RenaissanceRe Launches New Property Catastrophe Reinsurer Backed by PGGM
December 18 2018 - 8:26AM
Business Wire
RenaissanceRe Holdings Ltd. (NYSE:RNR) (“RenaissanceRe”)
and Dutch pension fund manager PGGM announced today the creation of
Vermeer Reinsurance Ltd. (“Vermeer”) to provide capacity focused on
risk remote layers in the U.S. property catastrophe market.
PGGM is a leading Dutch pension fund service provider with €215
billion of assets under management. It has a 13-year track record
of investing in insurance and is currently one of the largest
end-investors in the ILS asset class.
Vermeer will be initially capitalized with $600 million of
equity from PGGM, with up to a further $400 million available to
pursue growth opportunities in 2019, for a total of $1 billion of
capital. The company has received an “A” financial strength rating
from A.M. Best and has obtained approval in principle to be
licensed and regulated by the Bermuda Monetary Authority as a Class
3B reinsurer. Vermeer will be managed by Renaissance Underwriting
Managers, Ltd. and is expected to be consolidated into
RenaissanceRe’s financial statements. PGGM is the sole investor in
Vermeer.
Aditya Dutt, President of Renaissance Underwriting Managers,
Ltd., said: “We are proud to partner with a respected global leader
in PGGM to create Vermeer. This continues RenaissanceRe’s 20-year
track record of creating and managing joint ventures that match
well-underwritten portfolios of risk to diverse sources of capital.
We continue to be a pioneer in this area and are pleased to bring
our excellent service and deep expertise in underwriting, modeling
and claims to address the risk challenges of our clients.”
Eveline Takken-Somers, Senior Director, Credit and Insurance
Linked Investments of PGGM: “Since 2014, we have focused on
building strategic partnerships with top tier reinsurance companies
to improve access to and selection of risk. We seek efficient
implementation of our investments as we believe this leads to
superior returns. RenaissanceRe is a world leader in both
reinsurance and the creation of joint venture vehicles and we look
forward to the opportunities Vermeer will provide as PGGM continues
to grow its insurance portfolio.”
About RenaissanceRe
RenaissanceRe is a global provider of reinsurance and
insurance that specializes in matching well-structured risks with
efficient sources of capital. The Company provides property,
casualty and specialty reinsurance and certain insurance solutions
to customers, principally through intermediaries. Established in
1993, the Company has offices
in Bermuda, Ireland, Singapore, Switzerland,
the United Kingdom and the United States.
About PGGM
PGGM is a cooperative Dutch pension fund service provider.
Institutional clients are offered: asset management, pension fund
management, policy advice and management support. On June 30, 2018
PGGM had €215 billion in assets under management and was
administrating pensions of 4.2 million participants. Around 750,000
workers in the Dutch healthcare are connected to PGGM&CO, our
members organization. Either alone or together with strategic
partners, PGGM develops future solutions by linking together
pension, care, housing and work.
Cautionary Statement Regarding Forward-Looking
Statements
Any forward-looking statements made in this Press Release
reflect RenaissanceRe’s current views with respect to future events
and financial performance and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These statements are subject to numerous factors that could cause
actual results to differ materially from those set forth in or
implied by such forward-looking statements, including the
following: the failure to obtain regulatory approvals or satisfy
other conditions to completion of the proposed Tokio Millennium Re
transaction; risks that the proposed Tokio Millennium Re
transaction disrupts current plans and operations; the ability to
recognize the benefits of the proposed Tokio Millennium Re
transaction; the amount of the costs, fees, expenses and charges
related to the proposed Tokio Millennium Re transaction; the
frequency and severity of catastrophic and other events that the
Company covers; the effectiveness of the Company’s claims and claim
expense reserving process; the Company’s ability to maintain its
financial strength ratings; the effect of climate change on the
Company’s business; collection on claimed retrocessional coverage,
and new retrocessional reinsurance being available on acceptable
terms and providing the coverage that we intended to obtain; the
effects of U.S. tax reform legislation and possible future tax
reform legislation and regulations, including changes to the tax
treatment of the Company’s shareholders or investors in the
Company’s joint ventures or other entities the Company manages; the
effect of emerging claims and coverage issues; continued soft
reinsurance underwriting market conditions; the Company’s reliance
on a small and decreasing number of reinsurance brokers and other
distribution services for the preponderance of its revenue; the
Company’s exposure to credit loss from counterparties in the normal
course of business; the effect of continued challenging economic
conditions throughout the world; a contention by the Internal
Revenue Service that Renaissance Reinsurance Ltd., or any of the
Company’s other Bermuda subsidiaries, is subject to taxation in the
U.S.; the success of any of the Company’s strategic investments or
acquisitions, including the Company’s ability to manage its
operations as its product and geographical diversity increases; the
Company’s ability to retain key senior officers and to attract or
retain the executives and employees necessary to manage its
business; the performance of the Company’s investment portfolio;
losses that the Company could face from terrorism, political unrest
or war; the effect of cybersecurity risks, including technology
breaches or failure on the Company’s business; the Company’s
ability to successfully implement its business strategies and
initiatives; the Company’s ability to determine the impairments
taken on investments; the effect of inflation; the ability of the
Company’s ceding companies and delegated authority counterparties
to accurately assess the risks they underwrite; the effect of
operational risks, including system or human failures; the
Company’s ability to effectively manage capital on behalf of
investors in joint ventures or other entities it manages; foreign
currency exchange rate fluctuations; the Company’s ability to raise
capital if necessary; the Company’s ability to comply with
covenants in its debt agreements; changes to the regulatory systems
under which the Company operates, including as a result of
increased global regulation of the insurance and reinsurance
industry; changes in Bermuda laws and regulations and the political
environment in Bermuda; the Company’s dependence on the ability of
its operating subsidiaries to declare and pay dividends; aspects of
the Company’s corporate structure that may discourage third-party
takeovers or other transactions; the cyclical nature of the
reinsurance and insurance industries; adverse legislative
developments that reduce the size of the private markets the
Company serves or impede their future growth; consolidation of
competitors, customers and insurance and reinsurance brokers; the
effect on the Company’s business of the highly competitive nature
of its industry, including the effect of new entrants to, competing
products for and consolidation in the (re)insurance industry; other
political, regulatory or industry initiatives adversely impacting
the Company; increasing barriers to free trade and the free flow of
capital; international restrictions on the writing of reinsurance
by foreign companies and government intervention in the natural
catastrophe market; the effect of Organisation for Economic
Co-operation and Development or European Union (“EU”) measures to
increase the Company’s taxes and reporting requirements; the effect
of the vote by the U.K. to leave the EU; changes in regulatory
regimes and accounting rules that may impact financial results
irrespective of business operations; the Company’s need to make
many estimates and judgments in the preparation of its financial
statements; and other factors affecting future results disclosed in
RenaissanceRe’s filings with the Securities and Exchange
Commission, including its Annual Reports on Form 10-K and Quarterly
Reports on Form 10-Q.
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version on businesswire.com: https://www.businesswire.com/news/home/20181218005502/en/
Investors:RenaissanceRe Holdings Ltd.Keith McCue,
441-239-4830Senior Vice President, Finance & Investor
RelationsMedia:RenaissanceRe Holdings Ltd.Keil Gunther,
441-239-4932Vice President, Marketing & CommunicationsKekst
CNCDawn Dover, 212-521-4800PGGM Corporate CommunicationMaurice
Wilbrinkmaurice.wilbrink@pggm.nl+31 (0)30 277 97
35www.pggm.nl@PGGMnieuws
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