RenaissanceRe Holdings Ltd. and Dutch pension fund manager PGGM announced they have launched Vermeer Reinsurance Ltd. to provide capacity focused on risk remote layers in the U.S. property catastrophe market.
PGGM is a Dutch pension fund service provider with €215 billion ($244.3 billion) of assets under management. It has a 13-year track record of investing in insurance and is currently one of the largest end-investors in the insurance linked securities (ILS) asset class. Zeist, Netherlands-headquartered PGGM is the sole investor in Vermeer.
Vermeer will be initially capitalized with $600 million of equity from PGGM, with up to a further $400 million available to pursue growth opportunities in 2019, for a total of $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 Manager Ltd. and is expected to be consolidated into RenaissanceRe’s financial statements…