RenaissanceRe becomes latest reinsurer to create new sidecar

RenaissanceRe has become the latest Bermuda-based reinsurer to form a sidecar, following in the footsteps of Liberty Mutual and Aspen, which launched or renewed sidecars in December last year.

The company appears to formed this new vehicle to provide collateralized capacity from third party investors to Renaissance Reinsurance, the principal Bermuda-based reinsurance subsidiary of RenaissanceRe Holdings.

Fibonacci Reinsurance, a special purpose insurer, or sidecar, domiciled in Bermuda, has raised $140 million in capital from third party investors and RenaissanceRe Medici Fund.

It has issued participating notes which will be listed on the Bermuda Stock Exchange.

The company said that the arrangement enables RenaissanceRe to support its clients with additional property-catastrophe reinsurance capacity.

RenaissanceRe Holdings is a global provider of reinsurance and insurance. The Company's business consists of two main areas, property, including catastrophe reinsurance and other property reinsurance and insurance, and casualty and specialty.