Berkshire Hathaway

Given better pricing following a disappointing January 1, the company increased its exposure significantly.

The ending of an exclusivity arrangement also allows Berkshire Hathaway to offer reinsurance to Australian rivals.

The renewal equates to 20% of its total 32.5% quota share agreement, with another 10% having recently been renewed by Munich Re and Swiss Re.

Fidelis and MS Reinsurance are among the ceding companies that have support from Ajit Jain’s unit.

The chunky deal comes as many reinsurers are heavily cutting their Florida cat books.

The purchaser is known for having a very low cession ratio, although it said it would leave Alleghany to operate independently.

The transaction will create a reinsurance entity roughly on a par with Scor in terms of net reinsurance premium.

The deal values the TransRe owner at 1.26 times book value as of 31 December 2021, and represents a 29% premium on its stock price.

The reinsurer said the deals would enhance its abilities to provide innovative solutions for clients.

CEO Richard Brindle calls for pricing corrections to reflect climate change and exposure growth.

New and growing carriers helped to fill out treaties as Sompo stepped back from a market that came in flatter than expected for remote risk.

Berkshire, along with some other expansive reinsurers, grew its level of assumed reinsurance premium from top Florida insurers significantly in 2020, as the ILS market share dropped overall.