Mereo Advisors, a Bermuda -based firm chaired by the former executive director of American International Group Inc. Brian Dupereroult, has assured more than $ 700 million to finance his new reinsurance operations.

The company received commitments from investors that include alternative assets of assets Ares Management Corp., the quantitative trade firm Susquehanna International Group and the mutual insurance firm Andover Cos, according to a statement. Mereo accepts more capital commitments until the end of March, said Duperreault, president of the company.

“The market is favorable for a new participant at this time,” Duperreault said in an interview. “We are seeing an interesting market in which prices have gathered in a large number of business lines.”

More disasters

The increase in catastrophe losses and an increase in liabilities related to litigation, also known as social inflation, has pressed insurers and has created a demand for reinsurance that Méreo can help satisfy, Duperreault said.

Insurers are preparing for a potentially heavy disaster after forest fires devastated great angels of Los Angeles last month. The insured losses of the fires could reach an estimate of $ 40 billion.

The new reinsurance platform received the complete regulatory approval of the Bermuda monetary authority, as well as an AM Best rating.

The Mereo Reinsurance Unit, Mereo Insurance Ltd., plans to subscribe to $ 520 million during its first year in specialty, property and victims. The firm will strive to maintain a balanced portfolio, subscribing approximately 25 lines of business on a base weighted by the risk, said Duperreault.

The company also operates a vehicle of open insurance values, Mereo Ils Opportunities Fund, which already deployed around $ 250 million in the latest renovations of January 1 in the reinsurance and retreating markets. The reinsurers act as financial backups for insurers who sell individual policies, and backwardness allows a reinsurance to spread the risks even more among other reinsurers.

The executive suite also includes the former CEO of Aegis London, David Croom-Johnson, who will direct the reinsurance unit, while Lawrence Minicone, who will lead the advisors Méreo, will act as its investment director.

Photography: houses destroyed by the fire of Palisades in Malibu, California; Photo credit: Eric Thayer/Bloomberg

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Topics Insurtech Reasegur Aig