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 34.61 1.2 B -49.2% 52%   4% -65%
Athene Holding ATH NYSE Finance Reinsurance USD 32.08 6.2 B -24.3% 75%   11% -68%
Berkshire Hathaway BRK_B NYSE Conglomerates Diversified Conglomerates USD 190.82 - -5.3% 32%   6% -30%
Everest Re Group RE NYSE Finance Reinsurance USD 213.26 8.5 B -11.7% 45%   7% -45%
Exor EXXRF OTC Conglomerates Diversified Conglomerates USD 56.60 - -8.2% 57%   7% -59%
Hannover Rück HVRRY OTC Finance Reinsurance USD 83.82 - 13.8% 40%   8% -44%
James River Group Holdings JRVR NASDAQ Finance Reinsurance USD 39.18 1.2 B -10.5% 56%   8% -47%
MBIA MBI NYSE Finance Reinsurance USD 7.44 504 M -19.5% 55%   8% -45%
Munich Re Group MURGY OTC Finance Reinsurance USD 24.20 - 3.1% 42%   8% -48%
Protective Insurance PTVCB NASDAQ Finance Property & Casualty Insurance USD 14.76 209 M -11.0% 56%   8% -44%
RenaissanceRe Holdings RNR NYSE Finance Reinsurance USD 186.64 8.2 B 6.8% 41%   8% -41%
SCOR SCRYY OTC Finance Reinsurance USD 2.72 - -34.7% 57%   6% -60%
Swiss Re Ltd SSREY OTC Finance Reinsurance USD 18.01 - -19.9% 41%   6% -53%
Third Point Reinsurance Ltd. TPRE NYSE Finance Reinsurance USD 7.97 756 M -24.3% 47%   6% -47%