Third Point RE New Investor Presentation

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Third Point Re: A Differentiated Equity Story


  • Specialty property and casualty reinsurance



  • Class 4 Bermuda-domiciled reinsurer


  • A- financial strength rating from A.M. Best


  • $1.31 billion of shareholders equity as of September 30, 2013



  • Third Point LLC, an SEC-registered investment manager, manages Third Point Re’s investment portfolio under a long-term investment management agreement


  • Daniel S. Loeb, founder of Third Point LLC, and related personal investment vehicles provided 10.8% of founding capital ($85 million) in Third Point Re


  • Year end 2012: 13.0%


  • YTD through 9/30/13: 16.1%1

Disciplined and Opportunistic Reinsurance Strategy






Generating ROE from underwriting and positive asset leverage


  • 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 Re’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



Disciplined and




Asset Leverage



(i.e. Float)*

Contribution to ROE

Third Point Re’s Relationship With Third Point LLC


Third Point LLC manages Third Point Re’s assets under a long-term investment management agreement


  • Third Point LLC manages virtually all of Third Point Re’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 

Full presentation here TPRE – Investor Presentation February 2014 v1_v001_v7uxei

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