New Bermudian-based reinsurer Mereo is close to finalising a $650 million fundraise with six investors, according to industry reports.

Mereo has secured Bermuda Monetary Authority approval as it looks to start on January 1, financial website Insurance Insider said.

The new firm is another project of former AIG chief executive officer Brian Duperreault, founder of renowned insurer Ace, now Chubb, handling more than three million new claims globally every year.

In a preliminary credit assessment in January, AM Best credit ratings agency gave Mereo a financial strength assessment of A- (excellent) and a long-term issuer credit assessment of “a-” (excellent), with a stable outlook.

AM Best also rated Mereo’s balance sheet strength as very strong, its operating performance adequate, with limited business profile and appropriate enterprise risk management.

The credit ratings agency also expects Mereo’s capital to be managed through the use of reinsurance and potentially third-party capital, according to artemis.bm.

In September 2023, Mr Duperreault said Mereo would be focusing on underwriting. Comparing it to third party reinsurers who have run into difficulty, Mr Duperreault said this firm will concentrate on the liability side of things rather than assets.

It is understood that Mr Duperreault is Mereo’s chairman, while the CEO is Lawrence Minicone, managing partner of RB Venture Partners.

Mereo’s LinkedIn profile states it is a “Bermuda-based reinsurance carrier with a novel approach to risk mitigation and portfolio construction” with 11 to 50 staff members.