RenRe swept up cash for cat bonds, but investors flee collateralised re
RenaissanceRe raised $767 million in gross funding for ILS strategies to date in 2023 with net flows tipped heavily to cat bond funds and away from the group's collateralized reinsurance/retro ILS offer.
Inflows went predominantly to the open-ended cat bond fund managed by RenRe, Medici. Medici was said to have taken a gross $244 million in Q1 and another $146 million thereafter.
The Upsilon open-ended fund that RenRe packs with collateralized reinsurance and retrocessional risks was listed as the top Q1 redemption, accounting for $140 million of $207 million total in withdrawn third-party capital.
RenRe's Davinci, a JV offering property cat and certain low frequency/ high severity specialty reinsurance lines, was also a major beneficiary, accounting for $377 million gross inflows, just behind the Medici YTD tally.
RenRe did not directly account for the remaining $68 million in Q1 redemptions beyond what was taken out of Upsilon.
But calculations between third-party investor earnings and changes in net asset values suggested the lingering redemptions had been concentrated in DaVinci. Data indicated zero flows at RenRe's new casualty- and specialty-risk unit Fontana and the fund dedicated for the Dutch pension PFZW, Vermeer.
RenRe put Investment gains at its funds and ILS vehicles at $267.4 million, driven primarily by “strong underwriting results” for DaVinci and Vermeer, strong investment income from the higher yield environment and unspecified net realized and unrealized gains.
As an asset manager for the moneys, RenRe increased its management and performance fee income by $16.4 million from the prior year period to $44.8 million in Q1 2023.
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