With institutional traders offering the majority of the capital, RenaissanceRe Holdings has introduced the creation of a brand new three way partnership devoted to casualty and specialty dangers.
Launched with $475 million of capital, the enterprise—Fontana Holdings L.P.—targets institutional traders, who contributed $325 million. RenRe supplied the remaining capital.
At the side of the launch, Fontana has assumed a complete account quota share of RenaissanceRe’s international casualty and specialty e-book of enterprise, together with the credit score portfolio, with the chance to boost further capital and enhance in scale over time, RenRe stated in a media assertion.
Fontana is regulated by the Bermuda Financial Authority and is predicted to be consolidated into RenaissanceRe’s monetary statements.
Kevin J. O’Donnell, president and chief government officer of RenaissanceRe, stated, “Fontana builds on our lengthy legacy of innovation in matching fascinating danger with owned and accomplice capital.” With out figuring out the traders, O’Donnell described them as “extremely revered institutional traders” who will profit from RenRe’s deep experience in underwriting casualty and specialty dangers.
“We additionally imagine that Fontana will improve shareholder worth by offering a gradual supply of payment earnings whereas enhancing our gross-to-net technique,” he continued.
Christopher S. Parry, senior vp and international head of RenRe’s ventures enterprise, Capital Companions, stated that “Fontana represents the following step within the evolution of our Capital Companions technique.”
“As our first three way partnership centered on casualty and specialty danger, Fontana extends the suite of insurance-linked securities and reinsurance methods that we provide our third-party capital companions.”
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