676
Acquisition costs, net	54,452			76,854			45,127			48,482			51,687
General and administrative expenses	6,312			2,633			6,380			6,085			7,062
Total expenses	146,659			201,597			136,522			158,698			143,425
Net underwriting loss	(8,650		)	(9,514		)	(8,339		)	(25,576		)	(6,623		)
Net investment income (loss)	36,120			(15,937		)	22,031			19,098			(8,261		)
Other expenses	(2,901		)	(2,161		)	(347		)	(3,173		)	(2,706		)
Segment income (loss)	$	24,569		$	(27,612	)	$	13,345		$	(9,651	)	$	(17,590	)

Underwriting ratios (1):
Loss ratio	62.2		%	63.6		%	66.3		%	78.2		%	61.9		%
Acquisition cost ratio	39.5		%	40.0		%	35.2		%	36.4		%	37.8		%
Composite ratio	101.7		%	103.6		%	101.5		%	114.6		%	99.7		%
General and administrative expense ratio	4.6		%	1.4		%	5.0		%	4.6		%	5.2		%
Combined ratio	106.3		%	105.0		%	106.5		%	119.2		%	104.9		%


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

Page 8 of 16

Third Point Reinsurance Ltd.

Corporate Function - by Quarter

(expressed in thousands of U.S. dollars)



	Three Months Ended
	March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016
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	4,260			2,849			5,974			4,158			4,226
Total expenses	4,260			2,849			5,974			4,158			4,226
Net investment income (loss)	92,390			(19,830		)	66,325			67,248			(31,849		)
Interest expense	(2,026		)	(2,068		)	(2,069		)	(2,046		)	(2,048		)
Foreign exchange gains	(15		)	5,162			3,905			8,068			2,386
Income tax (expense) benefit	(5,298		)	272			(2,484		)	(5,310		)	1,929
Segment income (loss) including non-controlling interests	80,791			(19,313		)	59,703			63,802			(33,808		)
Segment (income) loss attributable to non-controlling interests	(1,174		)	232			(967		)	(775		)	269
Segment income (loss)	$	79,617		$	(19,081	)	$	58,736		$	63,027		$	(33,539	)

Page 9 of 16

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
	March 31, 2017		December 31, 2016			September 30, 2016		June 30, 2016		March 31, 2016
Line and Type of Business
Property	$	12	$	34,620		$	56,632	$	7,257	$	(175	)

Workers Compensation	5,991		(1,690		)	6,153		50,366		1,240
Auto	20,239		6,065			7,350		68,074		10,137
General Liability	60,426		18,672			—		29,239		—
Professional Liability	549		2,857			13,137		1,450		—
Casualty	87,205		25,904			26,640		149,129		11,377

Credit & Financial Lines	19,711		13,177			58,896		14,543		32,091
Multi-line	39,426		7,078			405		25,937		153,863
Specialty	59,137		20,255			59,301		40,480		185,954

Total property and casualty reinsurance segment	$	146,354	$	80,779		$	142,573	$	196,866	$	197,156

Page 10 of 16

Third Point Reinsurance Ltd.

Investments Managed by Third Point LLC - by Quarter

(expressed in thousands of U.S. dollars)



	March 31, 2017		December 31, 2016		September 30, 2016		June 30, 2016		March 31, 2016
Assets
Total investments in securities	$	2,451,029	$	2,619,839	$	2,724,518	$	2,746,271	$	2,691,431
Cash and cash equivalents	6		5		11		11		11
Restricted cash and cash equivalents	334,813		298,940		365,451		280,069		316,923
Due from brokers	387,102		284,591		284,170		337,264		424,205
Derivative assets	34,122		27,432		22,565		26,122		26,877
Interest and dividends receivable	8,003		6,505		11,756		7,492		14,092
Total assets	$	3,215,075	$	3,237,312	$	3,408,471	$	3,397,229	$	3,473,539
Liabilities and non-controlling interest
Accounts payable and accrued expenses	$	1,889	$	1,374	$	783	$	902	$	1,102
Securities sold, not yet purchased	217,836		92,668		198,393		262,748		235,919
Securities sold under an agreement to repurchase	16,524		—		55,880		168,356		170,305
Due to brokers	639,320		899,601		894,856		794,141		960,703
Derivative liabilities	10,839		16,050		11,472		16,401		28,524
Performance fee payable to related party	30,857		—		24,846		2,954		—
Interest and dividends payable	1,347		386		737		1,482		1,363
Non-controlling interest	16,849		35,674		18,630		16,663		15,888
Total liabilities and non-controlling interest	935,461		1,045,753		1,205,597		1,263,647		1,413,804
Total net investments managed by Third Point LLC	$	2,279,614	$	2,191,559	$	2,202,874	$	2,133,582	$	2,059,735

Net investments - Capital	$	1,666,924	$	1,595,874	$	1,620,441	$	1,560,681	$	1,504,321
Net investments - Float	612,690		595,685		582,433		572,901		555,414
Total net investments managed by Third Point LLC	$	2,279,614	$	2,191,559	$	2,202,874	$	2,133,582	$	2,059,735

Page 11 of 16

Third Point Reinsurance Ltd.

Investment Return by Investment Strategy - by Quarter



Summary of investment return on investments managed by Third Point LLC	March 31, 2017		December 31, 2016		September 30, 2016		June 30, 2016		March 31, 2016

Long/short equities	5.2	%	(2.6	)%	1.9	%	0.3	%	(1.1	)%
Credit	0.2	%	0.2	%	2.0	%	3.8	%	—	%
Other	0.4	%	0.7	%	0.1	%	(0.1	)%	(0.9	)%
	5.8	%	(1.7	)%	4.0	%	4.0	%	(2.0	)%

Page 12 of 16

Third Point Reinsurance Ltd.

General and Administrative Expenses - by Quarter

(expressed in thousands of U.S. dollars)



	March 31, 2017		December 31, 2016			September 30, 2016		June 30, 2016		March 31, 2016
Payroll and related	$	5,283	$	(182	)	$	7,259	$	4,510	$	5,001
Share compensation expenses	1,830		2,342			1,894		2,051		2,651
Legal and accounting	1,038		1,421			1,069		1,194		928
Travel and entertainment	737		768			417		640		676
IT related	585		66			472		381		457
Occupancy	256		251			267		281		262
Corporate insurance	226		211			220		232		247
Board of director and related	177		146			166		191		163
Credit facility fees	24		103			266		385		553
Other general and administrative expenses	416		356			324		378		350
	$	10,572	$	5,482		$	12,354	$	10,243	$	11,288

Page 13 of 16

Third Point Reinsurance Ltd.

Book Value per Share and Diluted Book Value per Share - by Quarter

(expressed in thousands of U.S. dollars)



	March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016
Basic and diluted book value per share numerator:
Total shareholders’ equity	$	1,518,530		$	1,449,725		$	1,475,769		$	1,396,995		$	1,347,135
Less: non-controlling interests	(16,849		)	(35,674		)	(18,630		)	(16,663		)	(15,888		)
Shareholders’ equity attributable to shareholders	1,501,681			1,414,051			1,457,139			1,380,332			1,331,247
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	52,430			52,930			54,189			57,024			57,272
Fully diluted book value per share numerator:	$	1,600,623		$	1,513,493		$	1,557,840		$	1,483,868		$	1,435,031
Basic and diluted book value per share denominator:
Issued and outstanding shares, net of treasury shares	103,050,620			104,173,748			104,000,129			103,716,629			104,336,577
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	5,224,333			5,274,333			5,400,240			5,683,740			5,708,559
Effect of dilutive restricted shares issued to employees	1,103,140			878,529			937,377			1,157,384			1,273,248
Diluted book value per share denominator:	114,029,256			114,977,773			114,988,909			115,208,916			115,969,547

Basic book value per share⁽¹⁾	$	14.57		$	13.57		$	14.01		$	13.31		$	12.76
Diluted book value per share⁽¹⁾	$	14.04		$	13.16		$	13.55		$	12.88		$	12.37

Increase (decrease) in diluted book value per share	6.7		%	(2.9		)%	5.2		%	4.1		%	(3.7		)%

(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. Change in book value per share is calculated by taking the change in book value per share divided by the beginning of period book value per share. Change in diluted book value per share is calculated by taking the change in diluted book value per share 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.

Page 14 of 16

Third Point Reinsurance Ltd.

Earnings (Loss) per Share - by Quarter

(expressed in thousands of U.S. dollars)



	March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016(1)
Weighted-average number of common shares outstanding
Basic number of common shares outstanding, net of treasury shares	104,013,871			104,072,283			103,780,196			104,132,797			104,257,874
Dilutive effect of options	781,568			—			940,627			403,547			—
Dilutive effect of warrants	722,816			—			912,286			556,829			—
Dilutive effect of restricted shares with service and performance condition	183,344			—			162,204			140,748			—
Diluted number of common shares outstanding	105,701,599			104,072,283			105,795,313			105,233,921			104,257,874

Basic earnings (loss) per common share:
Net income (loss)	$	104,186		$	(46,693	)	$	72,081		$	53,376		$	(51,129	)
Income allocated to participating shares	(139		)	—			(241		)	(169		)	—
Net income (loss) available to common shareholders	$	104,047		$	(46,693	)	$	71,840		$	53,207		$	(51,129	)

Basic earnings (loss) per common share	$	1.00		$	(0.45	)	$	0.69		$	0.51		$	(0.49	)

Diluted earnings (loss) per common share
Net income (loss)	$	104,186		$	(46,693	)	$	72,081		$	53,376		$	(51,129	)
Income allocated to participating shares	(136		)	—			(237		)	(167		)	—
Net income (loss) available to common shareholders	$	104,050		$	(46,693	)	$	71,844		$	53,209		$	(51,129	)

Diluted earnings (loss) per common share	$	0.98		$	(0.45	)	$	0.68		$	0.51		$	(0.49	)

(1)

Page 15 of 16

Third Point Reinsurance Ltd.

Return on Beginning Shareholders’ Equity - by Quarter

(expressed in thousands of U.S. dollars)



	March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016
Net income (loss)	$	104,186		$	(46,693	)	$	72,081		$	53,376		$	(51,129	)
Shareholders’ equity attributable to shareholders - beginning of period	1,414,051			1,457,139			1,380,332			1,331,247			1,379,726
Impact of weighting related to shareholders’ equity from shares repurchased	(5,038		)	—			—			(2,609		)	—
Adjusted shareholders’ equity attributable to shareholders - beginning of period	$	1,409,013		$	1,457,139		$	1,380,332		$	1,328,638		$	1,379,726
Return on beginning shareholders’ equity	7.4		%	(3.2		)%	5.2		%	4.0		%	(3.7		)%

(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. 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 16 of 16

SiriusPoint Ltd - FORM 8-K - EX-99.2 - EXHIBIT 99.2 FINANCIAL SUPPLEMENT - May 4, 2017

Attached files

SiriusPoint Ltd Reports