NYSE:TPRE

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.

Rewards

Trading at 17.7% below its fair value

Earnings are forecast to grow 99.99% per year

Risk Analysis

No risks detected for TPRE from our risk checks.


Snowflake Analysis

Moderate growth potential and slightly overvalued.


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

Stable Share Price: TPRE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.5%

TPRE

-4.0%

US Insurance

-4.2%

US Market


1 Year Return

-11.2%

TPRE

13.0%

US Insurance

14.0%

US Market

Return vs Industry: TPRE underperformed the US Insurance industry which returned 13% over the past year.

Return vs Market: TPRE underperformed the US Market which returned 14% over the past year.


Shareholder returns

TPREIndustryMarket
7 Day-7.5%-4.0%-4.2%
30 Day-3.0%0.04%-1.8%
90 Day8.0%1.0%2.6%
1 Year-11.2%-11.2%15.7%13.0%16.3%14.0%
3 Year-17.4%-17.4%30.6%20.5%43.2%34.0%
5 Year-26.9%-26.9%66.4%46.4%65.9%47.6%

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

Valuation

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

21.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TPRE ($10.79) is trading below our estimate of fair value ($13.12)

Significantly Below Fair Value: TPRE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

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

PE vs Market: TPRE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TPRE is good value based on its PB Ratio (0.7x) compared to the US 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?

100.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TPRE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: TPRE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TPRE's is expected to become profitable in the next 3 years.

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

High Growth Revenue: Insufficient data to determine if TPRE'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 TPRE'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?

-14.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPRE is currently unprofitable.

Growing Profit Margin: TPRE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TPRE is unprofitable, and losses have increased over the past 5 years at a rate of -14.3% per year.

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

Earnings vs Industry: TPRE is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (32.1%).


Return on Equity

High ROE: TPRE has a negative Return on Equity (-9.19%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


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: TPRE has a low level of unsold assets or inventory.

Debt Coverage by Assets: TPRE's debt is covered by short term assets (assets are 21.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: TPRE has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: TPRE has been profitable on average in the past, therefore cash runway is not a concern.


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: Insufficient data to determine if TPRE 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%industryaverage2.4%forecastin3Years0%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if TPRE'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 TPRE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Dan Malloy (59yo)

0.8yrs

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's total compensation ($USD1.91M) is about average for companies of similar size in the US market ($USD2.52M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Malloy
CEO & Director0.8yrsUS$1.91m0.69% $6.5m
Christopher Coleman
Chief Financial Officer5.3yrsUS$1.40m0.35% $3.3m
Nicholas James Campbell
Chief Risk Officer6.2yrsUS$1.08m0.20% $1.9m
Yan Leclerc
Chief Accounting Officer2.9yrsno data0.097% $915.4k
Janice Weidenborner
Executive VP4.1yrsno data0.13% $1.3m
Justin Brenden
Chief Reserving Actuary1.3yrsno data0.086% $817.2k
Amanda Kisala
Chief Pricing Actuary of Third Point Reinsurance Company Ltd.1.1yrsno datano data
Thomas Wafer
President of Third Point Reinsurance (USA) Ltd.5.2yrsno datano data
Tracey Gibbons
Senior Vice President of Underwriting of Third Point Reinsurance Company Ltd.0.6yrsno datano data
David Sinclair
Senior Vice President of Marketing & Investments of Third Point Re Marketing (UK) Limited0.3yrsno datano data

2.1yrs

Average Tenure

50yo

Average Age

Experienced Management: TPRE's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Malloy
CEO & Director0.8yrsUS$1.91m0.69% $6.5m
Steven Fass
Lead Independent Director2yrsUS$250.00k0.18% $1.7m
Joseph Dowling
Director0.3yrsno data0.0054% $50.7k
Mary Hennessy
Independent Director8yrsUS$200.00k0.058% $547.0k
Joshua Targoff
Chairman2yrsno data0.17% $1.6m
Raphael de la Gueronniere
Independent Director6.3yrsUS$200.00k0.058% $547.0k
Gretchen Hayes
Independent Director1.8yrsUS$164.52k0.017% $165.2k
Siddhartha Sankaran
Director0.5yrsno data0.0078% $74.1k
Mark Parkin
Independent Director6.3yrsUS$235.00k0.068% $642.7k

2.0yrs

Average Tenure

63yo

Average Age

Experienced Board: TPRE's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Third Point Reinsurance Ltd.
  • Ticker: TPRE
  • Exchange: NYSE
  • Founded: 2011
  • Industry: Reinsurance
  • Sector: Insurance
  • Market Cap: US$945.694m
  • Shares outstanding: 91.99m
  • 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 commercial, workers’ compensation, personal automobile, mortgage, and multi-line reinsurance products; professional, transactional, and general liability reinsurance products; and marine, travel, and extended warranty reinsurance products. The company was incorporated in 2011 and is based in Pembroke, Bermuda. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 01:43
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
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.