Comparing Third Point Reinsurance (TPRE) and Its Peers

Third Point Reinsurance (NYSE: TPRE) is one of 73 publicly-traded companies in the “Fire, marine, & casualty insurance” industry, but how does it compare to its competitors? We will compare Third Point Reinsurance to similar companies based on the strength of its profitability, dividends, earnings, valuation, analyst recommendations, risk and institutional ownership.

Institutional & Insider Ownership

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76.9% of Third Point Reinsurance shares are owned by institutional investors. Comparatively, 61.9% of shares of all “Fire, marine, & casualty insurance” companies are owned by institutional investors. 12.1% of Third Point Reinsurance shares are owned by company insiders. Comparatively, 12.8% of shares of all “Fire, marine, & casualty insurance” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Third Point Reinsurance has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Third Point Reinsurance’s competitors have a beta of 0.78, meaning that their average share price is 22% less volatile than the S&P 500.

Earnings & Valuation

This table compares Third Point Reinsurance and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Third Point Reinsurance $939.01 million $277.79 million 4.96
Third Point Reinsurance Competitors $12.77 billion $1.43 billion 21.23

Third Point Reinsurance’s competitors have higher revenue and earnings than Third Point Reinsurance. Third Point Reinsurance is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Third Point Reinsurance and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Third Point Reinsurance 29.58% 17.38% 6.45%
Third Point Reinsurance Competitors 2.83% 0.53% -0.17%

Analyst Recommendations

This is a summary of recent ratings and target prices for Third Point Reinsurance and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Third Point Reinsurance 0 2 1 0 2.33
Third Point Reinsurance Competitors 476 1878 1823 83 2.36

Third Point Reinsurance currently has a consensus target price of $17.67, indicating a potential upside of 35.38%. As a group, “Fire, marine, & casualty insurance” companies have a potential upside of 1.43%. Given Third Point Reinsurance’s higher probable upside, research analysts plainly believe Third Point Reinsurance is more favorable than its competitors.

Summary

Third Point Reinsurance competitors beat Third Point Reinsurance on 7 of the 13 factors compared.

About Third Point Reinsurance

Third Point Reinsurance Ltd., through its subsidiaries, provides specialty property and casualty reinsurance products to insurance and reinsurance companies worldwide. It underwrites homeowners, workers compensation, personal automobile, mortgage, and multi-line reinsurance; professional, transactional, and general liability reinsurance; and marine, travel, and extended warranty reinsurance products. The company was incorporated in 2011 and is based in Pembroke, Bermuda.

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