RenaissanceRe Upsilon Fund Ltd.

RenaissanceRe, the Bermuda based reinsurance firm and third-party capital specialist, is anticipating that its assets under management (AUM) across its joint-ventures and ILS funds will be “stable to up” over the rest of 2025, while fee income should resume its typical run-rate over the coming quarters.

RenaissanceRe, the Bermuda based reinsurance company and third-party capital manager, has raised almost $462 million in new third-party capital across its range of joint-ventures and insurance-linked securities (ILS) funds in the first-quarter of 2025, but the California wildfires saw losses shared with investors and dented the firms fee income for the period.

RenaissanceRe, the Bermuda headquartered global reinsurer and third-party reinsurance capital manager, has built a “deep and persistent moat” around its fee income business, CEO Kevin O’Donnell believes, saying that demand from investors for access to its Capital Partners strategies is often greater than it can satisfy.

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.

RenaissanceRe, the Bermuda based reinsurance company and third-party capital manager, has reported raising almost $238 million in additional third-party capital from investors for some of its ILS structures in time for the 1/1 renewal season, while over the course of 2024 investors benefited from strong earnings from joint-ventures and ILS funds.

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.

Bermuda-based reinsurance and third-party capital manager RenaissanceRe believes it stands better protected for hurricane season, with reduced exposure to smaller events and a portfolio that has been shaped with the help of Capital Partners vehicles, including an increased use of Upsilon, as well as more retrocession purchased.