Third Point Reinsurance Ltd., which counts hedge fund manager Daniel Loeb as a founding shareholder, filed for a $250 million U.S. initial public offering as the company plans to increase sales.
JPMorgan Chase & Co., Credit Suisse Group AG and Morgan Stanley are leading the offering, according to a regulatory filing Monday from Bermuda-based Third Point Re. The offering amount is a placeholder used to calculate registration fees and may change.
Loeb, the founder of Third Point LLC, started the reinsurer in 2011 giving him access to additional investment funds. “Substantially all” of the reinsurer’s investment assets are managed by the hedge fund, according to Monday’s filing. Reinsurers take risks from primary carriers in exchange for a portion of their premium revenue and invest the money.
Funds from the offering will be used to increase “underwriting capacity in order to support the growth of our reinsurance premium writings,” the company said in the filing. “To the extent that this additional surplus is not immediately needed to pay claims or expenses, it will be invested consistent with past practice pursuant to the terms of our investment management agreement with Third Point LLC.”
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