RenaissanceRe puts $372m in Q3 cat & investment losses to ILS investors

Reinsurer  RenaissanceRe may have put $372.4 million in Q3 losses to third-party capital investors, including both $329 million in weather-related large losses and additional investment losses.

From the $977.4 million in net negative impact on underwriting results attributable to Q3 weather-related large-losses, RenaissanceRe said it had put $329 million to investors in its ILS units.

That $329 million figure included $288.4 million attributable to Hurricane Ian and $40.6 million to other Q3 nat cat events.

The $329 million figure came out to roughly 1/3 of the group's total net negative impact on the global underwriting result after net reinstatement or 29% of net claims and claims expenses incurred. For Hurricane the ILS investor bill came to 35% of the negative net underwriting impact.

All of which came with caveat for the preliminary nature of the Hurricane Ian loss accounting as the hurricane struck within days of end-quarter.

Fee income of $25.7 million, focused on the ILS units, was down 9% year on year as the weather-related losses almost entirely wiped out performance fees on the ailing funds.

A 5% year on year increase in the standard management fee was put to increased AuM at DaVinci, Vermeer, Medici and the Q2 2022 inclusion of Fontana, all offset by reductions in structured reinsurance products.

RenaissanceRe may have raised $122.1 million in new third-party capital in the third quarter, management noted.

Management signalled new money in the Medici open-ended cat bond fund and further hinted that the Dutch pension fund PFZW may have ponied up more money for its JV, Vermeer. No mention was made of the newly launched casualty and specialty JV Fontana.

Ahead of the Q3 earnings call, the company had only published scattered figures via a press statement, but had yet to release its detailed 10Q showing net flows to individual units and balance sums.

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