RenaissanceRe, the Bermuda-based reinsurance firm and third-party capital management specialist, is planning to further expand the balance-sheet of its DaVinciRe sidecar-like third-party capitalised reinsurance joint-venture through a $300 million private debt issuance.In a private debt offering, DaVinciRe Holdings Ltd.has agreed to sell an aggregate principal amount of $300 million of 5.950% Senior Notes, which will be due 2035.This offering is expected to close in early March and will boost the DaVinciRe balance-sheet by roughly $150 million it seems, given part of the capital raised will be used to pay down old private debt as well.

DaVinciRe, operates in a similar way to a reinsurance sidecar, being a joint-venture structure through which institutional investors can share in the underwriting profits and losses of RenaissanceRe, but it is equity backed and operates as a rated reinsurer.DaVinci primarily writes property catastrophe reinsurance business, through companion lines taken alongside Renaissance Re, with all business written at the same terms and price, providing a strong pipeline of opportunities and strong alignment.The proceeds from the sale of the $300 million of private debt to investors will be used to boost the DaVinciRe balance-sheet firepower, while also paying down the $150 million outstanding principal of DaVinci’s 4.750% Senior Notes that are due 2025 (which had been ).

RenaissanceRe said that the company and DaVinci expect these new senior notes will be rated Baa1 by Moody’s Investors Service and A- by Standard & Poor’s.With the notes priced to pay a spread of 5.95%, this is a particularly attractive investment opportunity, for those looking for an alternative way to access the reinsurance and insurance-linked securities (ILS) marketplace, but in a different format that may better-suit certain allocators.While RenaissanceRe can tap institutional investor appetites for reinsurance-linked returns to further build-out the capabilities of its DaVinci joint-venture.

We understand DaVinciRe was capitalised to roughly $4.25 billion as of the start of 2025, consisting of $3.25 billion of equity and debt, as well as RenaissanceRe’s own contribution to the joint-venture reinsurance company.The sidecar-like company has grown from roughly $2.8 billion since the start of 2022.Being a rated balance-sheet vehicle, but backed largely by third-party capital, the size of the DaVinciRe balance-sheet is meaningful and it can write a significant amount of business.

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