Bermuda-based reinsurer Everest Group’s alternative capital business has transformed into a multi-vehicle third-party capital management platform with the formation of MLCM.
Licensed by the Bermuda Monetary Authority as an insurance manager, MLCM will serve as the exclusive source for Everest’s risk-sharing and proportional underwriting capacity, targeting institutional investors globally with a suite of investment options.
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MLCM aims to offer institutional investors access to Everest’s reinsurance risk portfolio, leveraging the company’s underwriting capabilities.
The launch of this multi-vehicle capital management platform, which includes the collateralised reinsurance entity Mt. Logan Re, is expected to provide Everest with increased flexibility in partnering with capital market investors, thereby bolstering its financial resilience, balance sheet robustness, claims-paying ability and reinsurance business expansion.
The leadership of the newly established MLCM comprises John Modin as CEO and Youssef Sfaif as president and chief operating officer.
Everest executive vice-president and chief operating officer of reinsurance Jill Beggs said: “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 optimise our capital structure, generate new underwriting opportunities, and grow Everest’s overall market share.”
Modin added: “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 $1.5bn in total third-party capital, and we welcome new partners interested in investing in the global reinsurance market.”
Meanwhile, in May this year, Everest received regulatory approval to begin operations in Mexico.
The new subsidiary, named Compañía de Seguros Generales Everest México, will have Jaime Chaves López at the helm.
