Monday, 3 August 2015
Last updated 8 min ago
Aug 15 2013 | 1:30pm ET
Third Point's reinsurance arm went public yesterday, raising $276 million, money that will be used to boost its underwriting capacity.
Third Point Re's stock priced at $12.50 per share, the low end of its range. The underwriters also sold only 22.1 million shares, 100 million fewer than initially offered, leaving the company with nearly $100 million less than it might have raised and valuing it at almost $1.3 billion.
Even at just $12.50, however, investors were not initially impressed, as Third Point Re opened at just $12.25 this morning. It has rallied, however, and was trading above $13 at midday.
Third Point set up Bermuda-based Third Point Re two years ago and has raised $750 million for the business, which is headed by industry veteran John Berger. Third Point chief Daniel Loeb and a pair of private equity firms are among the reinsurer's primary investors.
Third Point Re invests its capital and premiums in Third Point's hedge funds.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…