2 days ago
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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.
At September 30th 2024, the third-party investor contribution to the range of reinsurance JV structures and ILS funds that RenaissanceRe Capital Partners manages had increased by approaching $1 billion, being up just over 14%, over the prior twelve months.
When we last reported on the investment management division’s third-party assets under management (AUM) the total had reached $7.15 billion at the mid-way point of 2024.
So, the third-party capital under management figure has risen by $570 million over the third-quarter of this year, with DaVinci and Vermeer Re the two main drivers of this further expansion.
In fact, those two reinsurance joint-ventures accounted for $450 million of the third-quarter increase, data from the reinsurer shows.
While the capital under management has been increasing, RenaissanceRe has also been delivering attractive profits to the investors in the range of reinsurance JV’s and ILS funds.
As we reported after the reinsurers’ third-quarter results were announced, the company reported delivering a significant $450.2 million to third-party investors in the period, while at the same time RenRe’s fee income earned was up more than 27%.
The amount of capital RenRe co-invests in the reinsurance and ILS structures also rose during Q3, by $180 million, taking it to $1.53 billion across the range.
As a result, the total firepower of the reinsurance joint-ventures and ILS funds managed by RenaissanceRe Capital Partners reached $9.26 billion, the first time it has surpassed $9 billion at the end of any quarter.
While RenRe’s own shareholder equity stood at $11.24 billion at September 30th, if you add in the $4 billion Top Layer Re to the other JV’s and ILS vehicles, the total partner capital AUM at RenRe had reached $13.26 billion, underscoring the importance of these strategies to the company.
With $7.72 billion in third-party capital across its range of joint-venture reinsurers and ILS funds at September 30th 2024, RenaissanceRe remains one of the largest managers of assets in the ILS market.
View information on many dedicated ILS fund managers, as well as reinsurers offering ILS style investment opportunities, such as RenaissanceRe, in our Insurance-Linked Securities Investment Managers & Funds Directory.
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