Bermuda-based RenaissanceRe has established a new Bermuda domiciled special purpose insurance vehicle, Upsilon Reinsurance II (Upsilon Re II), to offer additional capacity to the reinsurance market worldwide.

The new special purpose insurance vehicle and RenaissanceRe have been capitalized by investors, while a fully-collateralized reinsurance limit of $185m has been deployed.

RenaissanceRe Holdings chief executive officer Neill Currie said formation of Upsilon Reinsurance II will help the company to continue providing clients with appropriate capital.

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

The newly formed unit will be managed by Renaissance Underwriting Managers and if market opportunities exist it may raise additional capital and provide fully-collateralized reinsurance capacity.

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