Document

In presenting the Company’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 basic book value per share, diluted book value per share and return on beginning shareholders’ equity, are referred to as non-GAAP measures. These non-GAAP financial 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, if any, are included in the attached financial information in accordance with Regulation G.

This Financial Supplement includes “forward-looking statements” within the meaning of the Private Securities 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:

results of operations fluctuate and may not be indicative of our prospects; a pandemic or other catastrophic event, such as the ongoing COVID-19 outbreak, may adversely impact our financial condition or results of operations; more established competitors; losses exceeding reserves; highly cyclical property and casualty reinsurance industry; losses from catastrophe exposure; downgrade, withdrawal of ratings or change in rating outlook by rating agencies; significant decrease in our capital or surplus; dependence on key executives; inability to service our indebtedness; limited cash flow and liquidity due to our indebtedness; inability to raise necessary funds to pay principal or interest on debt; potential lack of availability of capital in the future; credit risk associated with the use of reinsurance brokers; future strategic transactions such as acquisitions, dispositions, mergers or joint ventures; technology breaches or failures, including cyber-attacks; lack of control over Third Point Enhanced LP (“TP Fund”); lack of control over the allocation and performance of TP Fund’s investment portfolio; dependence on Third Point LLC to implement TP Fund’s investment strategy; limited ability to withdraw our capital accounts from TP Fund; decline in revenue due to poor performance of TP Fund’s investment portfolio; TP Fund’s investment strategy involves risks that are greater than those faced by competitors; termination by Third Point LLC of our or TP Fund’s investment management agreements; potential conflicts of interest with Third Point LLC; losses resulting from significant investment positions; credit risk associated with the default on obligations of counterparties; ineffective investment risk management systems; fluctuations in the market value of TP Fund’s investment portfolio; trading restrictions being placed on TP Fund’s investments; limited termination provisions in our investment management agreements; limited liquidity and lack of valuation data on certain TP Fund’s investments; fluctuations in market value of our fixed-income securities; U.S. and global economic downturns; specific characteristics of investments in mortgage-backed securities and other asset-backed securities, in securities of issues based outside the U.S., and in special situation or distressed companies; loss of key employees at Third Point LLC; Third Point LLC’s compensation arrangements may incentivize investments that are risky or speculative; increased regulation or scrutiny of alternative investment advisers affecting our reputation; suspension or revocation of our reinsurance licenses; potentially being deemed an investment company under U.S. federal securities law; failure of reinsurance subsidiaries to meet minimum capital and surplus requirements; changes in Bermuda or other law and regulation that may have an adverse impact on our operations; Third Point Re and/or Third Point Re BDA potentially becoming subject to U.S. federal income taxation; potential characterization of Third Point Re and/or Third Point Re BDA as a passive foreign investment company; subjection of our affiliates to the base erosion and anti-abuse tax; potentially becoming subject to U.S. withholding and information reporting requirements under the Foreign Account Tax Compliance Act; risks associated with the failure to complete, or the failure to realize the expected benefits of the the transaction with Sirius International Insurance Group, Ltd.; and and other risks and factors listed under “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, as updated by our Quarterly Report on Form 10-Q for the period ended March 31, 2020, and other periodic and current disclosures filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the date made and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.



Key Performance Indicators
Key Performance Indicators						3

Consolidated Financial Statements
Condensed Consolidated Balance Sheets - by Quarter						4
Condensed Consolidated Statements of Income (Loss)						5
Condensed Consolidated Statements of Income (Loss) - by Quarter						6

Operating Segment Information
Segment Reporting - Three and six months ended June 30, 2020 and 2019						7


Property and Casualty Reinsurance Segment - by Quarter						8
Gross Premiums Written by Lines and Type of Business - by Quarter						9
Underwriting Ratios - by Quarter						10

Investments
Net Investments Managed by Third Point LLC - by Quarter						11
Net Investment Return by Investment Strategy - by Quarter						12

Other

Basic and Diluted Book Value per Share - by Quarter						13
Earnings (Loss) per Share - by Quarter						14
Return on Beginning Shareholders’ Equity - by Quarter						15


	Three months ended									Six months ended
	June 30, 2020			June 30, 2019			June 30, 2020			June 30, 2019

Key underwriting metrics for Property and Casualty Reinsurance segment:
Net underwriting income (loss) ⁽¹⁾	$	2,437		$	(1,657)		$	6,834		$	(7,397)
Combined ratio ⁽¹⁾	98.3		%	101.1		%	97.6		%	102.5		%

Key investment return metrics:
Net investment income (loss)	$	137,211		$	69,131		$	(47,816)		$	224,084
Net investment return on net investments managed by Third Point LLC	5.8		%	2.9		%	(1.9)		%	10.3		%

Key shareholders’ value creation metrics:
Basic book value per share ^{(2) (3)}	$	14.66		$	15.37		$	14.66		$	15.37
Diluted book value per share ^{(2) (3)}	$	14.37		$	15.04		$	14.37		$	15.04
Increase (decrease) in diluted book value per share ⁽²⁾	10.1		%	4.4		%	(4.5)		%	14.6		%
Return on beginning shareholders’ equity attributable to Third Point Re common shareholders ⁽²⁾	10.1		%	4.0		%	(4.2)		%	15.4		%


	June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
Assets
Investment in related party investment fund, at fair value	$	758,419	$	659,815	$	860,630	$	818,600	$	824,352

Debt securities, trading, at fair value	238,574		363,121		125,071		220,045		567,354
Other investments, at fair value	4,000		4,000		4,000		3,500		3,010
Total investments	1,000,993		1,026,936		989,701		1,042,145		1,394,716
Cash and cash equivalents	584,809		445,776		639,415		693,105		93,757
Restricted cash and cash equivalents	887,308		975,109		1,014,543		816,519		656,146

Redemption receivable from related party investment fund	—		—		—		—		400,000
Due from brokers	169,078		57,929		—		—		—
Interest and dividends receivable	2,195		3,732		2,178		2,932		1,792
Reinsurance balances receivable, net	613,204		622,883		596,120		680,630		696,170
Deferred acquisition costs, net	172,288		168,505		154,717		166,968		208,027
Unearned premiums ceded	35,817		13,411		16,945		14,370		15,473
Loss and loss adjustment expenses recoverable, net	10,064		6,865		5,520		4,270		3,655
Other assets	17,807		21,388		20,555		17,808		19,715
Total assets	$	3,493,563	$	3,342,534	$	3,439,694	$	3,438,747	$	3,489,451
Liabilities
Accounts payable and accrued expenses	$	12,167	$	8,868	$	17,816	$	14,607	$	14,843
Reinsurance balances payable	94,810		78,323		81,941		98,766		88,670
Deposit liabilities	168,910		170,402		172,259		174,405		148,845
Unearned premium reserves	587,995		579,315		524,768		592,319		702,398
Loss and loss adjustment expense reserves	1,133,983		1,107,911		1,111,692		1,060,000		1,021,776
Securities sold, not yet purchased, at fair value	19,597		47,427		—		—		—
Due to brokers	1,456		3,150		—		—		—

Interest and dividends payable	3,164		1,304		3,055		1,026		3,022
Senior notes payable, net of deferred costs	114,177		114,133		114,089		114,044		113,999
Total liabilities	2,136,259		2,110,833		2,025,620		2,055,167		2,093,553
Commitments and contingent liabilities
Shareholders’ equity
Preference shares	—		—		—		—		—
Common shares	9,492		9,488		9,423		9,422		9,399
Additional paid-in capital	930,487		928,903		927,704		926,949		924,191
Retained earnings	417,325		293,310		476,947		447,209		462,308
Shareholders’ equity attributable to Third Point Re common shareholders	1,357,304		1,231,701		1,414,074		1,383,580		1,395,898

Total liabilities and shareholders’ equity	$	3,493,563	$	3,342,534	$	3,439,694	$	3,438,747	$	3,489,451


	Three months ended						Six months ended
	June 30, 2020		June 30, 2019		June 30, 2020		June 30, 2019
Revenues
Gross premiums written	$	157,571	$	82,637	$	361,702	$	402,228
Gross premiums ceded	(30,487)		(1,473)		(30,222)		(2,185)
Net premiums written	127,084		81,164		331,480		400,043
Change in net unearned premium reserves	13,726		64,288		(44,355)		(101,541)
Net premiums earned	140,810		145,452		287,125		298,502
Net investment income (loss) from investment in related party investment fund	98,604		66,357		(102,211)		213,348
Other net investment income	38,607		2,774		54,395		10,736

Net investment income (loss)	137,211		69,131		(47,816)		224,084
Total revenues	278,021		214,583		239,309		522,586
Expenses
Loss and loss adjustment expenses incurred, net	89,106		82,334		176,892		177,402
Acquisition costs, net	43,671		58,006		92,924		115,504
General and administrative expenses	13,455		19,650		23,614		31,782
Other expenses	3,216		3,811		6,693		7,936
Interest expense	2,046		2,051		4,094		4,080
Foreign exchange gains	(797)		(4,260)		(9,014)		(1,742)
Total expenses	150,697		161,592		295,203		334,962
Income (loss) before income tax (expense) benefit	127,324		52,991		(55,894)		187,624
Income tax (expense) benefit	(3,309)		74		(3,728)		(1,644)


Net income (loss) available to Third Point Re common shareholders	$	124,015	$	53,065	$	(59,622)	$	185,980
Earnings (loss) per share available to Third Point Re common shareholders
Basic earnings (loss) per share available to Third Point Re common shareholders (1)	$	1.33	$	0.58	$	(0.65)	$	2.02
Diluted earnings (loss) per share available to Third Point Re common shareholders (1)	$	1.33	$	0.57	$	(0.65)	$	2.00
Weighted average number of common shares used in the determination of earnings (loss) per share
Basic	92,593,599		91,776,870		92,392,718		91,723,636
Diluted	92,738,293		92,801,799		92,392,718		92,720,466

(1) Basic earnings per share is based on the weighted average number of common shares and participating securities outstanding during the period. The weighted average number of common shares excludes any dilutive effect of outstanding warrants, options and unvested restricted shares. Diluted earnings per share is based on the weighted average number of common shares and participating securities outstanding and includes any dilutive effects of warrants, options and unvested restricted shares under share plans and are determined using the treasury stock method. U.S. GAAP requires that unvested share awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (referred to as “participating securities”), be treated in the same manner as outstanding shares for earnings per share calculations. The Company treats certain of its unvested restricted shares as participating securities. In the event of a net loss, all participating securities, outstanding warrants, options and restricted shares are excluded from both basic and diluted loss per share since their inclusion would be anti-dilutive.


	Three months ended
	June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
Revenues
Gross premiums written	$	157,571	$	204,131	$	134,230	$	95,388	$	82,637
Gross premiums ceded	(30,487)		265		(5,964)		(1,116)		(1,473)
Net premiums written	127,084		204,396		128,266		94,272		81,164
Change in net unearned premium reserves	13,726		(58,081)		70,126		108,976		64,288
Net premiums earned	140,810		146,315		198,392		203,248		145,452
Net investment income (loss) from investment in related party investment fund	98,604		(200,815)		42,029		(5,751)		66,357
Other net investment income	38,607		15,788		19,585		2,613		2,774

Net investment income (loss)	137,211		(185,027)		61,614		(3,138)		69,131
Total revenues	278,021		(38,712)		260,006		200,110		214,583
Expenses
Loss and loss adjustment expenses incurred, net	89,106		87,786		140,394		85,703		82,334
Acquisition costs, net	43,671		49,253		61,851		118,271		58,006
General and administrative expenses	13,455		10,159		12,744		9,237		19,650
Other expenses	3,216		3,477		3,625		5,058		3,811
Interest expense	2,046		2,048		2,074		2,074		2,051
Foreign exchange (gains) losses	(797)		(8,217)		10,298		(4,921)		(4,260)
Total expenses	150,697		144,506		230,986		215,422		161,592
Income (loss) before income tax (expense) benefit	127,324		(183,218)		29,020		(15,312)		52,991
Income tax (expense) benefit	(3,309)		(419)		718		213		74


Net income (loss) available to Third Point Re common shareholders	$	124,015	$	(183,637)	$	29,738	$	(15,099)	$	53,065
Earnings (loss) per share available to Third Point Re common shareholders
Basic earnings (loss) per share available to Third Point Re common shareholders (1)	$	1.33	$	(1.99)	$	0.32	$	(0.16)	$	0.58
Diluted earnings (loss) per share available to Third Point Re common shareholders (1)	$	1.33	$	(1.99)	$	0.32	$	(0.16)	$	0.57
Weighted average number of common shares used in the determination of earnings (loss) per common share
Basic	92,593,599		92,191,837		91,989,469		91,903,556		91,776,870
Diluted	92,738,293		92,191,837		92,696,491		91,903,556		92,801,799


	Three months ended																		Six months ended
	June 30, 2020								June 30, 2019							June 30, 2020					June 30, 2019
	Property and Casualty Reinsurance			Total		Property and Casualty Reinsurance			Total		Property and Casualty Reinsurance			Total ⁽¹⁾		Property and Casualty Reinsurance			Total⁽¹⁾
Revenues
Gross premiums written	$	157,571		$	157,571	$	82,637		$	82,637	$	361,702		$	361,702	$	402,228		$	402,228
Gross premiums ceded	(30,487)			(30,487)		(1,473)			(1,473)		(30,222)			(30,222)		(2,185)			(2,185)
Net premiums written	127,084			127,084		81,164			81,164		331,480			331,480		400,043			400,043
Change in net unearned premium reserves	13,726			13,726		64,288			64,288		(44,355)			(44,355)		(101,541)			(101,541)
Net premiums earned	140,810			140,810		145,452			145,452		287,125			287,125		298,502			298,502
Expenses
Loss and loss adjustment expenses incurred, net	89,106			89,106		82,334			82,334		176,892			176,892		177,402			177,402
Acquisition costs, net	43,671			43,671		58,006			58,006		92,924			92,924		115,504			115,504
General and administrative expenses	5,596			5,596		6,769			6,769		10,475			10,475		12,993			12,993
Total expenses	138,373			138,373		147,109			147,109		280,291			280,291		305,899			305,899
Net underwriting income (loss)	$	2,437		2,437		$	(1,657)		(1,657)		$	6,834		6,834		$	(7,397)		(7,397)
Net investment income (loss)				137,211					69,131					(47,816)					224,084
Corporate expenses				(7,859)					(12,881)					(13,139)					(18,789)
Other expenses				(3,216)					(3,811)					(6,693)					(7,936)
Interest expense				(2,046)					(2,051)					(4,094)					(4,080)
Foreign exchange gains				797					4,260					9,014					1,742
Income tax (expense) benefit				(3,309)					74					(3,728)					(1,644)

Net income (loss) available to Third Point Re common shareholders				$	124,015				$	53,065				$	(59,622)				$	185,980

Property and Casualty Reinsurance - Underwriting Ratios (1):
Loss ratio	63.3		%			56.6		%			61.6		%			59.4		%
Acquisition cost ratio	31.0		%			39.9		%			32.4		%			38.7		%
Composite ratio	94.3		%			96.5		%			94.0		%			98.1		%
General and administrative expense ratio	4.0		%			4.6		%			3.6		%			4.4		%
Combined ratio	98.3		%			101.1		%			97.6		%			102.5		%


	Three months ended
	June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019			June 30, 2019
Revenues
Gross premiums written	$	157,571		$	204,131		$	134,230		$	95,388		$	82,637
Gross premiums ceded	(30,487)			265			(5,964)			(1,116)			(1,473)
Net premiums written	127,084			204,396			128,266			94,272			81,164
Change in net unearned premium reserves	13,726			(58,081)			70,126			108,976			64,288
Net premiums earned	140,810			146,315			198,392			203,248			145,452
Expenses
Loss and loss adjustment expenses incurred, net	89,106			87,786			140,394			85,703			82,334
Acquisition costs, net	43,671			49,253			61,851			118,271			58,006
General and administrative expenses	5,596			4,880			5,724			4,769			6,769
Total expenses	138,373			141,919			207,969			208,743			147,109
Net underwriting income (loss)	$	2,437		$	4,396		$	(9,577)		$	(5,495)		$	(1,657)

Underwriting ratios ⁽¹⁾
Loss ratio	63.3		%	60.0		%	70.7		%	42.2		%	56.6		%
Acquisition cost ratio	31.0		%	33.7		%	31.2		%	58.2		%	39.9		%
Composite ratio	94.3		%	93.7		%	101.9		%	100.4		%	96.5		%
General and administrative expense ratio	4.0		%	3.3		%	2.9		%	2.3		%	4.6		%
Combined ratio	98.3		%	97.0		%	104.8		%	102.7		%	101.1		%


	Three months ended
	June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
Line and Type of Business
Property Catastrophe	$	39,706	$	31,164	$	4,831	$	6,127	$	15,843
Other Property	45,745		15,209		36,892		578		26,019
Property	85,451		46,373		41,723		6,705		41,862

Workers Compensation	7,915		21,320		121		3,519		1,221
Auto	(3,817)		21,249		(2,897)		10,574		14,136
Other Casualty	23,045		24,371		35,315		2,931		9,081
Casualty	27,143		66,940		32,539		17,024		24,438


Credit & Financial Lines	38,653		9,012		3,633		7,265		16,417
Multi-line	4,726		66,746		16,268		2,345		(1,028)
Other Specialty	1,598		15,060		5,768		3,357		948
Specialty	44,977		90,818		25,669		12,967		16,337

Total prospective reinsurance contracts	$	157,571	$	204,131	$	99,931	$	36,696	$	82,637
Retroactive reinsurance contracts	—		—		34,299		58,692		—
Total property and casualty reinsurance segment	$	157,571	$	204,131	$	134,230	$	95,388	$	82,637


	Three months ended
	June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
Underwriting ratios ⁽¹⁾
Loss ratio	63.3	%	60.0	%	70.7	%	42.2	%	56.6	%
Acquisition cost ratio	31.0	%	33.7	%	31.2	%	58.2	%	39.9	%
Composite ratio	94.3	%	93.7	%	101.9	%	100.4	%	96.5	%
General and administrative expense ratio	4.0	%	3.3	%	2.9	%	2.3	%	4.6	%
Combined ratio	98.3	%	97.0	%	104.8	%	102.7	%	101.1	%

Impact of catastrophe losses ⁽²⁾
Loss ratio	—	%	—	%	9.1	%	7.1	%	—	%
Acquisition cost ratio	—	%	—	%	(0.9)	%	(0.9)	%	—	%
Composite ratio	—	%	—	%	8.2	%	6.2	%	—	%



Impact of reserve developments ⁽²⁾
Loss ratio	0.7	%	(7.5)	%	(4.9)	%	(37.6)	%	(5.6)	%
Acquisition cost ratio	(0.8)	%	6.0	%	4.3	%	35.7	%	5.5	%
Composite ratio	(0.1)	%	(1.5)	%	(0.6)	%	(1.9)	%	(0.1)	%



Accident year ex-CAT underwriting ratios ⁽³⁾
Loss ratio	62.6	%	67.5	%	66.5	%	72.7	%	62.2	%
Acquisition cost ratio	31.8	%	27.7	%	27.8	%	23.4	%	34.4	%
Composite ratio	94.4	%	95.2	%	94.3	%	96.1	%	96.6	%
General and administrative expense ratio	4.0	%	3.3	%	2.9	%	2.3	%	4.6	%
Combined ratio	98.4	%	98.5	%	97.2	%	98.4	%	101.2	%


	June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
Assets
TP Fund	$	758,419	$	659,815	$	860,630	$	818,600	$	824,352
Debt securities, trading, at fair value	238,574		363,121		125,071		220,045		567,354
Total investments	996,993		1,022,936		985,701		1,038,645		1,391,706
Cash and cash equivalents	502,937		366,894		588,196		611,442		22,563
Restricted cash and cash equivalents	887,308		975,109		1,014,543		816,519		656,146
Redemption receivable from related party investment fund	—		—		—		—		400,000
Due from brokers	169,078		57,929		—		—		—
Interest and dividends receivable	2,195		3,732		2,178		2,932		1,792
Other assets	—		—		18		6		7
Total assets	$	2,558,511	$	2,426,600	$	2,590,636	$	2,469,544	$	2,472,214
Liabilities
Accounts payable and accrued expenses	$	933	$	761	$	509	$	324	$	227
Securities sold, not yet purchased	19,597		47,427		—		—		—
Due to brokers	1,456		3,150		—		—		—

Interest and dividends payable	129		270		—		—		—
Total liabilities	22,115		51,608		509		324		227
Total net investments managed by Third Point LLC	$	2,536,396	$	2,374,992	$	2,590,127	$	2,469,220	$	2,471,987


	June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019			June 30, 2019
Basic and diluted book value per share numerator:


Shareholders' equity attributable to Third Point Re common shareholders	$	1,357,304		$	1,231,701		$	1,414,074		$	1,383,580		$	1,395,898



Basic and diluted book value per share denominator:
Common shares outstanding	94,920,203			94,881,229			94,225,498			94,220,567			93,994,924
Unvested restricted shares	(2,319,354)			(2,315,172)			(2,231,296)			(2,240,410)			(2,214,087)
Basic book value per share denominator:	92,600,849			92,566,057			91,994,202			91,980,157			91,780,837
Effect of dilutive warrants issued to founders and an advisor (1)	—			—			172,756			—			108,371
Effect of dilutive stock options issued to directors and employees (1)	—			—			225,666			—			152,379
Effect of dilutive restricted shares issued to directors and employees (2)	1,825,128			1,815,741			1,654,803			1,731,384			1,777,266
Diluted book value per share denominator:	94,425,977			94,381,798			94,047,427			93,711,541			93,818,853

Basic book value per share (2)	$	14.66		$	13.31		$	15.37		$	15.04		$	15.21
Diluted book value per share(2)	$	14.37		$	13.05		$	15.04		$	14.76		$	14.88

Increase (decrease) in diluted book value per share	10.1		%	(13.2)		%	1.9		%	(0.8)		%	4.4		%

(2)Basic book value per share and diluted book value per share are non-GAAP financial measures and there are no comparable GAAP measures. Basic book value per share, as presented, is a non-GAAP financial measure and is calculated by dividing shareholders’ equity attributable to Third Point Re common shareholders by the number of common shares outstanding, excluding the total number of unvested restricted shares, at period end. Diluted book value per share, as presented, is a non-GAAP financial measure and is calculated using the treasury stock method. Under the treasury stock method, we assume that proceeds received from in-the-money options and/or warrants exercised are used to repurchase common shares in the market. For unvested restricted shares with a performance condition, we include the unvested restricted shares for which we consider vesting to be probable. Change in basic book value per share is calculated by taking the difference in basic book value per share for the periods presented divided by the beginning of period book value per share. Change in diluted book value per share is calculated by taking the difference in diluted book value per share for the periods presented divided by the beginning of period diluted book value per share. 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.


	June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
Weighted-average number of common shares outstanding:
Basic number of common shares outstanding	92,593,599		92,191,837		91,989,469		91,903,556		91,776,870
Dilutive effect of options ⁽¹⁾	—		—		—		—		321,492
Dilutive effect of warrants ⁽¹⁾	—		—		—		—		228,643
Dilutive effect of restricted shares with service and performance condition	144,694		—		707,022		—		474,794
Diluted number of common shares outstanding	92,738,293		92,191,837		92,696,491		91,903,556		92,801,799

Basic earnings (loss) per common share:
Net income (loss) available to Third Point Re common shareholders	$	124,015	$	(183,637)	$	29,738	$	(15,099)	$	53,065
Net income allocated to Third Point Re participating common shareholders	(721)		—		(111)		—		(85)
Net income (loss) allocated to Third Point Re common shareholders	$	123,294	$	(183,637)	$	29,627	$	(15,099)	$	52,980

Basic earnings (loss) per share available to Third Point Re common shareholders ⁽²⁾	$	1.33	$	(1.99)	$	0.32	$	(0.16)	$	0.58

Diluted earnings (loss) per common share:
Net income (loss) available to Third Point Re common shareholders	$	124,015	$	(183,637)	$	29,738	$	(15,099)	$	53,065
Net income allocated to Third Point Re participating common shareholders	(720)		—		(110)		—		(84)
Net income (loss) allocated to Third Point Re common shareholders	$	123,295	$	(183,637)	$	29,628	$	(15,099)	$	52,981

Diluted earnings (loss) per share available to Third Point Re common shareholders ⁽²⁾	$	1.33	$	(1.99)	$	0.32	$	(0.16)	$	0.57

(2)Basic earnings per share is based on the weighted average number of common shares and participating securities outstanding during the period. The weighted average number of common shares excludes any dilutive effect of outstanding warrants, options and unvested restricted shares. Diluted earnings per share is based on the weighted average number of common shares and participating securities outstanding and includes any dilutive effects of warrants, options and unvested restricted shares under share plans and are determined using the treasury stock method. U.S. GAAP requires that unvested share awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (referred to as “participating securities”), be treated in the same manner as outstanding shares for earnings per share calculations. The Company treats certain of its unvested restricted shares as participating securities. In the event of a net loss, all participating securities, outstanding warrants, options and restricted shares are excluded from both basic and diluted loss per share since their inclusion would be anti-dilutive.

(1)Return on beginning shareholders’ equity attributable to Third Point Re common shareholders, as presented, is a non-GAAP financial measure. Return on beginning shareholders’ equity attributable to Third Point Re common shareholders is calculated by dividing net income (loss) available to Third Point Re common shareholders by the beginning shareholders’ equity attributable to Third Point Re common shareholders. We believe that return on beginning shareholders’ equity attributable to Third Point Re common shareholders is an important measure because it assists our management and investors in evaluating the Company’s profitability. We adjust the beginning shareholders’ equity for the impact of the shares repurchased on a weighted average basis. For period where there is a loss, this adjustment decreased the stated returns on beginning shareholders’ equity and for period where there is a gain, this adjustment increased the stated returns on beginning shareholders’ equity.


Point House									Christopher S. Coleman - Chief Financial Officer
3 Waterloo Lane									Tel: (441) 542-3333
Pembroke HM 08									Email: investorrelations@thirdpointre.bm
Bermuda									Website: www.thirdpointre.bm


Summary of net investment return on investments managed by Third Point LLC (1)	June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019

Long
Equity	6.1	%	(11.2)	%	3.3	%	1.4	%	3.2	%
Credit	3.8	%	0.1	%	0.1	%	(0.7)	%	0.6	%
Other	—	%	(0.3)	%	0.7	%	(0.1)	%	0.5	%
	9.9	%	(11.4)	%	4.1	%	0.6	%	4.3	%

Short
Equity	(4.0)	%	4.4	%	(1.8)	%	(0.7)	%	(1.2)	%
Credit	—	%	(0.1)	%	—	%	—	%	—	%
Other	(0.1)	%	(0.2)	%	0.1	%	(0.1)	%	(0.2)	%
	(4.1)	%	4.1	%	(1.7)	%	(0.8)	%	(1.4)	%

Net
Equity	2.1	%	(6.8)	%	1.5	%	0.7	%	2.0	%
Credit	3.8	%	—	%	0.1	%	(0.7)	%	0.6	%
Other	(0.1)	%	(0.5)	%	0.8	%	(0.2)	%	0.3	%
	5.8	%	(7.3)	%	2.4	%	(0.2)	%	2.9	%