Aspen Insurance and Pimco Investment Management have formed Pando Re, a Bermudian-domiciled collateralised (re)insurer.
Under a long-term agreement, Aspen will be the sole cedant to Pando Re and Pimco will be the investment manager.
Deutsche bank acts as a financial advisor to Aspen and placement agent on the transaction.
Pando Re will participate in Aspen’s casualty insurance, global professional lines insurance, cyber insurance, and casualty reinsurance business lines, through a multi-year and quota share reinsurance agreement.
Consequently, Aspen will receive loss coverage, pay premiums and earn commissions.
The capital to support Pando Re’s business plan will be provided by investments from the Pimco-managed fund.
The company expects that Pando Re will benefit its casualty (re)insurance platforms while also driving continued growth of third-party capital and fee income for its capital markets.
Brian Tobben, CEO of Aspen Capital Partners, comments: “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, says: “The nexus of insurance underwriting and investment management has been and continues to be a core focus for Pimco.”
