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NONCONTROLLING INTERESTS | 9 Months Ended
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Sep. 30, 2022
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:
|  | September 30, 2022 |  | December 31, 2021 |
| Redeemable noncontrolling interest - DaVinciRe | $ | 1,618,490 |  |  | $ | 1,499,451 |  |
| Redeemable noncontrolling interest - Medici | 964,687 |  |  | 856,820 |  |
| Redeemable noncontrolling interest - Vermeer | 1,330,253 |  |  | 1,197,782 |  |
| Redeemable noncontrolling interest - Fontana | 261,530 |  |  | — |  |
| Redeemable noncontrolling interests | $ | 4,174,960 |  |  | $ | 3,554,053 |  |
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, 2022 |  | September 30, 2021 |  | September 30, 2022 |  | September 30, 2021 |
| Redeemable noncontrolling interest - DaVinciRe | $ | (219,191) |  |  | $ | (202,362) |  |  | $ | (185,692) |  |  | $ | (158,030) |  |
| Redeemable noncontrolling interest - Medici | (107,461) |  |  | 6,526 |  |  | (139,635) |  |  | 5,072 |  |
| Redeemable noncontrolling interest - Vermeer | (39,164) |  |  | (2,659) |  |  | 2,471 |  |  | 21,157 |  |
| Redeemable noncontrolling interest - Fontana | (6,613) |  |  | — |  |  | (12,154) |  |  | — |  |
| Net income (loss) attributable to redeemable noncontrolling interests | $ | (372,429) |  |  | $ | (198,495) |  |  | $ | (335,010) |  |  | $ | (131,801) |  |
Redeemable Noncontrolling Interest – DaVinciRe RenaissanceRe owns a noncontrolling economic interest in DaVinciRe; however, because RenaissanceRe controls a majority of DaVinciRe’s issued voting shares, the Company consolidates DaVinciRe and all significant intercompany transactions have been eliminated. The portion of DaVinciRe’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 DaVinciRe was 30.9% at September 30, 2022 (December 31, 2021 - 28.7%). 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 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 the nine months ended September 30, 2022, DaVinciRe 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 DaVinciRe 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 DaVinciRe subsequent to these transactions was 30.9%. 2021 During the nine months ended September 30, 2021, DaVinciRe 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 DaVinciRe 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 DaVinciRe subsequent to these transactions was 28.7%. 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 |  | Nine months ended |
|  | September 30, 2022 |  | September 30, 2021 |  | September 30, 2022 |  | September 30, 2021 |
| Beginning balance | $ | 1,762,677 |  |  | $ | 1,642,656 |  |  | $ | 1,499,451 |  |  | $ | 1,560,693 |  |
| Redemption of shares from redeemable noncontrolling interests, net of adjustments | 74,983 |  |  | (637) |  |  | (86,586) |  |  | (157,863) |  |
| Sale of shares to redeemable noncontrolling interests, net of adjustments | 21 |  |  | 3,932 |  |  | 391,317 |  |  | 198,789 |  |
| Net income (loss) attributable to redeemable noncontrolling interest | (219,191) |  |  | (202,362) |  |  | (185,692) |  |  | (158,030) |  |
| Ending balance | $ | 1,618,490 |  |  | $ | 1,443,589 |  |  | $ | 1,618,490 |  |  | $ | 1,443,589 |  |
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. 2022 During the nine months ended September 30, 2022, investors subscribed for $347.1 million, including $10 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. 2021 During the nine months ended September 30, 2021, third-party investors subscribed for $191.5 million and redeemed $30.7 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 13.4% at September 30, 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:
|  | Three months ended |  | Nine months ended |
|  | September 30, 2022 |  | September 30, 2021 |  | September 30, 2022 |  | September 30, 2021 |
| Beginning balance | $ | 1,052,560 |  |  | $ | 880,320 |  |  | $ | 856,820 |  |  | $ | 717,999 |  |
| Redemption of shares from redeemable noncontrolling interests, net of adjustments | (2,522) |  |  | (22,921) |  |  | (99,634) |  |  | (30,666) |  |
| Sale of shares to redeemable noncontrolling interests | 22,110 |  |  | 20,000 |  |  | 347,136 |  |  | 191,520 |  |
| Net income (loss) attributable to redeemable noncontrolling interest | (107,461) |  |  | 6,526 |  |  | (139,635) |  |  | 5,072 |  |
| Ending balance | $ | 964,687 |  |  | $ | 883,925 |  |  | $ | 964,687 |  |  | $ | 883,925 |  |
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. 2022 During the nine months ended September 30, 2022, PFZW subscribed for $130 million of the participating, non-voting common shares of Vermeer. 2021 During the nine months ended September 30, 2021, PFZW subscribed for $Nil 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, 2022 |  | September 30, 2021 |  | September 30, 2022 |  | September 30, 2021 |
| Beginning balance | $ | 1,269,417 |  |  | $ | 1,133,443 |  |  | $ | 1,197,782 |  |  | $ | 1,109,627 |  |
| Sale of shares to redeemable noncontrolling interest | 100,000 |  |  | — |  |  | 130,000 |  |  | — |  |
| Net income (loss) attributable to redeemable noncontrolling interest | (39,164) |  |  | (2,659) |  |  | 2,471 |  |  | 21,157 |  |
| Ending balance | $ | 1,330,253 |  |  | $ | 1,130,784 |  |  | $ | 1,330,253 |  |  | $ | 1,130,784 |  |
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 the nine months ended September 30, 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. 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, 2022 |  | September 30, 2021 |  | September 30, 2022 |  | September 30, 2021 |
| Beginning balance | $ | 268,143 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |
| Sale of shares to redeemable noncontrolling interest | — |  |  | — |  |  | 273,684 |  |  | — |  |
| Net income (loss) attributable to redeemable noncontrolling interest | (6,613) |  |  | — |  |  | (12,154) |  |  | — |  |
| Ending balance | $ | 261,530 |  |  | $ | — |  |  | $ | 261,530 |  |  | $ | — |  |

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- Definition The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -URI https://asc.fasb.org/topic&trid=2197479 + Details
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- References No definition available. + Details
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