NY-based asset manager launches Malibu Life Re

New York-based alternative asset manager Third Point has announced the launch of Malibu Life Reinsurance SPC (Malibu Life Re), a new life and annuity reinsurer established in the Cayman Islands.

Malibu Life Re will concentrate on asset-intensive reinsurance solutions and has already secured an agreement with a prominent US annuity provider. This arrangement involves reinsuring $3 billion worth of annuity products through a quota share flow agreement.

Third Point will support Malibu Life Re with investment management and strategic services, leveraging its experience in excess spread sourcing across various credit asset classes and portfolio management.

The strategic services will encompass corporate development, risk management, and asset liability management, with a focus on developing tailor-made, liability-driven investment programs.

Daniel S Loeb (pictured above), founder and CEO of Third Point, expressed optimism about the new reinsurance venture.

“We are excited to form Malibu Life Re to provide attractive capital solutions in the life and annuity space in partnership with leading insurers,” Loeb said. “We expect that the nimble, multi-asset class investment strategy we have designed over almost thirty years can be leveraged to deliver favorable long-term risk adjusted returns for Malibu Life Re’s clients and partners.”

Supporting the launch, Lazard served as the financial advisor, and Oliver Wyman provided actuarial support. Legal advisory was handled by Debevoise & Plimpton LLP and Conyers Dill & Pearman LLP, with Artex Risk Solutions acting as the insurance manager.

Malibu Life Re operates as an independent, Class B(iii) reinsurer, owned by Third Point and its affiliates. It aims to establish reinsurance relationships with leading life and annuity providers, capitalizing on Third Point’s expertise in investment and risk management.

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