Mereo Advisors, a Bermuda-based firm chaired by former American International Group Inc. Chief Executive Officer Brian Duperreault, has secured more than $700 million to fund its new reinsurance operations.
The company received commitments from investors that include alternative asset manager Ares Management Corp., quantitative trading firm Susquehanna International Group and mutual insurance firm Andover Cos, according to a statement. Mereo is accepting further equity commitments until the end of March, said Duperreault, the company’s chairman.
“The market is favorable to a new entrant right now,” Duperreault said in an interview. “We’re looking at an interesting market where pricing has firmed across quite a large number of lines of business.”
More Disasters
Rising catastrophe losses and an increase in litigation-related liabilities, also known as social inflation, has put pressure on insurers and created demand for reinsurance that Mereo can help satisfy, Duperreault said.
Insurers are bracing for a potentially disaster-heavy year after wildfires ravaged large swaths of Los Angeles last month. Insured losses from the blazes could reach an estimated $40 billion.
The new reinsurance platform received full regulatory approval from the Bermuda Monetary Authority, as well as an A- rating from AM Best.
Mereo’s reinsurance unit, Mereo Insurance Ltd., plans to underwrite as much as $520 million during its first year across specialty and property and casualty. The firm will strive to keep a balanced portfolio, underwriting across about 25 lines of business on a risk-weighted basis, Duperreault said.
The company also operates an open-ended insurance-linked securities vehicle, Mereo ILS Opportunities Fund, which already deployed about $250 million in the latest Jan. 1 renewals across the reinsurance and retrocession markets. Reinsurers act as financial backstops for insurers who sell individual policies, and retrocession allows a reinsurer to spread risks even further among other reinsurers.
The executive suite also includes former Aegis London CEO David Croom-Johnson, who will lead the reinsurance unit, while Lawrence Minicone, who will lead Mereo Advisors, will act as its chief investment officer.
Photograph: Homes destroyed by the Palisades Fire in Malibu, California; photo credit: Eric Thayer/Bloomberg
Copyright 2025 Bloomberg.
Topics
InsurTech
Reinsurance
AIG
Interested in Insurtech?
Get automatic alerts for this topic.
