NONCONTROLLING INTERESTS

9 Months Ended

Sep. 30, 2023

A summary of the Company’s redeemable noncontrolling interests on its consolidated balance sheets is set forth below:



	September 30, 2023		December 31, 2022
Redeemable noncontrolling interest - DaVinci	$	2,331,952	$	1,740,300
Redeemable noncontrolling interest - Medici	1,591,196		1,036,218
Redeemable noncontrolling interest - Vermeer	1,467,367		1,490,840
Redeemable noncontrolling interest - Fontana	271,719		268,031
Redeemable noncontrolling interests	$	5,662,234	$	4,535,389

A summary of the Company’s redeemable noncontrolling interests on its consolidated statements of operations is set forth below:



	Three months ended				Nine months ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Redeemable noncontrolling interest - DaVinci	$	107,881	$	(219,191)	$	333,490	$	(185,692)
Redeemable noncontrolling interest - Medici	60,022		(107,461)		167,281		(139,635)
Redeemable noncontrolling interest - Vermeer	51,959		(39,164)		151,527		2,471
Redeemable noncontrolling interest - Fontana	(6,167)		(6,613)		3,688		(12,154)
Net income (loss) attributable to redeemable noncontrolling interests	$	213,695	$	(372,429)	$	655,986	$	(335,010)

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 27.8% at September 30, 2023 (December 31, 2022 - 30.9%).

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.

2023

During the nine months ended September 30, 2023, DaVinci completed an equity capital raise of $250.0 million, comprised of $102.2 million from third-party investors and $147.8 million from RenaissanceRe. In addition, RenaissanceRe sold an aggregate of $275.0 million of its shares in DaVinci to third-party investors and purchased an aggregate of $123.3 million of shares from third-party investors. The Company’s noncontrolling economic ownership in DaVinci subsequent to these transactions was 27.8%.

The timing of cash flows associated with equity capital transactions can vary from one period to the next. During the nine months ended September 30, 2023, RenaissanceRe received $Nil from subscriptions of shares in DaVinci by third-party investors, and paid $123.3 million as a result of redemptions of shares from third-party investors.

2022

During the nine months ended September 30, 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%.

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:



	Three months ended				Nine months ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Beginning balance	$	2,267,448	$	1,762,677	$	1,740,300	$	1,499,451
Redemption of shares from redeemable noncontrolling interests	(45,777)		74,983		(123,272)		(86,586)
Sale of shares to redeemable noncontrolling interests, net of adjustments	2,400		21		381,434		391,317

Net income (loss) attributable to redeemable noncontrolling interest	107,881		(219,191)		333,490		(185,692)

Ending balance	$	2,331,952	$	1,618,490	$	2,331,952	$	1,618,490

Redeemable Noncontrolling Interest - Medici

RenaissanceRe owns a noncontrolling economic interest in Medici; however, because RenaissanceRe controls all of Medici’s issued 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.

2023

During the nine months ended September 30, 2023, investors subscribed for $456.0 million, including $25.1 million from the Company, and redeemed $43.3 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 10.8% at September 30, 2023.

The timing of cash flows associated with equity capital transactions can vary from one period to the next. During the nine months ended September 30, 2023, RenaissanceRe received $429.9 million from subscriptions of shares in Medici by third-party investors, and paid $39.4 million as a result of redemptions of shares from third-party investors.

2022

During the nine months ended September 30, 2022, investors subscribed for $357.1 million, including $10.0 million from the Company, and redeemed $99.6 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 13.0% at September 30, 2022.

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:



	Three months ended				Nine months ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Beginning balance	$	1,540,520	$	1,052,560	$	1,036,218	$	856,820
Redemption of shares from redeemable noncontrolling interests, net of adjustments	(25,644)		(2,522)		(43,292)		(99,634)
Sale of shares to redeemable noncontrolling interests	16,298		22,110		430,989		347,136
Net income (loss) attributable to redeemable noncontrolling interest	60,022		(107,461)		167,281		(139,635)


Ending balance	$	1,591,196	$	964,687	$	1,591,196	$	964,687

Redeemable Noncontrolling Interest – Vermeer

RenaissanceRe owns 100% of the voting non-participating shares of Vermeer, while the sole third-party investor, PFZW, 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.

2023

During the nine months ended September 30, 2023, PFZW redeemed $175.0 million of the participating, non-voting common shares of Vermeer.

2022

During the nine months ended September 30, 2022, PFZW subscribed for $130.0 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:



	Three months ended				Nine months ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Beginning balance	$	1,590,408	$	1,269,417	$	1,490,840	$	1,197,782
Redemption of shares from redeemable noncontrolling interest	(175,000)		—		(175,000)		—
Sale of shares to redeemable noncontrolling interest	—		100,000		—		130,000

Net income (loss) attributable to redeemable noncontrolling interest	51,959		(39,164)		151,527		2,471

Ending balance	$	1,467,367	$	1,330,253	$	1,467,367	$	1,330,253

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.

2023

During the nine months ended September 30, 2023, there were no subscriptions or redemptions of non-voting common shares of Fontana. The Company’s noncontrolling economic ownership in Fontana was 31.6% at September 30, 2023.

Refer to “Note 16. Subsequent Events” for additional information related to the Company’s noncontrolling economic ownership in Fontana subsequent to September 30, 2023.

2022

During the nine months ended September 30, 2022, the Company launched Fontana with capital commitments of $475.0 million, of which $400.0 million was funded on April 1, 2022. Of this amount, $273.7 million was funded by third-party investors. As a result of these subscriptions, the Company’s noncontrolling economic ownership in Fontana was 31.6% at September 30, 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:



	Three months ended				Nine months ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Beginning balance	$	277,886	$	268,143	$	268,031	$	—

Sale of shares to redeemable noncontrolling interest	—		—		—		273,684

Net income (loss) attributable to redeemable noncontrolling interest	(6,167)		(6,613)		3,688		(12,154)

Ending balance	$	271,719	$	261,530	$	271,719	$	261,530