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 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."
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, Appleby Bermuda, and BMO Capital Markets Corp. Ares was advised by Skadden, Arps, Slate, Meagher Flom.
About Mereo
Mereo is an innovative (re)insurance platform focused on transforming the global property, casualty, and specialty markets. Mereo delivers cutting-edge solutions to meet the evolving needs of the (re)insurance industry. Mereo is led by a team of seasoned executives with decades of combined experience in reinsurance, investment management, and capital markets. Mereo Insurance Limited is licensed by the Bermuda Monetary Authority and has received a financial strength rating of A- from AM Best. For more information, please visit www.mereoinsurance.com.
About The Andover Companies
The Andover Companies is one of the largest and longest-standing property and casualty mutual insurance groups in the Northeast, writing business across Massachusetts, Maine, New Hampshire, Rhode Island, Connecticut, New York, New Jersey, and Illinois. Our three distinct insurance companies, Merrimack Mutual, Cambridge Mutual, and Bay State, enable us to provide a wide range of coverage solutions and services that shield personal and commercial properties and their owners from risk. As our company approaches its 200th year in business, we are just as committed as our founders were to protecting our policyholders and continuing to build the most reliable network of local and independent insurance agents in the region. Consistently rated "A" or higher by AM Best for over a century, we display an unwavering ambition to safeguard our neighbors and communities. For more information, visit www.andovercompanies.com.
About Ares Management
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of December 31, 2024, Ares Management Corporation's global platform had over $484 billion of assets under management, with operations across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.
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Contacts:
Lawrence Minicone
lawrence@mereoadvisors.com
