Upsilon Reinsurance Fund Opportunities

Speaking during the last earnings call for global reinsurance firm RenaissanceRe, senior executives highlighted the significant income contribution that fees from the insurance-linked securities (ILS) and third-party capital management business are now making.

When Bermuda based reinsurance and third-party capital management specialist RenaissanceRe closes on its acquisition of the Validus reinsurance business from AIG, its CEO believes it will cede risk from the acquired company to investors in its ILS and joint-venture vehicles at a similar rate to how it operates today.

RenaissanceRe saw its third-party investor capital assets under management (AUM), dedicated to its property and casualty reinsurance business, rise by $250 million during the second-quarter of the year, to reach a new high of $6.85 billion.

The acceleration of activity in the catastrophe bond market in 2023, as cedent demand for covers in the upper-layers of their reinsurance towers has risen and the ILS market has responded to it, is seen as something that will positively benefit the bottom-line at RenaissanceRe.

RenaissanceRe has reported a significant year-on-year uplift in its fee income earned from third-party reinsurance capital and insurance-linked securities (ILS) operations, with the second-quarter 2023 seeing the total earned rise by 65.5% to $56.7 million.

RenaissanceRe (RenRe), the Bermuda headquartered global reinsurance firm and third-party capital management specialist, has reported raising $350.5 million of new capital from investors largely for catastrophe bond strategies during the second-quarter of 2023.

RenaissanceRe, the Bermuda based reinsurer and third-party ILS capital manager, has announced that Robin Lang is being named as permanent Group Chief Risk Officer, to succeed Ian Branagan in the role.

During the first-quarter of 2023, RenaissanceRe saw its third-party capital assets under management (AUM) dedicated to property and casualty reinsurance business rise by $400 million, with the total reaching a new high of $6.6 billion in assets managed, at March 31st.

The property catastrophe reinsurance market is “in a very attractive phase” and, for RenaissanceRe, reinsurance as a whole is currently seen as more attractive right now, with its CEO Kevin O’Donnell saying he expects this to be the case for the foreseeable future.

RenaissanceRe, the global reinsurance company and third-party capital manager, continued to have great success in raising funds from third-party investors for its range of joint-venture and insurance-linked securities (ILS) structures, adding just over $767 million so far in 2023, with its Medici catastrophe bond fund strategy taking more than half the inflows.