RenRe raises $132m of new capital for Medici ILS and cat bond fund

RenRe raises $132m of new capital for Medici ILS and cat bond fund

RenaissanceRe, the global reinsurer and third-party reinsurance capital supervisor, had raised $132 countless new capital for its mostly catastrophe bond focused insurance-linked securities (ILS) fund Medici through April 1st this year.RenaissanceRe (RenRe) has had a lot of success in raising brand-new funds for its variety of ILS and collateralized reinsurance funds and structures over the last couple of years.
The company had raised some $730 million of new capital in time for the January reinsurance renewals this year, adding properties to its collateralised reinsurance and retrocession focused Upsilon RFO Re Ltd., the third-party capitalised and market dealing with reinsurer DaVinciRe Ltd. and its most cat bond focused RenaissanceRe Medici Fund Ltd. technique.
That took the companys third-party possessions under management of its RenaissanceRe Capital Partners unit to $6.4 billion previously this year.
But, with catastrophe bond market issuance remaining elevated and chances to deploy more capital into this segment evident, RenRe has raised additional funds through the first few months of the year to enable it to capitalise on opportunities for its Medici ILS fund method.
RenRe raised $28 million in the first-quarter of the year for the Medici fund method and after that added a further $104 million at April 1st.
On the back of that, CFO Bob Qutub just recently discussed that this additional investment from third-parties has actually now decreased RenRes ownership stake in Medici to 13.7% as of April 2021, down from 15.4% at March 31st.
The Medici ILS fund had roughly $863 million of properties since January 1st 2021.
With Medicis non-controlling interest balance reported as $737.7 million since March 31st, its likely that including RenRes share the Medici feline bond focused ILS fund technique will now be larger than $900 million.
The one unpredictability there is associated with the effects of United States winter season storm Uri in the first-quarter, as RenRe had actually reported some financial investment losses and a decrease in net income for Medici, which is not a surprise offered the effects to certain catastrophe bonds from that freezing and severe winter weather occasion.
With catastrophe bond market activity staying elevated through the second-quarter so far, we d anticipate RenRe to easily deploy the extra funds raised for Medici and perhaps to raise some more to increase its involvement in current feline bond issuance.

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