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 36.54 1.3 B -44.7% 56%   8% -63%
Athene Holding ATH NYSE Finance Reinsurance USD 36.62 7.1 B -5.8% 79%   12% -68%
Berkshire Hathaway BRK_B NYSE Conglomerates Diversified Conglomerates USD 212.66 - 7.9% 34%   5% -30%
Everest Re Group RE NYSE Finance Reinsurance USD 228.27 9.1 B -6.3% 47%   6% -45%
Exor EXXRF OTC Conglomerates Diversified Conglomerates USD 60.10 - -7.8% 58%   6% -59%
Hannover Rück HVRRY OTC Finance Reinsurance USD 82.49 - 6.0% 43%   6% -44%
James River Group Holdings JRVR NASDAQ Finance Reinsurance USD 47.81 1.5 B 1.2% 58%   7% -47%
MBIA MBI NYSE Finance Reinsurance USD 8.16 471 M -9.3% 58%   8% -45%
Munich Re Group MURGY OTC Finance Reinsurance USD 27.24 - 17.6% 44%   7% -48%
Protective Insurance PTVCB NASDAQ Finance Property & Casualty Insurance USD 14.79 210 M -7.5% 59%   8% -42%
RenaissanceRe Holdings RNR NYSE Finance Reinsurance USD 184.62 9.5 B -0.9% 42%   6% -41%
SCOR SCRYY OTC Finance Reinsurance USD 2.54 - -36.3% 60%   8% -59%
Swiss Re Ltd SSREY OTC Finance Reinsurance USD 19.69 - -14.7% 43%   6% -53%
Third Point Reinsurance Ltd. TPRE NYSE Finance Reinsurance USD 8.85 840 M -10.6% 50%   7% -47%