DB:3XP

Stock Analysis Report

Third Point Reinsurance

Executive Summary

Third Point Reinsurance Ltd., through its subsidiaries, provides specialty property and casualty reinsurance products to insurance and reinsurance companies worldwide.

Snowflake

Fundamentals

Fair value with worrying balance sheet.


Similar Companies

Share Price & News

How has Third Point Reinsurance's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.2%

3XP

2.9%

DE Insurance

1.4%

DE Market


1 Year Return

-13.5%

3XP

22.0%

DE Insurance

3.8%

DE Market

Return vs Industry: 3XP underperformed the German Insurance industry which returned 22% over the past year.

Return vs Market: 3XP underperformed the German Market which returned 3.8% over the past year.


Shareholder returns

3XPIndustryMarket
7 Day1.2%2.9%1.4%
30 Day-5.4%3.8%1.3%
90 Day-4.9%3.8%3.1%
1 Year-13.5%-13.5%27.3%22.0%7.0%3.8%
3 Year-23.0%-23.0%70.6%50.0%18.5%8.3%
5 Year-24.5%-24.5%119.6%75.9%42.2%22.9%

Price Volatility Vs. Market

How volatile is Third Point Reinsurance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Third Point Reinsurance undervalued compared to its fair value and its price relative to the market?

46.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3XP (€8.55) is trading below our estimate of fair value (€16.05)

Significantly Below Fair Value: 3XP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3XP is unprofitable, so we can't compare its PE Ratio to the Insurance industry average.

PE vs Market: 3XP is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3XP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3XP is good value based on its PB Ratio (0.6x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is Third Point Reinsurance forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

82.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3XP is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 3XP is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 3XP is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if 3XP's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if 3XP's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 3XP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Third Point Reinsurance performed over the past 5 years?

-15.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 3XP is unprofitable, and losses have increased over the past 5 years at a rate of -15% per year.

Accelerating Growth: Unable to compare 3XP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 3XP is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (15.2%).


Return on Equity

High ROE: 3XP has a negative Return on Equity (-8.98%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 3XP is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 3XP is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Third Point Reinsurance's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 3XP has a low level of unsold assets or inventory.

Debt Coverage by Assets: 3XP's debt is covered by short term assets (assets are 21.354100x debt).


Financial Institutions Analysis

Asset Level: 3XP's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 3XP has a sufficient allowance for bad loans.

Low Risk Liabilities: 3XP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 3XP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 3XP has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 3XP has an appropriate level of bad loans.


Next Steps

Dividend

What is Third Point Reinsurance's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage3.9%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 3XP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 3XP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 3XP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3XP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 3XP's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Third Point Reinsurance's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Dan Malloy (59yo)

0.4yrs

Tenure

US$1,907,524

Compensation

Mr. Daniel V. Malloy III, also known as Dan, has been the Chief Executive Officer of Third Point Reinsurance Ltd. since May 10, 2019 and has been its Director since August 07, 2019. Mr. Malloy has been the ...


CEO Compensation Analysis

Compensation vs. Market: Dan has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the German market.

Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.8yrs

Average Tenure

50yo

Average Age

Experienced Management: 3XP's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.7yrs

Average Tenure

64.5yo

Average Age

Experienced Board: 3XP's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 3XP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$43,37715 Aug 19
Daniel Malloy
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares5,000
Max PriceUS$8.68
BuyUS$45,47716 Nov 18
Nicholas James Campbell
EntityIndividual
Role
Senior Key Executive
Chief Risk Officer
Shares5,000
Max PriceUS$9.10

Ownership Breakdown


Management Team

  • Tom Wafer (63yo)

    President of Third Point Reinsurance (USA) Ltd.

    • Tenure: 4.8yrs
  • Nick Campbell (50yo)

    Chief Risk Officer

    • Tenure: 5.8yrs
    • Compensation: US$1.08m
  • Chris Coleman (45yo)

    Chief Financial Officer

    • Tenure: 4.9yrs
    • Compensation: US$1.40m
  • Tracey Gibbons

    Senior Vice President of Underwriting of Third Point Reinsurance Company Ltd.

    • Tenure: 0.3yrs
  • Dan Malloy (59yo)

    CEO & Director

    • Tenure: 0.4yrs
    • Compensation: US$1.91m
  • Janice Weidenborner (54yo)

    Executive VP

    • Tenure: 3.8yrs
  • Yan Leclerc (41yo)

    Chief Accounting Officer

    • Tenure: 2.6yrs
  • Justin Brenden (35yo)

    Chief Reserving Actuary

    • Tenure: 0.9yrs
  • Mandy Kisala

    Chief Pricing Actuary of Third Point Reinsurance Company Ltd.

    • Tenure: 0.8yrs
  • David Sinclair

    Senior Vice President of Marketing & Investments

    • Tenure: 0.08yrs

Board Members

  • Steve Fass (73yo)

    Lead Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$250.00k
  • Mary Hennessy (67yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$200.00k
  • Josh Targoff (50yo)

    Chairman

    • Tenure: 1.7yrs
  • Rafe de la Gueronniere (66yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$200.00k
  • Gretchen Hayes (63yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$164.52k
  • Sid Sankaran (41yo)

    Director

    • Tenure: 0.2yrs
  • Dan Malloy (59yo)

    CEO & Director

    • Tenure: 0.4yrs
    • Compensation: US$1.91m
  • Mark Parkin (68yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$235.00k

Company Information

Third Point Reinsurance Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Third Point Reinsurance Ltd.
  • Ticker: 3XP
  • Exchange: DB
  • Founded: 2011
  • Industry: Reinsurance
  • Sector: Insurance
  • Market Cap: US$906.487m
  • Listing Market Cap: US$813.753m
  • Shares outstanding: 91.84m
  • Website: https://www.thirdpointre.com

Number of Employees


Location

  • Third Point Reinsurance Ltd.
  • 3 Waterloo Lane
  • Pembroke
  • HM 08
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TPRENYSE (New York Stock Exchange)YesClass A Common SharesUSUSDAug 2013
3XPDB (Deutsche Boerse AG)YesClass A Common SharesDEEURAug 2013

Biography

Third Point Reinsurance Ltd., through its subsidiaries, provides specialty property and casualty reinsurance products to insurance and reinsurance companies worldwide. It underwrites homeowners’ and commer ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 21:44
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.