Raptor holding Third Point Re (TPRE) reported the year on Friday. The key takeaway from the news release is this: “We are making significant progress in developing our reinsurance business and believe we are well positioned to benefit from future investment portfolio gains. In the fourth quarter of 2014, gross premiums written increased by fifty percent, our combined ratio dropped to 100.2% and our float grew to $389.2 million.” We are within throwing distance of the profitable underwriting goal. This bodes well.
Diluted book value per share is now being reported as $13.55. We’ll use 1.1x book value as a buy up to price and 1.25x book as ‘fair value’ to establish our call writing price. ACTIONS TO TAKE: Buy TPRE up to 14.91 and write TPRE150417C00017500 for each 100 shares you own.
Devour your prey, raptors!