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 grow to be the most recent supervisor of reinsurance property to supply a UCITS insurance-linked securities (ILS) fund technique.As we defined in that article on the time, a fund construction had been registered in Eire beneath its Medici model, main us to consider 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 international buyers an entry level to RenaissanceRe’s present disaster bond funding technique, by way of a devoted European-regulated UCITS construction, the corporate defined at present.
The RenaissanceRe Capital Companions staff will act because the funding supervisor for the brand new fund, which the corporate stated is meant to enhance its present cat bond technique.
The brand new Medici UCITS fund will share “considerably comparable funding pointers and danger appetites” with the prevailing Medici cat bond technique, RenRe defined.
The present Medici technique counted virtually $2 billion of property beneath 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 present associate capital, new associate capital and a $140 million co-investment from RenaissanceRe, the corporate additional acknowledged, additionally saying that it’s anticipated to generate further payment earnings for the agency.
Ross Curtis, EVP, Chief Portfolio Officer of RenaissanceRe, commented on the launch, “The launch of Medici UCITS displays the persevering with international progress and diversification of RenaissanceRe, furthering our mission to match fascinating danger with owned and associate capital. We’re proud to carry a brand new fund to our third-party buyers whereas offering wanted safety to our purchasers.”
Christopher Parry, SVP, International Head of Capital Companions, added, “At RenaissanceRe, we satisfaction ourselves on our 25-year observe document of managing third-party capital and the trusted relationships we’ve constructed with our buyers over this time. Medici UCITS, the most recent in our full suite of choices, offers our European companions with expanded entry to the enticing disaster bond market in a construction that meets their wants. We stay up for bringing the identical danger experience and proprietary instruments of our Medici portfolio administration staff to buyers on this fund.”
RenRe will not be the one funding supervisor anticipated to enter the UCITS cat bond fund area this yr.
As we additionally reported lately, Man Group, the worldwide impartial various and lively funding administration agency, has made an software to determine a UCITS disaster bond fund beneath its Man AHL model, we had discovered.
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 invaluable extension of an present cat bond fund administration providing.
Nevertheless, over-time, the UCITS funds have grow to be a number of the largest within the disaster bond fund market, displaying simply how necessary this construction has grow to be to specialist funding managers inside insurance-linked securities (ILS).
As a bunch, the present cohort of UCITS disaster bond funds counted over $13.8 billion in property between them on the finish of 2024.
In response to 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 model funding alternatives, similar to RenaissanceRe, in our Insurance coverage-Linked Securities Funding Managers & Funds Listing.
