Third Point Reinsurance: Tax-Efficient Structure And Superior Management
Ashleigh Rogers • 23 Comments
Ashleigh Rogers • 23 Comments
Thu, May 5, 5:07 PM
Tue, Apr. 12, 8:52 AM
- Stocks go up and they go down, but Dan Loeb's Third Point hedge fund gets paid by Third Point Reinsurance (NYSE:TPRE) no matter what, reaping $98.8M in management fees since 2013.
- A similar arrangement is paying dividends for David Einhorn, whose DME Advisors has pulled down more than $280M in management and performance fees since 2007 from Greenlight Capital Re (NASDAQ:GLRE).
- The reinsurer is a good deal for money managers as its gives them more or less permanent capital to play with, but for investors the companies are pitched as a way to benefit from their managers' acumen. It hasn't worked out too well - investments in the hedge funds themselves have performed far better than in the reinsurers.
- Source: Bloomberg
- Now read: Tracking Dan Loeb's Third Point Portfolio - Q4 2015 Update
Fri, Feb. 26, 10:48 AM
- "There haven’t really been any signs of recession from either the economic data, the surveys or our individual conversations with companies," says Dan Loeb, speaking on the Third Point Reinsurance (TPRE -6.1%) conference call this morning. "We have actually increased our net exposure over the course of the month as some of these selloffs have created silly prices for securities.”
- Volatility equals opportunity to make purchases, says Loeb.
- Previously: Third Point Reinsurance misses by $0.10, misses on revenue (Feb. 25)
- ETFs: CRF, VV, USA, SCHX, ZF, FEX, JKD, EEH, EQL, IWL, ERW, FWDD, ZLRG, SYE, SBUS, USWD, GSLC, USSD
Thu, Feb. 25, 4:16 PM
Nov. 3, 2015, 4:37 PM
- Third Point Reinsurance (NYSE:TPRE): Q3 EPS of -$1.88 misses by $0.01.
- Revenue of $205.21M (+62.5% Y/Y) beats by $45.31M.
Nov. 2, 2015, 3:05 PM
- Blaming weather, new community development, labor shortages, and an extended building cycle pushing back closings in core markets, Green Brick Partners (GRBK -18%) cuts full-year pretax income guidance to $22M-$24M.
- Full Q3 results are due after the close on Nov. 12.
- It's another blow for David Einhorn's Greenlight Capital, an owner of 49% of the company, not to mention Greenlight Capital Re (GLRE -0.7%), where losses are growing thanks to hits in its investment portfolio.
- Dan Loeb's Third Point owns about 17% of GRBK. Third Point Reinsurance (TPRE +1.9%).
Aug. 5, 2015, 4:47 PM
- Third Point Reinsurance (NYSE:TPRE): Q2 EPS of $0.15 misses by $0.13.
- Revenue of $184.3M (+26.7% Y/Y) beats by $2.65M.
May 7, 2015, 4:58 PM
- Third Point Reinsurance (NYSE:TPRE): FQ3 EPS of $0.47 beats by $0.01.
- Gross premium written of $213.28M (+143.5% Y/Y) beats by $69.58M.
Mar. 27, 2015, 2:48 PM
- Oaktree Capital (NYSE:OAK), along with other founding investors are expected to buy 25% of the common equity of Fidelis Insurance Holdings, a Bermuda insurer led by former Lancashire Holdings CEO Richard Brindle.
- The company's edge against reinsurance rivals like those set up by Dan Loeb (NYSE:TPRE) and David Einhorn (NASDAQ:GLRE), according to its pitch, is its plan to profit when prices for coverage are high, but to focus on investing during other periods.
- Investors today, says the pitch, will have the opportunity to cash out through an IPO in 3-5 years.
- Source: Bloomberg
Feb. 26, 2015, 5:20 PM
- Third Point Reinsurance (NYSE:TPRE): Q4 EPS of -$0.14 misses by $0.05.
- Revenue of $177.1M (+19.8% Y/Y)
Feb. 17, 2015, 9:19 AM
- Believing the loss trend environment could stay muted through the end of next year, Citigroup upgrades a handful of property and casualty insurance companies.
- Arthur J. Gallagher (NYSE:AJG), Marsh & McLennan (NYSE:MMC), and RenaissanceRe (NYSE:RNR) are boosted to Buy from Neutral, and Travelers (NYSE:TRV), Third Point Re (NYSE:TPRE), Chubb (NYSE:CB), XL Group (NYSE:XL), and AXIS Capital (NYSE:AXS) are upgraded to Neutral from Sell.
Nov. 6, 2014, 4:48 PM
- Third Point Reinsurance (NYSE:TPRE): Q3 EPS of -$0.06 misses by $0.05.
- Revenue of $126.4M (+178.3% Y/Y) beats by $74.7M.
Sep. 9, 2014, 11:59 AM
- "Fierce competition, over-capacity and low returns continue to put pressure on the industry," says Moody's, reinforcing its negative outlook on the global reinsurer sector (first changed to negative in June).
- There are positive developments though, particularly a slowing in price declines. Moody's previously believed a 15-20% drop in cat prices next year a "distinct possibility," but says such a severe scenario has become less likely.
- One reason for the slowing price decline, says Moody's, is non-traditional competitors like insurance linked securities (ILS) are having a tough year and have less scope to cut pricing.
- Among the reinsurers: ACE, XL, PRE, RE, RNR, AHL, ENH. AXS, ACGL, RGA, MRH, UNM, OTCPK:SSREY, GLRE, TPRE.
Aug. 7, 2014, 5:07 PM
- Third Point Reinsurance (NYSE:TPRE): Q2 EPS of $0.29 beats by $0.03.
- Revenue of $145.50M (+48.2% Y/Y)
Feb. 26, 2014, 6:29 PM
- Third Point Reinsurance (TPRE): Q4 EPS of $0.75.
Jan. 2, 2014, 8:24 AM
- Following a 2013 in which the number of natural and man-made disasters fell by half, reinsurers could be hit with up to a 25% decline in premium revenue this year, according to broker Willis Re.
- Combining with the lack of catastrophes is a market in oversupply as pension funds and hedge funds (like GLRE and TPRE) rush into the business - a $50B increase in industry capital, says Willis CEO John Cavanagh.
- U.S. property casualty reinsurance faces the biggest hit - 10-25% - while European premiums could fall 10-15%.
- Hannover Re (HVRRY) last week said it expected premiums to fall this year, fueling concern about a price war with competitors like Swiss Re (SSREY) and Berkshire Hathaway (BRK.A, BRK.B).
- Among U.S. reinsurers: ACE, XL, PRE, RE, RNR.
Third Point Reinsurance Ltd. is a holding company engages in the provision of insurance services. It operates through the property and casualty reinsurance, and catastrophe risk management segments. The property and casualty segment provides reinsurance products to insurance and reinsurance... More
Industry: Property & Casualty Insurance
Country: United States
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