Third Point launches Malibu Life Re in Cayman

Third Point, the New York-based alternative asset manager which previously formed Third Point Re in Bermuda, has launched a new reinsurer – this time choosing Cayman Islands as its base.

Malibu Life Reinsurance SPC, a licensed life and annuity reinsurer, will focus on providing asset-intensive reinsurance solutions. It has entered into a treaty with a big US annuity provider to reinsure $3 billion of annuity products in a quota share flow agreement. Third Point will provide investment management and strategic services to Malibu Life Re.

Third Point Re was one of the first reinsurers to adopt a hedge-fund investment-like total return strategy. It was eventually merged with Sirius, creating SiriusPoint.

Third Point founder and CEO Daniel Loeb said: “We are excited to form Malibu Life Re to provide attractive capital solutions in the life and annuity space in partnership with leading insurers. We expect that the nimble, multi-asset class investment strategy we have designed over almost thirty years can be leveraged to deliver favourable long-term risk adjusted returns for Malibu Life Re’s clients and partners.”

Lazard acted as financial advisor and Oliver Wyman provided actuarial support. Debevoise & Plimpton and Conyers Dill & Pearman were legal advisors, and Artex Risk Solutions is acting as insurance manager.

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