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.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.