Bermuda-based insurer and reinsurer Everest Group has unveiled a new structure for its alternative reinsurance capital business, transforming it into a multi-vehicle capital management platform via the launch of Mt. Logan Capital Management, Ltd. (MLCM).
The new platform aims to provide broad access and increase attractive opportunities for investors.
MLMC, which includes the firm’s collateralized reinsurance vehicle, Mt. Logan Re, is now licensed as an insurance manager by the Bermuda Monetary Authority, and under the new structure will expand its role as the exclusive source of risk-sharing and proportional underwriting capacity for Everest.
Institutional investors will benefit from a wide range of investment opportunities, and investors in structures sponsored by MLCM also stand to benefit from the re/insurer’s growing portfolio of diversified reinsurance risks.
For Everest, the new platform is expected to bring more flexibility for partnering with investors in the capital markets, enhancing its financial strength, balance sheet, claims-paying capacity, and the growth of its reinsurance business.
The new MLCM leadership team and Board of Directors include John Modin as Chief Executive Officer, and Youssef Sfaif as President and Chief Operating Officer.
Modin commented: “Third-party capital management is an important part of Everest’s overall strategy. We are seeing strong and growing interest from institutional investors in our capital-efficient and highly aligned structures, which provide them with diversified offerings and attractive risk-adjusted returns. MLCM offers newfound flexibility to build upon Everest’s $1.5 billion in total third-party capital, and we welcome new partners interested in investing in the global reinsurance market.”
“Everest creates offerings that are both attractive to institutional investors and aligned to Everest’s world-class underwriting portfolio. MLCM, which now opens up multiple entrance points, helps pair third-party capital with dedicated underwriting portfolios, allowing us to optimize our capital structure, generate new underwriting opportunities, and grow Everest’s overall market share,” said Jill Beggs, Reinsurance Executive Vice President and Chief Operating Officer.
As reported by our insurance-linked securities (ILS) focused sister publication, Artemis, in 2023, Everest earned $23.5 million in positive income and dividends from its Mt. Logan Re vehicle.
