May 6 Third Point, the $11.6 billion hedge fund
run by billionaire Dan Loeb, has hired banks for an initial
public offering of its reinsurer business, according to three
sources familiar with the matter.
Bermuda-based Third Point Re is working with Morgan Stanley
, Credit Suisse AG and JPMorgan Chase & Co
on a public float that could raise around $250 million
later this year, the sources said.
Morgan Stanley, JPMorgan and Credit Suisse declined to
comment. Third Point could not be reached for comment.
Reinsurers act essentially as insurance for insurance
Third Point launched its reinsurer arm last year with $750
million in capital. The company is led by prominent industry
executive John Berger, who was the former CEO of Alterra Capital
Holding Ltd's reinsurance business.
Besides Loeb, other hedge fund managers have also made plays
in the reinsurance space as a way to capitalize on rising rates
after natural disaster losses and to provide their funds with
another source of investment capital.
David Einhorn's Greenlight Capital set up Greenlight Capital
Re Ltd in the Cayman Islands in 2004, and went public
in 2007, raising $258 million in its IPO. Steven Cohen's SAC
Capital Advisors created a Bermuda-based reinsurer arm last