RenaissanceRe, the Bermuda based mostly reinsurance firm and third-party capital supervisor, seems to be set to be the newest to supply a UCITS insurance-linked securities (ILS) fund, with a fund construction now registered in Eire beneath its Medici model, so presumably this will probably be a cat bond technique, Artemis has discovered.
The RenaissanceRe Medici ICAV has been authorised by the regulator in Eire on November 1st and the UCITS ICAV construction may have a single sub-fund, the RenaissanceRe Medici UCITS Fund.
The RenaissanceRe Medici UCITS Fund has additionally been accepted beneath the ISDA protocol on November thirteenth, Artemis understands.
At this stage we haven’t been capable of supply a prospectus for the brand new UCITS insurance-linked securities (ILS) fund from RenaissanceRe (RenRe), however given the recency of its authorisation that isn’t shocking.
Whereas we can’t but be sure that is going to be a pure disaster bond targeted UCITS fund technique, it stands to motive it probably will probably be given the Medici branding RenRe has given to it.
Medici has been a long-standing model identify for RenRe’s disaster bond targeted ILS funding methods.
The RenaissanceRe Medici Fund Ltd. has existed since 2009, however only began taking third-party capital into the strategy in 2013.
At September thirtieth 2024, the Medici catastrophe bond focused strategy had approximately $1.98 billion in assets under management, $1.68 billion of which was from third-party buyers, the remainder from RenRe itself.
RenaissanceRe Capital Companions, the reinsurance corporations devoted unit for third-party and insurance-linked securities (ILS) capital administration, counted $7.72 billion in third-party investor belongings beneath administration at September thirtieth this 12 months.
However, the overall firepower of the reinsurance joint-ventures and ILS funds managed by RenaissanceRe Capital Companions reached $9.26 billion at the moment, which was the very best stage tracked by Artemis to date.
As such, the deliberate launch of its first UCITS funding fund technique, this RenaissanceRe Medici UCITS Fund, is notable, as RenRe seems to be to draw a probably differentiated supply of investor capital to its cat bond targeted methods via this new construction.
As a gaggle, the current cohort of UCITS catastrophe bond funds counted over $13 billion in assets between them on the finish of the third-quarter of 2024.
In accordance with the Plenum CAT Bond UCITS Fund Indices, the cohort of present UCITS cat bond funds have been averaging a 12.27% return for 2024 as much as November twenty second.
View info on many devoted ILS fund managers, in addition to reinsurers providing ILS fashion funding alternatives, resembling RenaissanceRe, in our Insurance-Linked Securities Investment Managers & Funds Directory.
