Global insurance and reinsurance specialist Everest has continued to cede more in the way of premiums to its Mt. Logan Re third-party capital platform in the second-quarter, with the growth accelerating at an ever faster rate year-on-year.
In Q1 2024, Mt. Logan Re received 64% more in ceded premium from its parent through the period.
The second-quarter saw the rate of cessions accelerating, as Everest reports ceding 78% more in written premiums and 80% more in earned premiums to its third-party capital platform.
Everest ceded $82 million in written premiums and $94 million in earned premiums to Mt. Logan in Q2 2024, up from $46 million and $52 million respectively in the prior year period.
For the first-half of 2024, the total written premium ceded to Mt. Logan reached $169 million, 70% up on H1 2023’s $99 million.
On an earned premium basis, the H1 cessions reached $180 million this year, some 84% higher than H1 2023’s $98 million.
Encouragingly for the third-party investors backing Mt. Logan Re, the amount of losses and loss adjustment expenses ceded by Everest to the third-party capital platform are only slightly higher this year, at $64 million, which is only 21% higher than H1 2023’s $53 million.
The fact ceded written and earned premiums assumed by Mt. Logan Re are growing far faster suggests a good deal of profit was likely generated by the structures portfolios through the first-half of 2024.
It’s perhaps noteworthy that the accelerating growth in premiums flowing to Mt. Logan Re comes at a time Everest has looked to expand out its third-party capital activities and formalised them under a new insurance management vehicle.
Everest recently announced the launch of Mt. Logan Capital Management, Ltd. (MLCM), marking a transformation of its existing alternative capital and insurance-linked securities (ILS) investment offering into a multi-vehicle third-party reinsurance capital management platform.
Supporting the expansion is the fact that Mt. Logan Capital Management, Ltd. now counts a higher $1.5 billion in total third-party capital, across assets managed and serviced by the business.
