Third Point Re Reports Third Quarter 2013 Earnings Results

          Third Point Re Reports Third Quarter 2013 Earnings Results

Net Income of $46.6 Million, or $0.46 Per Diluted Common Share

PR Newswire

HAMILTON, Bermuda, Nov. 12, 2013

HAMILTON, Bermuda, Nov. 12, 2013 /PRNewswire/ --Third Point Reinsurance Ltd.
("Third Point Re" or the "Company") (NYSE: TPRE) today announced results for
its fiscal third quarter ended September 30, 2013.

"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," commented John Berger, Chairman, Chief
Executive Officer and Chief Underwriting Officer. "While reinsurance market
conditions remain challenging, we expect further improvement in our
underwriting results as our reinsurance operation continues to gain scale."

Third Point Re reported net income during the third quarter of 2013 of $46.6
million, or $0.46 per diluted common share, compared with $39.6 million, or
$0.45 per diluted common share, for the third quarter of 2012. For the nine
months ended September 30, 2013, Third Point Re reported net income of $147.2
million, or $1.59 per diluted common share, compared with $38.7 million, or
$0.44 per diluted common share, for the nine months ended September 30,2012.

Diluted book value per share was $12.35 as of September 30, 2013, an increase
of $0.28, or 2.3%, for the third quarter and an increase of $1.46, or 13.4%,
for the first nine months of 2013. The increase in diluted book value per
share reflects earnings per share for the quarter partially offset by the
costs associated with Third Point Re's initial public offering (IPO),
including underwriting and exchange listing, legal, accounting and related
fees. These non-recurring costs were netted against the capital raised and
were not expensed through the income statement.

The following table shows certain key financial metrics for the three and nine
months ended September 30, 2013 and 2012:

                         For the three months ended  For the nine months ended
                         September 30,  September    September     September
                                        30,          30,           30,
                         2013
                                        2012         2013          2012
                         (In millions, except for per share data and ratios)
Gross premiums written   $        $       $        $     
                          45.4           41.7      239.7       162.5
Net premiums earned      $        $       $        $     
                          66.3           34.3      162.2        63.0
Underwriting loss (1)    $        $       $        $     
(2)                       (4.9)          (5.8)     (12.1)      (19.7)
Combined ratio (1) (2)   107.9%         117.0%       107.7%        131.3%
Net investment return on
investments managed by   4.3%           6.1%         16.9%         8.4%
Third Point LLC
Net investment income    $        $       $        $     
                          53.4           47.7      166.1        63.9
Net investment income on $        $       $        $     
float (3)                  7.1           0.1      15.1        0.1
Net income               $        $       $        $     
                          46.6           39.6      147.2        38.7
Diluted earnings per     $        $       $        $     
share                     0.46           0.45       1.59       0.44
Growth in diluted book   2.3%           5.1%         13.4%         4.6%
value per share (3)
Return on beginning      4.2%           5.2%         16.1%         5.1%
shareholders' equity (3)
(1)Property and Casualty Reinsurance segment only.
(2)Underwriting loss and combined ratio are Non-GAAP financial measures. See
the accompanying Segment Reporting for

an explanation and calculation of underwriting loss and combined ratio.
(3)Net investment income on float, diluted book value per share and return on
beginning shareholders' equity are non-GAAP

financial measures. See the accompanying Reconciliation of Non-GAAP Measures
for an explanation andcalculation of net

investment income on float, diluted book value per share and return on
beginning shareholders' equity.

Segment Highlights

Property and Casualty Reinsurance Segment

Gross premiums written increased by $2.0 million, or 4.8%, to $43.7 million
for the three months ended September30, 2013 from $41.7 million for the three
months ended September30, 2012. Gross premiums written increased by $68.7
million, or 42.3%, to $231.2 million for the nine months ended September30,
2013 from $162.5 million for the nine months ended September30, 2012. Third
Point Re, through its class 4 reinsurance company Third Point Reinsurance
Company Ltd., began underwriting on January 1, 2012. Increases in gross
premiums written in 2013 are the result of the successful development of
underwriting relationships with intermediaries and reinsurance buyers.

Net premiums earned for the three months ended September 30, 2013 increased
$27.5 million, or 80.1%, to $61.8 million. Net premiums earned for the nine
months ended September 30, 2013 increased $92.8 million, or 147.3%, to $155.8
million. The three and nine months ended September 30, 2013 reflects net
premiums earned on a larger in-force underwriting portfolio compared to the
three and nine month periods ended September 30, 2012. In addition, the three
and nine month periods ended September 30, 2013 include net premiums earned of
$17.5 million and $39.8 million, respectively, related to retroactive
reinsurance contracts where we record the gross premiums written and earned at
the inception of the contract.

The underwriting loss from the Property and Casualty Reinsurance segment for
the third quarter was $4.9 million and for the nine months ended September 30,
2013 was $12.1 million. These results compare to underwriting losses of $5.8
million and $19.7 million in the three and nine month periods ended September
30, 2012, respectively. The combined ratio for the first nine months of 2013
was 107.7% compared to 131.3% in the previous year's first nine months. The
improvement in underwriting results was due primarily to crop losses recorded
in the 2012 period and a drop in general and administrative expenses as a
percentage of earned premium. For the nine months ended September 30, 2012,
Third Point Re recorded a $5.2 million underwriting loss from its crop
reinsurance portfolio due to the severe drought suffered by most of the US
farm belt.

Catastrophe Risk Management

The Catastrophe Risk Management segment includes the combined results of Third
Point Reinsurance Opportunities Fund Ltd. ("Catastrophe Fund"), Third Point
Reinsurance Investment Management Ltd. ("Catastrophe Fund Manager"), and Third
Point Re Cat Ltd. (the "Catastrophe Reinsurer"). Results of the Catastrophe
Risk Management segment are consolidated with Third Point Re's results because
Third Point Recurrently controls a majority of the outstanding interests in
these entities. Since 2013 was the first year of operation for the Catastrophe
Risk Management segment, there is no previous period to which to compare this
year's financial results.

After attributing income to non-controlling interests (i.e., the minority
investors in the Catastrophe Fund), net income from the Catastrophe Risk
Management segment was $2.7 million in the third quarter of 2013 and $2.6
million in the nine months ending September 30, 2013. Net assets under
management were $100.5 million at September 30, 2013.

Investments

For the three months ended September 30, 2013, Third Point Re recorded net
investment income of $53.4 million, compared to $47.7 million for the three
months ended September 30, 2012. The return on investments managed by the
Company's investment manager, Third Point LLC, was 4.3% for the three months
ended September30, 2013 compared to 6.1% for the three months ended
September30, 2012.

For the nine months ended September30, 2013, the Company recorded net
investment income of $166.1 million, compared to $63.9 million for the nine
months ended September30, 2012. The return on the Company's investments, as
managed by Third Point LLC, was 16.9% for the nine months ended September 30,
2013 compared to 8.4% for the nine months ended September 30, 2012.

The primary driver of Third Point Re's net investment income is the returns
generated by its investment manager, Third Point LLC. Consistent with the
first half of 2013, the returns for the three months ended September 30, 2013
were driven by equity positions and to a lesser extent by gains in structured
credit. Net investment income for the three and nine months ended
September30, 2013 also benefited from higher average investments managed by
Third Point LLC compared to the prior year periods due to the net proceeds
generated by Third Point Re's IPO and float contributed by its reinsurance
operations.

Also impacting net investment income for the three months ended September30,
2013 and for the nine months ended September30, 2013 was the allocation of
net investment income related to deposit and reinsurance contracts of $1.2
million and $2.7 million, respectively. The 2012 periods had an insignificant
amount of net investment income allocated to deposit liability contracts.

Conference Call Details

The Company will hold a conference call to discuss its third quarter 2013
results at 9:00 a.m. ET on November 12, 2013. The call will be webcast live
over the Internet from the Company's website at thirdpointre.bm under
"Investors". Participants should follow the instructions provided on the
website to download and install any necessary audio applications. The
conference call is also available by dialing 1-877-407-0789 (domestic) or
1-201-689-8562 (international) and entering passcode 10000697. Participants
should ask for the Third Point Reinsurance third quarter earnings conference
call.

A replay of the live conference call will be available approximately one hour
after the call. The replay will be available on the Company's website or by
dialing 1-877-870-5176 (domestic) or 1-858-384-5517 (international) and
entering the replay passcode 10000697. The telephonic replay will be
available until Tuesday, November 19, 2013.

Safe Harbor Statement Regarding Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of
the PrivateSecurities 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)
limited historical information about the Company; (ii) operational structure
currently is being developed; (iii) fluctuation in results of operations; (iv)
more established competitors; (v) losses exceeding reserves; (vi) downgrades
or withdrawal of ratings by rating agencies; (vii) dependence on key
executives; (viii) dependence on letter of credit facilities that may not be
available on commercially acceptable terms; (ix) potential inability to pay
dividends; (x) unavailability of capital in the future; (xi) dependence on
clients' evaluations of risks associated with such clients' insurance
underwriting; (xii) suspension or revocation of reinsurance license; (xiii)
potentially being deemed an investment company under U.S. federal securities
law; (xiv) potential characterization of Third Point Re and/or Third Point
Reinsurance Company Ltd. as a PFIC; (xv) dependence on Third Point LLC to
implement the Company's investment strategy; (xvi) termination by Third Point
LLC of the investment management agreement; (xvii) risks associated with the
Company's investment strategy being greater than those faced by competitors
(xviii) increased regulation or scrutiny of alternative investment advisers
affecting the Company's reputation; (xix) potentially becoming subject to
United States federal income taxation; (xx) potentially becoming subject to
U.S. withholding and information reporting requirements under the FATCA
provisions; and other risks and factors listed under "Risk Factors" in the
prospectus on Form 424(b) dated as of August 14, 2013 and filed with the
Securities and Exchange Commission on August 19, 2013. All forward-looking
statements speak only as of the date made and the Company undertakes no
obligation to update or revise publicly any forward-looking statements,
whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

In presenting Third Point Re'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 underwriting income or loss,combined ratio, diluted book
value per share and return on beginning shareholders' equity are referred to
as non-GAAP measures. These non-GAAP 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 are included in the attached financial
information in accordance with Regulation G.

About the Company

The Company's wholly owned subsidiary Third Point Reinsurance Company Ltd. is
a Bermuda property and casualty reinsurance company with an "A-" (Excellent)
financial strength rating from A.M. Best Company, Inc. Third Point Reinsurance
Company Ltd. was incorporated in October 2011 and commenced underwriting
business on January 1, 2012.

Contacts
Third Point Reinsurance Ltd.
Rob Bredahl
Chief Financial Officer & Chief Operating Officer
investorrelations@thirdpointre.bm
441-542-3333

THIRD POINT REINSURANCE LTD.
CONSOLIDATED BALANCE SHEETS
As of September30, 2013 and December31, 2012
(expressed in thousands of U.S. dollars, except per share and share amounts)
                                       September 30, 2013   December 31, 2012
Assets                                 (unaudited)          (audited)
Equity securities, trading, at fair                         $     
value (cost - $507,618; 2012 -         $      593,879  500,929
$450,766)
Debt securities, trading, at fair
value (cost - $402,563; 2012 -         437,596              279,331
$249,110)
Other investments, at fair value       63,277               157,430
Total investments in securities and    1,094,752            937,690
commodities
Cash and cash equivalents              18,663               34,005
Restricted cash and cash equivalents   159,290              77,627
Due from brokers                       418,246              131,785
Securities purchased under an          37,921               60,408
agreement to sell
Derivative assets, at fair value       27,532               25,628
Interest and dividends receivable      3,024                2,088
Reinsurance balances receivable        168,683              84,280
Deferred acquisition costs, net        58,563               45,383
Unearned premiums ceded                2,494                -
Loss and loss adjustment expenses      6,284                -
recoverable
Other assets                           4,054                3,123
Total assets                           $    1,999,506   $    1,402,017
Liabilities and shareholders' equity
Liabilities
Accounts payable and accrued expenses  $             $       
                                       5,457                5,278
Reinsurance balances payable           8,579                -
Deposit liabilities                    118,973              50,446
Unearned premium reserves              163,915              93,893
Loss and loss adjustment expense       143,707              67,271
reserves
Securities sold, not yet purchased, at 90,492               176,454
fair value
Due to brokers                         41,065               66,107
Derivative liabilities, at fair value  21,240               12,992
Performance fee payable to related     40,264               -
party
Interest and dividends payable         1,416                1,255
Total liabilities                      635,108              473,696
Shareholders' equity
Preference shares (par value $0.10;    $           $        
authorized, 30,000,000; none issued)   -                    -
Common shares (par value $0.10;
authorized, 300,000,000; issued and    10,389               7,843
outstanding, 103,888,916 (2012:
78,432,132))
Additional paid-in capital             1,053,501            762,430
Retained earnings                      245,494              98,271
Shareholders' equity attributable to   1,309,384            868,544
shareholders
Non-controlling interests              55,014               59,777
Total shareholders' equity             1,364,398            928,321
Total liabilities and shareholders'    $    1,999,506   $    1,402,017
equity





THIRD POINT REINSURANCE LTD.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
For the three and nine months ended September30, 2013 and 2012
(expressed in thousands of U.S. dollars, except per share and share amounts)
                        Three months ended            Nine months ended
                        September 30,  September 30,  September    September
                        2013           2012           30, 2013     30, 2012
Revenues
Gross premiums written  $        $        $       $     
                        45,425         41,651         239,660      162,479
Gross premiums ceded    -              -              (9,975)      -
Net premiums written    45,425         41,651         229,685      162,479
Change in net unearned  20,904         (7,333)        (67,528)     (99,483)
premium reserves
Net premiums earned     66,329         34,318         162,157      62,996
Net investment income   53,371         47,686         166,129      63,911
Total revenues          119,700        82,004         328,286      126,907
Expenses
Loss and loss
adjustment expenses     39,349         24,709         103,679      53,680
incurred, net
Acquisition costs, net  21,117         10,856         49,111       13,706
General and             9,846          6,440          24,071       20,221
administrative expenses
Total expenses          70,312         42,005         176,861      87,607
Income including
non-controlling         49,388         39,999         151,425      39,300
interests
Income attributable to
non-controlling         (2,818)        (423)          (4,202)      (609)
interests
Net income              $        $        $       $     
                        46,570         39,576         147,223       38,691
Earnings per share
Basic                   $        $        $       $     
                          0.52         0.50          1.77      0.49
Diluted                 $        $        $       $     
                          0.46         0.45          1.59      0.44
Weighted average number
of common shares used
in
the determination of
earnings per share
Basic                   90,244,694     79,073,932     83,252,120   79,003,405
Diluted                 100,176,416    87,888,983     92,438,629   87,031,196



THIRD POINT REINSURANCE LTD.
SEGMENT REPORTING
(UNAUDITED)
                       Three Months Ended September 30, 2013
                       Property and     Catastrophe
                       Casualty         Risk            Corporate    Total
                       Reinsurance      Management
Revenues               ($ in thousands)
Gross premiums written $           $         $       $    
                       43,714           1,711             -     45,425
Gross premiums ceded   -                -               -            -
Net premiums written   43,714           1,711           -            45,425
Change in net unearned 18,051           2,853           -            20,904
premium reserves
Net premiums earned    61,765           4,564           -            66,329
Net investment income  -                2,089           51,282       53,371
Total revenues         61,765           6,653           51,282       119,700
Expenses
Loss and loss
adjustment expenses    39,349           -               -            39,349
incurred, net
Acquisition costs, net 20,541           576             -            21,117
General and
administrative         6,739            949             2,158        9,846
expenses
Total expenses         66,629           1,525           2,158        70,312
Underwriting loss      (4,864)          n/a           n/a        n/a
Income including
non-controlling        n/a            5,128           49,124       49,388
interests
Income attributable to
non-controlling        n/a            (2,432)         (386)        (2,818)
interests
Net income (loss)      $           $         $       $    
                       (4,864)         2,696          48,738       46,570
Property and Casualty
Reinsurance -
Underwriting Ratios:
Loss ratio (1)         63.7%
Acquisition cost ratio 33.3%
(2)
General and
administrative expense 10.9%
ratio (3)
Combined ratio (4)     107.9%
                       Nine Months Ended September 30, 2013
                       Property and     Catastrophe
                       Casualty         Risk            Corporate    Total
                       Reinsurance      Management
Revenues               ($ in thousands)
Gross premiums written $            $         $       $   
                       231,229          8,431             -     239,660
Gross premiums ceded   (9,975)          -               -            (9,975)
Net premiums written   221,254          8,431           -            229,685
Change in net unearned (65,408)         (2,120)         -            (67,528)
premium reserves
Net premiums earned    155,846          6,311           -            162,157
Net investment income  -                3,210           162,919      166,129
Total revenues         155,846          9,521           162,919      328,286
Expenses
Loss and loss
adjustment expenses    103,291          388             -            103,679
incurred, net
Acquisition costs, net 48,353           758             -            49,111
General and
administrative         16,265           2,721           5,085        24,071
expenses
Total expenses         167,909          3,867           5,085        176,861
Underwriting loss      (12,063)         n/a           n/a        n/a
Income including
non-controlling        n/a            5,654           157,834      151,425
interests
Income attributable to
non-controlling        n/a            (3,027)         (1,175)      (4,202)
interests
Net income (loss)      $            $         $        $   
                       (12,063)        2,627          156,659      147,223
Property and Casualty Reinsurance -
Underwriting Ratios:
Loss ratio (1)         66.3%
Acquisition cost ratio 31.0%
(2)
General and
administrative expense 10.4%
ratio (3)
Combined ratio (4)     107.7%
(1) Loss ratio is calculated by dividing loss and loss adjustment
expenses incurred, net by net premiums earned.
(2) Acquisition cost ratio is calculated by dividing acquisition
costs, net by net premiums earned.
(3) General and administrative expense ratio is calculated by dividing general
and administrative expenses related to underwriting activities by net premiums
earned.
(4) Combined ratio is calculated by dividing the sum of loss and loss
adjustment expenses incurred, net, acquisition costs, net and general and
administrative expenses related to underwriting activities by net premiums
earned.



THIRD POINT REINSURANCE LTD.
SEGMENT REPORTING
(UNAUDITED)
                       Three Months Ended September 30, 2012
                       Property and     Catastrophe
                       Casualty         Risk            Corporate    Total
                       Reinsurance      Management
Revenues               ($ in thousands)
Gross premiums written $           $         $       $    
                       41,651             -            -       41,651
Gross premiums ceded   -                -               -            -
Net premiums written   41,651           -               -            41,651
Change in net unearned (7,333)          -               -            (7,333)
premium reserves
Net premiums earned    34,318           -               -            34,318
Net investment income  -                -               47,686       47,686
Total revenues         34,318           -               47,686       82,004
Expenses
Loss and loss
adjustment expenses    24,709           -               -            24,709
incurred, net
Acquisition costs, net 10,856           -               -            10,856
General and
administrative         4,571            995             874          6,440
expenses
Total expenses         40,136           995             874          42,005
Underwriting loss      (5,818)          n/a           n/a        n/a
Income (loss)
including              n/a            (995)           46,812       39,999
non-controlling
interests
Income attributable to
non-controlling        n/a            -               (423)        (423)
interests
Net income (loss)      $           $         $         $    
                       (5,818)          (995)           46,389      39,576
Property and Casualty
Reinsurance -
Underwriting ratios:
Loss ratio (1)         72.0%
Acquisition cost ratio 31.6%
(2)
General and
administrative expense 13.4%
ratio (3)
Combined ratio (4)     117.0%
                       Nine Months Ended September 30, 2012
                       Property and     Catastrophe
                       Casualty         Risk            Corporate    Total
                       Reinsurance      Management
Revenues               ($ in thousands)
Gross premiums written $            $         $       $   
                       162,479            -            -       162,479
Gross premiums ceded   -                -               -            -
Net premiums written   162,479          -               -            162,479
Change in net unearned (99,483)         -               -            (99,483)
premium reserves
Net premiums earned    62,996           -               -            62,996
Net investment income  -                -               63,911       63,911
Total revenues         62,996           -               63,911       126,907
Expenses
Loss and loss
adjustment expenses    53,680           -               -            53,680
incurred, net
Acquisition costs, net 13,706           -               -            13,706
General and
administrative         15,299           995             3,927        20,221
expenses
Total expenses         82,685           995             3,927        87,607
Underwriting loss      (19,689)         n/a           n/a        n/a
Income (loss)
including              n/a            (995)           59,984       39,300
non-controlling
interests
Income attributable to
non-controlling        n/a            -               (609)        (609)
interests
Net income (loss)      $            $         $         $    
                       (19,689)         (995)           59,375      38,691
Property and Casualty
Reinsurance -
Underwriting ratios:
Loss ratio (1)         85.2%
Acquisition cost ratio 21.8%
(2)
General and
administrative expense 24.3%
ratio (3)
Combined ratio (4)     131.3%
(1) Loss ratio is calculated by dividing loss and loss adjustment
expenses incurred, net by net premiums earned.
(2) Acquisition cost ratio is calculated by dividing
acquisition costs, net by net premiums earned.
(3) General and administrative expense ratio is calculated by dividing general
and administrative expenses related to underwriting activities by net premiums
earned.
(4) Combined ratio is calculated by dividing the sum of loss and loss
adjustment expenses incurred, net, acquisition costs, net and general and
administrative expenses related to underwriting activities by net premiums
earned.



THIRD POINT REINSURANCE LTD.
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
                                         September 30,       December 31,
                                         2013                2012
Basic and diluted book value per share   (In thousands, except share and
numerator:                               per share amounts)
Total shareholders' equity               $   1,364,398    $    928,321
Less: non-controlling interests         55,014              59,777
Shareholders' equity attributable to     1,309,384           868,544
shareholders
Effect of dilutive warrants issued to    46,512              36,480
founders and an advisor
Effect of dilutive stock options issued  66,276              51,670
to directors and employees
Fully diluted book value per share       $   1,422,172    $    956,694
numerator:
Basic and diluted book value per share
denominator:
Issued and outstanding shares            103,264,616         78,432,132
Effect of dilutive warrants issued to    4,651,163           3,648,006
founders and an advisor
Effect of dilutive stock options issued  6,608,987           5,167,045
to directors and employees
Effect of dilutive restricted shares     624,300             619,300
issued to employees
Diluted book value per share             115,149,066         87,866,483
denominator:
Basic book value per share               $      12.68  $      11.07
Diluted book value per share             $      12.35  $      10.89



                    For the three months ended    For the nine months ended
                    September 30,  September 30,  September 30,  September 30,
                    2013           2012           2013           2012
                    ($ in thousands)
Net investment      $           $        $   15,128  $      
income on float     7,072         91                            91
Net investment      45,455         47,595         150,465        63,820
income on capital
Net investment
income on
investments managed 52,527         47,686         165,593        63,911
 by Third Point
LLC
Other investment    28             -              44             -
income
Deposit liabilities
and reinsurance
contracts           (1,246)        -              (2,675)        -
 investment
income allocation
Net unrealized gain
on catastrophe risk 2,062          -              3,167          -
 derivatives
Net investment      $   53,371  $   47,686  $  166,129   $   63,911
income



                       For the three months ended    For the nine months ended
                       September 30,  September 30,  September    September
                       2013           2012           30, 2013     30, 2012
                       ($ in thousands)
Net income             $          $           $          $  
                       46,570        39,576        147,223     38,691
Shareholders' equity
attributable to        972,665        764,856        868,544      585,425
shareholders -
 beginning of period
Subscriptions          -              -              -            177,507
receivable
Impact of weighting
related to             128,860        -              43,111       -
shareholders'
 equity from IPO
Adjusted shareholders'
equity attributable to $            $            $          $  762,932
 shareholders -      1,101,525      764,856       911,655
beginning of period
Return on beginning    4.2%           5.2%           16.1%        5.1%
shareholders' equity

Book Value per Share

Book value per share as used by our management is a non-GAAP measure, as it is
calculated after deducting the impact of non-controlling interests, and adding
back subscriptions receivable. In addition, diluted book value per share is
also a non-GAAP measure and 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. 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.

Net Investment Income on Float

Insurance float is an important aspect of our property and casualty
reinsurance operation. In an insurance or reinsurance operation, float arises
because premiums and proceeds associated with deposit accounted reinsurance
contracts are collected before losses are paid. In some instances, the
interval between premium receipts and loss payments can extend over many
years. During this time interval, insurance and reinsurance companies invest
the premiums received and generate investment returns. Although float can be
calculated using numbers determined under U.S. GAAP, float is a non-GAAP
financial measure and, therefore, there is no comparable U.S. GAAP measure.

Return on Beginning Shareholders' Equity

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
and is a commonly used calculation to measure profitability. For purposes of
this calculation, we add back the impact of subscriptions receivable to
shareholders' equity attributable to shareholders as of December 31, 2011. For
the three and nine months ended September 30, 2013, we have also adjusted the
beginning shareholders' equity for the impact of the issuance of shares in our
IPO on a weighted average basis. These adjustments lower the stated returns on
beginning shareholders' equity.



SOURCE Third Point Reinsurance Ltd.