Value Investing

Third Point 2015 Investor Presentation

Dan Loeb’s Third Point Reinsurance investor presentation for March, 2015.

Third Point Reinsurance: Reinsurance Risk Management

Risk Management Culture:

  • Reinsurance business plan complements our investment management strategy: no property catastrophe excess treaties on rated balance sheet and premium and reserve leverage lower than peer group
  • Company-wide focus on risk management
  • Robust underwriting and operational controls

Holistic Risk Control Framework:

  • Measure use of risk capital using internally-developed capital model, AM Best BCAR model and Bermuda Monetary Authority BSCR model
  • Developed a comprehensive Risk Register that is appropriate for our business model
  • Instituted a Risk Appetite Statement that governs overall sensitivities in underwriting, investment, and enterprise portfolio

Ongoing Risk Oversight:

  • Own Risk Self Assessment (ORSA) report produced quarterly and provided to management / Board of Directors
  • Provides management with meaningful statistics on our current capital requirement and comparisons to our risk appetite statement
  • Growing in scope

Third Point Reinsurance

See full PDF below.