Mereo Insurance Launches With A-Rating
Mereo Insurance Limited, a new reinsurance platform, launches with an A- AM Best rating and strong backing, aiming to capitalize on the current global property and casualty reinsurance market.
A spokesperson said, “Mereo Insurance Limited, a new reinsurance platform, has received an A- credit rating from AM Best, and begins operations this week in an attractive global property and casualty reinsurance market. The common equity was led by Susquehanna Private Equity Investments, LLLP, a member of the Susquehanna International Group of Companies, and The Andover Companies, with preferred equity provided by Ares Management Alternative Credit funds [Ares]. This first close will allow the platform to offer flexible, scalable and timely solutions to the reinsurance market immediately.
“The reinsurance market is currently pricing at attractive risk-adjusted rate adequacy levels and has created a unique investment opportunity, with reinsurance rates rising across many sectors. Mereo is positioned to take full advantage of this environment by combining traditional reinsurance with capital markets solutions. Mereo offers an innovative business model designed to address the growing demand for risk transfer.
“Mereo has received full regulatory approval from the Bermuda Monetary Authority [BMA] and has earned an A- rating from AM Best.”
“The current healthy market in reinsurance presents an unprecedented opportunity for investors,” said Brian Duperreault, Co-Founder and Chairman of Mereo. “With attractive risk-adjusted rate levels across the P&C market, as well as a need for more capacity, Mereo is uniquely positioned to deliver solutions that meet the growing demand for reinsurance while providing attractive returns to our investors.”
The spokesperson said, “The Mereo leadership team includes respected names in the global insurance and reinsurance industries. Mr. Duperreault, Co-Founder and Chairman of Mereo, was formerly the Chairman and CEO of AIG, the CEO of Marsh McLennan, and served as the CEO of ACE [now Chubb], bringing decades of strategic leadership experience. David Croom-Johnson, Co-Founder and CEO of Mereo Insurance Limited, is the former CEO of Aegis London and adds deep expertise in the Lloyd’s of London market. David Croom-Johnson will be supported by Richard Holden, Co-Founder and Deputy CUO, who brings strong experience in the Bermuda reinsurance market.”
“I am delighted that we are entering the market at such an exciting and dynamic moment. The current market dynamics will allow us to produce a diversified and balanced portfolio of specialist reinsurance businesses across a broad spectrum of property, casualty and specialty classes to meet our investors’ needs,” said Mr. Croom-Johnson.
“We are pleased to be able to work with an experienced team in a new venture like Mereo,” said Scott Rosen, Partner at Ares Management. “Through our flexible capital solution, we look forward to supporting their growth and strategic ambitions as a trusted reinsurance counterparty.”
“Andover is proud to partner with the talented Mereo team who have a strong track record of success,” commented Charles J. DiGrande, President and CEO of The Andover Companies. “This investment is an excellent addition to the Andover portfolio because of the diversified nature of Mereo’s writings and the cultural alignment of our firms.”
The spokesperson said, “Mereo was assisted in the overall detailed process by a selection of advisors including; Guy Carpenter Capital & Advisory, Willkie Farr & Gallagher LLP, Lockton Re Capital Markets, LLC, BMS Group Ratings Advisory, Kinmont Advisory, Price Forbes Re, and Appleby Bermuda. Ares was advised by Skadden, Arps, Slate, Meagher & Flom.”
