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. Vol. Contrib. MDD
 
Argo Group International Holdings ARGO NASDAQ Finance Property & Casualty Insurance USD 70.48 2.4 B 30.5% 22%   8% -9%
Athene Holding ATH NYSE Finance Reinsurance USD 43.09 8.5 B -14.4% 23%   7% -29%
Berkshire Hathaway BRK_B NYSE Conglomerates Diversified Conglomerates USD 201.73 498 B -1.5% 20%   7% -16%
Everest Re Group RE NYSE Finance Reinsurance USD 211.95 8.6 B -17.3% 21%   5% -21%
Exor EXXRF OTC Conglomerates Diversified Conglomerates USD 63.20 - -12.0% 26%   5% -30%
Hannover Rück HVRRY OTC Finance Reinsurance USD 74.85 - 13.7% 17%   7% -11%
James River Group Holdings JRVR NASDAQ Finance Reinsurance USD 39.58 1.2 B 14.3% 22%   8% -19%
MBIA MBI NYSE Finance Reinsurance USD 10.29 922 M 16.1% 38%   13% -30%
Munich Re Group MURGY OTC Finance Reinsurance USD 24.53 - 13.0% 17%   7% -13%
Protective Insurance PTVCB NASDAQ Finance Property & Casualty Insurance USD 19.41 288 M -16.5% 29%   4% -35%
RenaissanceRe Holdings RNR NYSE Finance Reinsurance USD 142.23 6.0 B 3.2% 21%   7% -15%
SCOR SCRYY OTC Finance Reinsurance USD 4.51 - 20.7% 27%   9% -16%
Swiss Re Ltd SSREY OTC Finance Reinsurance USD 24.72 - 9.6% 15%   6% -12%
Third Point Reinsurance Ltd. TPRE NYSE Finance Reinsurance USD 10.63 995 M -27.7% 31%   8% -39%