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

Attached files

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EX-99.3 - EXHIBIT 99.3 PRESS RELEASE - SiriusPoint Ltd	exhibit993-pressrelease.htm
EX-99.1 - EXHIBIT 99.1 EARNINGS PRESS RELEASE - SiriusPoint Ltd	exhibit991-earningspressre.htm
8-K - 8-K - SiriusPoint Ltd	form8-knovemberx2017.htm

Third Point Reinsurance Ltd.

Financial Supplement

September 30, 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 BDA”) and Third Point Reinsurance (USA) Ltd. (“Third Point Re USA”), as a combined entity, except where otherwise stated or where it is clear that the terms mean only Third Point Reinsurance Ltd. exclusive of its subsidiaries. We have made rounding adjustments to reach some of the figures included in this financial supplement and, unless otherwise indicated, percentages presented in this financial supplement are approximate.

In presenting the Company’s results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP). Such measures, including 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 BDA 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 BDA potentially becoming subject to U.S. federal income taxation, including as a result of the bill currently proposed in the U.S House of Representatives; (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 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		Page 5
Condensed Consolidated Statements of Income (Loss) - by Quarter		Page 6

Operating Segment Information
Segment Reporting - Three months ended September 30, 2017 and 2016		Page 7
Segment Reporting - Nine months ended September 30, 2017 and 2016		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
Net Investments Managed by Third Point LLC - by Quarter		Page 12
Net 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

September 30, 2017 and 2016

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



	Three months ended						Nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016

Key underwriting metrics for Property and Casualty Reinsurance segment:
Net underwriting loss ⁽¹⁾	$	(12,565	)	$	(8,339	)	$	(33,326	)	$	(40,538	)
Combined ratio ⁽¹⁾	111.9		%	106.5		%	108.0		%	110.2		%

Key investment return metrics:
Net investment income	$	88,968		$	88,356		$	324,803		$	134,592
Net investment return on investments managed by Third Point LLC	3.6		%	4.0		%	14.6		%	6.0		%

Key shareholders’ value creation metrics:
Book value per share ^{(2) (3)}	$	15.90		$	13.57		$	15.90		$	13.57
Diluted book value per share ^{(2) (3)}	$	15.24		$	13.16		$	15.24		$	13.16
Increase in diluted book value per share ⁽²⁾	3.4		%	5.2		%	15.8		%	5.4		%
Return on beginning shareholders’ equity ⁽²⁾	3.5		%	5.2		%	16.8		%	5.4		%
Invested asset leverage ⁽³⁾	1.57			1.55			1.57			1.55


(1)	Refer to accompanying “Segment Reporting - Three and nine months ended September 30, 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 17

Third Point Reinsurance Ltd.

Condensed Consolidated Balance Sheets - by Quarter

(expressed in thousands of U.S. dollars)



	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Assets
Equity securities, trading, at fair value	$	2,017,463		$	1,941,170		$	1,484,378		$	1,506,854		$	1,622,938
Debt securities, trading, at fair value	656,118			702,515			921,221			1,057,957			1,079,132
Other investments, at fair value	30,932			29,091			72,020			82,701			49,664
Total investments in securities	2,704,513			2,672,776			2,477,619			2,647,512			2,751,734
Cash and cash equivalents	6,434			8,255			11,829			9,951			20,982
Restricted cash and cash equivalents	477,362			372,068			334,813			298,940			365,451
Due from brokers	387,786			424,163			387,102			284,591			284,170
Derivative assets, at fair value	75,781			45,110			34,122			27,432			22,565
Interest and dividends receivable	4,210			3,947			8,003			6,505			11,756
Reinsurance balances receivable	478,206			472,570			421,034			381,951			448,450
Deferred acquisition costs, net	223,091			203,193			220,754			221,618			255,379
Other assets	11,464			14,648			14,079			17,144			17,101
Total assets	$	4,368,847		$	4,216,730		$	3,909,355		$	3,895,644		$	4,177,588
Liabilities
Accounts payable and accrued expenses	$	24,580		$	17,929		$	11,509		$	10,321		$	13,508
Reinsurance balances payable	54,654			65,456			51,173			43,171			47,713
Deposit liabilities	126,491			105,208			105,778			104,905			105,207
Unearned premium reserves	615,375			547,815			565,243			557,076			668,980
Loss and loss adjustment expense reserves	699,369			678,459			625,786			605,129			565,682
Securities sold, not yet purchased, at fair value	405,845			265,667			217,836			92,668			198,393
Securities sold under an agreement to repurchase	—			—			16,524			—			55,880
Due to brokers	602,230			777,179			639,320			899,601			894,856
Derivative liabilities, at fair value	17,280			11,949			10,839			16,050			11,472
Performance fee payable to related party	73,210			53,455			30,857			—			24,846
Interest and dividends payable	1,917			3,838			2,361			3,443			1,772
Senior notes payable, net of deferred costs	113,688			113,643			113,599			113,555			113,510
Total liabilities	2,734,639			2,640,598			2,390,825			2,445,919			2,701,819
Commitments and contingent liabilities
Redeemable noncontrolling interests in related party (1)	16,813			—			—			—			—
Shareholders’ equity
Preference shares	—			—			—			—			—
Common shares	10,738			10,733			10,718			10,650			10,638
Treasury shares	(48,253		)	(48,253		)	(26,273		)	(7,389		)	(7,389		)
Additional paid-in capital	1,099,998			1,098,857			1,096,828			1,094,568			1,090,975
Retained earnings	549,671			494,986			420,408			316,222			362,915
Shareholders’ equity attributable to Third Point Re common shareholders	1,612,154			1,556,323			1,501,681			1,414,051			1,457,139
Noncontrolling interests in related party (1)	5,241			19,809			16,849			35,674			18,630
Total shareholders’ equity	1,617,395			1,576,132			1,518,530			1,449,725			1,475,769
Total liabilities, noncontrolling interests and shareholders' equity	$	4,368,847		$	4,216,730		$	3,909,355		$	3,895,644		$	4,177,588

(1)

During the quarter ended September 30, 2017, the Company identified that a portion of its noncontrolling interest was redeemable. This portion of the noncontrolling interests had previously been presented in noncontrolling interests in related party within shareholders’ equity when it should have been presented in the mezzanine section of the consolidated balance sheet as redeemable noncontrolling interests in related party. As of December 31, 2016, $31.2 million of the noncontrolling interest in related party should have been presented in the mezzanine section of the consolidated balance sheet as redeemable noncontrolling interests in related party. Although this impacted total shareholders’ equity, it did not impact shareholders’ equity attributable to Third Point Re common shareholders or retained earnings. In addition, this change did not impact the condensed consolidated statements of income, earnings per share or condensed consolidated statement of cash flows. The Company has evaluated the effect of the incorrect presentation, both qualitatively and quantitatively, and concluded that it did not have a material impact on, nor require amendment of, any previously filed annual or quarterly consolidated financial statements.

Page 4 of 17

Third Point Reinsurance Ltd.

Condensed Consolidated Statements of Income

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



	Three months ended						Nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Revenues
Gross premiums written	$	174,539		$	142,573		$	477,457		$	536,595
Gross premiums ceded	—			(927		)	(2,550		)	(2,352		)
Net premiums written	174,539			141,646			474,907			534,243
Change in net unearned premium reserves	(68,564		)	(13,463		)	(57,365		)	(136,136		)
Net premiums earned	105,975			128,183			417,542			398,107
Net investment income before management and performance fees to related parties	119,516			121,208			427,982			191,084
Management and performance fees to related parties	(30,548		)	(32,852		)	(103,179		)	(56,492		)
Net investment income	88,968			88,356			324,803			134,592
Total revenues	194,943			216,539			742,345			532,699
Expenses
Loss and loss adjustment expenses incurred, net	77,275			85,015			270,549			273,822
Acquisition costs, net	33,974			45,127			157,067			145,296
General and administrative expenses	13,218			12,354			38,804			33,885
Other expenses	3,846			347			8,852			6,226
Interest expense	2,074			2,069			6,151			6,163
Foreign exchange (gains) losses	5,437			(3,905		)	10,233			(14,359		)
Total expenses	135,824			141,007			491,656			451,033
Income before income tax expense	59,119			75,532			250,689			81,666
Income tax expense	(3,475		)	(2,484		)	(14,080		)	(5,865		)
Net income	55,644			73,048			236,609			75,801
Net income attributable to noncontrolling interests in related party	(959		)	(967		)	(3,160		)	(1,473		)
Net income available to Third Point Re common shareholders	$	54,685		$	72,081		$	233,449		$	74,328
Earnings per share available to Third Point Re common shareholders
Basic earnings per share available to Third Point Re common shareholders ⁽¹⁾	$	0.54		$	0.69		$	2.27		$	0.71
Diluted earnings per share available to Third Point Re common shareholders ⁽¹⁾	$	0.52		$	0.68		$	2.22		$	0.70
Weighted average number of common shares used in the determination of earnings per common share
Basic	101,391,145			103,780,196			102,553,346			104,055,946
Diluted	104,679,574			105,795,313			105,040,251			105,590,668

(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.

Condensed Consolidated Statements of Income (Loss) - by Quarter

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



	Three Months Ended
	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Revenues
Gross premiums written	$	174,539		$	156,564		$	146,354		$	80,779		$	142,573
Gross premiums ceded	—			(1,425		)	(1,125		)	27			(927		)
Net premiums written	174,539			155,139			145,229			80,806			141,646
Change in net unearned premium reserves	(68,564		)	18,419			(7,220		)	111,277			(13,463		)
Net premiums earned	105,975			173,558			138,009			192,083			128,183
Net investment income (loss) before management and performance fees to related parties	119,516			140,631			167,835			(32,552		)	121,208
Management and performance fees to related parties	(30,548		)	(33,306		)	(39,325		)	(3,215		)	(32,852		)
Net investment income (loss)	88,968			107,325			128,510			(35,767		)	88,356
Total revenues	194,943			280,883			266,519			156,316			216,539
Expenses
Loss and loss adjustment expenses incurred, net	77,275			107,379			85,895			122,110			85,015
Acquisition costs, net	33,974			68,641			54,452			76,854			45,127
General and administrative expenses	13,218			15,014			10,572			5,482			12,354
Other expenses	3,846			2,105			2,901			2,161			347
Interest expense	2,074			2,051			2,026			2,068			2,069
Foreign exchange (gains) losses	5,437			4,781			15			(5,162		)	(3,905		)
Total expenses	135,824			199,971			155,861			203,513			141,007
Income (loss) before income tax (expense) benefit	59,119			80,912			110,658			(47,197		)	75,532
Income tax (expense) benefit	(3,475		)	(5,307		)	(5,298		)	272			(2,484		)
Net income (loss)	55,644			75,605			105,360			(46,925		)	73,048
Net income (loss) attributable to noncontrolling interests in related party	(959		)	(1,027		)	(1,174		)	232			(967		)
Net income (loss) available (attributable) to Third Point Re common shareholders	$	54,685		$	74,578		$	104,186		$	(46,693	)	$	72,081
Earnings (loss) per share available (attributable) to Third Point Re common shareholders
Basic earnings (loss) per share available (attributable) to Third Point Re common shareholders ⁽¹⁾	$	0.54		$	0.73		$	1.00		$	(0.45	)	$	0.69
Diluted earnings (loss) per share available (attributable) to Third Point Re common shareholders ⁽¹⁾	$	0.52		$	0.71		$	0.98		$	(0.45	)	$	0.68
Weighted average number of common shares used in the determination of earnings (loss) per common share
Basic	101,391,145			102,283,844			104,013,871			104,072,283			103,780,196
Diluted	104,679,574			104,569,226			105,701,599			104,072,283			105,795,313

(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 6 of 17

Third Point Reinsurance Ltd.

Segment Reporting - Three months ended September 30, 2017 and 2016

(expressed in thousands of U.S. dollars)



	Three months ended September 30, 2017									Three months ended September 30, 2016
	Property and Casualty Reinsurance			Corporate			Total			Property and Casualty Reinsurance			Corporate			Total
Revenues
Gross premiums written	$	174,539		$	—		$	174,539		$	142,573		$	—		$	142,573
Gross premiums ceded	—			—			—			(927		)	—			(927		)
Net premiums written	174,539			—			174,539			141,646			—			141,646
Change in net unearned premium reserves	(68,564		)	—			(68,564		)	(13,463		)	—			(13,463		)
Net premiums earned	105,975			—			105,975			128,183			—			128,183
Expenses
Loss and loss adjustment expenses incurred, net	77,275			—			77,275			85,015			—			85,015
Acquisition costs, net	33,974			—			33,974			45,127			—			45,127
General and administrative expenses	7,291			5,927			13,218			6,380			5,974			12,354
Total expenses	118,540			5,927			124,467			136,522			5,974			142,496
Net underwriting loss	(12,565		)	n/a			n/a			(8,339		)	n/a			n/a
Net investment income	26,531			62,437			88,968			22,031			66,325			88,356
Other expenses	(3,846		)	—			(3,846		)	(347		)	—			(347		)
Interest expense	—			(2,074		)	(2,074		)	—			(2,069		)	(2,069		)
Foreign exchange gains (losses)	—			(5,437		)	(5,437		)	—			3,905			3,905
Income tax expense	—			(3,475		)	(3,475		)	—			(2,484		)	(2,484		)
Net income attributable to noncontrolling interests in related party	—			(959		)	(959		)	—			(967		)	(967		)
Segment income	$	10,120		$	44,565					$	13,345		$	58,736
Net income available to Third Point Re common shareholders							$	54,685								$	72,081

Property and Casualty Reinsurance - Underwriting Ratios ⁽¹⁾:
Loss ratio	72.9		%							66.3		%
Acquisition cost ratio	32.1		%							35.2		%
Composite ratio	105.0		%							101.5		%
General and administrative expense ratio	6.9		%							5.0		%
Combined ratio	111.9		%							106.5		%


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

Page 7 of 17

Third Point Reinsurance Ltd.

Segment Reporting - Nine months ended September 30, 2017 and 2016

(expressed in thousands of U.S. dollars)



	Nine months ended September 30, 2017									Nine months ended September 30, 2016
	Property and Casualty Reinsurance			Corporate			Total			Property and Casualty Reinsurance			Corporate			Total
Revenues
Gross premiums written	$	477,457		$	—		$	477,457		$	536,595		$	—		$	536,595
Gross premiums ceded	(2,550		)	—			(2,550		)	(2,352		)	—			(2,352		)
Net premiums written	474,907			—			474,907			534,243			—			534,243
Change in net unearned premium reserves	(57,365		)	—			(57,365		)	(136,136		)	—			(136,136		)
Net premiums earned	417,542			—			417,542			398,107			—			398,107
Expenses
Loss and loss adjustment expenses incurred, net	270,549			—			270,549			273,822			—			273,822
Acquisition costs, net	157,067			—			157,067			145,296			—			145,296
General and administrative expenses	23,252			15,552			38,804			19,527			14,358			33,885
Total expenses	450,868			15,552			466,420			438,645			14,358			453,003
Net underwriting loss	(33,326		)	n/a			n/a			(40,538		)	n/a			n/a
Net investment income	93,857			230,946			324,803			32,868			101,724			134,592
Other expenses	(8,852		)	—			(8,852		)	(6,226		)	—			(6,226		)
Interest expense	—			(6,151		)	(6,151		)	—			(6,163		)	(6,163		)
Foreign exchange gains (losses)	—			(10,233		)	(10,233		)	—			14,359			14,359
Income tax expense	—			(14,080		)	(14,080		)	—			(5,865		)	(5,865		)
Net income attributable to noncontrolling interests in related party	—			(3,160		)	(3,160		)	—			(1,473		)	(1,473		)
Segment income (loss)	$	51,679		$	181,770					$	(13,896	)	$	88,224
Net income available to Third Point Re common shareholders							$	233,449								$	74,328

Property and Casualty Reinsurance - Underwriting Ratios ⁽¹⁾:
Loss ratio	64.8		%							68.8		%
Acquisition cost ratio	37.6		%							36.5		%
Composite ratio	102.4		%							105.3		%
General and administrative expense ratio	5.6		%							4.9		%
Combined ratio	108.0		%							110.2		%


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

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
	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Revenues
Gross premiums written	$	174,539		$	156,564		$	146,354		$	80,779		$	142,573
Gross premiums ceded	—			(1,425		)	(1,125		)	27			(927		)
Net premiums written	174,539			155,139			145,229			80,806			141,646
Change in net unearned premium reserves	(68,564		)	18,419			(7,220		)	111,277			(13,463		)
Net premiums earned	105,975			173,558			138,009			192,083			128,183
Expenses
Loss and loss adjustment expenses incurred, net	77,275			107,379			85,895			122,110			85,015
Acquisition costs, net	33,974			68,641			54,452			76,854			45,127
General and administrative expenses	7,291			9,649			6,312			2,633			6,380
Total expenses	118,540			185,669			146,659			201,597			136,522
Net underwriting loss	(12,565		)	(12,111		)	(8,650		)	(9,514		)	(8,339		)
Net investment income (loss)	26,531			31,206			36,120			(15,937		)	22,031
Other expenses	(3,846		)	(2,105		)	(2,901		)	(2,161		)	(347		)
Segment income (loss)	$	10,120		$	16,990		$	24,569		$	(27,612	)	$	13,345

Underwriting ratios ⁽¹⁾
Loss ratio	72.9		%	61.9		%	62.2		%	63.6		%	66.3		%
Acquisition cost ratio	32.1		%	39.5		%	39.5		%	40.0		%	35.2		%
Composite ratio	105.0		%	101.4		%	101.7		%	103.6		%	101.5		%
General and administrative expense ratio	6.9		%	5.6		%	4.6		%	1.4		%	5.0		%
Combined ratio	111.9		%	107.0		%	106.3		%	105.0		%	106.5		%


(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
	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 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	5,927			5,365			4,260			2,849			5,974
Total expenses	5,927			5,365			4,260			2,849			5,974
Net investment income (loss)	62,437			76,119			92,390			(19,830		)	66,325
Interest expense	(2,074		)	(2,051		)	(2,026		)	(2,068		)	(2,069		)
Foreign exchange gains	(5,437		)	(4,781		)	(15		)	5,162			3,905
Income tax (expense) benefit	(3,475		)	(5,307		)	(5,298		)	272			(2,484		)
Net (income) loss attributable to noncontrolling interests in related party	(959		)	(1,027		)	(1,174		)	232			(967		)
Segment income (loss)	$	44,565		$	57,588		$	79,617		$	(19,081	)	$	58,736

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
	September 30, 2017			June 30, 2017			March 31, 2017		December 31, 2016			September 30, 2016
Line and Type of Business
Property	$	(3	)	$	(8,827	)	$	12	$	34,620		$	56,632

Workers Compensation	19,688			6,520			5,991		(1,690		)	6,153
Auto	7,980			112,547			20,239		6,065			7,350
General Liability	111,300			(2,927		)	60,426		18,672			—
Professional Liability	22,142			2,000			549		2,857			13,137
Casualty	161,110			118,140			87,205		25,904			26,640

Credit & Financial Lines	6,033			(906		)	19,711		13,177			58,896
Multi-line	949			27,085			39,426		6,691			405
Other Specialty	6,450			21,072			—		387			—
Specialty	13,432			47,251			59,137		20,255			59,301

Total property and casualty reinsurance segment	$	174,539		$	156,564		$	146,354	$	80,779		$	142,573

Prospective	$	172,856		$	72,687		$	146,354	$	80,779		$	142,573
Retroactive ⁽¹⁾	1,683			83,877			—		—			—
	$	174,539		$	156,564		$	146,354	$	80,779		$	142,573

(1) Includes all retroactive exposure in reinsurance contracts.

Page 11 of 17

Third Point Reinsurance Ltd.

Net Investments Managed by Third Point LLC - by Quarter

(expressed in thousands of U.S. dollars)



	September 30, 2017		June 30, 2017		March 31, 2017		December 31, 2016		September 30, 2016
Assets
Total investments in securities	$	2,703,605	$	2,671,218	$	2,451,029	$	2,619,839	$	2,724,518
Cash and cash equivalents	449		10		6		5		11
Restricted cash and cash equivalents	477,362		372,068		334,813		298,940		365,451
Due from brokers	387,786		424,163		387,102		284,591		284,170
Derivative assets	75,781		45,110		34,122		27,432		22,565
Interest and dividends receivable	4,210		3,947		8,003		6,505		11,756
Total assets	$	3,649,193	$	3,516,516	$	3,215,075	$	3,237,312	$	3,408,471
Liabilities and noncontrolling interests in related party
Accounts payable and accrued expenses	$	2,674	$	2,107	$	1,889	$	1,374	$	783
Securities sold, not yet purchased	405,845		265,667		217,836		92,668		198,393
Securities sold under an agreement to repurchase	—		—		16,524		—		55,880
Due to brokers	602,230		777,179		639,320		899,601		894,856
Derivative liabilities	17,280		11,949		10,839		16,050		11,472
Performance fee payable to related party	73,210		53,455		30,857		—		24,846
Interest and dividends payable	891		817		1,347		386		737
Total noncontrolling interests in related party	22,054		19,809		16,849		35,674		18,630
Total liabilities and noncontrolling interests in related party	1,124,184		1,130,983		935,461		1,045,753		1,205,597
Total net investments managed by Third Point LLC	$	2,525,009	$	2,385,533	$	2,279,614	$	2,191,559	$	2,202,874

Net investments - Capital	$	1,794,411	$	1,737,638	$	1,666,924	$	1,595,874	$	1,620,441
Net investments - Float	730,598		647,895		612,690		595,685		582,433
Total net investments managed by Third Point LLC	$	2,525,009	$	2,385,533	$	2,279,614	$	2,191,559	$	2,202,874

Page 12 of 17

Third Point Reinsurance Ltd.

Net Investment Return by Investment Strategy - by Quarter



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

Long
Equity	3.5	%	6.5	%	6.4	%	(2.1	)%	4.1	%
Credit	0.5	%	(0.3	)%	0.4	%	(0.1	)%	2.1	%
Other	0.9	%	0.2	%	0.8	%	0.3	%	0.2	%
	4.9	%	6.4	%	7.6	%	(1.9	)%	6.4	%

Short
Equity	(0.9	)%	(1.1	)%	(1.2	)%	(0.5	)%	(2.2	)%
Credit	(0.1	)%	(0.3	)%	(0.2	)%	0.3	%	(0.1	)%
Other	(0.3	)%	(0.5	)%	(0.4	)%	0.4	%	(0.1	)%
	(1.3	)%	(1.9	)%	(1.8	)%	0.2	%	(2.4	)%

Net
Equity	2.6	%	5.4	%	5.2	%	(2.6	)%	1.9	%
Credit	0.4	%	(0.6	)%	0.2	%	0.2	%	2.0	%
Other	0.6	%	(0.3	)%	0.4	%	0.7	%	0.1	%
	3.6	%	4.5	%	5.8	%	(1.7	)%	4.0	%

Page 13 of 17

Third Point Reinsurance Ltd.

General and Administrative Expenses - by Quarter

(expressed in thousands of U.S. dollars)



	September 30, 2017		June 30, 2017		March 31, 2017		December 31, 2016			September 30, 2016
Payroll and related	$	9,613	$	10,515	$	5,283	$	(182	)	$	7,259
Share compensation expenses	640		1,544		1,830		2,342			1,894
Legal and accounting	1,040		1,033		1,038		1,421			1,069
Travel and entertainment	532		727		737		768			417
IT related	329		82		585		66			472
Occupancy	265		259		256		251			267
Corporate insurance	196		212		226		211			220
Board of director and related	175		150		177		146			166
Credit facility fees	112		110		24		103			266
Other general and administrative expenses	316		382		416		356			324
	$	13,218	$	15,014	$	10,572	$	5,482		$	12,354

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)



	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Basic and diluted book value per share numerator:
Shareholders’ equity attributable to Third Point Re common shareholders	1,612,154			1,556,323			1,501,681			1,414,051			1,457,139
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	54,572			51,930			52,430			52,930			54,189
Diluted book value per share numerator:	$	1,713,238		$	1,654,765		$	1,600,623		$	1,513,493		$	1,557,840
Basic and diluted book value per share denominator:
Issued and outstanding shares, net of treasury shares	101,399,735			101,339,828			103,050,620			104,173,748			104,000,129
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	5,332,833			5,174,333			5,224,333			5,274,333			5,400,240
Effect of dilutive restricted shares issued to directors and employees	1,061,412			1,127,928			1,103,140			878,529			937,377
Diluted book value per share denominator:	112,445,143			112,293,252			114,029,256			114,977,773			114,988,909

Basic book value per share ⁽¹⁾	$	15.90		$	15.36		$	14.57		$	13.57		$	14.01
Diluted book value per share ⁽¹⁾	$	15.24		$	14.74		$	14.04		$	13.16		$	13.55

Increase (decrease) in diluted book value per share	3.4		%	5.0		%	6.7		%	(2.9		)%	5.2		%

(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 Third Point Re common 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 15 of 17

Third Point Reinsurance Ltd.

Earnings (Loss) per Share - by Quarter

(expressed in thousands of U.S. dollars)



	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Weighted-average number of common shares outstanding:
Basic number of common shares outstanding, net of treasury shares	101,391,145			102,283,844			104,013,871			104,072,283			103,780,196
Dilutive effect of options	1,536,419			1,084,217			781,568			—			940,627
Dilutive effect of warrants	1,416,696			988,830			722,816			—			912,286
Dilutive effect of restricted shares with service and performance condition	335,314			212,335			183,344			—			162,204
Diluted number of common shares outstanding	104,679,574			104,569,226			105,701,599			104,072,283			105,795,313

Basic earnings (loss) per common share:
Net income (loss) available to Third Point Re common shareholders	$	54,685		$	74,578		$	104,186		$	(46,693	)	$	72,081
Net income allocated to Third Point Re participating common shareholders	(55		)	(71		)	(139		)	—			(241		)
Net income (loss) allocated to Third Point Re common shareholders	$	54,630		$	74,507		$	104,047		$	(46,693	)	$	71,840

Basic earnings (loss) per share available to Third Point Re common shareholders ⁽¹⁾	$	0.54		$	0.73		$	1.00		$	(0.45	)	$	0.69

Diluted earnings (loss) per common share:
Net income (loss) available to Third Point Re common shareholders	$	54,685		$	74,578		$	104,186		$	(46,693	)	$	72,081
Net income allocated to Third Point Re participating common shareholders	(53		)	(69		)	(136		)	—			(237		)
Net income allocated to Third Point Re common shareholders	$	54,632		$	74,509		$	104,050		$	(46,693	)	$	71,844

Diluted earnings (loss) per share available to Third Point Re common shareholders⁽¹⁾	$	0.52		$	0.71		$	0.98		$	(0.45	)	$	0.68

(1)

Page 16 of 17

Third Point Reinsurance Ltd.

Return on Beginning Shareholders’ Equity - by Quarter

(expressed in thousands of U.S. dollars)



	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Net income (loss) available to Third Point Re common shareholders	$	54,685		$	74,578		$	104,186		$	(46,693	)	$	72,081
Shareholders’ equity attributable to Third Point Re common shareholders - beginning of period	1,556,323			1,501,681			1,414,051			1,457,139			1,380,332
Impact of weighting related to shareholders’ equity from shares repurchased	—			(9,863		)	(5,038		)	—			—
Adjusted shareholders’ equity attributable to Third Point Re common shareholders - beginning of period	$	1,556,323		$	1,491,818		$	1,409,013		$	1,457,139		$	1,380,332
Return on beginning shareholders’ equity attributable to Third Point Re common shareholders ⁽¹⁾	3.5		%	5.0		%	7.4		%	(3.2		)%	5.2		%

(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. 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 - November 8, 2017

Attached files

SiriusPoint Ltd Reports