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

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

Organizational Structure – Key Entities

Flexible & Opportunistic Underwriting Strategy

• 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

• 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

• 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

• 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

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

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

U.S. Platform

• 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

• 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.