RenaissanceRe launches property cat fund
RenaissanceRe has launched a new property catastrophe fund domiciled in Ireland, supported by $340 million in capital from European and global investors, as well as the Bermudian reinsurer.
The Medici UCITS Fund is RenaissanceRe’s first UCITS-compliant prop cat fund.
The new fund offers European and other global investors the opportunity to invest in RenaissanceRe through a dedicated European-regulated UCITS structure. Being UCITS compliant basically means that an investment fund adheres to the European Union's regulatory framework and is widely recognised as a “quality label” in Europe. In particular, being UCITS compliant means that smaller institutions and high-net worth investors feel confident about investing.
RenaissanceRe is investing $140 million in the fund alongside existing partner and new partner capital.
The reinsurer’s capital partners team will manage the $350 million fund, which will run alongside its existing Medici cat bond fund, Medici. Medici UCITS and Medici share substantially similar investment guidelines and risk appetites.
Ross Curtis, EVP and chief portfolio officer of RenaissanceRe, said: “The launch of Medici UCITS reflects the continuing global growth and diversification of RenaissanceRe, furthering our mission to match desirable risk with owned and partner capital. We are proud to bring a new fund to our third-party investors while providing needed protection to our clients.”
Christopher Parry, SVP and global head of capital partners, said, “At RenaissanceRe, we pride ourselves on our 25-year track record of managing third-party capital and the trusted relationships we have built with our investors over this time.
“Medici UCITS, the latest in our full suite of offerings, provides our European partners with expanded access to the attractive catastrophe bond market in a structure that meets their needs. We look forward to bringing the same risk expertise and proprietary tools of our Medici portfolio management team to investors in this fund.”
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