Wed, Aug. 5, 4:47 PM
Thu, May 7, 4:58 PM
Fri, Mar. 27, 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
Thu, Feb. 26, 5:20 PM
Tue, Feb. 17, 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
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
Feb. 26, 2014, 6:29 PM
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.
Nov. 26, 2013, 12:42 PM
- It's another big day for Dan Loeb's Third Point Re (TPRE +2.1%) after Credit Suisse boosts its price target to $16 from $15. The stock's ahead by nearly a third since its August IPO and now sports a 1.38x price to book ratio.
- For comparison purposes, David Einhorn's Greenlight Capital Re (GLRE +1.4%) - also after a big run in the stock - sports a 1.31x price to book ratio.
Nov. 12, 2013, 8:59 AM
- Net income of $46.6M or $0.46 per share compares to $39.6M or $0.45 a year ago. Diluted book value per share of $12.35 gains 2.3% from the end of Q2 and compares to last night's close of $15.12, putting the stock at 1.22x book.
- Underwriting improves with the combined ratio of 107.9 falling from 117 a year ago.
- Net investment return from Loeb's hedge fund of 4.3% compared to 6.1% a year ago. YTD returns of 16.9% vs. 8.4% a year ago.
- CC at 9 ET.
- Q3 results, press release.
- TPRE no trades premarket.
Nov. 12, 2013, 6:16 AM
Aug. 15, 2013, 9:40 AM
- Third Point (TPRE) files its Q2 13-F.
- Key increases: TIBX +400%. BID +400%. LBTYK +344%. LBTYA +275%. TMO +92%. COG +10%.
- Key reductions: TIF -38%. NWSA -38%. IP -31%. AIG -25%. STZ -25%. APC -20%.
- Key exits: DLPH, AGU, CIM, LPX, NXPI, HES, EQIX, TDG, ST, MUR, LNG, ABBV, VMED, LYB.
- Key initiations: MPC ($89M). WMB ($57M). ELN ($120M). DIS ($114M). CF ($145M). CCE ($35M).
Aug. 14, 2013, 12:15 PM
- Expected to price tonight is a $300M IPO for Third Point Reinsurance (TPRE) which will allow investors to bet alongside Daniel Loeb, but also take on the risk of whether the underwriting operation can be a profitable one.
- Similar to David Einhorn's Greenlight Re (GLRE), TPRE provides Loeb with "permanent capital" in the form of a low cost float from the insurance business.
- The stock will be valued at 1.1x book value if it prices at the midpoint of the expected $12.50 to $14.50 range, not too dissimilar from GLRE.
- The insurance operation is just getting started so there's little to chew on there, but Loeb's history (he's compounded money at 17.7% annually over the last decade) and the reasonable valuation are enough to interest The Brooklyn Investor. Yes, the insurance business is a worry, but Third Point (like Greenlight) is in the business of managing risk and presumably has the resources to bring on the necessary insurance expertise.
- TPRE roadshow presentation.
TPRE vs. ETF Alternatives
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