Third Point Investors has proposed an all-share combination with Malibu Life Reinsurance SPC (Malibu), the life and annuity reinsurer it established last year in the Cayman Islands. 

The move is aimed at setting up a “fast-growing, fully capitalised” reinsurance operating company, listed in London. 

The company will acquire Malibu from Malibu Life Holdings, which is wholly owned by Third Point Opportunities Master Fund, in exchange for the issue of new ordinary shares in the company on a “NAV for NAV” basis. 

This deal was unanimously recommended by the Strategy Committee after the completion of a strategy review. 

It awaits shareholder approval and constitutes a reverse takeover under UK listing rules. 

Malibu operates in the US fixed annuity sector, a market estimated at approximately $1trn, and focuses on predictable liabilities. 

It targets annual premiums of approximately $5bn by the end of 2027.  

The capital to support this growth is expected to be provided through periodic redemptions from the Master Fund, with the goal of creating a stand-alone operating entity within 18–36 months. 

Gary Dombowsky, director of Malibu, will join the board as CEO upon completion of the transaction. 

To accommodate shareholders seeking to exit or reduce their holdings, Third Point is considering a tender offer of at least $75m. 

Malibu has a tangible book value of approximately $68m, including a $16m equity investment by Third Point in the first quarter of 2025 (Q1 2025).  

An additional contribution of around $15m is expected in Q2. 

Third Point Investors chairman Rupert Dorey said: “We are delighted to announce the proposed acquisition of Malibu. This is an innovative and transformational transaction that solves the structural headwinds impacting the investment trust sector to deliver a unique proposition for shareholders.  

“Malibu is a high-potential reinsurance platform with a robust pipeline of reinsurance and other origination opportunities that will enable it to achieve scale in the near-term.”