Loeb’s Third Point Reinsurance Earnings Beat Estimates

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Third Point Reinsurance Ltd (NYSE:TPRE), the insurance arm of Dan Loeb’s investment empire, released its earnings report for the three months through September on Tuesday morning before the bell rang on Wall Street. The company showed earnings of 46 cents per share for the three months, and revenue came to $119.7 million. On Monday’s market shares in the reinsurer trended down and finished at $15.12.

In run up to the release of these earnings numbers, analysts following Third Point Reinsurance Ltd (NYSE:TPRE) were looking for earnings per share of 43 cents for the September quarter. Consensus revenue estimated, garnered from a Thompson Reuters survey of seven analysts, came to $89.08 million.

Third Point reinsurance earnings

In the same three months of 2012, Third Point Reinsurance Ltd (NYSE:TPRE) managed to earn 45 cents per share on revenue totaling $82 million. Third Point is a newly public company. It shares were offered for the first time in August, so it is still finding its way in the reinsurance world.

“Following our initial public offering in August 2013, we are off to a strong start as a public company thanks to improving underwriting results and excellent investment results,” said the company’s CEO John Berger.

Third Point reinsurance performance

Shares in Third Point Reinsurance Ltd (NYSE:TPRE) have performed exceptionally well since the company went public in mid-August. Stock has risen by more than 15% since shares were first sold to the public, beating the less than 7% added by the S&P 500 in the period. A couple of months is not the ideal amount of time to measure a company’s performance, but it appears that investors have confidence in Third Point.

Third Point Reinsurance Ltd (NYSE:TPRE) is valued at just over 6.5 times earnings, far below the S&P 500 average. The number indicates very little expectation of growth going ahead.

Executives from Third Point Reinsurance Ltd (NYSE:TPRE) will host a conference call to discuss this morning’s release at 9 AM EST. Investors will be particularly interested in the young company’s outlook for the fourth quarter of the year, and the company’s plans for growth ahead.

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