Kinesis raises another $50m for mid-year renewal deployment

Kinesis Capital Management, the third-party reinsurance capital management unit of specialty re/insurance group Lancashire Holdings, has executed its mid-year draw, raising an additional $50m of capital from investors for collateralized renewal underwriting.

Kinesis plans two scheduled offerings per year, when it can raise new capital from investors to put to work in its multi-class collateralized reinsurance offerings. Kinesis announced that it has completed its mid-year draw, allowing investors to subscribe for securities in Kinesis Holdings I Limited which allows its subsidiary, Kinesis Reinsurance I Limited, to underwrite additional fully collateralized reinsurance business for the July 1 renewal.

As well as its biannual capital draws, Kinesis also has the flexibility to raise additional capital through special draws should it choose. It exercised this option around the January renewals, which it reported to have been completed successfully at the time, raising additional funds to put to work around the renewal season.

Kinesis raised $50m of additional funds this time around, which takes its total capital deployed to $340m since its inception, an impressive amount of capital in such a short time especially given the specialist and multi-class nature of the risks it underwrites. It shows that investors in the reinsurance space are not just looking for pure catastrophe risk assets and that a multi-class, specialty focus is attractive to them.

Darren Redhead, CEO of Kinesis Capital Management, said; “We continue with our strategy to work with and build our panel of investors, providing flexibility to expand and contract over time, dependent on the market opportunities that arise. With this successful mid-year draw, Kinesis has deployed approximately USD 340 million of combined aggregate limits since the beginning of the year.”