Mt. Logan Re raises over $250m YTD, lifting AUM near $1.1bn: Everest’s Williamson

For global insurance and reinsurance group Everest, the Mt. Logan Re Ltd. third-party capital vehicle is having a strong year, with over $250 million of new capital raised and its assets under management approaching $1.1 billion.

That’s according to Everest’s COO and Head of Reinsurance Jim Williamson, who speaking today during the firm’s third-quarter earnings call highlighted Mt. Logan Re as a positive example in the current market.

“Mt. Logan has had a pretty solid year from a capital raising standpoint, particularly against the backdrop of a lot of the big ILS allocators sort of being on the sidelines this year,” explained Williamson.

Adding that, “We’ve raised over $250 million and AUM sits just under $1.1 billion. So we’re feeling very good about that.”

Collateralized reinsurance investment vehicle Mt. Logan Re is an important lever for Everest and given the re/insurers growth into property catastrophe risks, there has likely been ample opportunity to feed some of this risk to the third-party investors that back this sidecar like structure.

Williamson went on to say that the pipeline for raising capital looks good as well, with additional flows anticipated.

He said that, “The team at Mt. Logan has done a terrific job of building a pipeline of what we view as sort of world leading allocators, meaning the really smart long-term, you know, money, the sovereign wealth funds, the pensions, etc.

“And we do expect some incremental capital raising, at 1-1 and throughout the course of next year.”

Williamson then highlighted that there are still challenges though, particularly where allocators are still suffering from broader macro-volatility affecting their investment portfolios, which can challenge their ability to allocate more to an asset class such as insurance-linked securities (ILS).

“I will say as a general comment, you know, I’ve had a number of discussions recently with some large pension fund allocators. You know the challenge they still have ,is they’ve seen a lot of deterioration in other parts of their portfolio, which tends to bump them up against their ILS risk limits,” Williamson said.

Adding, “That is easing a little bit, but it’s still a factor, which by the way, we view as a good guy, it helps sustain momentum in our underlying market, which is our critical priority.

“But my guess is that we’ll have some nice successes in 2024.”

We’ve updated Mt. Logan Re’s entry in our Insurance-Linked Securities Investment Managers & Funds Directory   to reflect the increased capital under management.