Third Point Reinsurer Plans Major Catastrophe Fund

Sep 14 2012 | 1:23pm ET

Third Point's year-old reinsurance business debuted a year ago with $500 million. Now, its seeking to more than double that with a new property and catastrophe fund.

Third Point Re, which is based in Bermuda, plans to raise $250 million by the end of the year for the new business. And CEO John Berger says that's just a start—he hopes it can grow to "$500 million to $600 million," and, "if we can get to that and establish a track record, then over time maybe we can make it bigger."

Berger told the Royal Gazette that the cat fund has already secured "one significant investor" whom he plans to identify shortly. He said the new fund would be relatively conservative in its approach.

"Because of the aggressive investing, we really can't put super-volatile business on the Third Point balance sheet, so we have a minimal amount of property cat business," Berger said. "But one of the main purposes of reinsurance is to provide cat capacity. So we're going to start a separate cat fund to be able to write that business."

Third Point Re already has a small catastrophe "side-pocket," a $50 million vehicle launched in April and led by former Goldman Sachs cat fund manager Manoj Gupta. The company has been on something of a hiring spree and plans to launch a London subsidiary shortly.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.