RenaissanceRe Capital Partners more than doubles fee income run-rate since start of 2023

Driving home just how important the RenaissanceRe Capital Partners division has become to the global reinsurance firm, its CEO disclosed that the third-party and ILS capital management division has generated $700 million in fees for the business since the beginning of 2023.

Impressively, that is more than double the amount of fee income that third-party and ILS capital management activities generated for RenaissanceRe in the previous period of the same duration.

As we reported recently, RenaissanceRe’s Capital Partners business generated record fee income from its range of joint ventures and insurance-linked securities (ILS) funds in the second-quarter of 2025.

The RenaissanceRe leadership later explained that a portion of the increase was due to management fee income that had been deferred after the California wildfire loss activity experienced earlier in 2025 already being recaptured.

But the overall run-rate of fee income earned by RenRe has been clear over numerous quarters, it has been steadily rising as the Capital Partners business has grown its assets under management and become increasingly important as a driver of its revenues.

Kevin O’Donnell, RenRe’s CEO, spoke about the firm’s third driver of profits, the fee income generated by its RenaissanceRe Capital Partners business during a second-quarter earnings call.

“Our integrated model allows us to deploy more than $10 billion of partner capital to benefit our customers, in addition to our own capital. At the same time, our third-party investors value the low-beta returns generated from well underwritten and expertly sourced risk. For shareholders, the fees we generate through this business are also highly accretive,” O’Donnell explained.

Adding that, “The volatility in fee income generally averages out over several quarters, making it a stable and very profitable business for us that we’ve grown steadily over time.”

He continued to highlight the meaningful growth in fee income earned, saying that, “In fact, since the beginning of 2023 these have totalled almost $700 million. This is more than double the amount we generated over the same period prior to 2023.”

It’s a significant additional source of profits for the reinsurance company, with that profit flowing to the benefits of its shareholders as well as the income generated that flows to the third-party capital partners that support the range of reinsurance joint venture vehicles and ILS funds.

O’Donnell also said, “I should note that we manage third-party capital differently than others, typically in rated balance-sheets in which we co invest. By structuring our platform this way, we can optimise utility to customers and profitability to investors.”

RenRe CFO Bob Qutub provided an outlook for what the company anticipates in fee income from the Capital Partners business in the current quarter.

“In the third-quarter, we expect fees should be about $80 million, which includes $50 million in management fees and $30 million in performance fees, absent any large loss event,” Qutub explained.

The CFO went on to say, “This is a unique business that leverages our existing infrastructure to generate persistent and substantial fees for our shareholders. Its operation requires no shareholder capital, few direct employees, increases our value proposition to customers and adds roughly three points to our ROE annually.

“We believe that this is an underappreciated aspect of our business, given its high value generation and high marginal returns.”

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