RenaissanceRe’s Capital Companions unit is now managing in extra of $2.2 billion in disaster bond belongings, as alongside the expansion of its Medici cat bond fund over the previous couple of years the supervisor has additionally seen a cat bond centered managed account named NOC1 develop, because the investor backing it dedicated extra capital to the construction.
The NOC1 managed account was fashioned in 2023, after an investor partnered with RenaissanceRe to entry disaster reinsurance linked returns.
Within the second-quarter of final yr, $150 million of capital was raised by RenRe’s Capital Partners for a newly formed segregated account, which the corporate stated on the time is concentrated on investing in insurance-linked securities (ILS), by way of a technique that primarily consists of disaster bonds.
It marked the primary time that RenaissanceRe (RenRe) has damaged out a managed or segregated account and reported on it and it’s now clear the technique has continued to broaden with the investor behind it committing extra capital to it.
We’ve now realized that what known as the NOC1 construction is definitely a segregated account of RenRe’s Upsilon Fund, an current ILS fund technique that was extra centered on reinsurance and retrocession than cat bonds.
So it seems that RenRe is making use of the Upsilon construction to facilitate segregated funding accounts for particular person massive buyers, serving to them to entry the returns of ILS belongings of their selecting, on this case largely disaster bonds.
The NOC1 segregated account cat bond technique started at $150 million in measurement in Q2 2023, then grew to round $160 million by the tip of September and once more to $170 million by January 1st 2024.
The investor backing this cat bond managed account dedicated an additional $20 million to NOC1 within the first-quarter of the yr, taking the full belongings of the construction to nearly $202 million on the finish of March.
Alongside the expansion within the Medici cat bond fund technique, this implies RenaissanceRe’s Capital Companions was managing in extra of $2.2 billion of disaster bond belongings at March thirty first 2024.
Cat bond fund administration has been an space of great development for the corporate, as that is now greater than double the cat bond belongings underneath administration at RenaissanceRe in early 2023.
As we reported recently, whole third-party belongings underneath administration and deployed to ILS methods and reinsurance joint-ventures at RenRe has now reached $7.17 billion.
View info on many devoted ILS fund managers, in addition to reinsurers providing ILS type funding alternatives, akin to RenaissanceRe, in our Insurance-Linked Securities Investment Managers & Funds Directory.
