Dan Loeb’s Third Point RE June 2016 Investor Presentation

Dan Loeb’s Third Point RE June 2016 Investor Presentation

Dan Loeb’s Third Point Reinsurance investment presentation for the month of June 2016.

Dan Loeb: Third Point RE – Our Company

  • Specialty property & casualty reinsurer based in Bermuda
  • A- (Excellent) financial strength rating from A.M. Best Company
  • Began operations in January 2012 and completed IPO in August 2013
  • Investment portfolio managed by Third Point LLC
  • Total return focused
    • Flexible and opportunistic reinsurance underwriting
    • Superior investment management

Key Metrics

Total Return Business Model Designed To Deliver Superior Returns

Dan loeb Third Point RE

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Experienced Senior Management Team

Dan loeb Third Point RE

  • Strong business relationships
  • Expertise in writing all lines of property, casualty & specialty reinsurance
  • Track record of capitalizing on market opportunities and producing strong underwriting results
  • Significant business-building experience

Organizational Structure – Key Entities

Dan loeb Third Point RE

Flexible & Opportunistic Underwriting Strategy

Dan loeb Third Point RE

  • Our total return model provides crucial flexibility in today’s market environment
  • We leverage strong relationships to access attractive opportunities
  • We are the lead underwriter on many of our transactions
  • Limited property cat exposure on rated balance sheet

Traditional Quota Shares

Dan loeb Third Point RE

  • We focus on lines of business with lower volatility
  • We provide reinsurance support to small and medium size insurers seeking surplus relief
  • These transactions are typically relationship-driven, since reinsurance plays such a key role in the client’s capital structure

Opportunistic Deals

Dan loeb Third Point RE

  • Our relationships allow us to often be the first call for many special situations
  • We look for dislocated markets and distressed situations where higher risk-adjusted returns are available
  • We manage our downside exposure with structural features and contract terms & conditions

Reserve Covers

Dan loeb Third Point RE

  • Reserve covers provide clients with reinsurance protection, capital relief and potentially enhanced investment returns
  • Relationships are key – decision-maker is typically the client’s CEO or CFO
  • Our team has a reputation for sophisticated structuring to meet each client’s specific needs

Diversified Premium Base

Dan loeb Third Point RE

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, A.M. 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

Dan loeb Third Point RE

  • Low premium leverage and asset leverage compared to peer group
  • Limited legacy reserves
  • Limited catastrophe risk

U.S. Platform

Dan loeb Third Point RE

  • U.S. onshore presence a key component of overall growth strategy
    • Strengthen relationships with U.S. clients and brokers
    • Develop first-hand knowledge of client underwriting and claims capabilities

Market-Leading Investment Management

Dan loeb Third Point RE

  • Third Point LLC owned and led by Dan Loeb
  • 19.0% net annualized returns since inception at in 19951
  • 9.56% net annualized return on TPRe managed account since inception (Jan. 1, 2012)
  • Risk-adjusted returns driven by superior security selection and lower volatility

See the full presentation below.

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