Third Point Reinsurance investor presentation for the month of August 2016.
On This Page
- Third Point Reinsurance - Our Company
- Key Metrics
- Total Return Business Model Designed To Deliver Superior Returns
- Experienced Senior Management Team
- Organizational Structure – Key Entities
- Flexible & Opportunistic Underwriting Strategy
- Traditional Quota Shares
- Opportunistic Deals
- Reserve Covers
- Diversified Premium Base
- Reinsurance Risk Management
- Market-Leading Investment Management
Third Point Reinsurance – 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
Market-Leading Investment Management
- Third Point LLC owned and led by Daniel S. Loeb
- 19.0% net annualized returns since inception at in 1995
- 10.0% 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.
