Greetings, and welcome to the Third Point Reinsurance First Quarter 2020 Earnings Conference. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Chris Coleman, Chief Financial Officer. Thank you, sir. You may begin.

Thank you, operator. Welcome to the Third Point Reinsurance limited earnings call for the first quarter of 2020. Last night, we issued an earnings press release and financial supplement, which is available on our website, www.thirdpointre.bm. Leading today's call will be Dan Malloy, Chief Executive Officer. Before I turn the call over to Dan, I would like to remind you that many of the remarks today will contain forward-looking statements based on current expectations. Actual results may differ materially from those projected as a result of certain risks and uncertainties. Please refer to the earnings press release and the company's other public filings, where you will find risk factors that could cause actual results to differ materially from these forward-looking statements. In addition, management will refer to certain non-GAAP measures, which management believe allow for a more complete understanding of the company's financial results. A reconciliation of these measures to the most comparable GAAP measure is presented in the company's earnings press release. At this time, I will turn the call over to Dan Malloy.

Good morning, and thank you for joining our first quarter 2020 earnings call. Today, I'll provide the highlights of our financial results followed by an overview of the underwriting and market conditions that we are experiencing. Chris will then cover our financial results in more detail. I will finish with concluding remarks, and we will then open the call for questions. We are living in very uncertain times, and our hearts go out to all those affected by the COVID-19 global pandemic. I would also like to take a moment to thank our employees for their hard work during this especially challenging environment. Our entire team has moved to remote working while continuing to run the business and creatively addressing our clients' needs. I have been enormously proud to see how the individuals and our company have responded. Turning to our results. Third Point Re generated a net loss of $184 million, and our return on equity was a negative 13% for the first quarter of 2020. Our first quarter result was driven by a negative investment return of 7.3%, primarily due to the equity market volatility resulting from the COVID-19 pandemic. Our diluted book value per share at the end of the first quarter was $13.05, representing a decrease of 13.2% since year-end 2019. Since quarter end, our investment portfolio has recovered a portion of the losses, having risen 3.5% in April, generating approximately $85 million of net investment income for the month. Our combined ratio for the first quarter was 97%, which included our current estimate of COVID-19 losses of $9.5 million or 6.5 percentage points on our combined ratio. We reported a small benefit from favorable reserve development in the quarter. This is now our 15th quarter in a row with no prior year adverse reserve development.…

Thanks, Dan. For the first quarter, we generated a net loss of $184 million or $1.99 per diluted share, which translates into a return on beginning equity for the quarter of negative 13%. We generated $4.4 million of net underwriting income for the first quarter, and our combined ratio was 97% compared to 103.8% in the prior year first quarter. The improvement reflects the shift in our underwriting strategy and business mix towards higher-margin business. Our gross premiums written for the first quarter was $204 million, which compares to $320 million in the prior year quarter. The decrease in gross premiums written was primarily due to certain contracts that we did not renew, including one multi-line contract for $103 million, which no longer fit our underwriting criteria as part of our shift in underwriting strategy to improve underwriting margins. This decrease was partially offset by new contracts bound in the current year period, including new property catastrophe and specialty contracts that were more in line with our underwriting focus. Net investment loss for the quarter was $185 million, which reflects a loss of $201 million from our investment in the Third Point Enhanced fund, partially offset by net investment income of $15 million from collateral and other investments. The first quarter of 2020 presented one of the most challenging investing environments since the 2008 financial crisis. As the pandemic unfolded, our investment in the Third Point Enhanced fund was exposed to the sharp market decline. Certainly, after the sell-off began, Third Point LLC repositioned the fund's portfolio by reducing net equity exposures. Third Point LLC also meaningfully shifted investments within the fund to structured and corporate credit securities. In addition, we purchased a further $220 million in credit position outside of the Third Point Enhanced fund, which Third Point LLC…

Thank you, Chris. It has undoubtedly been an unusual quarter with the social and economic impact of the COVID-19 pandemic being felt across the globe. We believe we are conservatively positioned, and our approaches remain prudent, focused and technical. As a result, we are prepared to withstand continued market volatility. Importantly, we are committed to looking at new opportunities as trading conditions improve, and as always, aiming to support our customers and brokers with innovative reinsurance coverages. We remain confident in our ability to address new industry developments and capture business opportunities to create attractive shareholder returns. We also remain committed to establishing a more balanced and diversified business through a prudent mix of underwriting and investment risk. As we execute and deliver more consistent results over time, we expect to close the persistent discount that our shares trade to book value and to trade at a valuation level more consistent with our peer group. We thank you for your time, and we'll now open the call for questions. Operator?

[Operator Instructions] Gentlemen, I'm showing no questions in queue. Do you have any additional or closing comments?

Sure. Thanks again for listening into our first quarter 2020 call. We look forward to talking to you next quarter. And in the meantime, stay safe and healthy. Thank you.

Ladies and gentlemen, thank you for your participation. You may disconnect your lines at this time, and have a wonderful day.