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

Q&A: George Schultze On His Fund's Unique Approach to Distressed Investing

Apr 16 2015 | 1:01am ET

George Schultze is a managing member of Schultze Asset Management, a long/short...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Minnesota Supreme Court Rejects The Ponzi Scheme Presumption: Lenders Claw Back Some Of Their Own Rights

Apr 17 2015 | 9:23am ET

A recent court ruling in Minnesota has put an end to the Ponzi Scheme Presumption...

 

Editor's Note