Third Point Announces Launch of Malibu Life Re

May 02, 2024 at 12:07 PM EDT

Third Point LLC, a New York-based alternative asset manager, announces 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. Investment management 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 comprised of both in-house and other best-in-class asset manager strategies. Strategic services include corporate development, risk management and asset liability management, where Third Point will employ its analytics to develop bespoke, liability-driven investment programs. 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.

About Malibu Life Re

Malibu Life Re is an independent, Class B(iii), Cayman-based reinsurer owned by Third Point LLC and affiliates. It intends to pursue reinsurance relationships with major life and annuity providers. Malibu Life Re will benefit from access to world-class investment management, risk management, and operational services provided by Third Point LLC.

About Third Point

Third Point is an asset manager founded by CEO Daniel S. Loeb in 1995. Third Point’s investment strategies include equities; structured, corporate, and private credit; and venture capital. The firm manages over $11 billion in assets on behalf of institutional and high net worth investors, a London-listed feeder fund (TPIL), and SiriusPoint, a Bermuda-based reinsurer that Third Point formed and capitalized in 2011. Third Point is headquartered in New York.