Bermuda headquartered reinsurance specialist RenaissanceRe, has announced the creation of Fontana Holding L.P. and its subsidiaries – a joint venture dedicated to writing Casualty and Specialty risks.
In a press release, it states that Fontana launched with $475 million of capital and targets institutional investors, who contributed $325 million, with the remaining capital coming from RenaissanceRe.
Fontana assumed a whole account quota share of RenaissanceRe’s global Casualty & Specialty book of business, which includes the credit portfolio, with the opportunity to raise additional capital and increase in scale over time.
In addition, Fontana is regulated by the Bermuda Monetary Authority and is also expected to be consolidated into RenaissanceRe’s financial statements.
President and Chief Executive Officer of RenaissanceRe, Kevin J, O’Donnell, commented: “Fontana builds on our long legacy of innovation in matching desirable risk with owned and partner capital. We are proud to invest alongside several highly respected institutional investors and believe that they will benefit from our deep expertise in underwriting Casualty and Specialty risks.
“We also believe that Fontana will enhance shareholder value by providing a steady source of fee income while enhancing our gross-to-net strategy.”
SVP, Global Head of Capital Partners, Christopher S. Parry, added: “Fontana represents the next step in the evolution of our Capital Partners strategy. As our first joint venture focused on Casualty and Specialty risk, Fontana extends the suite of insurance-linked securities and reinsurance strategies that we offer our third-party capital partners.”