Everest Re looked to capitalise on “robust” property market at 1/1

Everest Re, the Bermuda-headquartered global insurance and reinsurance firm, has said that it achieved what it sees as an “excellent outcome” from the January renewal season, with property a particular highlight.

Given Everest Re’s ownership of the Mt. Logan Re collateralized reinsurance investment vehicle, it seems likely that structure also benefited from the property related renewals that its owner sees as having been so constructive.

In announcing its results yesterday, Everest Re said that its reinsurance division had a “highly successful January 1 renewals.”

“Everest continues to write a stronger, less volatile, more diversified, and more profitable book of business on a risk adjusted basis,” the company explained.

Having reduced its property writings in some quarters of 2022, in a targeted manner, it seems Everest Re found the conditions and pricing more attractive at 1/1 2023, leading it to highlight property as a particular area of renewals success.

On the reinsurance business, Everest Re reported that, “Execution for the January 1 renewals was precise and well-orchestrated achieving an excellent outcome.”

The company said that it feels it has “significant momentum” for 2023 as a result of the positive renewal outcome.

Juan C. Andrade, Everest President and CEO, commented, “We had a successful January 1 reinsurance renewal executing a precise and well-orchestrated strategy.

“We leveraged Everest’s global leadership position to capitalize on the robust property market and the flight to quality was evident across virtually all lines and geographies.

“We drove improved pricing, terms and conditions and deepened relationships with new and existing core clients throughout the world, which significantly improved risk adjusted returns across the entire portfolio.

“We are well positioned with the talent and the platform to continue this momentum in 2023.”

All of which bodes well for the third-party investor backed Mt. Logan Re vehicle, which has been an important and complementary source of underwriting capital for Everest Re in recent years.

Mt. Logan Re Ltd. operates as a kind of collateralized reinsurance sidecar-like vehicle, and has been core to its strategy in recent years.

Given the strong market conditions for writing property and catastrophe exposed business at the 1/1 renewals, it would not surprise if Everest had been able to leverage Mt. Logan to help it in growing its book, while managing its net exposure.