Under a long-term agreement, Aspen will serve as the exclusive cedant to Pando Re, while Pimco will undertake the role of investment manager. The transaction, facilitated by Deutsche Bank acting as a financial advisor to Aspen and placement agent, marks a significant collaboration in the insurance and investment sectors.
Pando Re will actively 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 arrangement. As a result, Aspen will receive loss coverage, pay premiums, and earn commissions.
The capital necessary to support Pando Re’s operations will be sourced from investments managed by Pimco. This infusion of capital is expected to bolster Aspen’s casualty (re)insurance platforms while also fostering the growth of third-party capital and generating fee income for its capital markets.
Brian Tobben, CEO of Aspen Capital Partners, expressed optimism regarding the establishment of Pando Re and its potential to enhance Aspen’s strategic objectives and market position.
He said: “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, also added: “The nexus of insurance underwriting and investment management has been and continues to be a core focus for Pimco.”
