Third Point ReinsuranceNYSE
Thu, Oct. 20, 11:32 AM
- Reinsurers sell coverage to other insurance companies for natural disasters and such. While they wait for loss-triggering events to happen, the reinsurers collect premiums which they can then invest. Warren Buffett (BRK.A, BRK.B) credits this "float" as a big factor behind his great fortune.
- But business isn't what it used to be, write Sonali Basak and Noah Buhayar in Bloomberg, and Buffett sold stakes in Swiss Re and Munich Re last year, saying prospects over the next decade don't look great. He also put new leadership in charge of Berkshire's General Re to try and reverse more than a decade of shrinking float.
- Among the issues are what's turned into years of barely visible interest rates. “It is no fun,” says The Oracle, to “find out that a great many of the things that you were buying a few years ago now have negative yields.” It's also become a more crowded field with the entrants first of David Einhorn (NASDAQ:GLRE) and more recently Dan Loeb (NYSE:TPRE) helping to create a price war, with premiums down 40% over the past decade.
- Insurers can also now turn to investment banks to lay off risk by issuing catastrophe bonds - a market that's grown from $9.2B to $25B over the last ten years.
- A shakeout is already underway as there have been a number of sector mergers. What might further shake things up would be a catastrophe big enough to cause significant industry losses.
- Interested parties: CB, RNR, AHL, ENH, AXS, ACGL, RGA, UNM
Thu, Aug. 4, 4:32 PM
Thu, May 5, 5:07 PM
- Third Point Reinsurance (NYSE:TPRE): Q1 EPS of -$0.49 beats by $0.01.
- Revenue of $193.2M (-9.4% Y/Y) misses by $36.5M.
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)
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Thu, Feb. 25, 4:16 PM
- Third Point Reinsurance (NYSE:TPRE): Q4 EPS of $0.39 misses by $0.10.
- Revenue of $99.2M (-60.9% Y/Y) misses by $53.1M.
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)