Aspen Insurance and PIMCO Investment Management Company (PIMCO) have announced the establishment of Pando Re, a new Bermuda-based collateralized reinsurer specializing in casualty business.
Under the arrangement, Aspen will serve as the sole cedant, while PIMCO will manage investment activities exclusively for Pando Re.
The new entity will engage in several of Aspen’s business lines, including casualty insurance, global professional lines insurance, cyber insurance, and casualty reinsurance through a multi-year, quota share reinsurance agreement.
This arrangement, effective from January 1, 2024, allows Aspen to transfer risks in exchange for loss coverage, premium payments, and commission earnings.
Pando Re’s operation will be backed by capital from a fund managed by PIMCO, focusing on investment-grade rated fixed income assets. Deutsche Bank Securities served as the exclusive financial advisor and placement agent for the transaction.
Aspen noted that this aligns with the firm’s ongoing strategy to link underwriting opportunities with suitable capital sources and enhance its casualty insurance and reinsurance offerings while fostering the growth of third-party capital and 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,” PIMCO managing director Harin de Silva said.
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