(Bloomberg) -- Third Point Reinsurance Ltd., co-founded by hedge-fundmanager Dan Loeb, likened the risk of mergers and acquisitions topicking a spouse without being aware of how much can go wrong.

“Just like marriage, in M&A the 20 percent that work are sobeautiful it inspires us all" in the industry about the possiblebenefits of finding a partner, Chief Executive Officer John Berger saidWednesday at a conference. However, “50 percent of marriages end indivorce.”

Third Point Re has resisted the temptation to pursue a deal asinsurers have increasingly been seeking acquisitions or sellingthemselves to rivals in combinations that add scale and diversifyrisks. Endurance Specialty Holdings Ltd. acquiredMontpelier Re Holdings Ltd. last year and then agreed thismonth to sell itself to Japan’s Sompo Holdings Inc.

Berger and Loeb, who oversees investments for the reinsurer, areunder pressure to improve shareholder returns. Third Point Reslipped 5 cents to $12.30 at 10:45 a.m. in New York, trailing the$12.50 price from the 2013 initial public offering. The companydoesn’t pay a dividend.

‘Fact of life’

Berger’s remarks build on comments he made last year about therisks of M&A for Bermuda-based Third Point Re. Potential mergerpartners in the U.S. and Europe typically face more restrictions oninvestment portfolios, which could detract from the strategy ofallowing Loeb to use his hedge-fund approach, Berger said at a 2015conference.

Berger said it’s still too early to evaluate the prospects forChubb Ltd., which was formed in January when Evan Greenberg’sAce Ltd. acquired Chubb Corp. for more than $29billion. But he predicted more deals in the industry.

“Consolidation is a fact of life,” Berger said Wednesdayat an event held by S&P Global Inc. in New York. “Thestars are aligned well for more activity in the near future."

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