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. Momentum Vol. Risk Contrib. MDD
 
Argo Group International Holdings ARGO NYSE Finance Property & Casualty Insurance USD 49.93 1.7 B 5.9% Weak Up 58%   8% -46%
Athene Holding ATH NYSE Finance Reinsurance USD 48.88 9.4 B 29.9% Weak Up 82%   12% -57%
Berkshire Hathaway BRK_B NYSE Conglomerates Diversified Conglomerates USD 253.15 - 22.9% Weak Up 34%   5% -21%
Everest Re Group RE NYSE Finance Reinsurance USD 246.90 10 B -0.2% Weak Up 50%   6% -36%
Exor EXXRF OTC Conglomerates Diversified Conglomerates USD 80.55 - 14.9% Neutral 60%   6% -52%
Hannover Rück HVRRY OTC Finance Reinsurance USD 87.65 - 2.4% Weak Up 47%   6% -35%
James River Group Holdings JRVR NASDAQ Finance Reinsurance USD 46.85 1.4 B 13.6% Neutral 55%   7% -34%
MBIA MBI NYSE Finance Reinsurance USD 7.68 414 M -5.5% Weak Up 70%   9% -33%
Munich Re Group MURGY OTC Finance Reinsurance USD 30.81 - 21.4% Weak Up 49%   7% -40%
Protective Insurance PTVCB NASDAQ Finance Property & Casualty Insurance USD 22.90 325 M 63.7% Strong Up 77%   8% -27%
RenaissanceRe Holdings RNR NYSE Finance Reinsurance USD 164.38 8.4 B -5.5% Neutral 43%   5% -32%
SCOR SCRYY OTC Finance Reinsurance USD 3.44 - 0.2% Weak Up 67%   9% -48%
Swiss Re Ltd SSREY OTC Finance Reinsurance USD 24.21 - 10.9% Neutral 46%   6% -41%
Third Point Reinsurance Ltd. TPRE NYSE Finance Reinsurance USD 10.21 969 M 18.2% Neutral 52%   7% -30%