RenaissanceRe, the global reinsurance company and third-party capital manager, established a new catastrophe bond managed account named the Stratos Fund in the second-half of 2025, raising $260.4 million for it, while increasing assets in other third-party capital and ILS vehicles and lifting fee income 31.8% in the fourth-quarter of the year.The Stratos Fund is a segregated account that is separately managed within the RenaissanceRe Upsilon Fund Ltd.structure and it has been established purely to focus on investments in catastrophe bonds by the company.It’s not clear at this stage whether this is a fund-of-one, or a comingled investor vehicle, but Stratos is the newest insurance-linked securities (ILS) fund structure launched by RenaissanceRe.

In announcing its fourth-quarter and full-year 2025 results yesterday, RenaissanceRe disclosed the new Stratos Fund cat bond strategy for the first time, saying it had raised $260.4 million for the segregated account in 2025.The capital raised for the Stratos account was transferred from the Medici cat bond strategy, RenaissanceRe (RenRe) disclosed, suggesting this is not a net-new addition.Full-year 2025 saw $943.9 million raised for RenRe’s third-party capitalised reinsurance joint-ventures and ILS structures, with Stratos taking the $260.4 million, the Medici UCITS cat bond fund $259 million (which also included a transfer of $176.5 million from the main Medici strategy), the Medici cat bond fund $208.2 million, the Fontana specialty and casualty sidecar-like structure $129.2 million and the DaVinci equity supported sidecar-like structure $69.7 million.

Third-party capital was also returned to investors, amounting to $1 billion in the year with investor earnings a part of that.RenRe said that $29.3 million of dividends from Medici and Top Layer were returned after strong earnings, $604.4 million in Medici with $436.9 million of that the transfer in kind to Medici UCITS and Stratos, $255.1 million from Upsilon Diversified thanks to further release of collateral from prior years’ contracts, and the remainder from redemptions from third-party investors who were rebalancing and taking earnings thanks to strong performance.RenRe also raised new third-party capital effective January 2026, adding $43 million to the Medici cat bond strategy.

In addition, a further $905.4 million, which was driven by $744.8 million of distributions to investors backing DaVinci and Vermeer, as well as investor rebalancing in DaVinci, Fontana and Medici, the company reported.Fee income generated through RenRe’s range of reinsurance joint-venture vehicles and ILS funds reached $328.9 million for full-year 2025, which was slightly up on 2024’s almost $326.8 million.Management fees were slightly down due to a recapture within DaVinci and the decrease in management fees from AlphaCat Managers thanks to continued release of collateral in that running-off strategy.

Performance fees rose by $14.4 million for the year, thanks to strong performance and returns within the joint-ventures and ILS funds, particularly DaVinci and Upsilon.Upsilon also benefited from higher favourable development on prior years.In addition, for full-year 2025, there was $250.1 million in net fee income attributable to redeemable noncontrolling interests, which reflects earnings generated for the investors in the strategies and so is not included in RenRe’s income statements.

Total net income attributable to redeemable noncontrolling interests for 2025 (a measure of sorts for returns and profits earned and attributed to third-party capital investors in the period) reached $935.4 million, thanks to strong underwriting results in DaVinci and Vermeer, $519.5 million of net investment income in the investment portfolios of the joint ventures and managed ILS funds, plus the $250.1 million of fee income generated.For Q4 2025 fee income rose 38.1% year-on-year to $101.6 million thanks to strong performance and returns of the ILS and joint-venture structures.Performance fees were the main driver here, being up over $26 million year-on-year at over $49.6 million for the fourth-quarter.

Q4 was the highest quarter of 2025 for performance fee income for RenRe from its third-party capital management activities.Kevin J.O’Donnell, President and Chief Executive Officer of RenaissanceRe, commented on the results, “We are pleased to report that we grew book value per common share by 26.2% and tangible book value per common share plus change in accumulated dividends by 30.8% in 2025, and that each of these metrics has more than doubled over the last three years.

“We have accomplished this by consistently executing our strategy and maximizing the returns on each of our Three Drivers of Profit – underwriting, fee and net investment income – while optimizing our capital base through significant capital return to our investors.“At the January 1 renewal, we retained the lines that we targeted and built an underwriting portfolio designed to generate returns well in excess of the cost of capital.Looking forward to 2026, we expect the combination of our attractive underwriting portfolio, strong fee and investment income and robust capital management will continue to generate long-term value for our shareholders.” The RenaissanceRe Capital Partners unit, that manages the joint-ventures and ILS fund strategies, has again been a meaningful contributor to RenRe’s overall net income for the year and quarter.

Redeemable noncontrolling interest was reported to have reached just over $7.6 billion after the fourth-quarter of 2025, up from almost $6.98 billion at December 31st 2024.That figure is not the true measure of third-party capital under management at RenRe though, but it does demonstrate that the company continues to grow its managed third-party and ILS capital base.As we reported before, , which was an increase of $820 million, or 11%, over the prior twelve months.

The focus on catastrophe bonds has increased, with the launch of the first UCITS strategy, the Medici UCITS fund, and now the addition of the Stratos Fund during the last year.The company has also prudently returned earnings to investors in the funds, while maintaining the scale of many of its structures for 2026 it seems.In addition, the earnings generated for investors in the JV and ILS vehicles in 2025 were again significant, as investors have benefited from the strong reinsurance returns earned by the strategies.

Finally, it’s also notable and likely beneficial for some of the third-party investors, that RenRe reported 13.6 percentage points of favourable developments on its California wildfire losses from early 2025, mainly in the catastrophe class of reinsurance business.View information on many dedicated ILS fund managers, as well as reinsurers offering ILS style investment opportunities, such as RenaissanceRe, in our ..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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