PEMBROKE, Bermuda--(BUSINESS WIRE)--June 4, 2007--RenaissanceRe Holdings Ltd. (NYSE:RNR) today announced the formation and funding of Starbound Reinsurance II Limited ("Starbound II"), a new Bermuda reinsurance company, creating approximately $375 million in new reinsurance capacity for the Florida homeowners market. Renaissance Reinsurance Ltd. ("Renaissance Reinsurance") has entered into fully-collateralized quota share retrocession agreements with Starbound II, under which Renaissance Reinsurance will cede to Starbound II a certain percentage of its property catastrophe excess of loss business, covering primarily hurricane risks for Florida homeowners. Starbound II's capitalization includes $102.5 million derived from its issuance of equity securities (approximately $10 million of which was purchased by RenaissanceRe Ventures Ltd.), and $239 million from Starbound II's issuance of senior secured and unsecured term indebtedness. Starbound II's $54 million senior secured facility, $130 million senior unsecured facility and $55 million senior unsecured facility have been rated BB, BBB- and BBB+, respectively, by Standard & Poor's Ratings Service, Ba3, Baa3 and A3, respectively, by Moody's Investor Service, and bb-, bbb and a-, respectively, by A.M. Best. Substantially all of the net proceeds of Starbound II's total capitalization will be deposited into trust accounts to, among other things, collateralize Starbound II's obligations to Renaissance Reinsurance.

Subsidiaries of RenaissanceRe Holdings Ltd. worked with Merrill Lynch & Co. and Benfield Advisory Inc. in structuring and raising the capital for Starbound II. Renaissance Underwriting Managers, Ltd. will be the administrative manager of Starbound II.

Neill A. Currie, Chief Executive Officer of RenaissanceRe Holdings Ltd., stated: "We are pleased to announce the closing of the Starbound II transaction, which is consistent with our commitment to seek to meet our clients' reinsurance needs while maintaining a balanced portfolio. While we believe that private market capacity this year is not as constrained as in June 2006, we were pleased to work with Benfield Advisory and Merrill Lynch to bring Starbound II to market."

Kevin J. O'Donnell, President of Renaissance Reinsurance Ltd., added: "Through the capacity provided by this transaction, Renaissance Reinsurance Ltd. has been able to further serve its clients by authorizing additional lines on covers we were already writing for our own retained book and cede this incremental business to Starbound II."

RenaissanceRe Holdings Ltd. is a global provider of reinsurance and insurance. Our business consists of two segments: (1) Reinsurance, which includes catastrophe reinsurance, specialty reinsurance and certain joint ventures and other investments managed by our subsidiary RenaissanceRe Ventures Ltd., and (2) Individual Risk, which includes primary insurance and quota share reinsurance. Each of Renaissance Reinsurance Ltd., RenaissanceRe Ventures Ltd., and Renaissance Underwriting Managers, Ltd. is a wholly-owned subsidiary of RenaissanceRe Holdings Ltd.

Cautionary Statement under "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995: Statements made in this news release contain information about the Company's future business prospects. These statements may be considered "forward-looking." These statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements. For further information regarding cautionary statements and factors affecting future results, please refer to RenaissanceRe Holdings Ltd.'s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2006 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2007.

CONTACT: Investors:
RenaissanceRe Holdings Ltd.
Fred R. Donner, 441-295-4513
Chief Financial Officer
or
Todd R. Fonner, 441-239-4801
Senior Vice President
or
Media:
Kekst and Company
David Lilly / Dawn Dover
212-521-4800

SOURCE: RenaissanceRe Holdings Ltd.