RenaissanceRe added $860m or 12% in third-party capital in last year to hit $7.81bn

Over the twelve months to January 1st 2025, Bermudian global reinsurer and third-party reinsurance capital manager RenaissanceRe added $860 million in third-party assets to its range of joint-venture vehicles and ILS funds, taking overall third-party capital to $7.81 billion.

That’s an increase of 12% over the year to January 1st, which is the same rate of growth in third-party ILS capital assets under management as RenaissanceRe had experienced in the previous twelve month period.

In the figures, shared with us by RenaissanceRe (RenRe), it’s clear that over the course of the year to January 1st 2025 the strongest growth in third-party capital came through the third-party investor backed DaVinciRe sidecar-like joint-venture structure and the Vermeer Re rated reinsurance company backed by pension investor and giant ILS allocator PGGM.

DaVinciRe grew by $610 million in third-party capital over the course of that year to January 1st, while Vermeer Re’s balance-sheet capital grew by $420 million over the same period.

Some of this growth will be from capital raised or added, while additionally strong earnings will also have bolstered the capital bases of the two reinsurance joint-ventures.

As we reported earlier, the company is planning to further expand the balance-sheet of its DaVinciRe sidecar-like third-party capitalised reinsurance joint-venture through a $300 million private debt issuance.

In addition, third-party capital allocated to the Fontana casualty and specialty lines joint-venture rose by $80 million over the last year of record, but third-party assets in the two more insurance-linked securities (ILS) fund type structures Upsilon and the cat bond focused Medici both declined slightly over the period.

Resulting in total P&C partner capital rising to $7.81 billion at January 1st 2025, up from $6.95 billion at January 1st 2024 and also up from $7.72 billion at the end of Q3 2024.

RenRe also co-invests across the range of third-party and ILS capital structured managed by its RenaissanceRe Capital Partners division over the last year of record, with a 27% or $340 million increase to $1.58 billion as of January 1st 2025.

Total capital across the Capital Partners joint-ventures and ILS funds was therefore up from $8.19 billion at January 1st 2024 to $9.39 billion as of January 1st 2025, a 15% or $1.2 billion increase.

For comparison, the main reinsurance balance-sheet of RenaissanceRe stood at just over $10.57 billion as of Dec 31st 2024.

So, at $9.39 billion plus the $4 billion from the Top Layer Re joint-venture, there was a total of $13.39 billion contributed by the Capital Partners vehicles, which continue to be a growing significant additional source of underwriting capacity for the company.

As a reminder, for full-year 2024, fee income for the RenaissanceRe Capital Partners third-party capital and ILS business reached $326.8 million, which was up by an impressive 38% year-on-year.

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