New Third Point-backed reinsurer launches in Cayman Islands
New York-based alternative asset manager Third Point has launched 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 US annuity provider to reinsure $3 billion of annuity products in a quota share flow agreement, according to the company.
Third Point will provide investment management and strategic services to Malibu Life Re.
Malibu Life Re will leverage Third Point’s ability to source excess spread across the full spectrum of credit asset classes “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 programmes.
Malibu Life Re intends to scale through select partnerships with insurers providing flow and/or block reinsurance.
Third Point founder and CEO, Daniel 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.”
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