$60m funding for RenaissanceRe's Florida cat sidecar
RenaissanceRe has funded Timicuan Reinsurance II Ltd. (“Tim Re II”), a new sidecar.
The Bermuda reinsurance company lauched the sidecar to create additional reinsurance capacity for the Florida homeowners market for the renewal season. Investors funded Tim Re II with approximately $60 million of equity, including $10 million invested by RenaissanceRe.
RenaissanceRe has a reinsurance agreement by which it cedes to Tim Re II a defined portfolio of its property catastrophe business, covering primarily hurricane risks for Florida insurers during the 2009 hurricane season.
Renaissance Underwriting Managers, Ltd. will be the administrative manager of Tim Re II. RenaissanceRe worked with lead placement agent Aon Benfield Securities in raising capital for Tim Re II. Willis Capital Markets & Advisory and GC Securities also acted as placement agents for Tim Re II.
Neill A. Currie, Chief Executive Officer of RenaissanceRe Holdings Ltd., stated: “We are pleased to announce the closing of the Tim Re II transaction. Despite difficult capital markets conditions, we have worked with investors to deliver additional reinsurance capacity to the Florida market. We are pleased both to serve our customers’ reinsurance needs and to design a facility that allows investors to efficiently invest in the Florida cat market.”