Home Insurance RenRe expects ILS & third-party capital fees of around $60m per-quarter: Execs

RenRe expects ILS & third-party capital fees of around $60m per-quarter: Execs


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Senior executives of global reinsurance company RenaissanceRe highlighted during their last earnings call the substantial income contribution that the fees from insurance-linked securities and third-party Capital Management business now make.

The second quarter of the year saw RenaissanceRe (RenRe), through its Capital Partners division, earn fee income totaling $56.7 million. This was an increase of 65.5% over the previous-year.

The main reason for the increase is the much higher third-party investor capital under management of RenRe’s Capital Partners business, which as we reported counted some $6.6 billion of third-party assets within its main joint-venture reinsurance and ILS fund structures at the end of the first-quarter of 2023, a figure that may have risen further in the last quarter as well.

RenRe’s CEO Kevin O’Donnell said during the call, “In Capital Partners, our fee generating activities performed well this quarter with strong management fees and profit commissions, reflecting both growth in partner capital and rebounding profitability.”

Bob Qutub, CFO of the company, explains in more detail about fees.

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