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 [asset ticker="BRK_B" mnemonic="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 53.21 1.8 B 58.0% Neutral 36%   9% -13%
Athene Holding ATH NYSE Finance Reinsurance USD 63.01 12 B 103.3% Strong Up 40%   11% -18%
Berkshire Hathaway BRK_B NYSE Conglomerates Diversified Conglomerates USD 289.19 - 59.6% Weak Up 18%   5% -9%
Everest Re Group RE NYSE Finance Reinsurance USD 253.84 10 B 20.3% Neutral 28%   7% -15%
Exor EXXRF OTC Conglomerates Diversified Conglomerates USD 86.74 - 59.0% Neutral 31%   4% -19%
Hannover Rück HVRRY OTC Finance Reinsurance USD 85.58 - 1.1% Weak Down 28%   7% -20%
James River Group Holdings JRVR NASDAQ Finance Reinsurance USD 35.80 1.1 B -11.5% Sharp Down 46%   7% -40%
MBIA MBI NYSE Finance Reinsurance USD 10.07 541 M 40.3% Neutral 59%   12% -33%
Munich Re Group MURGY OTC Finance Reinsurance USD 28.22 - 15.6% Neutral 29%   8% -22%
Protective Insurance PTVCB NASDAQ Finance Property & Casualty Insurance USD 23.30 330 M 61.9% Strong Up 54%   8% -16%
RenaissanceRe Holdings RNR NYSE Finance Reinsurance USD 150.82 7.6 B -17.0% Weak Down 26%   6% -22%
SCOR SCRYY OTC Finance Reinsurance USD 3.38 - 21.3% Neutral 41%   10% -17%
Swiss Re Ltd SSREY OTC Finance Reinsurance USD 23.58 - 29.9% Neutral 24%   6% -20%