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 NASDAQ Finance Property & Casualty Insurance USD 71.27 2.4 B 18.8% 21%   7% -11%
Athene Holding ATH NYSE Finance Reinsurance USD 42.15 8.3 B -4.1% 25%   8% -29%
Berkshire Hathaway BRK_B NYSE Conglomerates Diversified Conglomerates USD 205.97 - 4.7% 19%   7% -16%
Everest Re Group RE NYSE Finance Reinsurance USD 252.01 10 B 14.5% 20%   7% -12%
Exor EXXRF OTC Conglomerates Diversified Conglomerates USD 71.50 - 8.5% 27%   5% -21%
Hannover Rück HVRRY OTC Finance Reinsurance USD 80.38 - 28.8% 17%   7% -8%
James River Group Holdings JRVR NASDAQ Finance Reinsurance USD 47.23 1.4 B 20.4% 22%   8% -19%
MBIA MBI NYSE Finance Reinsurance USD 9.55 861 M 0.1% 31%   9% -30%
Munich Re Group MURGY OTC Finance Reinsurance USD 25.24 - 23.3% 15%   6% -7%
Protective Insurance PTVCB NASDAQ Finance Property & Casualty Insurance USD 16.43 241 M -26.9% 31%   3% -36%
RenaissanceRe Holdings RNR NYSE Finance Reinsurance USD 180.12 7.6 B 46.2% 20%   9% -14%
SCOR SCRYY OTC Finance Reinsurance USD 4.40 - 22.6% 27%   8% -17%
Swiss Re Ltd SSREY OTC Finance Reinsurance USD 24.54 - 16.9% 14%   5% -8%
Third Point Reinsurance Ltd. TPRE NYSE Finance Reinsurance USD 10.26 968 M -19.5% 33%   9% -35%