Aspen and PIMCO Announce Pando Re, a New Casualty Reinsurer
Aspen Insurance and PIMCO Investment Management Company (PIMCO) have joined forces to create Pando Re, a new collateralized reinsurer based in Bermuda. This venture will focus on casualty business.
Under this arrangement, Aspen Insurance will be the exclusive cedant, transferring risks to Pando Re. PIMCO will be responsible for managing the investment activities of Pando Re.
This new entity will be involved in some of Aspen’s core business areas. These include:
- Casualty insurance
- Global professional lines insurance
- Cyber insurance
- Casualty reinsurance
This will be achieved through a multi-year, quota share reinsurance agreement.
Aspen and PIMCO Launch Pando Re
This agreement, which went into effect on January 1, 2024, enables Aspen to transfer risks to Pando Re. In return, Aspen receives loss coverage, premium payments, and commission earnings. The capital backing Pando Re’s operations comes from a fund managed by PIMCO, primarily investing in investment-grade rated fixed income assets.
Deutsche Bank Securities acted as the financial advisor and placement agent for this transaction.
Aspen stated that this move aligns with the company’s ongoing goals. These include:
- Connecting underwriting opportunities with suitable capital sources
- Strengthening its casualty insurance and reinsurance offerings
- Expanding third-party capital and fee income through Aspen Capital Markets
Brian Tobben, CEO of Aspen Capital Partners, emphasized the strategic timing of the launch. He noted the opportunity created by reduced appetite from the reinsurance market.
Tobben expressed his delight in working with PIMCO.
Harin de Silva, a managing director at PIMCO, highlighted PIMCO’s long-standing partnerships with insurance companies.
