Bermudan reinsurance vehicle will participate in Aspen’s casualty, professional lines and cyber insurance and casualty reinsurance business lines through a multi-year quota share, with Aspen as the sole cedant.
Aspen Insurance and PIMCO Investment Management have announced the formation of Pando Re, a Bermuda-domiciled collateralised re/insurer, focused on casualty business.
Under a long-term agreement, Bermudan re/insurer Aspen will be the sole cedant to Pando Re and PIMCO will be the exclusive investment manager for Pando Re. The cession incepted on 1 January 2024.
Pando Re will participate in Aspen’s casualty, professional lines and cyber insurance and casualty reinsurance business lines through a multi-year quota share reinsurance agreement where Aspen will receive loss coverage, pay premiums, and earn commissions.
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 be comprised primarily of investment-grade rated fixed income assets managed by PIMCO.
Pando Re’s launch is a continuation of Aspen’s strategy to partner with third party investors by aligning underwriting risks with sources of capital.
Pando Re benefits Aspen’s casualty insurance and reinsurance platforms through a multi-year capacity agreement, the re/insurer said, while also driving continued growth of third-party capital and fee income for Aspen Capital Markets.
“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,” said Brian Tobben, CEO of Aspen Capital Partners.
“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,” he added.
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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