Berkshire Hathaway
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Citizens’ board is slated to meet on May 16 at 13:30 ET to discuss the reinsurance and risk transfer program. -
Given better pricing following a disappointing January 1, the company increased its exposure significantly.
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The ending of an exclusivity arrangement also allows Berkshire Hathaway to offer reinsurance to Australian rivals.
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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.
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Fidelis and MS Reinsurance are among the ceding companies that have support from Ajit Jain’s unit.
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The chunky deal comes as many reinsurers are heavily cutting their Florida cat books.
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The purchaser is known for having a very low cession ratio, although it said it would leave Alleghany to operate independently.
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The transaction will create a reinsurance entity roughly on a par with Scor in terms of net reinsurance premium.
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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.
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The reinsurer said the deals would enhance its abilities to provide innovative solutions for clients.
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CEO Richard Brindle calls for pricing corrections to reflect climate change and exposure growth.
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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.
