Third Point RE Investor Presentation March 2014

Third Point RE investor presentation, also see more interesting info from the 10K and February stat sheet here.

Also see Third Point Monthly report below

2014-02 February Monthly Report TPRE_v001_s3437h (1)

2014-02 February Monthly Report TPRE_v001_s3437h (1) by ValueWalk.com

  • Reinsurance strategy

 

 

–  Identify profitable reinsurance opportunities that generate stable underwriting profits

 

–  Target sub-sectors and specific situations where capacity and alternatives may be constrained

 

–  Flexibility to adjust level of volatility according to market conditions and expected margins

 

–  Current focus on quota share contracts

 

  • Third Point Re’s approach is to position itself for the expected improvement in P&C pricing over the medium term

 

– Management has a track record of entering new lines of business to capitalize on market opportunities and produce strong underwriting results

 

–  Strong management relationships provide access to attractive underwriting opportunities

 

  • Asset leverage is expected to grow over time and help drive ROE

 

– The Company expects to capture net investment income generated by float* primarily from the time-lag between receipt of premiums and payment of claims

  • Third Point LLC manages virtually all of Third Point Re’s investable assets

 

 

  • Exclusive relationship for an initial contractual term through 2016, followed by successive three-year terms on renewal

 

–  The company pays a standard 2% management fee and 20% performance allocation

 

–  Performance allocation is subject to a standard high water mark, loss carry-forward provision

 

  • Third Point Re investments are held in a separate account and managed by Third Point LLC on substantially the same basis as its main hedge funds

 

– The account is subject to certain additional investment guidelines and parameters not employed by the main funds (i.e. limitations on exposure, increased liquidity, etc.)

 

  • Third Point Re has full ownership of and access to the investment portfolio to provide liquidity to pay claims and expenses 

TPRE – Investor Presentation March 2014 v3_v001_b38cme