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Noncontrolling Interests
 12 Months Ended
Dec. 31, 2022
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:
At December 31,20222021
Redeemable noncontrolling interest - DaVinci$1,740,300 $1,499,451 
Redeemable noncontrolling interest - Medici
1,036,218 856,820 
Redeemable noncontrolling interest - Vermeer
1,490,840 1,197,782 
Redeemable noncontrolling interest - Fontana
268,031 — 
Redeemable noncontrolling interests$4,535,389 $3,554,053 
A summary of the Company’s redeemable noncontrolling interests on its consolidated statements of operations is set forth below:
Year ended December 31,202220212020
Redeemable noncontrolling interest - DaVinci$(65,514)$(102,932)$113,671 
Redeemable noncontrolling interest - Medici
(70,504)1,492 55,970 
Redeemable noncontrolling interest - Vermeer
43,058 38,155 61,012 
Redeemable noncontrolling interest - Fontana
(5,653)— — 
Net income (loss) attributable to redeemable noncontrolling interests$(98,613)$(63,285)$230,653 
Redeemable Noncontrolling Interest – DaVinci
RenaissanceRe owns a noncontrolling economic interest in DaVinci; however, because RenaissanceRe controls a majority of DaVinci’s outstanding voting rights, the Company consolidates DaVinci and all significant intercompany transactions have been eliminated. The portion of DaVinci’s earnings owned by third parties is recorded in the consolidated statements of operations as net income (loss) attributable to redeemable noncontrolling interests. The Company’s noncontrolling economic ownership in DaVinci was 30.9% at December 31, 2022 (2021 - 28.7%).
DaVinci shareholders are party to a shareholders agreement which provides DaVinci shareholders, excluding RenaissanceRe, with certain redemption rights that enable each shareholder to notify DaVinci of such shareholder’s desire for DaVinci 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 DaVinci’s capital in any given year and satisfying all applicable regulatory requirements. If total shareholder requests exceed 25% of DaVinci’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 DaVinci 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 December 31 of that year. The repurchase price can be subject to a holdback and true-up for potential development on outstanding loss reserves. Similarly, when shares are issued by DaVinci and sold to DaVinci shareholders, the sale price is based on GAAP book value as of the end of the period preceding the sale and can be subject to a true-up for potential development on outstanding loss reserves.
2022
During 2022, DaVinci completed an equity capital raise of $500.0 million, comprised of $284.8 million from third-party investors and $215.2 million from RenaissanceRe. In addition, RenaissanceRe sold an aggregate of $177.9 million of its shares in DaVinci to third-party investors and purchased an aggregate of $161.6 million of shares from third-party investors. The Company’s noncontrolling economic ownership in DaVinci subsequent to these transactions was 30.9%.
Refer to “Note 21. Subsequent Events” for additional information related to the Company’s noncontrolling economic ownership in DaVinci subsequent to December 31, 2022.
The timing of cash flows associated with equity capital transactions can vary from one period to the next. During 2022, RenaissanceRe received $452.2 million from subscriptions of shares in DaVinci by third-party investors, and paid $160.6 million as a result of redemptions of shares from third-party investors.
2021
During 2021, DaVinci completed an equity capital raise of $250.0 million, comprised of $150.9 million from third-party investors and $99.1 million from RenaissanceRe. In addition, RenaissanceRe sold an aggregate of $40.0 million of its shares in DaVinci to third-party investors and purchased an aggregate of $156.7
million of shares from third-party investors. The Company’s noncontrolling economic ownership in DaVinci subsequent to these transactions was 28.7%.
The Company expects its noncontrolling economic ownership in DaVinci to fluctuate over time.
The activity in redeemable noncontrolling interest – DaVinci is detailed in the table below:
Year ended December 31,20222021
Beginning balance$1,499,451 $1,560,693 
Redemption of shares from redeemable noncontrolling interests, net of adjustments
(161,570)(157,864)
Sale of shares to redeemable noncontrolling interests467,933 199,554 
Net income (loss) attributable to redeemable noncontrolling interests(65,514)(102,932)
Ending balance$1,740,300 $1,499,451 
Redeemable Noncontrolling Interest - Medici
RenaissanceRe owns a noncontrolling economic interest in Medici; however, because RenaissanceRe controls all of Medici’s outstanding voting shares, the Company consolidates Medici and all significant intercompany transactions have been eliminated. The portion of Medici’s earnings owned by third parties is recorded in the consolidated statements of operations as net income (loss) 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.
2022
During 2022, third-party investors subscribed for $350.1 million and redeemed $100.2 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 12.8% at December 31, 2022.
Refer to “Note 21. Subsequent Events” for additional information related to the Company’s noncontrolling economic ownership in Medici subsequent to December 31, 2022.
The timing of cash flows associated with equity capital transactions can vary from one period to the next. During 2022, RenaissanceRe received $302.1 million from subscriptions of shares in Medici by third-party investors, and paid $103.6 million as a result of redemptions of shares from third-party investors.
2021
During 2021, third-party investors subscribed for $201.5 million and redeemed $64.2 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 14.7%, at December 31, 2021.
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 31,20222021
Beginning balance$856,820 $717,999 
Redemption of shares from redeemable noncontrolling interests, net of adjustments
(100,234)(64,191)
Sale of shares to redeemable noncontrolling interests
350,136 201,520 
Net income (loss) attributable to redeemable noncontrolling interests(70,504)1,492 
Ending balance$1,036,218 $856,820 
Redeemable Noncontrolling Interest – Vermeer
RenaissanceRe owns 100% of the voting non-participating shares of Vermeer, while the sole third-party investor, Stichting Pensioenfonds Zorg en Welzijn (“PFZW”), a pension fund represented by PGGM Vermogensbeheer B.V., a Dutch pension fund manager, owns 100% of the non-voting participating shares of Vermeer and retains all of the economic benefits. Vermeer is managed by RUM in return for a management fee. The Company has 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 of Vermeer. As a result, the Company consolidates Vermeer and all significant inter-company transactions have been eliminated. As PFZW owns all of the economics of Vermeer, all of Vermeer’s earnings are allocated to PFZW in the consolidated statement of operations as net income (loss) 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.
2022
During 2022, PFZW subscribed for $250.0 million of the participating, non-voting common shares of Vermeer, which was received in full prior to December 31, 2022. There were no redemptions of shares in Vermeer during 2022.
2021
During 2021, PFZW subscribed for $50.0 million of the participating, non-voting common 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 31,20222021
Beginning balance$1,197,782 $1,109,627 
Sale of shares to redeemable noncontrolling interest250,000 50,000 
Net income (loss) attributable to redeemable noncontrolling interest43,058 38,155 
Ending balance$1,490,840 $1,197,782 
Redeemable Noncontrolling Interest – Fontana
RenaissanceRe owns a noncontrolling economic interest in Fontana and controls a majority of Fontana’s issued voting shares. The Company concluded that Fontana meets the definition of a VIE as the voting rights are not proportional with the obligations to absorb losses and rights to receive residual returns. The Company evaluated its relationship with Fontana and concluded it is the primary beneficiary of Fontana, as it has power over the activities that most significantly impact the economic performance of Fontana. As a result, the Company consolidates Fontana and all significant inter-company transactions have been eliminated. The portion of Fontana’s earnings owned by third parties is recorded in the consolidated statements of operations as net income (loss) attributable to redeemable noncontrolling interests. The Company may be obligated to repurchase all or a portion of the shares held by shareholders of Fontana upon request, subject to certain restrictions. The Company has not provided any financial or other support to Fontana that it was not contractually required to provide.
2022
During 2022, the Company launched Fontana with capital commitments of $475.0 million, of which $400 million was funded on April 1, 2022. Of this amount, $273.7 million was funded by third-party investors and was received in full prior to December 31, 2022. There were no redemptions of shares in Fontana during 2022. As a result of these subscriptions, the Company’s noncontrolling economic ownership in Fontana was 31.6% at December 31, 2022.
The Company’s investment in Fontana may fluctuate, perhaps materially, in future quarters.
The activity in redeemable noncontrolling interest – Fontana is detailed in the table below:
Year ended December 31,20222021
Beginning balance$— $— 
Sale of shares to redeemable noncontrolling interest
273,684 — 
Net income (loss) attributable to redeemable noncontrolling interest(5,653)— 
Ending balance$268,031 $—