RenaissanceRe, the Bermuda based mostly reinsurance firm and third-party capital supervisor, appears set to be the newest to supply a UCITS insurance-linked securities (ILS) fund, with a fund construction now registered in Eire beneath its Medici model, so presumably this will likely be a cat bond technique, Artemis has realized.
The RenaissanceRe Medici ICAV has been authorised by the regulator in Eire on November 1st and the UCITS ICAV construction may have a single sub-fund, the RenaissanceRe Medici UCITS Fund.
The RenaissanceRe Medici UCITS Fund has additionally been accepted beneath the ISDA protocol on November thirteenth, Artemis understands.
At this stage we haven’t been capable of supply a prospectus for the brand new UCITS insurance-linked securities (ILS) fund from RenaissanceRe (RenRe), however given the recency of its authorisation that’s not stunning.
Whereas we can not but make certain that is going to be a pure disaster bond centered UCITS fund technique, it stands to cause it doubtless will likely be given the Medici branding RenRe has given to it.
Medici has been a long-standing model title for RenRe’s disaster bond centered ILS funding methods.
The RenaissanceRe Medici Fund Ltd. has existed since 2009, however only began taking third-party capital into the strategy in 2013.
At September thirtieth 2024, the Medici catastrophe bond focused strategy had approximately $1.98 billion in assets under management, $1.68 billion of which was from third-party traders, the remaining from RenRe itself.
RenaissanceRe Capital Companions, the reinsurance companies devoted unit for third-party and insurance-linked securities (ILS) capital administration, counted $7.72 billion in third-party investor belongings beneath administration at September thirtieth this yr.
However, the entire firepower of the reinsurance joint-ventures and ILS funds managed by RenaissanceRe Capital Companions reached $9.26 billion at the moment, which was the very best stage tracked by Artemis up to now.
As such, the deliberate launch of its first UCITS funding fund technique, this RenaissanceRe Medici UCITS Fund, is notable, as RenRe appears to draw a doubtlessly differentiated supply of investor capital to its cat bond centered methods by way of this new construction.
As a gaggle, the current cohort of UCITS catastrophe bond funds counted over $13 billion in assets between them on the finish of the third-quarter of 2024.
In keeping with the Plenum CAT Bond UCITS Fund Indices, the cohort of present UCITS cat bond funds had been averaging a 12.27% return for 2024 as much as November twenty second.
View info on many devoted ILS fund managers, in addition to reinsurers providing ILS type funding alternatives, resembling RenaissanceRe, in our Insurance-Linked Securities Investment Managers & Funds Directory.
