Everest launches its third-party capital platform

Everest launches its third-party capital platform | Insurance Business America

Insurance News

Everest launches its third-party capital platform

It aims to provide broad access to institutional investors

Insurance News

By
Abigail Adriatico

Everest Group has announced the launch of Mt. Logan Capital Management, Ltd (MLCM), which will transform its alternative capital business into a multi-vehicle capital management platform.

As a licensed insurance manager by the Bermuda Monetary Authority (BMA), the MLCM will be expanding its role as Everest Group’s exclusive source of risk-sharing and proportional underwriting capacity. It will also be offering investment opportunities to institutional investors all around the world.

Through the MLCM, institutional investors will be able to benefit from Everest’s portfolio of reinsurance risks. It will also include the collateralized reinsurance vehicle Mt. Logan Re, which will give Everest the ability to be more flexible when it comes to partnering with investors within the capital markets. This will enhance its financial strength, balance sheet, capacity to pay claims, and growth of its reinsurance business.

The MLCM’s leadership team and board of directors include CEO John Modin as well as President and chief operating officer Youssef Sfaif.

“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,” said Modin.

“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’s Reinsurance executive vice president and COO Jill Beggs said the underwriter was focused on the creation of offerings that were attractive to institutional investors while also maintaining its alignment to its 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 Beggs.

What are your thoughts on this story? Share them in the comments below.