RenRe’s cat bond assets rising, as NOC1 managed account hits $202m

RenaissanceRe’s Capital Partners unit is now managing in excess of $2.2 billion in catastrophe bond assets, as alongside the growth of its Medici cat bond fund over the last few years the manager has also seen a cat bond focused managed account named NOC1 grow, as the investor backing it committed more capital to the structure.

The NOC1 managed account was formed in 2023, after an investor partnered with RenaissanceRe to access catastrophe reinsurance linked returns.

In the second-quarter of last year, $150 million of capital was raised by RenRe’s Capital Partners for a newly formed segregated account, which the company said at the time is focused on investing in insurance-linked securities (ILS), through a strategy that primarily consists of catastrophe bonds.

It marked the first time that RenaissanceRe (RenRe) has broken out a managed or segregated account and reported on it and it’s now clear the strategy has continued to expand with the investor behind it committing more capital to it.

We’ve now learned that what is called the NOC1 structure is actually a segregated account of RenRe’s Upsilon Fund, an existing ILS fund strategy that was more focused on reinsurance and retrocession than cat bonds.

So it appears that RenRe is making use of the Upsilon structure to facilitate segregated investment accounts for individual large investors, helping them to access the returns of ILS assets of their choosing, in this case largely catastrophe bonds.

The NOC1 segregated account cat bond strategy began at $150 million in size in Q2 2023, then grew to around $160 million by the end of September and again to $170 million by January 1st 2024.

The investor backing this cat bond managed account committed a further $20 million to NOC1 in the first-quarter of the year, taking the total assets of the structure to almost $202 million at the end of March.

Alongside the growth in the Medici cat bond fund strategy, this means RenaissanceRe’s Capital Partners was managing in excess of $2.2 billion of catastrophe bond assets at March 31st 2024.

Cat bond fund management has been an area of significant growth for the company, as this is now more than double the cat bond assets under management at RenaissanceRe in early 2023.

As we reported recently, total third-party assets under management and deployed to ILS strategies and reinsurance joint-ventures at RenRe has now reached $7.17 billion.

View information on many dedicated ILS fund managers, as well as reinsurers offering ILS style investment opportunities, such as RenaissanceRe, in our Insurance-Linked Securities Investment Managers & Funds Directory.