Third Point's Strategic Reinsurance Move
Deal News | May 21, 2025 | Re-Insurance News
Third Point LLC, the New York-based alternative asset manager, has announced a bold move to transition Malibu Life Reinsurance SPC into a London-listed reinsurance entity. Malibu Life Re, a Cayman Islands-based life and annuity reinsurance platform, was launched by Third Point in May 2024. The transaction involves Third Point Investors Limited acquiring Malibu Life Re from Malibu Holdings LLC in an all-share deal. This strategic decision, driven by a strategy review, has garnered a unanimous nod from the Strategy Committee. To enable liquidity for shareholders, an innovative tender offer of at least $75 million is proposed, with conditional commitments totaling $55 million already secured. Malibu Life Re anticipates scaling to $5 billion in annual premium by 2027, capitalizing on the U.S. annuity market with a focus on predictable liabilities. The reinsurance strategy is backed by a commitment to periodic contributions from Third Point Opportunities Masters Fund L.P. The tangible book value of Malibu Life Re is estimated at $68 million, with Third Point expected to infuse an additional $15 million by 2025. Top executives, including Rupert Dorey and Dimitri Goulandris, expect the transaction to result in steady, consistent returns.
Sectors
- Reinsurance
- Alternative Investments
- Financial Services
Geography
- United States – Malibu Life Re is targeting the U.S. fixed annuity market for growth.
- United Kingdom – The goal is to transition Malibu Life Re into a London-listed reinsurance platform.
- Cayman Islands – Malibu Life Re was originally launched in the Cayman Islands by Third Point.
Industry
- Reinsurance – The article centers around Malibu Life Re, a reinsurance platform aiming to become a London-listed entity.
- Alternative Investments – Third Point LLC, a major player in the alternative asset management space, is spearheading the acquisition and merger.
- Financial Services – The transaction involves strategic funding, shareholder liquidity, and financial structuring, significant elements in the financial services sector.
Financials
- $75 million – Minimum proposed for a potential tender offer to effect shareholder liquidity rotation.
- $55 million – Aggregate conditional commitments from investors for ordinary shares purchase.
- $68 million – Tangible book value of Malibu Life Re.
- $15 million – Estimated additional equity capital from Third Point to Malibu Life Re.
- $5 billion – Targeted annual premium Malibu Life Re aims to scale by 2027.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Third Point LLC | PE Firm/Buyer | Company | Initiating the acquisition and merger of Malibu Life Re into a London-listed platform. |
| Malibu Life Reinsurance SPC | Target Company | Company | A reinsurance platform aiming to focus on the U.S. annuity market and achieve geographical restructuring. |
| Third Point Investors Limited | Bidding Company | Company | Acquiring Malibu Life Re from Malibu Holdings LLC. |
| Malibu Holdings LLC | Selling Company | Company | Wholly owned by Third Point Opportunities Masters Fund L.P., selling Malibu Life Re. |
| Third Point Opportunities Masters Fund L.P. | Other Company | Company | Providing periodic redemptions to meet Malibu's capital needs. |
| Gary Dombowsky | Incoming CEO | Person | Director of Malibu Life Re, to become CEO after the acquisition. |
| Saba Capital Management Fund L.P. | Stakeholder | Company | Committed to supporting the acquisition and related proposals. |