Third Point Reinsurance Ltd. Announces Partnership with New Bermuda-based MGA
Third Point Reinsurance Ltd. (NYSE: TPRE) announced a strategic investment in Arcadian Risk Capital Ltd., a new Managing General Agent (MGA) based in Bermuda, slated to commence operations on October 1, 2020. Third Point Re will hold a minority stake and will provide insurance capacity to Arcadian, leveraging strong market conditions in casualty lines. CEO Dan Malloy emphasized the transformation of Third Point Re into a specialty re/insurer, while Arcadian's founder, John Boylan, sees an opportunity to fill market gaps due to capacity contraction among existing insurers.
- Investment in Arcadian Risk Capital strengthens Third Point Re's position in the Bermuda insurance market.
- Arcadian will write Excess Casualty and Professional Lines, tapping into improving market conditions.
- The partnership allows Third Point Re to leverage its balance sheet for profitable ventures.
- None.
HAMILTON, Bermuda, Sept. 17, 2020 /PRNewswire/ -- Third Point Reinsurance Ltd. (NYSE: TPRE) ("Third Point Re" or the "Company") today announced an investment in Arcadian Risk Capital Ltd. ("Arcadian" or "Arcadian Risk"), a start-up led by John Boylan, a well-known industry executive with a 30-year track record in the global insurance market. Third Point Re will own a minority stake in the newly-formed company.
Arcadian has been established as a Managing General Agent (MGA) and incorporated in Bermuda where the company will initially operate. The new company has plans to open additional offices outside of Bermuda as its operations grow. Arcadian will begin writing business as of October 1, 2020, having already received approval from the Bermuda Monetary Authority. The MGA will initially write Excess Casualty and Professional Lines.
Dan Malloy, Chief Executive Officer of Third Point Re, said: "We are not only investing in Arcadian, but will also provide insurance paper and capacity for the new venture. Our entrance into the Bermuda insurance market continues the Company's transformation into a specialty re/insurer. This partnership with a market-leading group of underwriters, who can build a profitable book of business using Third Point Re Bermuda's balance sheet, occurs at a time when the market needs strong new participants."
Mr Boylan, Founder and Chief Executive Officer of Arcadian, said: "I am delighted to announce the establishment of Arcadian in Bermuda and pleased to have Third Point Re as a partner. This is an exciting time as market conditions in casualty lines started to improve in 2019, bringing significantly increased rates and resulting in a hardening market in the first quarter of 2020. The capacity from some of the main providers in the market has contracted and there is a gap for a well-capitalised company with no legacy business and an experienced team of underwriters at its helm. I think now is the perfect time to set up an insurance underwriter in Bermuda, a centre of innovation for the insurance industry, to deploy capital in an environment well poised for profitability."
Mr Boylan started his underwriting career at AIG in Dublin in 1981, before moving to Bermuda to work for XL Insurance. He then spent a further 15 years as Chief Casualty Underwriter and Senior Vice President at XL, in Dublin, London and Switzerland. Mr Boylan joined Max Capital in 2003 and returned to Bermuda when the company was acquired by Markel in 2013. He remained with Markel as Global Casualty Chief Underwriting Officer until his departure in 2018.
Mr Boylan will be joined by a team of experienced excess casualty and professional liability underwriters and technicians.
Advisors
International law firm McDermott Will & Emery and Bermuda-based Conyers Dill & Pearman Limited acted as legal advisors to Third Point Reinsurance Ltd.
Safe Harbor Statement Regarding Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the Company's control. The Company cautions you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "plan," "seek," "comfortable with," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or the negative thereof or variations thereon or similar terminology. Actual events, results and outcomes may differ materially from the Company's expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, the following: results of operations fluctuate and may not be indicative of our prospects; a pandemic or other catastrophic event, such as the ongoing COVID-19 outbreak, may adversely impact our financial condition or results of operations; more established competitors; losses exceeding reserves; highly cyclical property and casualty reinsurance industry; losses from catastrophe exposure; downgrade, withdrawal of ratings or change in rating outlook by rating agencies; significant decrease in our capital or surplus; dependence on key executives; inability to service our indebtedness; limited cash flow and liquidity due to our indebtedness; inability to raise necessary funds to pay principal or interest on debt; potential lack of availability of capital in the future; credit risk associated with the use of reinsurance brokers; future strategic transactions such as acquisitions, dispositions, mergers or joint ventures; technology breaches or failures, including cyber-attacks; lack of control over Third Point Enhanced LP ("TP Fund"); lack of control over the allocation and performance of TP Fund's investment portfolio; dependence on Third Point LLC to implement TP Fund's investment strategy; limited ability to withdraw our capital accounts from TP Fund; decline in revenue due to poor performance of TP Fund's investment portfolio; TP Fund's investment strategy involves risks that are greater than those faced by competitors; termination by Third Point LLC of our or TP Fund's investment management agreements; potential conflicts of interest with Third Point LLC; losses resulting from significant investment positions; credit risk associated with the default on obligations of counterparties; ineffective investment risk management systems; fluctuations in the market value of TP Fund's investment portfolio; trading restrictions being placed on TP Fund's investments; limited termination provisions in our investment management agreements; limited liquidity and lack of valuation data on certain TP Fund's investments; fluctuations in market value of our fixed-income securities; U.S. and global economic downturns; specific characteristics of investments in mortgage-backed securities and other asset-backed securities, in securities of issues based outside the U.S., and in special situation or distressed companies; loss of key employees at Third Point LLC; Third Point LLC's compensation arrangements may incentivize investments that are risky or speculative; increased regulation or scrutiny of alternative investment advisers affecting our reputation; suspension or revocation of our reinsurance licenses; potentially being deemed an investment company under U.S. federal securities law; failure of reinsurance subsidiaries to meet minimum capital and surplus requirements; changes in Bermuda or other law and regulation that may have an adverse impact on our operations; Third Point Re and/or Third Point Reinsurance Company Ltd. ("Third Point Re BDA") potentially becoming subject to U.S. federal income taxation; potential characterization of Third Point Re and/or Third Point Re BDA as a passive foreign investment company; subjection of our affiliates to the base erosion and anti-abuse tax; potentially becoming subject to U.S. withholding and information reporting requirements under the Foreign Account Tax Compliance Act; risks associated with the failure to complete, or the failure to realize the expected benefits of the transaction with Sirius; and other risks and factors listed under "Risk Factors" in the Company's most recent Annual Report on Form 10-K, as updated by our Quarterly Report on Form 10-Q for the period ended March 31, 2020, and other periodic and current disclosures filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the date made and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
About the Company
The Company is a public company listed on the New York Stock Exchange which, through its wholly-owned subsidiaries Third Point Reinsurance Company Ltd. and Third Point Reinsurance (USA) Ltd., writes property and casualty reinsurance business. Third Point Reinsurance Company Ltd. and Third Point Reinsurance (USA) Ltd. each have an "A-" (Excellent) financial strength rating from A.M. Best Company, Inc.
www.thirdpointre.com
About Arcadian Risk
Bermuda-based Arcadian Risk is a Managing General Agent (MGA) that writes Excess and Surplus Casualty insurance. The company is regulated by the Bermuda Monetary Authority.
Contacts:
Investors
Third Point Reinsurance Ltd.
Christopher S. Coleman – Chief Financial Officer
investorrelations@thirdpointre.bm
+1 441-542-3333
Media
Rein4ce
Mairi Mallon
mairi.mallon@rein4ce.co.uk
+44 7843076533
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SOURCE Third Point Reinsurance Ltd.
FAQ
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