Mt. Logan Re receives 64% more in ceded premium from Everest in Q1 2024

The year has begun strongly for Mt. Logan Re Ltd., the Everest Group owned and operated third-party investor capitalised reinsurance sidecar-like investment structure, as it received 64% more in ceded premium from its parent through the first-quarter.

Premiums ceded to Mt. Logan by Everest have been on the rise, while losses ceded to it had fallen over the last year.

The result was a strong 2023, with Everest ceding $249 million in written premiums to Mt. Logan Re and the sidecar-like structure delivering its parent $23.5m of income and dividends for the full-year.

Signalling that Mt. Logan Re continues to be able to support more reinsurance business into early 2024, Everest Group has now reported some figures that show a sustained trajectory of growth.

During the first-quarter of 2024, Everest ceded $87 million in written premiums to Mt. Logan Re.

That is up by 64% on the figure of $53 million in written premiums ceded to the collateralized reinsurance structure in the prior year period.

Higher premiums ceded in the current hard market pricing should help to drive attractive performance for the investors backing Mt. Logan Re, loss activity allowing.

Losses and loss adjustment expenses ceded to Mt. Logan Re rose slightly this year, from $36 million for Q1 2023, to $38 million for Q1 2024, but as a proportion of premiums they are obviously far lower.

Recall that we reported last year, the Mt. Logan Re Ltd. third-party capital vehicle was known to be having a strong year for parent Everest, with more than $250 million of new capital raised and its assets under management approaching $1.1 billion

More capital and the ability to assume more in premium means the ability to generate returns has increased at Mt. Logan Re, which we saw in the income and dividends returned to parent Everest last year.

Mt. Logan Re remains the largest source of reinsurance recoverables for Everest after Q1 2024, another key lever for the group in how it utilises third-party capital within its overall business.

At the end of 2023, $413 million, or 18.3% of the $2.3 billion in total reinsurance recoverables reported by Everest was attributable to Mt. Logan Re collateralized segregated accounts.

By the end of the first-quarter of 2024, that had fallen slightly to $403 million, or 17.4% of total reinsurance recoverables, but with Mt. Logan Re remaining the largest contributor.