RenRe lifts third-party AuM to $6.4bn, as Upsilon surges to new high

RenRe lifts third-party AuM to $6.4bn, as Upsilon surges to new high

RenaissanceRe, the Bermuda headquartered international reinsurance company, has raised its third-party capital possessions under management to a new high of $6.4 billion as of January 1st 2021. The boost in third-party capital under management in RenaissanceRes range of insurance-linked securities (ILS) and joint-venture structures was largely due to additional capital being raised for its Upsilon collateralized reinsurance and retrocession focused fund.
As we had actually previously reported, RenaissanceRe (RenRe) stated that it added roughly $750 million of capital to its ILS funds and reinsurance joint-ventures, with the collateralised reinsurance and retrocession focused Upsilon RFO Re Ltd., the third-party capitalised and market facing reinsurer DaVinciRe Ltd. and its RenaissanceRe Medici Fund Ltd., which purchases disaster bonds and other reinsurance-linked assets, the main beneficiaries.
RenRe had also exposed that around $131 countless this capital was from the business itself, so not all third-party possessions under management. In addition, RenRe participated in secondary deals with third-party investors leading to a net purchase of an additional $117 million of DaVinci shares.
Now, the company has actually disclosed its newest info on its third-party reinsurance capital initiatives, so we now have its page upgraded within our Artemis ILS fund supervisor directory.
Its clear that the majority of the third-party capital raising around the January 2021 renewals was transported to the Upsilon ILS fund.
Upsilon had around $2 billion of properties at the end of September 2020, which fell somewhat to $1.9 billion at December 31st, likely as the business returned some capital to financiers at the end of the underwriting year.
Fresh capital raising and new financier commitments at 1/1 2021 saw RenRe raising another approximately $500 million for the Upsilon Fund, around $33 million of which was from RenRe itself.
This was internet of capital returned to financiers and on top of this RenRe also raised a more $150 million at 1/1, which was eventually returned to the financiers in January.
That took Upsilon to $2.4 billion in size since January 1st 2021, a new high for the collateralized reinsurance and retrocession fund structure.
Growth has actually likewise been seen in RenRes Medici ILS fund, which invests mainly in catastrophe bonds, in addition to some other securitized reinsurance connected assets.
The Medici ILS fund counted $788 million of properties at the end of September 2020, which increased to $850 million by the end of December, but then rose even more to $863 million as of January 1st 2021.
RenRe also grew DaVinciRe at 1/1, but this was mainly utilizing its own funds, however still DaVinciRe reached $2.4 billion in size, including its financial obligation at 1/1.
The other joint-ventures, such as Vermeer and Langhorne Re remained static at the end of the year.
So, Upsilon has actually driven the majority of the growth in third-party capital handled for RenRe at the end of the year and into the January 2021 renewals.
The ILS funds and handled joint-venture structures RenRe operates now have around $7.5 billion of capital in them, of which RenRes share is $1.1 billion therefore third-party investors provide the other $6.4 billion.
View information of devoted ILS fund managers and reinsurers providing ILS style investments in our Insurance-Linked Securities Investment Managers & & Funds Directory.
View details of devoted ILS fund supervisors and reinsurers using ILS style financial investments in our Insurance-Linked Securities Investment Managers & & Funds Directory.

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