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

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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-kfebruary282018.htm

Third Point Reinsurance Ltd.

Financial Supplement

December 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 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. (“Third Point Re”) 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: results of operations fluctuate and may not be indicative of our prospects; more established competitors; losses exceeding reserves; highly cyclical property and casualty reinsurance industry; downgrade or withdrawal of ratings by rating agencies; significant decrease in our capital or surplus; dependence on key executives; dependence on letter of credit facilities that may not be available on commercially acceptable terms; inability to service our indebtedness; limited cash flow and liquidity due to our indebtedness; inability to raise necessary funds to pay principal or interest on debt; potential lack of availability of capital in the future; credit risk associated with the use of reinsurance brokers; future strategic transactions such as acquisitions, dispositions, mergers or joint ventures; dependence on Third Point LLC to implement our investment strategy; decline in revenue due to poor performance of our investment portfolio; risks associated with our investment strategy being greater than those faced by competitors; termination by Third Point LLC of our investment management agreements; potential conflicts of interest with Third Point LLC; losses resulting from significant investment positions; credit risk associated with the default on obligations of counterparties; ineffective investment risk management systems; fluctuations in the market value of our investment portfolio; trading restrictions being placed on our investments; limited termination provisions in our investment management agreements; limited liquidity and lack of valuation data on our investments; U.S. and global economic downturns; specific characteristics of investments in mortgage-backed securities and other asset-backed securities, in securities of issues based outside the U.S., and in special situation or distressed companies; loss of key employees at Third Point LLC; Third Point LLC’s compensation arrangements may incentivize investments that are risky or speculative; increased regulation or scrutiny of alternative investment advisers affecting our reputation; suspension or revocation of our reinsurance licenses; potentially being deemed an investment company under U.S. federal securities law; failure of reinsurance subsidiaries to meet minimum capital and surplus requirements; changes in Bermuda or other law and regulation that may have an adverse impact on our operations; Third Point Re and/or Third Point Re BDA potentially becoming subject to U.S. federal income taxation; potential characterization of Third Point Re and/or Third Point Re BDA as a passive foreign investment company; subjection of our affiliates to the base erosion and anti-abuse tax; potentially becoming subject to U.S. withholding and information reporting requirements under the Foreign Account Tax Compliance Act; and other risks and factors listed under “Risk Factors” in the Company’s 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 (Loss)		Page 5
Condensed Consolidated Statements of Income (Loss) - by Quarter		Page 6

Operating Segment Information
Segment Reporting - Three months ended December 31, 2017 and 2016		Page 7
Segment Reporting - Twelve months ended December 31, 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
Basic 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, 2017 and 2016

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



	Three months ended						Twelve months ended
	December 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016

Key underwriting metrics for Property and Casualty Reinsurance segment:
Net underwriting loss ⁽¹⁾	$	(9,234	)	$	(9,514	)	$	(42,560	)	$	(50,052	)
Combined ratio ⁽¹⁾	107.1		%	105.0		%	107.7		%	108.5		%

Key investment return metrics:
Net investment income (loss)	$	67,150		$	(35,767	)	$	391,953		$	98,825
Net investment return on investments managed by Third Point LLC	2.7		%	(1.7		)%	17.7		%	4.2		%

Key shareholders’ value creation metrics:
Basic book value per share ^{(2) (3)}	$	16.33		$	13.57		$	16.33		$	13.57
Diluted book value per share ^{(2) (3)}	$	15.65		$	13.16		$	15.65		$	13.16
Increase in diluted book value per share ⁽²⁾	2.7		%	(2.9		)%	18.9		%	2.4		%
Return on beginning shareholders’ equity attributable to Third Point Re common shareholders ⁽²⁾	2.8		%	(3.2		)%	20.1		%	2.0		%
Invested asset leverage ⁽³⁾	1.56			1.55			1.56			1.55


(1)	Refer to accompanying “Segment Reporting - Three and twelve months ended December 31, 2017 and 2016” for a calculation of net underwriting loss and combined ratio.

(2)

Basic book value per share, diluted book value per share and return on beginning shareholders’ equity attributable to Third Point Re common shareholders are non-GAAP financial measures. There are no comparable GAAP measures. Refer to accompanying “Basic 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 attributable to Third Point Re common shareholders.


(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)



	December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016
Assets
Equity securities, trading, at fair value	$	2,283,050		$	2,017,463		$	1,941,170		$	1,484,378		$	1,506,854
Debt securities, trading, at fair value	675,158			656,118			702,515			921,221			1,057,957
Other investments, at fair value	37,731			30,932			29,091			72,020			82,701
Total investments in securities	2,995,939			2,704,513			2,672,776			2,477,619			2,647,512
Cash and cash equivalents	8,197			6,434			8,255			11,829			9,951
Restricted cash and cash equivalents	541,136			477,362			372,068			334,813			298,940
Due from brokers	305,093			387,786			424,163			387,102			284,591
Derivative assets, at fair value	73,372			75,781			45,110			34,122			27,432
Interest and dividends receivable	3,774			4,210			3,947			8,003			6,505
Reinsurance balances receivable	476,008			478,206			472,570			421,034			381,951
Deferred acquisition costs, net	258,793			223,091			203,193			220,754			221,618
Other assets	9,482			11,464			14,648			14,079			17,144
Total assets	$	4,671,794		$	4,368,847		$	4,216,730		$	3,909,355		$	3,895,644
Liabilities
Accounts payable and accrued expenses	$	34,632		$	24,580		$	17,929		$	11,509		$	10,321
Reinsurance balances payable	41,614			54,654			65,456			51,173			43,171
Deposit liabilities	129,133			126,491			105,208			105,778			104,905
Unearned premium reserves	649,518			615,375			547,815			565,243			557,076
Loss and loss adjustment expense reserves	720,570			699,369			678,459			625,786			605,129
Securities sold, not yet purchased, at fair value	394,278			405,845			265,667			217,836			92,668
Securities sold under an agreement to repurchase	29,618			—			—			16,524			—
Due to brokers	770,205			602,230			777,179			639,320			899,601
Derivative liabilities, at fair value	14,503			17,280			11,949			10,839			16,050
Performance fee payable to related party	—			73,210			53,455			30,857			—
Interest and dividends payable	4,275			1,917			3,838			2,361			3,443
Senior notes payable, net of deferred costs	113,733			113,688			113,643			113,599			113,555
Total liabilities	2,902,079			2,734,639			2,640,598			2,390,825			2,445,919
Commitments and contingent liabilities
Redeemable noncontrolling interests in related party ⁽¹⁾	108,219			16,813			—			—			—
Shareholders’ equity
Preference shares	—			—			—			—			—
Common shares	10,723			10,738			10,733			10,718			10,650
Treasury shares	(48,253		)	(48,253		)	(48,253		)	(26,273		)	(7,389		)
Additional paid-in capital	1,099,599			1,099,998			1,098,857			1,096,828			1,094,568
Retained earnings	594,020			549,671			494,986			420,408			316,222
Shareholders’ equity attributable to Third Point Re common shareholders	1,656,089			1,612,154			1,556,323			1,501,681			1,414,051
Noncontrolling interests in related party ⁽¹⁾	5,407			5,241			19,809			16,849			35,674
Total shareholders’ equity	1,661,496			1,617,395			1,576,132			1,518,530			1,449,725
Total liabilities, noncontrolling interests and shareholders' equity	$	4,671,794		$	4,368,847		$	4,216,730		$	3,909,355		$	3,895,644

(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 (Loss)

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



	Three months ended						Twelve months ended
	December 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016
Revenues
Gross premiums written	$	164,163		$	80,779		$	641,620		$	617,374
Gross premiums ceded	75			27			(2,475		)	(2,325		)
Net premiums written	164,238			80,806			639,145			615,049
Change in net unearned premium reserves	(34,722		)	111,277			(92,087		)	(24,859		)
Net premiums earned	129,516			192,083			547,058			590,190
Net investment income (loss) before management and performance fees to related parties	94,682			(32,552		)	522,664			158,532
Management and performance fees to related parties	(27,532		)	(3,215		)	(130,711		)	(59,707		)
Net investment income (loss)	67,150			(35,767		)	391,953			98,825
Total revenues	196,666			156,316			939,011			689,015
Expenses
Loss and loss adjustment expenses incurred, net	99,509			122,110			370,058			395,932
Acquisition costs, net	31,837			76,854			188,904			222,150
General and administrative expenses	14,299			5,482			53,103			39,367
Other expenses	3,822			2,161			12,674			8,387
Interest expense	2,074			2,068			8,225			8,231
Foreign exchange (gains) losses	2,067			(5,162		)	12,300			(19,521		)
Total expenses	153,608			203,513			645,264			654,546
Income (loss) before income tax (expense) benefit	43,058			(47,197		)	293,747			34,469
Income tax (expense) benefit	2,104			272			(11,976		)	(5,593		)
Net income (loss)	45,162			(46,925		)	281,771			28,876
Net (income) loss attributable to noncontrolling interests in related party	(813		)	232			(3,973		)	(1,241		)
Net income (loss) available to Third Point Re common shareholders	$	44,349		$	(46,693	)	$	277,798		$	27,635
Earnings (loss) per share available to Third Point Re common shareholders
Basic earnings (loss) per share available to Third Point Re common shareholders ⁽¹⁾	$	0.44		$	(0.45	)	$	2.71		$	0.26
Diluted earnings (loss) per share available to Third Point Re common shareholders ⁽¹⁾	$	0.42		$	(0.45	)	$	2.64		$	0.26
Weighted average number of common shares used in the determination of earnings (loss) per common share
Basic	101,405,772			104,072,283			102,264,094			104,060,052
Diluted	105,524,115			104,072,283			105,227,038			105,563,784

(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
	December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016
Revenues
Gross premiums written	$	164,163		$	174,539		$	156,564		$	146,354		$	80,779
Gross premiums ceded	75			—			(1,425		)	(1,125		)	27
Net premiums written	164,238			174,539			155,139			145,229			80,806
Change in net unearned premium reserves	(34,722		)	(68,564		)	18,419			(7,220		)	111,277
Net premiums earned	129,516			105,975			173,558			138,009			192,083
Net investment income (loss) before management and performance fees to related parties	94,682			119,516			140,631			167,835			(32,552		)
Management and performance fees to related parties	(27,532		)	(30,548		)	(33,306		)	(39,325		)	(3,215		)
Net investment income (loss)	67,150			88,968			107,325			128,510			(35,767		)
Total revenues	196,666			194,943			280,883			266,519			156,316
Expenses
Loss and loss adjustment expenses incurred, net	99,509			77,275			107,379			85,895			122,110
Acquisition costs, net	31,837			33,974			68,641			54,452			76,854
General and administrative expenses	14,299			13,218			15,014			10,572			5,482
Other expenses	3,822			3,846			2,105			2,901			2,161
Interest expense	2,074			2,074			2,051			2,026			2,068
Foreign exchange (gains) losses	2,067			5,437			4,781			15			(5,162		)
Total expenses	153,608			135,824			199,971			155,861			203,513
Income (loss) before income tax (expense) benefit	43,058			59,119			80,912			110,658			(47,197		)
Income tax (expense) benefit	2,104			(3,475		)	(5,307		)	(5,298		)	272
Net income (loss)	45,162			55,644			75,605			105,360			(46,925		)
Net income (loss) attributable to noncontrolling interests in related party	(813		)	(959		)	(1,027		)	(1,174		)	232
Net income (loss) available to Third Point Re common shareholders	$	44,349		$	54,685		$	74,578		$	104,186		$	(46,693	)
Earnings (loss) per share available to Third Point Re common shareholders
Basic earnings (loss) per share available to Third Point Re common shareholders ⁽¹⁾	$	0.44		$	0.54		$	0.73		$	1.00		$	(0.45	)
Diluted earnings (loss) per share available to Third Point Re common shareholders ⁽¹⁾	$	0.42		$	0.52		$	0.71		$	0.98		$	(0.45	)
Weighted average number of common shares used in the determination of earnings (loss) per common share
Basic	101,405,772			101,391,145			102,283,844			104,013,871			104,072,283
Diluted	105,524,115			104,679,574			104,569,226			105,701,599			104,072,283

(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 December 31, 2017 and 2016

(expressed in thousands of U.S. dollars)



	Three months ended December 31, 2017									Three months ended December 31, 2016
	Property and Casualty Reinsurance			Corporate			Total			Property and Casualty Reinsurance			Corporate			Total
Revenues
Gross premiums written	$	164,163		$	—		$	164,163		$	80,779		$	—		$	80,779
Gross premiums ceded	75			—			75			27			—			27
Net premiums written	164,238			—			164,238			80,806			—			80,806
Change in net unearned premium reserves	(34,722		)	—			(34,722		)	111,277			—			111,277
Net premiums earned	129,516			—			129,516			192,083			—			192,083
Expenses
Loss and loss adjustment expenses incurred, net	99,509			—			99,509			122,110			—			122,110
Acquisition costs, net	31,837			—			31,837			76,854			—			76,854
General and administrative expenses	7,404			6,895			14,299			2,633			2,849			5,482
Total expenses	138,750			6,895			145,645			201,597			2,849			204,446
Net underwriting loss	(9,234		)	n/a			n/a			(9,514		)	n/a			n/a
Net investment income (loss)	20,578			46,572			67,150			(15,937		)	(19,830		)	(35,767		)
Other expenses	(3,822		)	—			(3,822		)	(2,161		)	—			(2,161		)
Interest expense	—			(2,074		)	(2,074		)	—			(2,068		)	(2,068		)
Foreign exchange gains (losses)	—			(2,067		)	(2,067		)	—			5,162			5,162
Income tax benefit	—			2,104			2,104			—			272			272
Net (income) loss attributable to noncontrolling interests in related party	—			(813		)	(813		)	—			232			232
Segment income (loss)	$	7,522		$	36,827					$	(27,612	)	$	(19,081	)
Net income (loss) available to Third Point Re common shareholders							$	44,349								$	(46,693	)

Property and Casualty Reinsurance - Underwriting Ratios ⁽¹⁾:
Loss ratio	76.8		%							63.6		%
Acquisition cost ratio	24.6		%							40.0		%
Composite ratio	101.4		%							103.6		%
General and administrative expense ratio	5.7		%							1.4		%
Combined ratio	107.1		%							105.0		%


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

Page 7 of 17

Third Point Reinsurance Ltd.

Segment Reporting - Twelve months ended December 31, 2017 and 2016

(expressed in thousands of U.S. dollars)



	Twelve months ended December 31, 2017									Twelve months ended December 31, 2016
	Property and Casualty Reinsurance			Corporate			Total			Property and Casualty Reinsurance			Corporate			Total
Revenues
Gross premiums written	$	641,620		$	—		$	641,620		$	617,374		$	—		$	617,374
Gross premiums ceded	(2,475		)	—			(2,475		)	(2,325		)	—			(2,325		)
Net premiums written	639,145			—			639,145			615,049			—			615,049
Change in net unearned premium reserves	(92,087		)	—			(92,087		)	(24,859		)	—			(24,859		)
Net premiums earned	547,058			—			547,058			590,190			—			590,190
Expenses
Loss and loss adjustment expenses incurred, net	370,058			—			370,058			395,932			—			395,932
Acquisition costs, net	188,904			—			188,904			222,150			—			222,150
General and administrative expenses	30,656			22,447			53,103			22,160			17,207			39,367
Total expenses	589,618			22,447			612,065			640,242			17,207			657,449
Net underwriting loss	(42,560		)	n/a			n/a			(50,052		)	n/a			n/a
Net investment income	114,435			277,518			391,953			16,931			81,894			98,825
Other expenses	(12,674		)	—			(12,674		)	(8,387		)	—			(8,387		)
Interest expense	—			(8,225		)	(8,225		)	—			(8,231		)	(8,231		)
Foreign exchange gains (losses)	—			(12,300		)	(12,300		)	—			19,521			19,521
Income tax expense	—			(11,976		)	(11,976		)	—			(5,593		)	(5,593		)
Net income attributable to noncontrolling interests in related party	—			(3,973		)	(3,973		)	—			(1,241		)	(1,241		)
Segment income (loss)	$	59,201		$	218,597					$	(41,508	)	$	69,143
Net income available to Third Point Re common shareholders							$	277,798								$	27,635

Property and Casualty Reinsurance - Underwriting Ratios ⁽¹⁾:
Loss ratio	67.6		%							67.1		%
Acquisition cost ratio	34.5		%							37.6		%
Composite ratio	102.1		%							104.7		%
General and administrative expense ratio	5.6		%							3.8		%
Combined ratio	107.7		%							108.5		%


(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
	December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016
Revenues
Gross premiums written	$	164,163		$	174,539		$	156,564		$	146,354		$	80,779
Gross premiums ceded	75			—			(1,425		)	(1,125		)	27
Net premiums written	164,238			174,539			155,139			145,229			80,806
Change in net unearned premium reserves	(34,722		)	(68,564		)	18,419			(7,220		)	111,277
Net premiums earned	129,516			105,975			173,558			138,009			192,083
Expenses
Loss and loss adjustment expenses incurred, net	99,509			77,275			107,379			85,895			122,110
Acquisition costs, net	31,837			33,974			68,641			54,452			76,854
General and administrative expenses	7,404			7,291			9,649			6,312			2,633
Total expenses	138,750			118,540			185,669			146,659			201,597
Net underwriting loss	(9,234		)	(12,565		)	(12,111		)	(8,650		)	(9,514		)
Net investment income (loss)	20,578			26,531			31,206			36,120			(15,937		)
Other expenses	(3,822		)	(3,846		)	(2,105		)	(2,901		)	(2,161		)
Segment income (loss)	$	7,522		$	10,120		$	16,990		$	24,569		$	(27,612	)

Underwriting ratios ⁽¹⁾
Loss ratio	76.8		%	72.9		%	61.9		%	62.2		%	63.6		%
Acquisition cost ratio	24.6		%	32.1		%	39.5		%	39.5		%	40.0		%
Composite ratio	101.4		%	105.0		%	101.4		%	101.7		%	103.6		%
General and administrative expense ratio	5.7		%	6.9		%	5.6		%	4.6		%	1.4		%
Combined ratio	107.1		%	111.9		%	107.0		%	106.3		%	105.0		%


(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, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 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	6,895			5,927			5,365			4,260			2,849
Total expenses	6,895			5,927			5,365			4,260			2,849
Net investment income (loss)	46,572			62,437			76,119			92,390			(19,830		)
Interest expense	(2,074		)	(2,074		)	(2,051		)	(2,026		)	(2,068		)
Foreign exchange gains (losses)	(2,067		)	(5,437		)	(4,781		)	(15		)	5,162
Income tax (expense) benefit	2,104			(3,475		)	(5,307		)	(5,298		)	272
Net (income) loss attributable to noncontrolling interests in related party	(813		)	(959		)	(1,027		)	(1,174		)	232
Segment income (loss)	$	36,827		$	44,565		$	57,588		$	79,617		$	(19,081	)

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, 2017			September 30, 2017			June 30, 2017			March 31, 2017		December 31, 2016
Line and Type of Business
Property	$	145,817		$	(3	)	$	(8,827	)	$	12	$	34,620

Workers Compensation	995			19,688			6,520			5,991		(1,690		)
Auto	5,790			7,980			9,415			20,239		6,065
Other Casualty	(349		)	133,442			(927		)	60,975		21,529
Casualty	6,436			161,110			15,008			87,205		25,904

Credit & Financial Lines	9,486			6,033			(906		)	19,711		13,177
Multi-line	2,424			949			20,866			39,426		6,691
Other Specialty	—			6,450			21,072			—		387
Specialty	11,910			13,432			41,032			59,137		20,255

Total prospective reinsurance contracts	$	164,163		$	174,539		$	47,213		$	146,354	$	80,779
Retroactive reinsurance contracts ⁽¹⁾	—			—			109,351			—		—
Total property and casualty reinsurance segment	$	164,163		$	174,539		$	156,564		$	146,354	$	80,779

(1) In the three months ended December 31, 2017, the Company revised its premiums disclosure to present retroactive reinsurance contracts as a separate line of business. Retroactive reinsurance contracts consist of loss portfolio transfers, adverse development covers and other forms of reserve reinsurance providing indemnification of loss and loss adjustment expense reserves with respect to past loss events. These contracts can include one or multiple lines of business and have components of both prospective and retroactive exposure.

Page 11 of 17

Third Point Reinsurance Ltd.

Net Investments Managed by Third Point LLC - by Quarter

(expressed in thousands of U.S. dollars)



	December 31, 2017		September 30, 2017		June 30, 2017		March 31, 2017		December 31, 2016
Assets
Total investments in securities	$	2,995,097	$	2,703,605	$	2,671,218	$	2,451,029	$	2,619,839
Cash and cash equivalents	8		449		10		6		5
Restricted cash and cash equivalents	541,136		477,362		372,068		334,813		298,940
Due from brokers	305,093		387,786		424,163		387,102		284,591
Derivative assets, at fair value	73,372		75,781		45,110		34,122		27,432
Interest and dividends receivable	3,774		4,210		3,947		8,003		6,505
Total assets	$	3,918,480	$	3,649,193	$	3,516,516	$	3,215,075	$	3,237,312
Liabilities and noncontrolling interests in related party
Accounts payable and accrued expenses	$	5,137	$	2,674	$	2,107	$	1,889	$	1,374
Securities sold, not yet purchased	394,278		405,845		265,667		217,836		92,668
Securities sold under an agreement to repurchase	29,618		—		—		16,524		—
Due to brokers	770,205		602,230		777,179		639,320		899,601
Derivative liabilities, at fair value	14,503		17,280		11,949		10,839		16,050
Performance fee payable to related party	—		73,210		53,455		30,857		—
Interest and dividends payable	1,218		891		817		1,347		386
Total noncontrolling interests in related party	113,626		22,054		19,809		16,849		35,674
Total liabilities and noncontrolling interests in related party	1,328,585		1,124,184		1,130,983		935,461		1,045,753
Total net investments managed by Third Point LLC	$	2,589,895	$	2,525,009	$	2,385,533	$	2,279,614	$	2,191,559

Net investments - Capital	$	1,843,217	$	1,794,411	$	1,737,638	$	1,666,924	$	1,595,874
Net investments - Float	746,678		730,598		647,895		612,690		595,685
Total net investments managed by Third Point LLC	$	2,589,895	$	2,525,009	$	2,385,533	$	2,279,614	$	2,191,559

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	December 31, 2017		September 30, 2017		June 30, 2017		March 31, 2017		December 31, 2016

Long
Equity	4.5	%	3.5	%	6.5	%	6.4	%	(2.1	)%
Credit	0.1	%	0.5	%	(0.3	)%	0.4	%	(0.1	)%
Other	(0.3	)%	0.9	%	0.2	%	0.8	%	0.3	%
	4.3	%	4.9	%	6.4	%	7.6	%	(1.9	)%

Short
Equity	(1.5	)%	(0.9	)%	(1.1	)%	(1.2	)%	(0.5	)%
Credit	—	%	(0.1	)%	(0.3	)%	(0.2	)%	0.3	%
Other	(0.1	)%	(0.3	)%	(0.5	)%	(0.4	)%	0.4	%
	(1.6	)%	(1.3	)%	(1.9	)%	(1.8	)%	0.2	%

Net
Equity	3.0	%	2.6	%	5.4	%	5.2	%	(2.6	)%
Credit	0.1	%	0.4	%	(0.6	)%	0.2	%	0.2	%
Other	(0.4	)%	0.6	%	(0.3	)%	0.4	%	0.7	%
	2.7	%	3.6	%	4.5	%	5.8	%	(1.7	)%

Page 13 of 17

Third Point Reinsurance Ltd.

General and Administrative Expenses - by Quarter

(expressed in thousands of U.S. dollars)



	December 31, 2017			September 30, 2017		June 30, 2017		March 31, 2017		December 31, 2016
Payroll and related	$	9,686		$	9,613	$	10,515	$	5,283	$	(182	)
Share compensation expenses	(415		)	640		1,544		1,830		2,342
Legal and accounting	1,471			1,040		1,033		1,038		1,421
Travel and entertainment	1,953			532		727		737		768
IT related	381			329		82		585		66
Occupancy	249			265		259		256		251
Corporate insurance	179			196		212		226		211
Board of director and related	179			175		150		177		146
Credit facility fees	188			112		110		24		103
Other general and administrative expenses	428			316		382		416		356
	$	14,299		$	13,218	$	15,014	$	10,572	$	5,482

Page 14 of 17

Third Point Reinsurance Ltd.

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

(expressed in thousands of U.S. dollars)



	December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016
Basic and diluted book value per share numerator:
Shareholders' equity attributable to Third Point Re common shareholders	$	1,656,089		$	1,612,154		$	1,556,323		$	1,501,681		$	1,414,051
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	51,422			54,572			51,930			52,430			52,930
Diluted book value per share numerator:	$	1,754,023		$	1,713,238		$	1,654,765		$	1,600,623		$	1,513,493
Basic and diluted book value per share denominator:
Common shares outstanding	103,282,427			103,438,485			103,387,683			105,004,444			105,856,531
Unvested restricted shares	(1,873,588		)	(2,038,750		)	(2,047,855		)	(1,953,824		)	(1,682,783		)
Basic book value per share denominator:	101,408,839			101,399,735			101,339,828			103,050,620			104,173,748
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	5,123,531			5,332,833			5,174,333			5,224,333			5,274,333
Effect of dilutive restricted shares issued to directors and employees	905,412			1,061,412			1,127,928			1,103,140			878,529
Diluted book value per share denominator:	112,088,945			112,445,143			112,293,252			114,029,256			114,977,773

Basic book value per share ⁽¹⁾	$	16.33		$	15.90		$	15.36		$	14.57		$	13.57
Diluted book value per share ⁽¹⁾	$	15.65		$	15.24		$	14.74		$	14.04		$	13.16

Increase (decrease) in diluted book value per share	2.7		%	3.4		%	5.0		%	6.7		%	(2.9		)%

(1)

Basic book value per share and diluted book value per share are non-GAAP financial measures and there are no comparable GAAP measures. Basic book value per share, as presented, is a non-GAAP financial measure and is calculated by dividing shareholders’ equity attributable to Third Point Re common shareholders by the number of common shares outstanding shares, excluding the total number of unvested restricted shares, at period end. Diluted book value per share, as presented, is a non-GAAP financial measure and represents basic 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 basic book value per share is calculated by taking the change in basic 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)



	December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016
Weighted-average number of common shares outstanding:
Basic number of common shares outstanding	101,405,772			101,391,145			102,283,844			104,013,871			104,072,283
Dilutive effect of options	1,945,154			1,536,419			1,084,217			781,568			—
Dilutive effect of warrants	1,762,242			1,416,696			988,830			722,816			—
Dilutive effect of restricted shares with service and performance condition	410,947			335,314			212,335			183,344			—
Diluted number of common shares outstanding	105,524,115			104,679,574			104,569,226			105,701,599			104,072,283

Basic earnings (loss) per common share:
Net income (loss) available to Third Point Re common shareholders	$	44,349		$	54,685		$	74,578		$	104,186		$	(46,693	)
Net income allocated to Third Point Re participating common shareholders	(23		)	(55		)	(71		)	(139		)	—
Net income (loss) allocated to Third Point Re common shareholders	$	44,326		$	54,630		$	74,507		$	104,047		$	(46,693	)

Basic earnings (loss) per share available to Third Point Re common shareholders ⁽¹⁾	$	0.44		$	0.54		$	0.73		$	1.00		$	(0.45	)

Diluted earnings (loss) per common share:
Net income (loss) available to Third Point Re common shareholders	$	44,349		$	54,685		$	74,578		$	104,186		$	(46,693	)
Net income allocated to Third Point Re participating common shareholders	(22		)	(53		)	(69		)	(136		)	—
Net income (loss) allocated to Third Point Re common shareholders	$	44,327		$	54,632		$	74,509		$	104,050		$	(46,693	)

Diluted earnings (loss) per share available to Third Point Re common shareholders⁽¹⁾	$	0.42		$	0.52		$	0.71		$	0.98		$	(0.45	)

(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, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016
Net income (loss) available to Third Point Re common shareholders	$	44,349		$	54,685		$	74,578		$	104,186		$	(46,693	)
Shareholders’ equity attributable to Third Point Re common shareholders - beginning of period	1,612,154			1,556,323			1,501,681			1,414,051			1,457,139
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	$	1,612,154		$	1,556,323		$	1,491,818		$	1,409,013		$	1,457,139
Return on beginning shareholders’ equity attributable to Third Point Re common shareholders ⁽¹⁾	2.8		%	3.5		%	5.0		%	7.4		%	(3.2		)%

(1)

Return on beginning shareholders’ equity attributable to Third Point Re common shareholders as presented is a non-GAAP financial measure. Return on beginning shareholders’ equity attributable to Third Point Re common shareholders is calculated by dividing net income (loss) available to Third Point Re common shareholders by the beginning shareholders’ equity attributable to Third Point Re common 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 - February 28, 2018

Attached files

SiriusPoint Ltd Reports