Value Investing

Third Point Reinsurance March 2018 Investor Presentation

Third Point Reinsurance investor presentation for the month of March 2018.

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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 business model
    - Flexible and opportunistic reinsurance underwriting
    - Superior investment management

Key Metrics

Third Point Reinsurance

Total Return Business Model Designed To Deliver Superior Returns

Third Point Reinsurance

Experienced Senior Management Team

  • 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

Third Point Reinsurance

Organizational Structure - Key Entities

Third Point Reinsurance

Evolution Of Our Portfolio

Third Point Reinsurance

  • Portfolio of primarily Florida carriers built from past relationships. The portfolio now also includes a Northeast carrier
  • Identified Assignment of Benefits (AOB) issue in Florida early, but did not fully price for it
  • Attempted to adjust ceding commission, but the market did not follow us until recent cat events
  • Renewed two contracts in Q4-17 at significantly improved pricing

Third Point Reinsurance

  • Market conditions vary widely by state, segment and carrier
  • The portfolio has performed reasonably well, though not as well as originally expected (due to underperformance of one large contract)
  • We are opportunistically targeting carrier deals with good historical results

Third Point Reinsurance

  • Portfolio of MGA-driven nonstandard auto business built from past relationships
  • Re-oriented our approach to focus on best-in-class carriers/MGAs with the size and differentiation to navigate difficult market conditions
  • Hard market conditions have improved results considerably in 2017

Third Point Reinsurance

  • Portfolio is dominated by broad casualty retrocession deals.
  • We also write a few transaction liability and professional lines reinsurance treaties
  • Pricing on renewals improved based on both reinsurance terms and underlying pricing

Third Point Reinsurance

  • Portfolio is primarily quota share contracts of Lloyds entities
  • Have seen an increase in inquiries following recent cat events
  • Expect this line to grow in 2018

Third Point Reinsurance

  • Portfolio includes political risk, trade credit, structured credit, surety, title, residual value and mortgage
  • We believe pricing and terms & conditions of mortgage risk have held up well due to rapidly increasing demand
  • Traditional credit and political risk insurance is highly competitive. We favor market leads with the capacity and expertise to transact in less commoditized areas

Diversified Premium Base

Third Point Reinsurance

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