NONCONTROLLING INTERESTS

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




	June 30, 2015		December 31, 2014
Redeemable noncontrolling interest - DaVinciRe	$	879,266	$	1,037,306
Redeemable noncontrolling interest - Medici	109,546		94,402
Redeemable noncontrolling interest	$	988,812	$	1,131,708

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




	Three months ended					Six months ended
	June 30, 2015			June 30, 2014		June 30, 2015		June 30, 2014
Redeemable noncontrolling interest - DaVinciRe	$	12,345		$	35,706	$	50,671	$	76,886
Redeemable noncontrolling interest - Medici	(178		)	372		1,158		1,960
Net income attributable to noncontrolling interests	$	12,167		$	36,078	$	51,829	$	78,846

Redeemable Noncontrolling Interest – DaVinciRe

In October 2001, the Company formed DaVinciRe and DaVinci with other equity investors. 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 noncontrolling interests. The Company’s noncontrolling economic ownership in DaVinciRe was 26.3% at June 30, 2015 (December 31, 2014 - 23.4%).

DaVinciRe shareholders are party to a shareholders agreement (the “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. Payment will be made by April 1, following delivery of the audited financial statements for the year in which the repurchase was effective. The repurchase price is subject to a true-up for development on outstanding loss reserves after settlement of all claims relating to the applicable years.

2014

During January 2014, DaVinciRe redeemed a portion of its outstanding shares from all existing DaVinciRe shareholders, including RenaissanceRe, while a new DaVinciRe shareholder purchased shares in DaVinciRe. The net redemption as a result of this transaction was $300.0 million. In connection with the redemption, DaVinciRe retained a $30.0 million holdback. The Company’s noncontrolling economic ownership in DaVinciRe subsequent to this transaction was 26.5%, effective January 1, 2014.

Effective July 1, 2014, RenaissanceRe sold a portion of its shares of DaVinciRe to an existing third party shareholder for $38.9 million. The Company's ownership in DaVinciRe was 26.5% at June 30, 2014 and subsequent to the above transaction, its ownership interest in DaVinciRe decreased to 23.4% effective July 1, 2014.

2015

During January 2015, DaVinciRe redeemed a portion of its outstanding shares from certain existing DaVinciRe shareholders, including the Company. The net redemption as a result of these transactions was $225.0 million. In connection with the redemption, DaVinciRe retained a $22.5 million holdback. The Company’s noncontrolling economic ownership in DaVinciRe subsequent to these transactions was 26.3%, effective January 1, 2015.

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:




	Three months ended						Six months ended
	June 30, 2015			June 30, 2014			June 30, 2015			June 30, 2014
Beginning balance	$	867,734		$	895,391		$	1,037,306		$	1,063,368
Redemption of shares from redeemable noncontrolling interest	(813		)	(866		)	(208,711		)	(219,745		)
Sale of shares to redeemable noncontrolling interests	—			—			—			9,722
Net income attributable to redeemable noncontrolling interest	12,345			35,706			50,671			76,886
Ending balance	$	879,266		$	930,231		$	879,266		$	930,231

Redeemable Noncontrolling Interest - RenaissanceRe Medici Fund Ltd. (“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 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. As the participating, non-voting common shares of Medici have redemption features which are outside the control of the issuer, the portion related to the redeemable noncontrolling interest in Medici is recorded in the mezzanine section of the consolidated balance sheets of the Company.

2014

During 2014, third-party investors subscribed for and redeemed an aggregate of $57.3 million and $3.1 million, respectively, of the participating, non-voting common shares of Medici. As a result of these net subscriptions, the Company’s economic ownership in Medici was 53.2%, effective December 31, 2014.

2015

During the six months ended June 30, 2015, third-party investors subscribed for and redeemed an aggregate of $31.1 million and $17.1 million, respectively, of the participating, non-voting common shares of Medici. As a result of these net subscriptions, the Company’s economic ownership in Medici was 46.5%, effective June 30, 2015.

The Company expects its ownership in Medici to fluctuate over time.

The activity in redeemable noncontrolling interest – Medici is detailed in the table below:




	Three months ended					Six months ended
	June 30, 2015			June 30, 2014		June 30, 2015			June 30, 2014
Beginning balance	$	100,697		$	91,590	$	94,402		$	36,492
Redemption of shares from redeemable noncontrolling interest	(2,423		)	—		(17,107		)	(1,875		)
Sale of shares to redeemable noncontrolling interests	11,450			1,699		31,093			57,084
Net income attributable to redeemable noncontrolling interest	(178		)	372		1,158			1,960
Ending balance	$	109,546		$	93,661	$	109,546		$	93,661