US-based RenaissanceRe Holdings and Dutch pension fund manager PGGM have created Vermeer Reinsurance Ltd., which will provide capacity focused on risk remote layers in the US property catastrophe market.
According to a statement by the two firms, Vermeer will be initially capitalized with US$600 million of equity from PGGM, its sole investor. A further US$400 million will be available to pursue growth opportunities in 2019, for a total of US$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.
“We are proud to partner with a respected global leader in PGGM to create Vermeer,” said Aditya Dutt, president of Renaissance Underwriting Managers. “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, modelling, and claims to address the risk challenges of our clients.”
“Since 2014, we have focused on building strategic partnerships with top tier reinsurance companies to improve access to and selection of risk,” said Eveline Takken-Somers, senior director of credit and insurance-linked investments at PGGM. “We seek efficient implementation of our investments as we believe this leads to superior returns.”
