Third Point Reinsurance Ltd., the Bermuda- based company co-founded by hedge-fund manager Dan Loeb, has picked Short Hills, New Jersey, as the location for a new U.S. subsidiary.
Shane Haverstick, senior vice president of operations, said he’s moving to the new office from Bermuda with Tony Urban, an executive vice president of underwriting. The property is at 51 John F. Kennedy Parkway, where David Tepper’s hedge-fund firm Appaloosa Management occupies space on a separate floor, according to regulatory filings.
The reinsurer last year hired Tom Wafer and Jonathan Norton, two former Alterra Capital Holdings Ltd. executives, to lead a push in the U.S. and said the company was looking to open an office in the country. Third Point Re is among reinsurers pressured by increased competition as investors including hedge funds crowd into the business of providing backup coverage for primary carriers.
“TPRUSA’s management team may be challenged by the increased competition from established carriers as well as other alternative capital insurers, also in the start-up phase,” A.M. Best said Monday in New York in a statement. The ratings firm said “the company’s hedged investment strategy” also can add risk.
Third Point Re said today said in a filing that it probably posted an underwriting loss in 2014 and that net income declined from a year earlier on lower investment returns. The company released preliminary 2014 financial data as the U.S. subsidiary disclosed plans for an offering of senior notes.
The reinsurer declined 1.9 percent $13.28 at 4:01 p.m. in New York, extending its loss since Dec. 31 to 8.4 percent. The company dropped 22 percent last year.
Loeb started his hedge fund in the weight room of Tepper’s office in Chatham, New Jersey, in 1995 and later moved to New York, according to Bloomberg News reporter Katherine Burton’s 2007 book “Hedge Hunters.” Loeb also helped start the reinsurer, which was incorporated in 2011.