Third Point launches IPO

August 6
1:06 AM 2013

Third Point Reinsurance announced the company had unveiled a US$322.2 million initial public offering. Third Point Reinsurance is a property and casualty reinsurance provider. The firm is backed by Kelso & Company, a private equity firm and Dan Loeb, a hedge fund manager. The net proceeds, the company said, will be primarily used in enhancing the firm's underwriting capacity.

The plan for an initial public shares offering is in line with a strengthened premium pricing cycle with underwriting capabilities fluctuating together with investment results, large catastrophes, regulations, new entrants, and other industry losses. The reinsurance industry is known to be very competitive and cyclical.

The deal is thought to put a value in the company of around US$1.46 billion. JP Morgan Chase & Co., Morgan Stanley, Credit Suisse, Citigroup, and Bank of America Merrill Lynch lead a group of 10 underwriters. They hope to put a price of anywhere between US$12.50 and US$14.50 for each of the 22.2 million shares to be offered in the deal.

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