Global insurance and reinsurance player Everest Group has reported significantly increased cessions from its property catastrophe line of business to cells of its Mt. Logan Re Ltd. third-party capitalised sidecar-like structure in 2024.
For the full-year 2024, Everest ceded $433 million in written premiums to Mt. Logan Re, which represents a 76% increase from the $246 million ceded to the vehicle in 2023.At the same time, ceded earned premiums were also higher, at $376 million for full-year 2024, up significantly from the $242 million ceded to the vehicle in the prior year.
Unsurprisingly, with premium cessions rising so much, ceded losses and loss adjustment expenses to Mt. Logan Re also increased to $188 million for FY24, an increase from the $64 million ceded to the sidecar investors in 2023.
However, given a more elevated catastrophe loss environment seen in both Q3 and Q4 last year on the back of this much higher premium base being capitalised via Mt. Logan Re, the increase in losses ceded to the structure is no surprise.
At the end of 2024, $395 million, or 12.6% of the $3.1 billion in total reinsurance recoverables reported by Everest was attributable to Mt. Logan Re collateralized segregated accounts, which compares to the $413 million that was reported in 2023.
As a result, Mt. Logan Re continues to be the largest source of reinsurance recoverables for Everest, which is another key lever for the organisation in terms of how it utilises third-party capital and indicative of the continued and growing importance of the structure for its parent company.
Everest Group’s investments in Mt. Logan Re segregated accounts were valued at $39 million at the end of December 2024, which was down on the $46 million stake it held at the end of 2023. This may be due to Everest’s stake comprising a smaller share as Mt. Logan Re has grown.
But, income earned from these investments reached $8 million for 2024, the same as 2023, and still far better than the negative $-1 million in 2022.
As we reported recently, Everest’s third-party capital base facilitated by its Mt. Logan Capital Management, Ltd. (MLCM) unit had reached $1.8 billion at the start of 2025, marking a new company record.
