RenaissanceRe, the Bermuda-based reinsurance agency and third-party capital administration specialist, is planning to additional increase the balance-sheet of its DaVinciRe sidecar-like third-party capitalised reinsurance joint-venture by means of a $300 million non-public debt issuance.
In a personal debt providing, DaVinciRe Holdings Ltd. has agreed to promote an mixture principal quantity of $300 million of 5.950% Senior Notes, which will probably be due 2035.This providing is predicted to shut in early March and can increase the DaVinciRe balance-sheet by roughly $150 million it appears, given a part of the capital raised will probably be used to pay down outdated non-public debt as nicely.
DaVinciRe, operates in an analogous technique to a reinsurance sidecar, being a joint-venture construction by means of which institutional buyers can share within the underwriting earnings and losses of RenaissanceRe, however it’s fairness backed and operates as a rated reinsurer.
DaVinci primarily writes property disaster reinsurance enterprise, by means of companion strains taken alongside Renaissance Re, with all enterprise written on the similar phrases and value, offering a robust pipeline of alternatives and robust alignment.
The proceeds from the sale of the $300 million of personal debt to buyers will probably be used to spice up the DaVinciRe balance-sheet firepower, whereas additionally paying down the $150 million excellent principal of DaVinci’s 4.750% Senior Notes which might be due 2025 (which had been issued in 2015).
RenaissanceRe mentioned that the corporate and DaVinci count on these new senior notes will probably be rated Baa1 by Moody’s Traders Service and A- by Normal & Poor’s.
With the notes priced to pay a variety of 5.95%, it is a notably engaging funding alternative, for these searching for an alternate technique to entry the reinsurance and insurance-linked securities (ILS) market, however in a unique format that will better-suit sure allocators.
Whereas RenaissanceRe can faucet institutional investor appetites for reinsurance-linked returns to additional build-out the capabilities of its DaVinci joint-venture.
We perceive DaVinciRe was capitalised to roughly $4.25 billion as of the beginning of 2025, consisting of $3.25 billion of fairness and debt, in addition to RenaissanceRe’s personal contribution to the joint-venture reinsurance firm. The sidecar-like firm has grown from roughly $2.8 billion because the begin of 2022.
Being a rated balance-sheet automobile, however backed largely by third-party capital, the scale of the DaVinciRe balance-sheet is significant and it could actually write a major quantity of enterprise
