NEW YORK (Bloomberg) — Bermudian-based Third Point Reinsurance Ltd won lower fees on investments overseen by Dan Loeb’s Third Point LLC, the hedge fund manager that helped start the reinsurer.

Third Point Re will pay a 1.5 per cent annualised fee in addition to as much as 20 per cent of the profits, according to a regulatory filing yesterday. Previously, the management fee was 2 per cent, according to a 2015 filing. The new contract is a five-year commitment. The deal also allows the reinsurer to take advantage of more favourable terms if they are offered to other investors in the hedge fund.

The arrangement has been profitable for the money manager even as investors in the reinsurer’s stock have suffered. Third Point Re has paid more than $90 million since 2013 to the hedge fund and its affiliates.

“We are pleased to extend our partnership with Third Point Re and look forward to continuing to create long term value for shareholders,” Loeb said in a statement.

Third Point Re shares closed unchanged at $11.07 in New York yesterday. The company is headed for its third-straight annual decline, and is trading for less than the $12.50 price of its 2013 initial public offering. Loeb delivered a negative investment return last year, and the company has struggled to find profitable underwriting opportunities as more hedge funds pile into insurance seeking bets that aren’t correlated with stock and bond markets.

Third Point Re represents about 14 per cent of assets managed by the hedge fund firm, Loeb said in a presentation last month. The reinsurer bets on Loeb’s strategy through separately managed accounts, meaning it can have different terms than those available to other hedge fund investors. Elissa Doyle, a spokeswoman for the hedge fund firm, declined to comment.

Third Point Re chief executive officer John Berger highlighted the hedge fund firm’s long-term contributions in the statement.

“They helped us form Third Point Re, have supported us in building out our financial reporting and treasury functions, and have performed strongly as our investment manager,” the CEO said. “Since our inception and through the first quarter of 2016, Third Point has generated an annualised return on our invested assets of 9.6 per cent.”