Everest Re has formed Mt Logan Re, a new special purpose reinsurer for the global property and catastrophe market.
The new sidecar reinsurance vehicle, which is domiciled in Bermuda, will allow it to attract investor capital and collaterise reinsurance business.
Everest Re will provide initial funding of $50 million to Mt Logan Re. Additional funding from investors will help it to reach its target capacity of $250 million.
Everest Re has brought in Rick Pagnani, who previously worked at reinsurance broker and risk/capital management advisor TigerRisk Partners, as CEO to run the new business.
In a statement, Joseph Taranto, chairman and CEO of Everest Re, said: “Having successfully led prior reinsurance ventures, we are fortunate to have an executive of his calibre join us to launch this new operation.”
“For Everest, this vehicle adds yet another tool to our underwriting arsenal that allows us to meet the dynamic demands of the reinsurance marketplace and enhance the returns of our investors.”
