third party capital

Bermuda-based reinsurer Everest Re continued to see strong interest in its collateralized reinsurance sidecar vehicle Mt. Logan Re during the first-quarter, underlining increased investor comfort and acceptance of the expanding collateralized reinsurance space, ultimately supporting ILS sector growth.

Mt. Logan Re, global reinsurance firm Everest Re’s fully collateralized reinsurance sidecar type vehicle and segregated accounts management unit, has announced a senior hire in the appointment of ex-AIG executive Michael Beck to Chief Operating Officer (COO).

Bermuda domiciled re/insurer Everest Re has stressed the importance of thinking outside the box to create opportunities in the marketplace, underlining the benefits of its collateralized reinsurance sidecar vehicle Mt. Logan Re Ltd., which helps the firm write business.

Global reinsurance firm Everest Re has reached a new milestone for its collateralized reinsurance sidecar type vehicle, Mt. Logan Re Ltd., reaching $1 billion of capital for the first time, $950 million of which is sourced from third-party investors.

Insurance-linked investors in Bermudian insurer and reinsurer Everest Re’s collateralized reinsurance sidecar Mt. Logan Re Ltd. are set to receive returns as high as 20.2% from their 2015 allocations to the vehicle, according to data sourced by Artemis.

Mt. Logan Re, Ltd., the collateralised reinsurance sidecar type vehicle operated by Bermudian insurance and reinsurance firm Everest Re, has announced the hire of Martin Burke as its Chief Financial Officer, effective immediately.

Everest Re increased the size of its collateralized reinsurance sidecar Mt. Logan Re Ltd. during January 2016 to $860 million, while also reducing its own contribution to the vehicle to $50 million, Artemis understands, suggesting a greater capital contribution from third-party investors.

The scale of Everest Re’s fully collateralised reinsurance sidecar Mt. Logan Re Ltd. was evident in the reinsurers 2015 results, as the underwriting gain increased significantly year-on-year, although there was no change in size of the vehicle in the fourth-quarter.

Bermuda headquartered reinsurer Everest Re sees its fully collateralised reinsurance sidecar Mt. Logan Re Ltd., as core to its strategy for hedging peak exposures in its book, supplemented by the Kilimanjaro Re catastrophe bonds and use of industry loss warranties (ILW’s).

For the first time since the launch of its fully collateralised reinsurance sidecar Mt. Logan Re Ltd. in late 2013, reinsurer Everest Re has not increased the third-party capital managed within the vehicle in the last quarter.