Third Point Re announced that they plan raise approximately US$250 million through an initial public offering of its common stock. Third Point Re is the property and casualty reinsurer controlled by billionaire hedge fund manager Dan Loeb. The reinsurer announced that the net proceeds from the offering would be used to increase underwriting capacity of the company. The company did not yet reveal how many shares they planned to sell or their expected price per share.
Third Point LLC is the US$11.6 billion hedge fund run by Loeb. The company launched its reinsurer arm, Third Point Re, last year with US$750 million set as working capital. Third Point Re reported an annual earning of US$96.5 million for 2012.
Third Point Re is headed by the prominent industry executive, John Berger, the former CEO of Alterra Capital Holding Ltd's reinsurance business.
Merrill Lynch, Morgan Stanley, J.P. Morgan, BofA, Credit Suisse, and Citigroup are the underwriters for the proposed IPO.
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