Third Point Investors to Acquire Malibu Life Reinsurance, Expanding US Fixed Annuity Market Footprint

Third Point Investors Ltd, through its feeder fund linked to the Third Point Offshore Fund, has entered into an agreement to acquire Malibu Life Reinsurance SPC, a Cayman Islands-based reinsurer specializing in US fixed annuities.

This acquisition aims to address structural challenges faced by the investment trust sector by forming a fully capitalized, London-listed reinsurance operating company. Malibu Life operates within the substantial US fixed annuity market, estimated at USD 1 trillion and growing, offering strategic growth opportunities within this segment. The deal is structured as a NAV (Net Asset Value) for NAV all-share transaction, with Malibu Life Holdings LLC, owned by Third Point Opportunities Master Fund LP, receiving new shares in Third Point Investors equivalent to Malibu’s tangible book value of approximately USD 68 million. Additionally, Third Point Investors is planning a USD 75 million tender offer to facilitate shareholder liquidity, supported by conditional commitments totaling USD 55 million at a discount to NAV of 12.5%.

The transaction, which constitutes a reverse takeover under UK listing rules, has received unanimous recommendation from Third Point Investors’ strategy committee after an internal review. Completion is expected in the third quarter of 2025, subject to shareholder approval at an extraordinary general meeting. This deal reflects a strategic move to leverage Malibu’s active reinsurance platform and origination pipeline, targeting enhanced scale, consistent returns, and improved market valuation multiples for the combined entity. The announcement impacted Third Point Investors’ share price, which declined by 4.8% in London trading immediately following the news.