New York-based hedge fund Third Point LLC has announced the launch of Malibu Life Reinsurance SPC (Malibu Life Re), a licensed life and annuity reinsurer based in the Cayman Islands.
Malibu Life Re will focus on providing asset-intensive reinsurance solutions and has entered into a treaty with a leading U.S. 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. This includes Third Point’s ability to source excess spread across the full spectrum of credit asset classes and the firm’s portfolio management capabilities, which will be leveraged to construct capital efficient and diversified portfolios, the firm said in a press release.
Third Point’s strategic services to the reinsurer include corporate development, risk management and asset liability management, where Third Point will employ its analytics to develop bespoke, liability-driven investment programmes. Malibu Life Re intends to scale through select partnerships with insurers providing flow and/or block reinsurance.
Third Point LLC Founder and CEO, Daniel S. 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 favorable 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 LLP and Conyers Dill & Pearman LLP were legal advisors, and Artex Risk Solutions is acting as insurance manager of Class B(iii)-licensed Malibu Life Re.
