RenaissanceRe P&C third-party capital rises $400m to $6.6bn in Q1

During the first-quarter of 2023, RenaissanceRe saw its third-party capital assets under management (AUM) dedicated to property and casualty reinsurance business rise by $400 million to reach a new high, with the total reaching a new high of $6.6 billion in assets at March 31st.

The global reinsurance firm and third-party capital management specialist last reported its end-of-quarter third-party capital and insurance-linked securities (ILS) assets under management as reaching $6.2 billion as of January 1st 2023.

With additional funds raised through the first-quarter of this year, into the P&C reinsurance focused joint-ventures and ILS fund structures operated by the company, RenaissanceRe (RenRe) has now grown its third-party asset base by a further 6.5%, to reach $6.6 billion by the end of the first-quarter.

All of the RenaissanceRe Capital Partners managed joint-ventures and ILS funds grew in Q1 2023 except for the Upsilon collateralized reinsurance and retrocession focused vehicle.

Including RenRe’s own co-investment in each of the Capital Partners managed JV and ILS vehicles, the total has risen by 6.1%, from $7.35 billion as of January 1st, to $7.8 billion at March 31st.

On a comparative basis, third-party investor capital into these vehicles has now increased by an impressive 18% since September 30th 2022, to reach the new high of $6.6 billion.

Over the first-quarter of 2023, looking at RenRe’s third-party P&C capital assets on a structure by structure basis and including the reinsurance firm’s co-investment in each, the equity-backed but balance-sheet sidecar-like DaVinci Re vehicle has grown 7.5% to $3.14 billion, the Medici cat bond focused ILS fund has grown 21% to almost $1.5 billion, the Vermeer Re joint-venture reinsurer that is backed by large ILS investor PGGM grew 3.4% to $1.54 billion thanks to reinvested earnings, and the casualty and specialty lines JV Fontana remains just under $400 million in size.

The only RenRe managed ILS vehicle to shrink in the period was the Upsilon collateralized reinsurance and retro structure. But even there, the decline in size was only -6.7% to $1.25 billion and, like many other private ILS fund structures, this vehicle is still positioned to expand as investor appetites allow, it seems.

While this first-quarter growth has been impressive again, more so could be the figures we report at the end of the first-half.

We already know that RenRe’s Capital Partners unit has raised additional capital for April deployment, which is not included in these latest end of quarter numbers.

RenRe had disclosed with its first-quarter results a further $145.9 million raised for the Medici cat bond fund subsequent to March 31st.

So, the total third-party capital under management figure is likely higher than the $6.6 billion headline here, as of today and that will become clearer once we pass the mid-year point and RenRe reports again.

Either way, the $6.6 billion of assets under management at March 31st 2023 is a record-high for RenaissanceRe’s property and casualty focused joint-ventures and ILS fund structures.

You can see more details of the individual vehicle assets under management in the RenaissanceRe Capital Partners entry in Artemis’ Insurance-Linked Securities Investment Managers & Funds Directory.