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 68.39 2.3 B 14.8% 22%   7% -17%
Athene Holding ATH NYSE Finance Reinsurance USD 42.83 8.0 B -16.2% 26%   8% -30%
Berkshire Hathaway BRK_B NYSE Conglomerates Diversified Conglomerates USD 210.33 - -2.8% 20%   7% -16%
Everest Re Group RE NYSE Finance Reinsurance USD 254.95 10 B 16.7% 21%   8% -12%
Exor EXXRF OTC Conglomerates Diversified Conglomerates USD 68.00 - 10.1% 27%   4% -21%
Hannover Rück HVRRY OTC Finance Reinsurance USD 83.75 - 26.1% 17%   7% -8%
James River Group Holdings JRVR NASDAQ Finance Reinsurance USD 49.62 1.5 B 21.0% 22%   8% -19%
MBIA MBI NYSE Finance Reinsurance USD 9.76 827 M -7.5% 31%   9% -30%
Munich Re Group MURGY OTC Finance Reinsurance USD 25.40 - 23.6% 15%   7% -8%
Protective Insurance PTVCB NASDAQ Finance Property & Casualty Insurance USD 16.39 236 M -26.5% 30%   3% -34%
RenaissanceRe Holdings RNR NYSE Finance Reinsurance USD 185.48 8.2 B 41.6% 21%   10% -14%
SCOR SCRYY OTC Finance Reinsurance USD 4.05 - -6.0% 25%   6% -17%
Swiss Re Ltd SSREY OTC Finance Reinsurance USD 26.02 - 20.7% 15%   6% -8%
Third Point Reinsurance Ltd. TPRE NYSE Finance Reinsurance USD 10.17 956 M -23.0% 34%   10% -34%