Mereo Insurance has officially commenced operations in the property and casualty (P&C) reinsurance market, having secured full regulatory approval from the Bermuda Monetary Authority (BMA).
The launch of operations was backed by common equity investment led by Susquehanna Private Equity Investments and the Andover Companies.
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Additionally, preferred equity financing was provided by Ares Management Alternative Credit funds.
The reinsurance sector is experiencing rising rates across multiple lines, with risk-adjusted rate adequacy levels creating a “unique investment opportunity”, the company stated.
Mereo Insurance plans to combine traditional reinsurance with capital markets solutions through its business model to meet the growing demand for risk transfer.
The reinsurer’s leadership team is spearheaded by industry veteran Brian Duperreault, co-founder and chairman of Mereo Insurance, who brings experience from his previous roles as chairman and CEO of AIG, CEO of Marsh McLennan and CEO of ACE (now Chubb).
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By GlobalDataDuperreault said: “The current healthy market in reinsurance presents an unprecedented opportunity for investors. With attractive risk-adjusted rate levels across the P&C market, as well as a need for more capacity, Mereo is uniquely positioned to deliver solutions that meet the growing demand for reinsurance while providing attractive returns to our investors.”
David Croom-Johnson, co-founder and CEO of Mereo Insurance, brings expertise from his tenure as CEO of Aegis London, along with the Lloyd’s of London market experience.
He is supported by Richard Holden, co-founder and deputy CUO, who has a background in the Bermuda reinsurance market.
Croom-Johnson added: “I am delighted that we are entering the market at such an exciting and dynamic moment. The current market dynamics will allow us to produce a diversified and balanced portfolio of specialist reinsurance businesses across a broad spectrum of property, casualty and specialty classes to meet our investors’ needs.”
Mereo Insurance was advised by a suite of experts including Guy Carpenter Capital & Advisory, Willkie Farr & Gallagher, Lockton Re Capital Markets, BMS Group Ratings Advisory, Kinmont Advisory, Price Forbes Re, and Appleby Bermuda.
Ares Management received counsel from Skadden, Arps, Slate, Meagher & Flom.
