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 70.11 2.4 B 9.6% 23%   8% -22%
Athene Holding ATH NYSE Finance Reinsurance USD 46.90 8.7 B 7.8% 25%   11% -18%
Berkshire Hathaway BRK_B NYSE Conglomerates Diversified Conglomerates USD 230.20 - 12.6% 14%   6% -10%
Everest Re Group RE NYSE Finance Reinsurance USD 279.97 11 B 31.9% 17%   7% -9%
Exor EXXRF OTC Conglomerates Diversified Conglomerates USD 79.35 - 28.9% 24%   3% -15%
Hannover Rück HVRRY OTC Finance Reinsurance USD 97.59 - 42.5% 15%   7% -6%
James River Group Holdings JRVR NASDAQ Finance Reinsurance USD 42.17 1.3 B 11.5% 32%   8% -34%
MBIA MBI NYSE Finance Reinsurance USD 9.33 747 M -1.6% 26%   7% -19%
Munich Re Group MURGY OTC Finance Reinsurance USD 29.85 - 40.4% 13%   7% -8%
Protective Insurance PTVCB NASDAQ Finance Property & Casualty Insurance USD 16.22 232 M -4.9% 29%   5% -34%
RenaissanceRe Holdings RNR NYSE Finance Reinsurance USD 193.22 8.5 B 46.4% 18%   9% -6%
SCOR SCRYY OTC Finance Reinsurance USD 4.30 - -3.7% 24%   6% -13%
Swiss Re Ltd SSREY OTC Finance Reinsurance USD 27.98 - 24.1% 13%   5% -8%
Third Point Reinsurance Ltd. TPRE NYSE Finance Reinsurance USD 10.75 1.0 B 5.3% 28%   10% -22%