“In our view, Third Point Reinsurance Ltd (NYSE:TPRE) is well positioned to weather current soft market conditions since its results are driven primarily by investment performance rather than underwriting,” says a research note on Third Point Reinsurance by Citi analyst Erik J Bass. “As a result, Third Point Reinsurance’s returns should hold up better than traditional reinsurers’, warranting a higher P/BV multiple.”
Third Point Reinsurance: Latest estimates
Citi currently maintains a Neutral rating on the stock but has moved up the price target from $15.50 to $18.00.
For the fourth quarter, Citi estimates EPS of $0.73, up from the previous estimate of $0.38 primarily due to the higher investment returns of 5.8% during the quarter against the previous estimate of 3.3%.
The company’s underwriting...
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