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 71.80 2.4 B 18.6% 21%   7% -9%
Athene Holding ATH NYSE Finance Reinsurance USD 43.09 8.5 B -8.4% 26%   9% -29%
Berkshire Hathaway BRK_B NYSE Conglomerates Diversified Conglomerates USD 201.69 498 B 3.9% 20%   7% -16%
Everest Re Group RE NYSE Finance Reinsurance USD 249.91 10 B 12.3% 20%   7% -13%
Exor EXXRF OTC Conglomerates Diversified Conglomerates USD 63.20 - -13.3% 27%   4% -28%
Hannover Rück HVRRY OTC Finance Reinsurance USD 75.59 - 19.8% 18%   7% -8%
James River Group Holdings JRVR NASDAQ Finance Reinsurance USD 44.92 1.4 B 22.7% 22%   8% -19%
MBIA MBI NYSE Finance Reinsurance USD 8.96 808 M 4.3% 33%   10% -30%
Munich Re Group MURGY OTC Finance Reinsurance USD 24.57 - 16.8% 17%   7% -7%
Protective Insurance PTVCB NASDAQ Finance Property & Casualty Insurance USD 16.99 250 M -23.3% 30%   3% -36%
RenaissanceRe Holdings RNR NYSE Finance Reinsurance USD 173.52 7.3 B 40.0% 20%   9% -14%
SCOR SCRYY OTC Finance Reinsurance USD 4.10 - 14.1% 27%   8% -17%
Swiss Re Ltd SSREY OTC Finance Reinsurance USD 23.92 - 10.5% 15%   6% -8%
Third Point Reinsurance Ltd. TPRE NYSE Finance Reinsurance USD 10.62 1.0 B -19.8% 33%   9% -36%