Aspen Insurance Holdings Ltd. and PIMCO Investment Management Co. have announced the formation of Pando Re Ltd., a Bermuda-domiciled collateralized re/insurer specifically focused on the casualty business.
Under a long-term agreement, Aspen will be the sole cedent to Pando Re, while PIMCO will serve as the exclusive investment manager for Pando Re. This cession commenced on January 1, 2024. Pando Re will participate in Aspen’s casualty insurance, global professional lines insurance, cyber insurance, and casualty reinsurance lines of business through a multi-year, quota share reinsurance agreement. Through this, Aspen will receive loss coverage, pay premiums, and earn commissions.
The capital to support Pando Re’s business plan originates from investments made by a PIMCO-managed fund. The investment portfolio of Pando Re will primarily consist of investment-grade rated fixed income assets managed by PIMCO.
According to Aspen, the launch of Pando Re is a continuation of the company’s strategy to collaborate with third-party investors by connecting appealing underwriting risks with the appropriate capital source.
Pando Re provides benefits to Aspen’s casualty insurance and reinsurance platforms through a multi-year capacity agreement, while also fostering the ongoing expansion 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,” commented 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,” Tobben added.
“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,” said Harin de Silva, a managing director at PIMCO.
Deutsche Bank Securities Inc. served as the exclusive financial advisor and placement agent for Aspen on the transaction.
