Florida State Board adds $70m to RenRe Tintoretto ILS investment in Q4

The Florida State Board of Administration made good on a decision to allocate more capital to natural catastrophe insurance-linked securities (ILS) ahead of the January renewals, with an additional $70 million investment in the RenaissanceRe vehicle Tintoretto Reinsurance Partners, LP made in the fourth-quarter.

We reported back in December 2024 that, having previously indicated it was cautious on reinsurance market conditions and undecided as to whether to add to its insurance-linked securities (ILS) investments for the January 2025 renewals, the Florida State Board of Administration then decided rates were still hard, although stabilising, and planned to increase its allocation to the sector.

Now, we’ve learned that the Florida State Board made an additional $70 million allocation to the RenaissanceRe Capital Management structure Tintoretto Reinsurance Partners, L.P in Q4.

It was the only additional insurance-linked securities (ILS) commitment made in Q4 2024, according to documents seen by Artemis.

The Florida State Board of Administration makes its ILS allocations on behalf of the Florida Retirement System Pension Plan (FRS), which it administers.

With some $198 billion in assets as of mid-year 2024, the Florida Retirement System Pension Plan one of the largest institutional investors that allocates to ILS investments.

The target for the Florida Retirement System Pension Plan (FRS) ILS allocation is set at 1% of assets and it remains slightly under-allocated, with approximately a 0.87% of assets allocation at this time, we believe.

The nat cat ILS allocation of the Florida state pension plan increased in value over the third-quarter of 2024, presumably on the back of any incremental mid-year deployments , plus returns driving earnings and therefore the corresponding net asset values of each allocation higher.

Back at June 30th 2024, the natural catastrophe ILS investments made by the Florida Retirement System were: almost $544.8 million invested in the Pillar Capital Management Juniperus ILS fund; $363 million to Aeolus Capital Management’s Keystone fund; $333.4 million to the RenaissanceRe’ Tintoretto vehicle; $103.5 million to Nephila Capital’s Rubik vehicle; and $81 million to the Nephila Capital managed Arachne.

The nat cat ILS allocation amounted to $1.43 billion at June 30th 2024.

After the third-quarter of the year, at September 30th 2024, these allocations stood at: almost $586.9 million invested in the Pillar Capital Management Juniperus ILS fund; $414.9 million to Aeolus Capital Management’s Keystone fund; $359.5 million to the RenaissanceRe’ Tintoretto vehicle; $111.3 million to Nephila Capital’s Rubik vehicle; and $5.8 million to the Nephila Capital managed Arachne.

The Florida state pension nat cat ILS allocation rose to $1.56 billion at September 30th 2024.

Including the life settlement investments with manager Miravast, which was around $180 million around June 30th 2024, the total ILS allocation of the pension has reached at least $1.74 billion.

With the additional $70 million allocation to RenRe’s Tintoretto ILS structure made in the fourth-quarter, plus the fact additional returns will have boosted NAV’s higher for each allocation, we assume the total ILS investment of the Florida State Board for the Florida Retirement System Pension Plan will have increased further by year-end.

View details of major pension fund and sovereign wealth investors in ILS and reinsurance in our directory.