Property & Casualty Reinsurance

Property &  Casualty Reinsurance
  • Pininvest Analysis

Ultimate backstop of the hurricane season of September ’17, followed by the Mexico earthquake, the reinsurance industry has been going through tough times with losses estimated at $100bn, and possibly up to $135bn as initial estimates tend to run low

Looking beyond the occasional, though hard-hitting, exposure to cumulative natural catastrophes, the industry is essentially defined by a thoughtful financial strategy, pricing the risk with care, structuring investment float in relation to the type of risk exposure and deploying the capital over – on average - extended pay-out periods

Buffet’s Berkshire Hathaway BRK_B/NYSE has tuned the exercise to perfection, suspending disbelief with a float approaching $114.5bn at year end 2017, following a considerable deal with AIG

The strategy so successfully put to work seems to attract two very different investors

  • cash rich investors such as private equity funds, unable to deploy their resources in an over-priced market, hoping for a better return
  • industrial concerns hoping to diversify and – when the time is ripe – to allocate some to the float to investments and acquisition strategies

The dynamics of the reinsurance sector are in for more surprises…

Property & Casualty Reinsurance • Updated:

Name Ticker Exchange Sector Industry Currency Cur.Price Mkt.Cap Perf. Vol. Risk Contrib. MDD
 
Argo Group International Holdings ARGO NYSE Finance Property & Casualty Insurance USD 35.83 1.2 B -46.8% 57%   8% -62%
Athene Holding ATH NYSE Finance Reinsurance USD 34.48 6.7 B -16.3% 79%   12% -68%
Berkshire Hathaway BRK_B NYSE Conglomerates Diversified Conglomerates USD 210.06 - -0.7% 34%   5% -30%
Everest Re Group RE NYSE Finance Reinsurance USD 199.84 8.0 B -18.6% 47%   6% -44%
Exor EXXRF OTC Conglomerates Diversified Conglomerates USD 55.70 - -19.2% 59%   6% -59%
Hannover Rück HVRRY OTC Finance Reinsurance USD 75.47 - -10.4% 44%   6% -44%
James River Group Holdings JRVR NASDAQ Finance Reinsurance USD 50.67 1.5 B 41.3% 53%   7% -39%
MBIA MBI NYSE Finance Reinsurance USD 6.55 443 M -33.1% 61%   8% -46%
Munich Re Group MURGY OTC Finance Reinsurance USD 24.64 - -6.5% 46%   7% -48%
Protective Insurance PTVCB NASDAQ Finance Property & Casualty Insurance USD 14.39 204 M -9.6% 62%   8% -39%
RenaissanceRe Holdings RNR NYSE Finance Reinsurance USD 172.54 7.6 B -8.3% 42%   6% -41%
SCOR SCRYY OTC Finance Reinsurance USD 2.79 - -31.3% 62%   8% -59%
Swiss Re Ltd SSREY OTC Finance Reinsurance USD 18.73 - -22.6% 44%   6% -53%
Third Point Reinsurance Ltd. TPRE NYSE Finance Reinsurance USD 7.94 753 M -20.4% 50%   7% -47%