RenRe launches $475M sidecar

RenaissanceRe Holdings Ltd. said Tuesday it has launched Fontana Holdings LP, a sidecar focused on casualty and specialty risks, with $475 million in capital, including $325 million from institutional investors.

The remaining $150 million in capital comes from RenaissanceRe.

Fontana has assumed a whole account quota share of RenaissanceRe’s global casualty and specialty book of business, including the credit portfolio, and has the option to raise additional capital over time, the Bermuda-based reinsurer said.

“Fontana builds on our long legacy of innovation in matching desirable risk with owned and partner capital,” RenaissanceRe President and CEO Kevin J. O’Donnell said in a statement.

Fontana is regulated by the Bermuda Monetary Authority and expected to be consolidated into RenaissanceRe’s financial statements.