Everest’s cessions of premiums to Mt. Logan Re accelerated in Q2

Global insurance and reinsurance specialist Everest has continued to cede more in the way of premiums to its Mt. Logan Re third-party capital platform in the second-quarter, with the growth accelerating at an ever faster rate year-on-year.

After the first-quarter, we reported that the year had begun strongly for Mt. Logan Re Ltd., the Everest Group owned and operated third-party investor capitalised reinsurance sidecar-like investment structure.

In Q1 2024, Mt. Logan Re received 64% more in ceded premium from its parent through the period.

The second-quarter saw the rate of cessions accelerating, as Everest reports ceding 78% more in written premiums and 80% more in earned premiums to its third-party capital platform.

Everest ceded $82 million in written premiums and $94 million in earned premiums to Mt. Logan in Q2 2024, up from $46 million and $52 million respectively in the prior year period.

For the first-half of 2024, the total written premium ceded to Mt. Logan reached $169 million, 70% up on H1 2023’s $99 million.

On an earned premium basis, the H1 cessions reached $180 million this year, some 84% higher than H1 2023’s $98 million.

Encouragingly for the third-party investors backing Mt. Logan Re, the amount of losses and loss adjustment expenses ceded by Everest to the third-party capital platform are only slightly higher this year, at $64 million, which is only 21% higher than H1 2023’s $53 million.

The fact ceded written and earned premiums assumed by Mt. Logan Re are growing far faster suggests a good deal of profit was likely generated by the structures portfolios through the first-half of 2024.

It’s perhaps noteworthy that the accelerating growth in premiums flowing to Mt. Logan Re comes at a time Everest has looked to expand out its third-party capital activities and formalised them under a new insurance management vehicle.

Everest recently 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.

Supporting the expansion is the fact that Mt. Logan Capital Management, Ltd. now counts a higher $1.5 billion in total third-party capital, across assets managed and serviced by the business.