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 Reinsurance Ltd (NYSE:TPRE)’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.

Assests under a long term investment manager agreement

Third Point LLC manages virtually all of Third Point Reinsurance Ltd (NYSE:TPRE)’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

Investment philosophy

  • Value-oriented, event-driven approach to single security selection supplemented by a top-down view of portfolio construction and risk management
  • Value unlocked by discrete events or “catalysts”
  • Single portfolio composed of diversified investments

Third Point Re New Investor Presentation