Third Point Re 1Q17 Earnings Call Notes

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Daniel Loeb – CEO of Third Point LLC

We see the recovery continuing for the time being

“we’re comfortable with US growth and European growth and even though it does – even though this recovery is long in the tooth, we see it continuing for the time being.”

Access to the investment strategy

“Sure, well for one thing, anyone as a stockbroker can buy shares in TPRE and have access to our investment strategy, so the biggest distinguishing factor is the daily liquidity that you get in investing in a public security where the underlying investment portfolio is virtually the same as our main hedge fund. So as you probably know, if you want to invest directly you have to be a qualified investor and you can – there are liquidity restrictions around redemptions, so that’s the biggest difference. Obviously we are – if you are investing in Third Point via TP Re, you own an equity – security which is also an insurance company, so you’re getting whatever the advantages are or disadvantages of owning an insurance company and we believe that over the long run as John and team bring down the combined ratios, you’ll have two opportunities to win. You’ll get some positive return from the insurance company added to the investment returns. I think the reason for the discount is that it’s been a very difficult environment for reinsurance, but as that reality and perception changes I think you’ll see that discount shrink”