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Noncontrolling Interests
 12 Months Ended
Dec. 31, 2019
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest [Abstract]  
Noncontrolling Interests NONCONTROLLING INTERESTS
A summary of the Company’s redeemable noncontrolling interests on its consolidated balance sheets is set forth below:
 
 
 
 
 
 
 
 
December 31,
2019
 
December 31,
2018
 
 
Redeemable noncontrolling interest - DaVinciRe
$
1,435,581

 
$
1,034,946

 
 
Redeemable noncontrolling interest - Medici
632,112

 
416,765

 
 
Redeemable noncontrolling interest - Vermeer
1,003,615

 
599,989

 
 
Redeemable noncontrolling interests
$
3,071,308

 
$
2,051,700

 
 
 
 
 
 
 

A summary of the Company’s redeemable noncontrolling interests on its consolidated statements of operations is set forth below:
 
 
 
 
 
 
 
 
 
Year ended December 31,
2019
 
2018
 
2017
 
 
Redeemable noncontrolling interest - DaVinciRe
$
127,084

 
$
27,638

 
$
(134,860
)
 
 
Redeemable noncontrolling interest - Medici
25,759

 
13,926

 
2,578

 
 
Redeemable noncontrolling interest - Vermeer
48,626

 
(11
)
 
—

 
 
Net income (loss) attributable to redeemable noncontrolling interests
$
201,469

 
$
41,553

 
$
(132,282
)
 
 
 
 
 
 
 
 
 

Redeemable Noncontrolling Interest – DaVinciRe
RenaissanceRe owns a noncontrolling economic interest in DaVinciRe; however, because RenaissanceRe controls a majority of DaVinciRe’s outstanding voting rights, the consolidated financial statements of DaVinciRe are included in the consolidated financial statements of the Company. The portion of DaVinciRe’s earnings owned by third parties is recorded in the consolidated statements of operations as net
income attributable to redeemable noncontrolling interests. The Company’s noncontrolling economic ownership in DaVinciRe was 21.9% at December 31, 2019 (2018 - 22.1%).
DaVinciRe shareholders are party to a shareholders agreement which provides DaVinciRe shareholders, excluding RenaissanceRe, with certain redemption rights that enable each shareholder to notify DaVinciRe of such shareholder’s desire for DaVinciRe to repurchase up to half of such shareholder’s initial aggregate number of shares held, subject to certain limitations, such as limiting the aggregate of all share repurchase requests to 25% of DaVinciRe’s capital in any given year and satisfying all applicable regulatory requirements. If total shareholder requests exceed 25% of DaVinciRe’s capital, the number of shares repurchased will be reduced among the requesting shareholders pro-rata, based on the amounts desired to be repurchased. Shareholders desiring to have DaVinci repurchase their shares must notify DaVinciRe before March 1 of each year. The repurchase price will be based on GAAP book value as of the end of the year in which the shareholder notice is given, and the repurchase will be effective as of January 1 of the following year. The repurchase price is generally subject to a true-up for potential development on outstanding loss reserves after settlement of all claims relating to the applicable years.
2019
Effective June 1, 2019, DaVinciRe completed an equity capital raise of $349.2 million, comprised of $263.1 million from third-party investors and $86.1 million from RenaissanceRe. In addition, RenaissanceRe sold an aggregate of $11.6 million of its shares in DaVinciRe to a third-party investor. The Company’s noncontrolling economic ownership in DaVinciRe subsequent to these transactions was 21.9%, effective June 1, 2019.
The Company expects its noncontrolling economic ownership in DaVinciRe to fluctuate over time.
The activity in redeemable noncontrolling interest – DaVinciRe is detailed in the table below:
 
 
 
 
 
 
 
Year ended December 31,
2019
 
2018
 
 
Beginning balance
$
1,034,946

 
$
1,011,659

 
 
Redemption of shares from redeemable noncontrolling interests, net of adjustments
(1,148
)
 
(4,351
)
 
 
Sale of shares to redeemable noncontrolling interests
274,699

 
—

 
 
Net income attributable to redeemable noncontrolling interests
127,084

 
27,638

 
 
Ending balance
$
1,435,581

 
$
1,034,946

 
 
 
 
 
 
 
Redeemable Noncontrolling Interest - Medici
Medici is an exempted company incorporated under the laws of Bermuda and its objective is to seek to invest substantially all of its assets in various insurance-based investment instruments that have returns primarily tied to property catastrophe risk. RenaissanceRe owns a noncontrolling economic interest in Medici; however, because RenaissanceRe controls all of Medici’s outstanding voting rights, the financial statements of Medici are included in the consolidated financial statements of the Company. The portion of Medici’s earnings owned by third parties is recorded in the consolidated statements of operations as net income attributable to redeemable noncontrolling interests. Any shareholder may redeem all or any portion of its shares as of the last day of any calendar month, upon at least 30 calendar days’ prior irrevocable written notice to Medici.
2019
During 2019, third-party investors subscribed for $237.0 million and redeemed $47.4 million of the participating, non-voting common shares of Medici. As a result of these net subscriptions, the Company’s noncontrolling economic ownership in Medici was 12.1% at December 31, 2019.
2018
During 2018, third-party investors subscribed for $208.5 million and redeemed $90.5 million of the participating, non-voting common shares of Medici. As a result of these net subscriptions, the Company’s noncontrolling economic ownership in Medici was 16.6%, at December 31, 2018.
The Company expects its noncontrolling economic ownership in Medici to fluctuate over time.
The activity in redeemable noncontrolling interest – Medici is detailed in the table below:
 
 
 
 
 
 
 
Year ended December 31,
2019
 
2018
 
 
Beginning balance
$
416,765

 
$
284,847

 
 
Redemption of shares from redeemable noncontrolling interests, net of adjustments
(47,401
)
 
(90,490
)
 
 
Sale of shares to redeemable noncontrolling interests
236,989

 
208,482

 
 
Net income attributable to redeemable noncontrolling interests
25,759

 
13,926

 
 
Ending balance
$
632,112

 
$
416,765

 
 
 
 
 
 
 

Redeemable Noncontrolling Interest – Vermeer
Vermeer is an exempted Bermuda reinsurer that provides capacity focused on risk remote layers in the U.S. property catastrophe market. Vermeer is managed by RUM in return for a management fee. The Company maintains majority voting control of Vermeer, while the sole third-party investor, PGGM, retains all of the economic benefits. The Company concluded that Vermeer is a VIE as it has voting rights that are not proportional to its participating rights, and the Company is the primary beneficiary. As a result, the Company consolidates Vermeer and all significant inter-company transactions have been eliminated. The portion of Vermeer’s earnings owned by PGGM is recorded in the consolidated statements of operations as net income attributable to redeemable noncontrolling interests. The Company has not provided any financial or other support to Vermeer that it was not contractually required to provide.
2019
During 2019, PGGM subscribed for $355.0 million of the participating, non-voting common shares of Vermeer.
2018
During 2018, PGGM subscribed for $600.0 million of the participating, non-voting common shares of Vermeer and the Company subscribed for $1 thousand of all the voting, non-participating shares of Vermeer.
The Company does not expect its noncontrolling economic ownership in Vermeer to fluctuate over time.
The activity in redeemable noncontrolling interest – Vermeer is detailed in the table below:
 
 
 
 
 
 
 
Year ended December 31,
2019
 
2018
 
 
Beginning balance
$
599,989

 
$
—

 
 
Sale of shares to redeemable noncontrolling interest
355,000

 
600,000

 
 
Net income (loss) attributable to redeemable noncontrolling interest
48,626

 
(11
)
 
 
Ending balance
$
1,003,615

 
$
599,989