Non-controlling interests

Non-controlling interests represent the portion of equity in consolidated subsidiaries not attributable, directly or indirectly, to the Company. The ownership interests in consolidated subsidiaries held by parties other than the Company have been presented in the condensed consolidated balance sheets, as a separate component of shareholders’ equity. Non-controlling interests as of March 31, 2014 and December 31, 2013 are as follows:



	March 31, 2014			December 31, 2013
	($ in thousands)
Catastrophe Fund	$	51,633		$	49,254
Catastrophe Fund Manager	(295		)	(236		)
Joint Venture - Third Point Advisors LLC share	19,541			69,717
	$	70,879		$	118,735

Income (loss) attributable to non-controlling interests for the three months ended March 31, 2014 and 2013 was:



		2014			2013
	($ in thousands)
Catastrophe Fund		$	250		$	579
Catastrophe Fund Manager		(59		)	(64		)
Joint Venture - Third Point Advisors LLC share		825			568
		$	1,016		$	1,083

As of March 31, 2014, the following entities were consolidated in line with voting model per ASC 810: Consolidation:

• Third Point Reinsurance Opportunities Fund Ltd.

• Third Point Re Cat Ltd.

• Third Point Reinsurance Investment Management Ltd.

As of March 31, 2014, the following entities were consolidated in line with variable interest model as per ASC 810: Consolidation:

• Investment Joint Venture


a)	Third Point Reinsurance Opportunities Fund Ltd. and Third Point Re Cat Ltd.

As of March 31, 2014, Third Point Re's investment in the Catastrophe Fund was $55.0 million (December 31, 2013 - $54.8 million), representing approximately 51.6% (December 31, 2013 - 53.0%) of the Catastrophe Fund’s issued, non-voting, participating share capital. The objective of the Catastrophe Fund is to achieve positive uncorrelated investment returns by investing, through the Catastrophe Reinsurer, in a portfolio of collateralized reinsurance transactions and other insurance-linked investments, including catastrophe bonds and industry loss warranties.

The Catastrophe Fund Manager holds 100% of the authorized and issued voting, nonparticipating shares of the Catastrophe Fund, while the Catastrophe Fund’s investors, including Third Point Re, hold 100% of issued non-voting, participating shares.

Furthermore, 100% of the authorized and issued voting, non-participating share capital of the Catastrophe Reinsurer and 100% of the issued non-voting, participating share capital of the Catastrophe Reinsurer is held by the Catastrophe Fund.


b)	Third Point Reinsurance Investment Management Ltd. (the “Catastrophe Fund Manager”)

The Catastrophe Fund Manager has been consolidated as part of the Company with Hiscox’s 15% interest in the Catastrophe Fund Manager recorded as a non-controlling interest. The Catastrophe Fund Manager acts as manager for both the Catastrophe Fund and the Catastrophe Reinsurer and in that capacity is responsible for overseeing:


•	The investment activities of the Catastrophe Fund, and


•	The underwriting activities of the Catastrophe Reinsurer.

The Catastrophe Fund Manager does not participate in the profits or losses of either the Catastrophe Fund or the Catastrophe Reinsurer; however, the Catastrophe Fund Manager does receive management and performance fees for its services.


c)	Third Point Advisors LLC

The joint venture created through the Investment Agreement (Note 10) has been considered a variable interest entity in accordance with U.S. GAAP. Since the Company was deemed to be the primary beneficiary, the Company has consolidated the joint venture and has recorded Third Point Advisors LLC’s minority interest as a non-controlling interest in the condensed consolidated statements of shareholders’ equity.

For the three months ended March 31, 2014, $51.0 million (2013 - $35.1 million) was distributed to Third Point Advisors LLC and reduced the amount of the non-controlling interest.