Shareholders of the UK investment trust run by Dan Loeb’s hedge fund Third Point should reject its plan to turn itself into a reinsurance company, according to ISS.
In its recommendation ahead of an Aug. 14 vote, the proxy adviser said the “deal will fundamentally change the investment
case without giving minority shareholders, who are unwilling or unable to continue as shareholders in an operating, reinsurance business, an exit option at a fair price for their entire holdings.”
In May, Third Point Investors Ltd. agreed to buy Malibu Life Reinsurance, which was created and capitalized by its own investment manager. The proposed all-share
combination is expected to create a London-listed reinsurance operating company, targeting a return on equity in the mid-teens by the end of 2027.
Third Point Investors had unveiled the plan following a strategy review backed by activist investor Boaz Weinstein.
Photograph: Tower Bridge in City of London; photo credit: Jason Alden/Bloomberg
HB 148 was among the most controversial insurance-related bills passed by lawmakers this session. Temple and ins
urance industry representatives opposed the bill, which amends statutory law
to say that insurance rate filings standards “shall not be excessive, inadequate, or unfairly discriminatory,” whether or not the market is competitive.
“I think this would be devastating to insurance companies in evaluating wanting to do business here,” Temple told IJ before the bill received a final vote in the House.
The bill would ostensibly allow the insurance commissioner to deny any rate increase deemed “excessive,” even if ins
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urers believe the rate changes are actuarily justified.
HB 148 was sponsored by Jeff Wiley (R-Maurepas) and publicly supported by Governor Jeff Landry.
Proponents of the bill say it brings Louisiana in line with states like Texas, Mississippi, South Carolina, Florida and Alabama in giving the commissioner the power to hold down rates.
Temple said the law has the potential to deter insurers from writing business in the state.