RenaissanceRe Holdings has unveiled the formation and funding of Timicuan reinsurance II (Tim Re II), a new Bermuda reinsurance company, to generate additional reinsurance capacity for the Florida market.

Renaissance Reinsurance Ltd. (RenaissanceRe) has entered into a reinsurance agreement with Tim Re II, as per which Tim Re II will be given a defined portfolio of RenaissanceRe’s property catastrophe business, for covering hurricane risks for Florida insurers during the hurricane season of 2009. About $60 million of equity capital was capitalised by investors in Tim Re II, including $10 million invested by RenaissanceRe.

Neill Currie, CEO of RenaissanceRe Holdings, said: “We are pleased to announce the closing of the Tim Re II transaction. Despite difficult capital markets conditions, we have worked with investors to deliver additional reinsurance capacity to the Florida market. We are pleased both to serve our customers’ reinsurance needs and to design a facility that allows investors to efficiently invest in the Florida cat market.”

Aon Benfield Securities, Willis Capital Markets & Advisory, and GC Securities served as placement agents in raising capital for Tim Re II.