Dan Loeb’s Third Point RE June 2016 Investor Presentation

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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

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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