RenaissanceRe, the Bermuda-based reinsurance firm and third-party ILS capital supervisor, has now formally launched its first UCITS compliant property disaster bond fund technique, the RenaissanceRe Medici UCITS Fund, with $340 million of capital allotted, confirming our reporting from three months in the past.
Again on December 4th 2024, Artemis reported that RenaissanceRe (RenRe) was anticipated to change into the latest supervisor of reinsurance property to supply a UCITS insurance-linked securities (ILS) fund technique.
As we explained in that article at the time, a fund construction had been registered in Eire below its Medici model, main us to imagine this was set to be a disaster bond fund, with the identify of the UCITS ICAV umbrella construction being RenaissanceRe Medici ICAV and the cat bond fund itself, a single sub-fund to the ICAV construction, the RenaissanceRe Medici UCITS Fund.
Now RenRe has confirmed the primary UCITS cat bond fund technique from the corporate, saying that it formally launched to buyers this week, with $340 million in capital already dedicated to the brand new fund.
The RenaissanceRe Medici UCITS Fund has been purpose-built to supply European and different world buyers an entry level to RenaissanceRe’s current disaster bond funding technique, by way of a devoted European-regulated UCITS construction, the corporate defined in the present day.
The RenaissanceRe Capital Companions group will act because the funding supervisor for the brand new fund, which the corporate mentioned is meant to enhance its present cat bond technique.
The brand new Medici UCITS fund will share “considerably comparable funding pointers and threat appetites” with the present Medici cat bond technique, RenRe defined.
The present Medici technique counted virtually $2 billion of property below administration, together with RenRe’s stake, as of January 1st 2025.
The $340 million of capital held within the new Medici UCITS fund consists of current accomplice capital, new accomplice capital and a $140 million co-investment from RenaissanceRe, the corporate additional acknowledged, additionally saying that it’s anticipated to generate extra price revenue for the agency.
Ross Curtis, EVP, Chief Portfolio Officer of RenaissanceRe, commented on the launch, “The launch of Medici UCITS displays the persevering with world progress and diversification of RenaissanceRe, furthering our mission to match fascinating threat with owned and accomplice capital. We’re proud to deliver a brand new fund to our third-party buyers whereas offering wanted safety to our shoppers.”
Christopher Parry, SVP, World Head of Capital Companions, added, “At RenaissanceRe, we pleasure ourselves on our 25-year observe report of managing third-party capital and the trusted relationships we have now constructed with our buyers over this time. Medici UCITS, the newest in our full suite of choices, gives our European companions with expanded entry to the engaging disaster bond market in a construction that meets their wants. We look ahead to bringing the identical threat experience and proprietary instruments of our Medici portfolio administration group to buyers on this fund.”
RenRe isn’t the one funding supervisor anticipated to enter the UCITS cat bond fund house this yr.
As we also reported recently, Man Group, the worldwide unbiased different and energetic funding administration agency, has made an utility to ascertain a UCITS disaster bond fund below its Man AHL model, we had realized.
The UCITS fund construction can present a differentiated supply of capital, being accessible by smaller institutional and high-net value buyers, so is usually a worthwhile extension of an current cat bond fund administration providing.
Nonetheless, over-time, the UCITS funds have change into a few of the largest within the disaster bond fund market, exhibiting simply how vital this construction has change into to specialist funding managers inside insurance-linked securities (ILS).
As a gaggle, the current cohort of UCITS catastrophe bond funds counted over $13.8 billion in assets between them on the finish of 2024.
In line with the Plenum CAT Bond UCITS Fund Indices, the cohort of present UCITS cat bond funds delivered a mean return of 13.62% for full-year 2024.
View data on many devoted ILS fund managers, in addition to reinsurers providing ILS fashion funding alternatives, similar to RenaissanceRe, in our Insurance-Linked Securities Investment Managers & Funds Directory.
