Mt. Logan Re receives 48% more in premiums from Everest through H1 2025

Mt. Logan Re Ltd., the third-party capitalised sidecar-like structure operated by Everest Group’s Mt. Logan Capital Management unit, received some 48% more in premiums from its parent Everest over the course of the first-half of 2025.

Everest has increased the volume of ceded property catastrophe written premiums to cells of Mt. Logan Re  this year, with more excess-of-loss business shared with the investors backing the Mt. Logan Capital Management strategies in 2025 so far.

The growth in premiums came through the first-quarter of 2025, as the Mt. Logan Re team deployed more capital around the January reinsurance renewal season.

As we reported before, Everest transferred $170 million of written property catastrophe premiums to Mt. Logan Re in Q1 2025, a 95% increase from the $87 million ceded to it in Q1 2024.

The company attributed much of its growth in gross property catastrophe reinsurance premiums to the business secured for and then ceded to Mt. Logan Re.

For the second-quarter of 2025, premiums ceded to Mt. Logan Re were relatively flat year-on-year, at $80 million, very slightly down in fact on the prior year’s $82 million of premiums ceded to the third-party capital structure.

But, for the first-half of 2025, ceded premiums delivered to Mt. Logan Re and its investors reached $250 million, some 48% up on H1 2024’s $169 million.

The second-quarter of 2025 also looks to have been a profitable period for the Mt. Logan Re structure, with zero losses and loss adjustment expenses ceded to it by parent Everest.

However, overall losses ceded to Mt. Logan Re remain up year-on-year at $121 million after the first-half, given the higher level of losses and LAE ceded in Q1 which we assume was due to the California wildfires and perhaps some of the US severe weather activity. Last year after H1 the total losses and LAE ceded was $64 million.

As we reported last week, Jim Williamson, CEO of Everest, had commented that the Mt. Logan Re team have been doing a “terrific job” in raising funds for the structure this year.

Given the meaningful increase in premiums ceded to Mt. Logan Re over the first-half of this year, it’s clear more capital has been available to deploy for the structures investors in 2025.

While the wildfires likely dented performance for Q1, the fact no losses were ceded to Mt. Logan Re in Q2 will have helped the returns recover through that period, and there is still a chance of factors such as subrogation making a further difference to reduce any burden from the wildfires over time.

Another positive signal for the health of the Mt. Logan Re strategy is in the fact that Everest reported the reinsurance recoverable due from the structure had declined through the second-quarter of 2025.

As of June 30th 2025 the reinsurance recoverable due from Mt. Logan Re collateralized segregated accounts was $411 million, where as at March 31st this year it stood higher at $482 million.

While there were no additions, in the form of losses ceded in Q2, it is positive to see the figure decrease, as it means prior period losses are being unwound and reconciled, which is always a positive signal for go-forward return potential with any reinsurance or ILS structure.