Aspen and PIMCO launch casualty-focused reinsurer Pando Re
Aspen Insurance Holdings and PIMCO Investment Management Company have formed a collateralised re/insurer focused on the casualty business.
Bermuda-domiciled Pando Re will participate in Aspen’s casualty insurance, global professional lines insurance, cyber insurance and casualty reinsurance business lines. Aspen will receive loss coverage, pay premiums, and earn commissions through a multi-year, quota share reinsurance agreement.
Under a long-term agreement, Aspen will be the sole cedant to Pando Re and PIMCO will be the exclusive investment manager for Pando Re. The cession incepted on January 1, 2024.
The capital to support Pando Re’s business plan is being provided by investments from a PIMCO-managed fund. Pando Re’s investment portfolio will mainly consist of investment-grade rated fixed income assets managed by PIMCO.
Aspen said the launch of Pando Re is a part of its strategy to partner with third-party investors. Pando Re benefits Aspen’s casualty insurance and reinsurance platforms through a multi-year capacity agreement, while also driving growth of third-party capital and fee income for Aspen Capital Markets.
Deutsche Bank Securities acted as exclusive financial advisor to Aspen and placement agent on the transaction.
Brian Tobben, chief executive officer, Aspen Capital Partners, said: “We believe now is the right time to bring additional third-party capital to the casualty market and are excited to partner with PIMCO, a leading investment manager. We see a significant opportunity for this new capacity to support the needs of our clients, cedants and distribution partners against a backdrop of reduced appetite from the reinsurance market.
“We are delighted to work with PIMCO, who share a similar vision of long-term value creation through highly-aligned risk management on both the asset and liability sides of the balance sheet. We look forward to working with our partners to leverage Pando Re and develop new solutions for the casualty market.”
Harin de Silva, managing director at PIMCO, said: “As a long-standing partner of insurance companies, PIMCO is excited to work with Aspen developing holistic solutions for the casualty insurance market. The nexus of insurance underwriting and investment management has been and continues to be a core focus for PIMCO.”
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