Aspen Insurance and PIMCO Investment Management Company (PIMCO) have jointly established Pando Re, a new collateralized reinsurer based in Bermuda, focusing on casualty business. Aspen will serve as the sole cedant for the new entity, while PIMCO will manage Pando Re’s investment activities.
The new reinsurer will engage in several of Aspen’s key business lines via a multi-year, quota share reinsurance agreement, including casualty insurance, global professional lines insurance, and cyber insurance, as well as casualty reinsurance.
This arrangement, which took effect on January 1, 2024, allows Aspen to transfer risks to Pando Re in exchange for loss coverage, premium payments, and commission earnings. Pando Re’s operations will be supported by capital from a PIMCO-managed fund, which will primarily invest in investment-grade fixed income assets.
Deutsche Bank Securities acted as the exclusive financial advisor and placement agent for the transaction.
Aspen noted that the launch of Pando Re aligns with its broader strategy to connect underwriting opportunities with suitable capital sources. The aim is to bolster its existing casualty insurance and reinsurance offerings, as well as to foster the growth of third-party capital and generate fee income through Aspen Capital Markets.
Brian Tobben, CEO of Aspen Capital Partners, highlighted the strategic timing of the launch. “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,” Tobben said. “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.”
“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,” added Harin de Silva, PIMCO managing director.
