Third-party investor capital underneath administration in reinsurance joint-ventures and insurance-linked securities (ILS) funds managed by RenaissanceRe’s Capital Companions division has now eclipsed the $7 billion mark, to achieve $7.17 billion on the finish of the first-quarter, whereas the managers cat bond fund surpassed $2 billion for the primary time.
During the last twelve-months, RenaissanceRe’s Capital Companions division grew its third-party investor belongings underneath administration (AUM) by roughly $580 million, or 9%.
During the last quarter of report, by Q1 2024, RenaissanceRe (RenRe) associate capital elevated by $220 million.
It’s the primary time, for 1 / 4’s finish, that RenRe’s third-party associate capital AUM has surpassed the $7 billion milestone, having sat at just below the figure after the January 1st reinsurance renewals.
Over the first-quarter of 2024, RenRe has grown the third-party belongings of quite a lot of its reinsurance funding methods, most notably the DaVinci equity-backed reinsurer that operates as a type of sidecar automobile.
However, trying again over a 12-month horizon, the strongest year-on-year development got here by RenRe’s Medici disaster bond fund, which added nearly half a billion in third-party capital within the final yr.
Consequently, the Medici cat bond fund now counts an end-of-quarter report of $1.78 billion in third-party capital, whereas together with RenRe’s personal funding stake within the fund, the general Medici fund AUM has now surpassed $2 billion for the first-time ever.
The DaVinciRe reinsurance joint-venture now counts $3.61 billion in complete belongings (together with RenRe’s stake), Vermeer Re is at $1.43 billion, the Fontana casualty and specialty strains technique is at $610 million and the primary Upsilon diversified fund is now at $520 million.
On high of this, RenRe’s Capital Companions staff additionally takes care of quite a lot of managed and segregated accounts on behalf of traders, which accounts for the rest.
Whole third-party investor and RenRe’s capital within the Capital Companions’ ILS funds and reinsurance joint-ventures has now reached a brand new excessive at $8.46 billion as of March thirty first, up by $270 million within the quarter and $660 million over the past 12-months.
With now $7.17 billion in third-party capital throughout its vary of joint-venture reinsurers and ILS funds, RenaissanceRe stays one of many largest managers of assets in the ILS market.
As we reported not too long ago, the fee income earned by this business soared 87% in the quarter and the company added almost $566 million of third-party capital in the first-quarter of 2024.
View info on many devoted ILS fund managers, in addition to reinsurers providing ILS type funding alternatives, comparable to RenaissanceRe, in our Insurance-Linked Securities Investment Managers & Funds Directory.
