RenRe launches casualty/specialty sidecar

RenaissanceRe has created a joint venture dedicated to casualty and specialty risks. Fontana Holdings and its subsidiaries launched with $475m of capital and targets institutional investors, which contributed $325m, with the remaining capital coming from RenRe.

Fontana assumed a whole account quota share of RenaissanceRe’s global casualty and specialty book of business, including the credit portfolio, with the opportunity to raise additional capital and increase in scale over time.

Kevin O’Donnell, president and chief executive of RenaissanceRe, said, “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.”

Christopher Parry, SVP, global head of Capital Partners, said, “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 (ILS) and reinsurance strategies that we offer our third-party capital partners.”

Fontana is regulated by the Bermuda Monetary Authority and is expected to be consolidated into RenaissanceRe’s financial statements.