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 34.86 1.2 B -48.9% 38%   4% -60%
Athene Holding ATH NYSE Finance Reinsurance USD 25.69 4.6 B -37.0% 63%   9% -68%
Berkshire Hathaway BRK_B NYSE Conglomerates Diversified Conglomerates USD 179.66 - -10.6% 30%   6% -30%
Everest Re Group RE NYSE Finance Reinsurance USD 189.29 7.7 B -9.6% 37%   7% -41%
Exor EXXRF OTC Conglomerates Diversified Conglomerates USD 52.30 - -20.2% 52%   6% -59%
Hannover Rück HVRRY OTC Finance Reinsurance USD 73.76 - 6.4% 36%   9% -44%
James River Group Holdings JRVR NASDAQ Finance Reinsurance USD 33.35 1.0 B -13.8% 49%   8% -47%
MBIA MBI NYSE Finance Reinsurance USD 7.52 575 M -21.0% 45%   8% -45%
Munich Re Group MURGY OTC Finance Reinsurance USD 20.08 - -11.5% 38%   8% -48%
Protective Insurance PTVCB NASDAQ Finance Property & Casualty Insurance USD 12.71 181 M -29.2% 48%   7% -45%
RenaissanceRe Holdings RNR NYSE Finance Reinsurance USD 149.21 6.6 B 4.9% 36%   8% -41%
SCOR SCRYY OTC Finance Reinsurance USD 2.24 - -44.3% 52%   6% -60%
Swiss Re Ltd SSREY OTC Finance Reinsurance USD 18.50 - -19.8% 37%   7% -53%
Third Point Reinsurance Ltd. TPRE NYSE Finance Reinsurance USD 7.58 714 M -27.0% 43%   7% -49%