Third Point Re files for IPO
Third Point Reinsurance, the reinsurance company started by hedge-fund specialist Dan Loeb, has filed a registration with the US Securities and Exchange Commission for an Initial Public Offering (IPO). The proposed maximum offering price is $250 million.
The reinsurer was incorporated in October 2011 initially raising $784.3 million in equity capital. It began as an underwriter in 2012. The business has been led by John Berger, the former chairman of Alterra Capital Holdings.
According to the company’s filing, the company intends to increase its geographic exposure by adding reinsurance programmes from European, Asian and South American clients, though a majority of its business will continue to be from the US.
For the year ended December 31, 2012, the company generated net income of $99.4 million, which represented a return on beginning shareholders’ equity attributable to shareholders as of December 31, 2011 of 13%.
In 2012, its combined ratio for its property/casualty reinsurance segment was 135.5 percent, reflecting the impact of high general and administrative expenses relative to earned premiums due to the start-up nature of its business, it said.
The offering is being made through JP Morgan, Credit Suisse, Morgan Stanley, BofA Merrill Lynch, Citigroup, Aon Benfield Securities, Dowling & Partners Securities LLC, Keefe, Bruyette & Woods, Macquarie Capital, and Sandler O’Neill + Partners.
