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

Thank you, operator. Welcome to the Third Point Reinsurance Ltd. Earnings Call for the Third 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.

Thank you, Chris. Good morning, and thanks for joining our third 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 as well as a brief update on the status of our pending merger with Sirius. We will then open the call for your questions. Starting with our results. For the third quarter, we generated net income of $69 million, and our return on equity was 5.1%. Our third quarter results were driven by a rebound in our investment in the Third Point Enhanced fund, resulting in a consolidated investment return for the quarter of 4.8%. Our diluted book value per share at the end of the third quarter was $15.06, representing an increase of 4.8% as compared to the second quarter of 2020. Our combined ratio for the third quarter was 119.9%, reflecting a number of industry cat events as well as the ongoing impact of COVID-19. The combined effect of property cat losses that occurred in the period and updated estimates for COVID-19 added 32 points to our combined ratio in the quarter, of which 21 points were from property catastrophes and 11 points were a result of COVID-19. We reported a small benefit from favorable reserve development in the quarter and this is now our 17th quarter in a row with no prior year adverse reserve development. Our COVID-19 underwriting losses in the quarter were driven primarily by business interruption. We prudently added $10 million to our reserve position, largely due to the legal uncertainty arising out of the recent decision on the FCA test case in the U.K. this quarter. This is despite having no reported COVID-19 BI-related losses from our cedents…

Thanks, Dan. Firstly, as it relates to our pending merger with Sirius, we remain on track for a first quarter 2021 close. As we announced recently, we have filed our joint proxy statement prospectus with the SEC and our shareholder vote is scheduled for November 23. SiriusPoint will be well-positioned to support growth with the just announced closing of a $300 million revolving credit facility as well as the previously announced rollover of the Series Preference B holders into a capital-qualifying security of SiriusPoint. Both of these transactions will be effective upon close and indicated strong support for SiriusPoint. We look forward to the closing of this transaction and the exciting opportunities ahead. Now turning to our financial results. For the third quarter, we generated net income of $69 million or $0.73 per diluted share. We generated a net underwriting loss of $28 million for the third quarter, and our combined ratio was 119.9% compared to 102.7% in the prior year third quarter. Our current quarter combined ratio included $30 million of cat losses and $16 million of COVID-19 losses. The total impact was 32 points on the combined ratio for the quarter. The prior year's quarter combined ratio included $13 million or 6 points on the combined ratio related to cat losses in that period. Our gross premiums written for the third quarter was $61 million, which compares to $95 million in the prior year quarter. The decrease was primarily due to 1 retroactive reinsurance contracted of $59 million recognized in the prior year quarter with no comparable premium in the current period. This decrease was partially offset by new contracts bound in the current year period and other timing differences. Gross premiums written for the 9-month period was $422 million compared to $498 million for the prior year's…

[Operator Instructions] It appears that there are no questions at this time. I would like to turn the floor back over to Dan Malloy for closing comments.

All right. Well, thank you, operator, and thanks to everyone who joined our call this morning. It's a very exciting time at Third Point Re, and I'd like to leave you with a few concluding thoughts. First, we've made substantial progress over the last 18 months, transforming our business into a global specialty reinsurance company, and I couldn't be more pleased with the positioning of our cat portfolio as its underlying profitability is better than we planned. Additionally, we see an opportunity to further improve the profitability of our non-cat portfolio as the market continues to harden in a number of lines of business. I'd like to thank our underwriting team for the tremendous job they've done transforming our business. Second, we're working hard to close our merger with Sirius Group and the initial planning and integration is going very well. This merger is all about focusing on our underwriting talent in order to capitalize on the improving market trends. Sirius is a well-known and respected reinsurer, and they have a global network and a 75-year history of working with clients and brokers. Their team has a strong underwriting culture and a commitment to fostering relationships. Once together, SiriusPoint will be a significant player with the capital structure, platforms, underwriting talent, and most importantly, clients already in place. The key to our success will be our ability to improve our profitability by deepening these all important client relationships and offering a wider range of coverage at a time when they are needed more than ever. Third, our assets will be invested in a diversified portfolio with a more traditional investment allocation. This means lower volatility while still taking advantage of opportunities to improve returns across asset classes. Fourth, we expect the merger to be accretive to both earnings per share and return on equity in the first full year after close, while also positioning the company for attractive book value and earnings growth. This should result in a re-rating of the company's trading multiple to a level more in line with our peers. So as you can see, our merger with Sirius is transformative and should result in real value creation for our shareholders. Thank you for your time today. I hope everyone remains self -- safe and in good health. We'll speak next quarter.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.