Langhorne Re

RenaissanceRe, the Bermudian global reinsurer, has lifted its third-party investor capital under management in reinsurance joint-ventures and insurance-linked securities (ILS) funds managed by RenRe’s Capital Partners division to a new end of quarter high of $7.72 billion.

Speaking during the RenaissanceRe third-quarter earnings call today, the CFO of the reinsurer said that while management fees from its third-party and ILS capital management business are expected to come in around the same level in the fourth-quarter, the effects of hurricane Milton will dent performance fees.

Reflecting strong performance across the RenaissanceRe business and its platform of reinsurance joint-venture vehicles and insurance-linked securities (ILS) funds, the company has reported delivering a significant $450.2 million to third-party investors in the third-quarter, while the fee income it earned was up more than 27%.

The DaVinci Re joint-venture sidecar-like but equity-backed structure stands-out for the strongest growth in third-party capital among the vehicles managed by RenaissanceRe’s Capital Partners division, which had $7.15 billion in third-party investor assets under management at the mid-way point of 2024.

RenaissanceRe, the Bermuda based reinsurance and third-party capital management specialist, has reported its highest ever quarterly fee income from third-party capital and insurance-linked securities (ILS) activities, as higher assets under management (AUM) and strong performance drove a 48.3% year-on-year increase.

Third-party investor capital under management in reinsurance joint-ventures and insurance-linked securities (ILS) funds managed by RenaissanceRe’s Capital Partners division has now eclipsed the $7 billion mark, to reach $7.17 billion at the end of the first-quarter, while the managers cat bond fund surpassed $2 billion for the first time.

For Bermuda based reinsurance company and third-party capital manager RenaissanceRe, the fee income earned from its joint-venture and insurance-linked securities (ILS) operations has become a significant contributor to earnings and the second-quarter is expected to see these fees rise by around 23% year-on-year, its leadership said today.

RenaissanceRe, the Bermuda based reinsurance and third-party capital management specialist, raised almost $566 million of third-party capital in the first-quarter of 2024, to further expand its range of ILS funds and reinsurance joint-venture vehicles, while the fee income earned by this business soared 87% in the quarter.

Third-party investor capital under management in reinsurance joint-ventures and insurance-linked securities (ILS) funds managed by RenaissanceRe’s Capital Partners division reached almost $7 billion at the start of 2024, with the firm’s catastrophe bond fund strategy driving the largest share of the last year’s growth.

RenaissanceRe, the Bermuda based reinsurance and third-party capital management specialist, has successfully added almost $495 million in new third-party capital across some of its joint-venture and insurance-linked securities (ILS) structures in time for January 1st 2024.