RenaissanceRe (RenRe), the Bermuda headquartered global reinsurance firm and third-party capital management specialist, has reported raising $350.5 million of third-party capital largely for catastrophe bond strategies during the second-quarter of 2023.
The company said it has raised $170.5 million from investors for its Medici fund strategy, and also raised a further $150 million of capital for a newly formed segregated account focused on investing in insurance-linked securities (ILS), primarily cat bonds.
RenRe said that investors redeemed $313 million of capital during the second quarter of 2023, $285.6 million of which was from the Upsilon Diversified Fund.
RenRe has reported a significant year-on-year rise in its fee income earned from third-party reinsurance capital and ILS operations, with the second-quarter 2023 seeing the total earned rise by 65.5% to $56.7 million, due to increase in both management and performance fees.
Management fee income reached $43.4 million for the second-quarter of 2023, up from $30.7 million in 2022.
Performance fee income reached $13.2 million in the second-quarter, significantly higher than the $3.5 million earned in the prior year quarter.
RenRe reported these figures in its Q2 2023 results announcement, during which it announced net income of $191 million for Q2 2023, compared with a net loss of $325 million a year earlier. RenRe also announced a combined ratio of 80.3% for Q2 2023, with underwriting income of $352 million, a slight improvement on the $316 million reported a year earlier.
