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 62.80 2.2 B -4.5% 23%   6% -22%
Athene Holding ATH NYSE Finance Reinsurance USD 44.00 8.1 B -0.9% 26%   10% -18%
Berkshire Hathaway BRK_B NYSE Conglomerates Diversified Conglomerates USD 217.48 - 3.1% 17%   7% -15%
Everest Re Group RE NYSE Finance Reinsurance USD 267.71 11 B 27.4% 19%   7% -11%
Exor EXXRF OTC Conglomerates Diversified Conglomerates USD 78.50 - 41.8% 27%   5% -15%
Hannover Rück HVRRY OTC Finance Reinsurance USD 92.39 - 38.4% 16%   8% -6%
James River Group Holdings JRVR NASDAQ Finance Reinsurance USD 37.27 1.1 B 5.4% 32%   7% -34%
MBIA MBI NYSE Finance Reinsurance USD 9.47 758 M 2.0% 30%   8% -19%
Munich Re Group MURGY OTC Finance Reinsurance USD 28.35 - 35.8% 14%   7% -8%
Protective Insurance PTVCB NASDAQ Finance Property & Casualty Insurance USD 16.12 231 M -20.3% 30%   4% -34%
RenaissanceRe Holdings RNR NYSE Finance Reinsurance USD 188.50 8.3 B 46.9% 19%   9% -11%
SCOR SCRYY OTC Finance Reinsurance USD 4.13 - -8.3% 26%   6% -16%
Swiss Re Ltd SSREY OTC Finance Reinsurance USD 26.90 - 27.2% 14%   6% -8%
Third Point Reinsurance Ltd. TPRE NYSE Finance Reinsurance USD 9.44 889 M -7.7% 31%   10% -22%