Bermuda-based RenaissanceRe Holdings has established Timicuan Reinsurance III Limited (Tim Re III), to offer additional reinsurance capacity for the Florida homeowners market.

According to the company, Tim Re III has been capitalized with $55m from various investors, including RenaissanceRe and has a fully collateralized reinsurance agreement with Renaissance Reinsurance and its subsidiary DaVinci Reinsurance.

As part of the agreement, Tim Re III will receive a defined portfolio of property catastrophe business from Renaissance Reinsurance and DaVinci to cover primarily hurricane risks for Florida insurers during the 2012 hurricane season.

RenaissanceRe Holdings chief executive officer Neill Currie said with formation of Tim Re III, the company will continue its track record of working with the capital markets to offer additional reinsurance capacity.

"Through this endeavor, we are able both to serve our customers’ needs and design a facility that allows investors to invest efficiently in the Florida reinsurance market," Currie added.

The newly formed unit will be managed by Renaissance Underwriting Managers.

RenaissanceRe provides property catastrophe and specialty reinsurance, as well as other insurance coverages.