Bermuda-based RenaissanceRe Holdings Ltd. will partner with Dutch pension fund manager and service provider PGGM Coöperatie U.A. to launch property catastrophe reinsurer Vermeer Reinsurance Ltd.

Vermeer Reinsurance will be capitalized with a total of $1 billion, comprising an initial $600 million from sole investor PGGM and a further $400 million available to take on opportunities in 2019.

A.M. Best assigned Vermeer a financial strength rating of A(Excellent) and a long-term issuer credit rating of "a+." Vermeer has received approval in principle to be licensed and regulated as a class 3B reinsurer by the Bermuda Monetary Authority.

Renaissance Underwriting Managers Ltd. will manage Vermeer Reinsurance. The new reinsurer will provide capacity focused on risk-remote layers in the U.S. property catastrophe market and is expected to be consolidated into RenaissanceRe's financial statements.

PGGM has €215 billion of assets under management and administers pensions for 4.2 million people. Eveline Takken-Somers, PGGM's senior director for credit and insurance-linked investments, said, "Since 2014, we have focused on building strategic partnerships with top-tier reinsurance companies to improve access to and selection of risk. We seek efficient implementation of our investments as we believe this leads to superior returns."