Third Point Reinsurance

Over the first-quarter of 2016 the results of the two main hedge fund backed reinsurance firms diverged, both on underwriting and investment returns, as Einhorn backed Greenlight Re reported a profit, while Loeb backed Third Point Re fell to a loss.

At the end of the first-quarter of 2016 the two leading proponents of the hedge fund reinsurance firms continued to show that, when it comes to navigating the financial market investment environment, not every strategy is equal.

The hedge fund reinsurance strategy continues to demonstrate its volatility in 2016, as the two main proponents of the strategy, backed by leading hedge fund managers, see their performance diverge as Greenlight Re outperforms Third Point Re again in February.

The differences in hedge fund reinsurance investment portfolios was again evident in the first month of 2016, with Greenlight Re reporting a positive investment return, while Third Point Re fell to an investment loss in January.

Both of the leading and highest profile hedge fund manager backed reinsurance firms have suffered a full year investment loss in 2015, as the volatile financial market climate impacted on the investment oriented reinsurance strategy.

The investment returns generated by the two highest profile hedge fund manager backed reinsurance firms have returned to negative again in November, with Greenlight Re suffering another steep decline in the last month.

Two of the most prominent hedge fund reinsurance firms have seen an improvement in their investment returns in October, after two consecutive months of deeply negative returns due to financial market volatility.

Financial market volatility has again hit the two most prominent hedge fund reinsurance firms, with both Greenlight Re and Third Point Re reporting another negative month on the investment side of their businesses in September.

Two of the largest hedge fund manager backed reinsurance companies have been hit by the volatility in financial markets during August, with both Greenlight Re and Third Point Re reported to have faced significant dips in return during the month.

Rating agency A.M. Best has placed hedge fund strategy reinsurance firm PaCRe Ltd’s rating under review with negative implications due to a shortfall in performance, compared to its business plan, caused by poor investment returns.