Third Point Reinsurance Ltd (NYSE:TPRE)’s has a new investor presentation, which can be viewed below. See Third Point Q3 letter to investors here.

Market-Leading Investment Management

  • Third Point LLC owned and led by Daniel S. Loeb
  • 21.1% net annualized returns since inception in 19955
  • Risk-adjusted returns driven by superior security selection and lower volatility

Third Point

Relationship With Third Point LLC

Investment Management Agreement

  • Exclusive relationship through 2016, followed by successive 3-year terms on renewal
  • Investments are managed on substantially the same basis as the main Third Point LLC hedge funds
  • We pay the standard 2% management fee and 20% performance allocation. The performance allocation is subject to a standard high water mark

Risk Management

  • Restrictions on leverage, position concentrations and illiquid, private investments
  • Key man and performance termination provisions
  • Allowed to diversify portfolio to address concerns of A.M. Best or regulator(s)

Liquidity

  • Investments are held in a separate account – Third Point Re has full ownership of investment portfolio to provide liquidity for claims and expenses
  • More than 95% of investments are within FAS 157 Levels 1 & 21
  • Separate account may be used at any time to pay claims and expenses

Third Point

Third Point LLC Portfolio Risk Management

  • Portfolio diversification across industries, geographies, asset classes and strategies
  • Highly liquid portfolio – investment manager can dynamically shift exposures depending on macro/market developments
  • Security selection with extensive diligence process
  • Approach includes index and macro hedging and tail risk protection
  • Institutional platform with robust investment and operational risk management procedures

See full Third Point Investor Presentation here.

Third Point Investor Presentation