Third Point LLC has launched Malibu Life Reinsurance SPC, a licensed life and annuity reinsurer based in the Cayman Islands.

The New York-based alternative asset manager was founded by chief executive Daniel S. Loeb in 1995.

The firm says it manages more than $11 billion in assets on behalf of institutional and high-net-worth investors, a London-listed feeder fund, TPIL, and SiriusPoint, a Bermudian-based reinsurer that Third Point formed and capitalised in 2011.

The organisation said Malibu Life Re will focus on providing asset-intensive reinsurance solutions and has entered into a treaty with a leading US annuity provider to reinsure $3 billion of annuity products in a quota share flow agreement.

Third Point will provide investment management and strategic services to Malibu Life Re.

The company said Malibu Life Re intends to scale through select partnerships with insurers providing flow and/or block reinsurance.

Mr Loeb said: “We are excited to form Malibu Life Re to provide attractive capital solutions in the life and annuity space in partnership with leading insurers.

“We expect that the nimble, multi-asset-class investment strategy we have designed over almost 30 years can be leveraged to deliver favourable long-term risk-adjusted returns for Malibu Life Re’s clients and partners.”

Lazard acted as financial adviser and Oliver Wyman provided actuarial support.

Debevoise & Plimpton LLP and Conyers Dill & Pearman LLP were legal advisers, and Artex Risk Solutions is acting as insurance manager.