RenaissanceRe (RenRe), the Bermuda headquartered global reinsurance firm and third-party capital management specialist, has reported raising $350.5 million of recent capital from investors largely for catastrophe bond strategies through the second-quarter of 2023.
The corporate said it has raised $170.5 million from investors for its Medici fund strategy, which is a largely catastrophe bond focused strategy.
The reinsurer also raised an extra $150 million of capital for a newly formed segregated account, which has a concentrate on investing in insurance-linked securities (ILS), that RenaissanceRe said also primarily consists of catastrophe bonds.
This fresh capital raising at RenRe follows a formidable first-quarter where the corporate said it had raised $621.2 million of third-party capital for its DaVinci Re reinsurance focused and equity-like sidecar, in addition to its Medici cat bond strategy.
As we had also reported back in May, RenRe saw its third-party capital assets under management (AUM) dedicated to property and casualty reinsurance business increase by $400 million within the first-quarter, with the overall reaching a latest high of $6.6 billion in assets managed, at March thirty first.
Given the incremental capital raised within the second-quarter of 2023, it seems likely RenRe’s total third-party investor AUM managed that is devoted to P&C reinsurance could have risen further by the mid-year.
Nevertheless, the corporate has also seen some redemptions of third-party capital as well which can mean the overall doesn’t rise by quite as much as may be expected, largely driven by further trapped capital being unlocked to return to investors within the Upsilon reinsurance and retrocession fund vehicle.
RenRe said that investors redeemed $313 million of capital through the second quarter of 2023, $285.6 million of which was from the Upsilon Diversified Fund.
RenRe said these capital returns are the results of the discharge of collateral related to prior years’ contracts, so effectively the freeing of trapped capital that may now be returned to investors within the Upsilon structure.
That’s a positive for getting capital back to the investors behind the strategy, as RenRe continues to work to resolve prior yr catastrophe loss exposed contracts that had been written or participated in for the Upsilon fund and its investors.
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