Aspen Insurance Holding (Aspen) and PIMCO Investment Management have announced the creation of Pando Re, a Bermuda-based collateralised reinsurer dedicated to casualty lines.
The partnership is marked by a long-term agreement, with Aspen serving as the sole cedant and PIMCO as the exclusive investment manager for Pando Re.
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The creation of Pando Re is part of Aspen’s strategy to align underwriting risks with appropriate capital sources.
It will support Aspen’s casualty insurance, global professional lines insurance, cyber insurance and casualty reinsurance business lines.
The collaboration includes a multi-year, quota share reinsurance agreement that commenced on 1 January 2024.
Aspen will benefit from loss coverage, premium payments and commission earnings through this arrangement.
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By GlobalDataThe capital fuelling Pando Re’s business plan stems from investments by a PIMCO-managed fund.
The reinsurer’s investment portfolio will consist predominantly of curated investment grade-rated fixed-income assets managed by PIMCO.
Pando Re’s establishment also promotes the growth of third-party capital and fee income for Aspen Capital Markets.
Deutsche Bank Securities was the exclusive financial advisor to Aspen and the placement agent in this transaction.
Aspen Capital Partners CEO Brian Tobben 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.”
PIMCO managing director Harin de Silva 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.”
This development follows last month’s appointment of Sarah Stanford as CEO of Aspen’s UK operations.
Additionally, Aspen filed a Form F-1 registration statement with the US Securities and Exchange Commission in December 2023 for a proposed initial public offering.
