RenaissanceRe hits record high for P&C third-party capital AuM

RenaissanceRe, the global reinsurance firm and third-party capital management specialist, saw its third-party capital assets under management dedicated to property and casualty business rise by $610 million since September 30th 2022, with the total reaching a new high at January 1st 2023.

While it may seem that RenaissanceRe (RenRe) has seen its third-party reinsurance and insurance-linked securities (ILS) assets under management fluctuate over the last year, it’s now apparent that growth has been seen across many of the structures managed.

This is even more evident after we reported yesterday that the firm’s life and annuity reinsurance joint-venture Langhorne Re is being wound down, as that had contributed $730 million of the third-party capital AuM reported by RenRe at previous points in the year.

If we look back a year, RenRe reported its third-party reinsurance capital and ILS assets under management reached $6.3 billion at January 1st 2022, which included the Langhorne Re commitments of around $730m.

Thanks to continued demand from investors through the first part of the year, RenRe had disclosed to us that the third-party capital partner share of its range of ILS and joint venture reinsurance investment vehicles stood at $6.8 billion as of May 1st 2022, a high for the company.

Again, that $6.8 billion included the life reinsurance joint-venture external investor capital too.

The figure fell to $6.7 billion at July 1st and then again to $6.32 billion after hurricane Ian’s impacts were factored in, both including the Langhorne Re commitment.

But, now that we know Langhorne Re is no longer part of RenRe’s third-party capital activities, we can better assess the growth in assets under management the third-party reinsurance capital and ILS manager has experienced this year.

At January 1st 2022 the figure, focused on third-party assets of RenRe’s P&C vehicles only, would have been around $5.57 billion, with that figure rising to around $6.07 billion by May, thanks to investor inflows raised.

By September 30th the P&C-only external capital partner AuM RenRe disclosed was down at $5.59 billion, on the back of the losses from hurricane Ian and spread widening in catastrophe bonds.

But, by December 31st the figure was back up to $5.85 billion and then thanks to additional fund-raising in time for the January 2023 reinsurance renewals, that amounted to $403 million of new inflows, the third-party P&C capital AuM total had risen back to $6.2 billion at January 1st 2023.

Which represents a $610 million increase over the final quarter of 2022, including the capital raising for the 1/1 2023 renewals and more than 11% up year-on-year.

As a result, the $6.2 billion of assets under management at January 1st 2023 is now a new 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 our RenaissanceRe Capital Partners entry in Artemis’ Insurance-Linked Securities Investment Managers & Funds Directory.