Aspen Insurance Holdings Ltd. and PIMCO Investment Management Co. have joined forces to launch Pando Re Ltd., a new collateralized re/insurer based in Bermuda.
Pando Re’s primary focus will be on the casualty insurance sector. Under a long-term arrangement, Aspen will be the exclusive client of Pando Re, and PIMCO will handle all of Pando Re’s investments.
The reinsurance agreement officially commenced on January 1, 2024. Pando Re will participate in several of Aspen’s key business lines, including casualty insurance, global professional lines insurance, cyber insurance, and casualty reinsurance.
This participation will occur through a multi-year, quota share reinsurance agreement. Through this agreement, Aspen will receive coverage for losses, pay premiums, and earn commissions.
The capital backing Pando Re’s operations comes from investments managed by a PIMCO fund. Pando Re’s investment portfolio will mainly consist of investment-grade fixed income assets managed by PIMCO.
This new venture is part of Aspen’s ongoing strategy to collaborate with third-party investors. The goal is to match suitable underwriting risks with the necessary capital sources. Aspen believes this approach benefits both its casualty insurance and reinsurance platforms through a multi-year capacity agreement.
Furthermore, it aims to promote the continuous growth of third-party capital and fee income for Aspen Capital Markets.
Brian Tobben, CEO of Aspen Capital Partners, commented, “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.”
He added, “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.”
Harin de Silva, managing director at PIMCO, stated, “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.”
Deutsche Bank Securities Inc. served as the exclusive financial advisor to Aspen and placement agent for the transaction.
