Bermuda’s RenaissanceRe announced that its new property catastrophe reinsurance venture, DaVinci Reinsurance Ltd., formed in partnership with State Farm, has been fully funded and has commenced operations.
First announced in October (See IJ Website Oct. 10), it’s taken RenRe and State Farm less than six weeks to provide the initial capital of $500 million and complete the necessary formalities of company formation – one of the big advantages of a Bermuda domicile.
Given the financial strength of its backers, the rating agencies assigned DaVinci their ‘A’ ratings. Single-‘A’ from S&P and A (Excellent) from A.M. Best. “Unlike most start-ups, DaVinci Re is expected to build a full-fledged business position in its first year of business,” said the S&P announcement. It noted that the company would benefit immediately from “the underwriting advantages that RenRe benefits from, and in fact will use the same risk-modeling and pricing techniques used by RenRe.”
James N. Stanard, RenRe’s President and CEO said in a statement: “Through the combined efforts of our organization and State Farm, we are pleased to have DaVinci Re be the first new reinsurer providing highly-rated capacity to the market in the wake of the World Trade Center tragedy. By leveraging the existing underwriting expertise and operational capabilities of Renaissance, we were able to rapidly bring to the market a fully operational company which has the ability to underwrite business effective immediately.”|”renre, officially, launches, davinci, re
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