RenaissanceRe launches new Casualty and Specialty joint venture
RenaissanceRe announced the creation of Fontana Holdings, “an innovative joint venture dedicated to writing Casualty and Specialty risks.”
Fontana launched with $475 million of capital and targets institutional investors, who contributed $325 million, with the remaining capital coming from RenaissanceRe. 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.
“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.” – Kevin J. O’Donnell, president and CEO of RenaissanceRe.
“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 and reinsurance strategies that we offer our third-party capital partners.” – Christopher S. Parry, SVP, global head of Capital Partners.
Fontana is regulated by the Bermuda Monetary Authority and is expected to be consolidated into RenaissanceRe’s financial statements.