DaVinci stands-out for growth, Medici investors rebalance in RenRe’s $7.15bn third-party AUM

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.

At the same time, the Medici catastrophe bond focused fund strategy declined in assets under management in the second-quarter, as some investors rebalanced and profits were taken after strong results.

Over the twelve-months to June 30th 2024, RenaissanceRe’s Capital Partners division has expanded its third-party investor assets under management (AUM) by roughly $300 million.

There was a slight decline in the second-quarter, as third-party investor capital across the joint-venture and ILS funds offered by RenaissanceRe fell from $7.17 billion to $7.15 billion.

But, it remains a story of growth, as RenRe’s joint-ventures and ILS funds have continued their growth and at the same time the managers of this capital likely have more available to deploy after additional capital was raised and returned in the private ILS focused Upsilon strategy.

RenRe returned some capital to investors in Q2 from Upsilon, but also raised additional to deploy into mid-year reinsurance and retrocession opportunities.

Third-party capital backing DaVinci Re rose by $13 million to $2.91 billion in the second-quarter, but over the last 12-months the structure had grown by almost $500 million in investor assets.

A decent proportion of that is due to the returns and profits being generated, as performance has been strong for investors allocating to the DaVinci Re sidecar-like reinsurance structure, both in underwriting and investment returns.

The Upsilon structures remained relatively static at the mid-year, at around $510 million, but with more available capital now thanks to the releasing of some trapped capital and returns of that to investors, alongside fresh capital raised for the mid-year.

For the cat bond fund Medici, RenRe’s third-party assets under the strategy declined to $1.63 billion at the mid-year, taking the total fund including its own investment into it to $1.86 billion.

Again, strong returns have been experienced by investors, so it is perhaps no surprise some rebalancing and profit-taking took place around the middle of the year.

With $7.15 billion in third-party capital across its range of joint-venture reinsurers and ILS funds at June 30th 2024, RenaissanceRe remains one of the largest managers of assets in the ILS market.

As we reported recently, the company reported its highest ever quarterly fee income from third-party capital and insurance-linked securities (ILS) activities, as higher assets under management (AUM) and strong performance drove a 48.3% year-on-year increase.

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.