The reinsurance arm of Third Point, the hedge fund run by Daniel S. Loeb, had a rocky market debut on Thursday, opening at $12.25 a share, below its initial public offering price.
By midmorning, however, the company’s stock had rebounded, rising as high as $12.68 a share.
Underwriters for Third Point Re priced the stock sale at $12.50, at the low end of its forecasted price range. But they slightly cut the size of the offering, to 22.1 million shares.
The offering valued the financial firm at nearly $1.3 billion.
Third Point Re’s business is reinsurance, in which it takes over insurance policies in return for a fee, essentially backing up traditional insurers. Mr. Loeb’s firm moved into the sector at a time when other hedge funds, like Greenlight Capital and SAC Capital, had as well.
Though Third Point Re serves as a reinsurer, its investment portfolio is managed by its parent company, providing the hedge fund with a stable source of capital.
Third Point Re trades on the New York Stock Exchange under the symbol “TPRE.â€
