Everest launches Mt. Logan Capital Management, to expand third-party capital offering
Everest Group, the global re/insurance company, has announced the launch of Mt. Logan Capital Management, Ltd. (MLCM), marking a transformation of its existing alternative capital and insurance-linked securities (ILS) investment offering into a multi-vehicle third-party reinsurance capital management platform.
Mt. Logan Capital Management, Ltd. is a newly established Bermuda-based insurance manager, licensed by the Bermuda Monetary Authority (BMA) and Everest said that the new company offers it a “platform to provide broad access and increase attractive opportunities for institutional investors.”
With this new structure the plan is for Mt. Logan Capital Management to expand its role as the exclusive source of risk-sharing and proportional underwriting capacity for Everest Group, and offer institutional investors a wide range of reinsurance-linked investment opportunities.
The firm’s existing collateralized reinsurance vehicle Mt. Logan Re Ltd. will be one access point for investors under the multi-vehicle structure MCML now offers, it seems.
Everest has been sharing in risk and return opportunities with third-party investors through Mt. Logan Re for more than a decade now, with its assets under management having grown to above $1.2 billion at the start of this year.
At its launch, Mt. Logan Capital Management, Ltd. now counts $1.5 billion in total third-party capital, across assets managed and serviced by the business.
Mt. Logan Re itself offered multiple risk-return strategy levels within the structure, but the optionality for investors to work with Everest looks set to expand.
A multi-vehicle structure suggests Everest will look to establish and launch a range of managed third-party reinsurance capital strategies under its new insurance manager, Mt. Logan Capital Management, Ltd., giving the firm flexibility to offer vehicles sitting alongside Mt. Logan Re as well, if it chooses to.
The new platform “Will provide Everest with more flexibility for partnering with investors in the capital markets, enhancing its financial strength, balance sheet, claims-paying capacity, and growth of its reinsurance business,” the company explained.
While, the institutional investors backing ILS and reinsurance structures sponsored by MLCM are set to benefit from Everest’s expanding portfolio of diversified reinsurance risks, underpinned by the firm’s underwriting discipline and expertise.
The Mt. Logan Capital Management team and Board of Directors include the Mt. Logan Re leadership John Modin, as Chief Executive Officer, and Youssef Sfaif, as President and Chief Operating Officer.
“Third-party capital management is an important part of Everest’s overall strategy,” MLCM CEO John Modin commented. “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.”
Jill Beggs, Reinsurance Executive Vice President and Chief Operating Officer added, “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.”
