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RenaissanceRe Expands Cat Bond Business With $340M Medici UCITS Fund

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RenaissanceRe Holdings Ltd. (RNR - Free Report) recently introduced a new property catastrophe bond fund called RenaissanceRe Medici UCITS Fund, which is registered in Ireland. This fund is designed to give European and global investors access to RenaissanceRe’s catastrophe bond investment strategy within a European-regulated UCITS structure. The Central Bank of Ireland is regulating Medici UCITS.

The new fund is an extension of the company’s existing RenaissanceReMedici Fund Ltd., following similar investment principles. At 2024-end, RNR had 15.8% noncontrollingeconomic ownership in the Medici entity.

The fund started with $340 million in capital, including $140 million co-invested by RNR. While the fund is not expected to be consolidated into its financial statements, it will generate fee income, and RNR’s investment in it will be recorded at fair value.

This move aligns with RenaissanceRe’s broader strategy of expanding globally, diversifying capital sources and strengthening its investment platform. With the new fund, the company is aiming to connect with more European and global investors. This allows the company to attract more third-party capital, diversifying its investor base beyond traditional markets.

RNR’s Capital Partners team will serve as the investment manager for the fund. They highlighted 25-year success in managing third-party capital and building strong investor relationships. The move is expected to strengthen its catastrophe bonds business, helping them match capital with risk efficiently while also creating a stable revenue stream. By leveraging its risk expertise and deep experience in alternative capital management, RNR is well-positioned to generate consistent returns.

RNR’s Price Performance

Shares of RenaissanceRe have gained 7% in the past year compared with a 15.7% rise of the industry it belongs to.

Zacks Investment Research
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Zacks Rank & Key Picks

RenaissanceRe currently has a Zacks Rank #3 (Hold).

Some better-ranked players in the broader Finance space are ProAssurance Corporation (PRA - Free Report) , HCI Group, Inc. (HCI - Free Report) and Palomar Holdings, Inc. (PLMR - Free Report) , each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus mark for ProAssurance’s bottom line for 2025 is pegged at 91 cents per share. The stock has witnessed two upward estimate revisions in the past 30 days with no movement in the opposite direction. PRA beat earnings estimates in each of the last four quarters, with an average surprise of 152.7%.

The Zacks Consensus Estimate for HCI Group’s 2025 earnings per share indicates 102.2% year-over-year growth to $14.98. It beat earnings estimates in each of the last four quarters, with an average surprise of 45.7%. The consensus mark for HCI’s current-year revenues signals a 17.5% increase from a year ago.

The Zacks Consensus Estimate for Palomar Holdings’ 2025 earnings per share projects 31.8% year-over-year growth to $6.71. It beat earnings estimates in each of the last four quarters, with an average surprise of 16.6%. The consensus mark for PLMR’s current-year revenues signals 38.9% growth from a year ago.

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