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Segment reporting | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
Segment reporting | The determination of the Company’s business segments is based on the manner in which management monitors the performance of its operations. The Company reports one operating segment, Property and Casualty Reinsurance. Non-underwriting income and expenses including: net investment income (loss), certain general and administrative expenses related to corporate activities, interest expense, foreign exchange (gains) losses and income tax (expense) benefit are presented as a reconciliation to the Company’s consolidated results. The Company does not manage its assets by segment; accordingly, total assets are not allocated to the segments. The following is a summary of the Company’s operating segment results for the years ended December 31, 2019, 2018 and 2017:
| 2019 |  | 2018 |  | 2017
| Property and Casualty Reinsurance |  | Total |  | Property and Casualty Reinsurance |  | Total |  | Property and Casualty Reinsurance |  | Total
Revenues |  |  |  |  |  |  |  |  |
Gross premiums written | $ | 631,846 |  |  | $ | 631,846 |  |  | $ | 578,252 |  |  | $ | 578,252 |  |  | $ | 641,620 |  |  | $ | 641,620 |
Gross premiums ceded | (9,265 | ) |  | (9,265 | ) |  | (19,895 | ) |  | (19,895 | ) |  | (2,475 | ) |  | (2,475 | )
Net premiums written | 622,581 |  |  | 622,581 |  |  | 558,357 |  |  | 558,357 |  |  | 639,145 |  |  | 639,145 |
Change in net unearned premium reserves | 77,561 |  |  | 77,561 |  |  | 63,085 |  |  | 63,085 |  |  | (92,087 | ) |  | (92,087 | )
Net premiums earned | 700,142 |  |  | 700,142 |  |  | 621,442 |  |  | 621,442 |  |  | 547,058 |  |  | 547,058 |
Expenses |  |  |  |  |  |  |  |  |  |  |
Loss and loss adjustment expenses incurred, net | 403,499 |  |  | 403,499 |  |  | 438,414 |  |  | 438,414 |  |  | 370,058 |  |  | 370,058 |
Acquisition costs, net | 295,626 |  |  | 295,626 |  |  | 206,498 |  |  | 206,498 |  |  | 188,904 |  |  | 188,904 |
General and administrative expenses | 23,366 |  |  | 23,366 |  |  | 18,635 |  |  | 18,635 |  |  | 30,656 |  |  | 30,656 |
Total expenses | 722,491 |  |  | 722,491 |  |  | 663,547 |  |  | 663,547 |  |  | 589,618 |  |  | 589,618 |
Net underwriting loss | $ | (22,349 | ) |  | (22,349 | ) |  | $ | (42,105 | ) |  | (42,105 | ) |  | $ | (42,560 | ) |  | (42,560 | )
Net investment income (loss) |  |  | 282,560 |  |  |  |  | (251,433 | ) |  |  |  | 391,953 |
Corporate expenses |  |  | (30,397 | ) |  |  |  | (17,606 | ) |  |  |  | (22,447 | )
Other expenses |  |  | (16,619 | ) |  |  |  | (9,610 | ) |  |  |  | (12,674 | )
Interest expense |  |  | (8,228 | ) |  |  |  | (8,228 | ) |  |  |  | (8,225 | )
Foreign exchange gains (losses) |  |  | (3,635 | ) |  |  |  | 7,503 |  |  |  |  | (12,300 | )
Income tax (expense) benefit |  |  | (713 | ) |  |  |  | 4,010 |  |  |  |  | (11,976 | )
Net income attributable to noncontrolling interests in related party |  |  | — |  |  |  |  | (223 | ) |  |  |  | (3,973 | )
Net income (loss) available to Third Point Re common shareholders |  |  | $ | 200,619 |  |  |  |  | $ | (317,692 | ) |  |  |  | $ | 277,798 |
Property and Casualty Reinsurance - Underwriting Ratios (1): |  |  |  |
Loss ratio | 57.6 | % |  |  |  | 70.6 | % |  |  |  | 67.6 | % |  |
Acquisition cost ratio | 42.2 | % |  |  |  | 33.2 | % |  |  |  | 34.5 | % |  |
Composite ratio | 99.8 | % |  |  |  | 103.8 | % |  |  |  | 102.1 | % |  |
General and administrative expense ratio | 3.4 | % |  |  |  | 3.0 | % |  |  |  | 5.6 | % |  |
Combined ratio | 103.2 | % |  |  |  | 106.8 | % |  |  |  | 107.7 | % |  |
(1) | Underwriting ratios are calculated by dividing the related expense by net premiums earned.
The following table lists the number of contracts that individually contributed more than 10% of total gross premiums written for the years ended December 31, 2019, 2018 and 2017 as a percentage of total gross premiums written in the relevant year:
| 2019 |  | 2018 |  | 2017
Largest contract | 15.2 | % |  | 17.5 | % |  | 16.1 | %
Second largest contract | n/a |  |  | 12.1 | % |  | 14.1 | %
Third largest contract | n/a |  |  | n/a |  |  | 13.1 | %
Total for contracts contributing greater than 10% each | 15.2 | % |  | 29.6 | % |  | 43.3 | %
Total for contracts contributing less than 10% each | 84.8 | % |  | 70.4 | % |  | 56.7 | %
| 100.0 | % |  | 100.0 | % |  | 100.0 | %
The following table lists counterparties with whom the Company has reinsurance balances receivable representing more than 10% of the Company’s total reinsurance balances receivable as of December 31, 2019 and 2018:
| December 31, 2019 |  | December 31, 2018
Counterparty 1 | $ | 114,252 |  |  | 19.2 | % |  | $ | 86,155 |  |  | 14.3 | %
Counterparty 2 | 105,992 |  |  | 17.8 | % |  | 83,079 |  |  | 13.8 | %
Counterparty 3 | 88,895 |  |  | 14.9 | % |  | 69,641 |  |  | 11.6 | %
| 309,139 |  |  | 51.9 | % |  | 238,875 |  |  | 39.7 | %
Other counterparties representing less than 10% each | 286,981 |  |  | 48.1 | % |  | 363,573 |  |  | 60.3 | %
Reinsurance balances receivable | $ | 596,120 |  |  | 100.0 | % |  | $ | 602,448 |  |  | 100.0 | %
The following table provides a breakdown of the Company’s gross premiums written by line of business for the years ended December 31, 2019, 2018 and 2017:
| 2019 |  | 2018 |  | 2017
Property | $ | 144,271 |  |  | 22.8 | % |  | $ | 9,070 |  |  | 1.6 | % |  | $ | 136,999 |  |  | 21.4 | %
Casualty | 151,893 |  |  | 24.0 | % |  | 235,789 |  |  | 40.8 | % |  | 269,759 |  |  | 42.0 | %
Specialty | 248,044 |  |  | 39.3 | % |  | 259,173 |  |  | 44.8 | % |  | 125,511 |  |  | 19.6 | %
Total prospective reinsurance contracts | 544,208 |  |  | 86.1 | % |  | 504,032 |  |  | 87.2 | % |  | 532,269 |  |  | 83.0 | %
Retroactive reinsurance contracts | 87,638 |  |  | 13.9 | % |  | 74,220 |  |  | 12.8 | % |  | 109,351 |  |  | 17.0 | %
| $ | 631,846 |  |  | 100.0 | % |  | $ | 578,252 |  |  | 100.0 | % |  | $ | 641,620 |  |  | 100.0 | %
Substantially all of the Company’s business is sourced through reinsurance brokers. The following table sets forth the Company’s premiums written by source that individually contributed more than 10% of total gross premiums written for the years ended December 31, 2019, 2018 and 2017:
| 2019 |  | 2018 |  | 2017
Largest broker | $ | 160,404 |  |  | 25.4 | % |  | $ | 198,251 |  |  | 34.3 | % |  | $ | 243,581 |  |  | 38.0 | %
Second largest broker | 150,377 |  |  | 23.8 | % |  | 157,542 |  |  | 27.2 | % |  | 128,648 |  |  | 20.1 | %
Third largest broker | 137,685 |  |  | 21.8 | % |  | 70,524 |  |  | 12.2 | % |  | 107,612 |  |  | 16.8 | %
Other | 183,380 |  |  | 29.0 | % |  | 151,935 |  |  | 26.3 | % |  | 161,779 |  |  | 25.1 | %
| $ | 631,846 |  |  | 100.0 | % |  | $ | 578,252 |  |  | 100.0 | % |  | $ | 641,620 |  |  | 100.0 | %
The following table provides a breakdown of the Company’s gross premiums written by domicile of the ceding companies for the years ended December 31, 2019, 2018 and 2017:
| 2019 |  | 2018 |  | 2017
United States | $ | 326,987 |  |  | 51.8 | % |  | $ | 326,261 |  |  | 56.4 | % |  | $ | 352,539 |  |  | 54.9 | %
United Kingdom | 154,909 |  |  | 24.5 | % |  | 63,619 |  |  | 11.0 | % |  | 203,768 |  |  | 31.8 | %
Bermuda | 142,246 |  |  | 22.5 | % |  | 93,406 |  |  | 16.2 | % |  | 62,234 |  |  | 9.7 | %
Other | 7,704 |  |  | 1.2 | % |  | 94,966 |  |  | 16.4 | % |  | 23,079 |  |  | 3.6 | %
| $ | 631,846 |  |  | 100.0 | % |  | $ | 578,252 |  |  | 100.0 | % |  | $ | 641,620 |  |  | 100.0 | %

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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