Brian Duperreault’s return to the reinsurance stage is official with the launch this week of Bermudian-based Mereo Insurance Ltd.

Mr Duperreault is the cofounder and chairman of Mereo, which has received regulatory approval from the Bermuda Monetary Authority and an A- credit rating from AM Best.

Mereo said it begins operations in an attractive global property and casualty reinsurance market.

A company spokesman said: “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.”

Mr Duperreault is a former chairman and chief executive of AIG, chief executive of Marsh McLennan, and chief executive of Ace (now Chubb), and offers decades of strategic leadership experience.

He said: “The current healthy market in reinsurance presents an unprecedented opportunity for investors.

“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 also features cofounder and chief executive David Croom-Johnson, who is the former chief executive of Aegis London and adds deep expertise in the Lloyd’s of London market.

Mr Croom-Johnson will be supported by Richard Holden, cofounder and deputy chief underwriting officer, who brings strong experience in the Bermuda reinsurance market. His previous career stops include Fidelis MGU and Amlin plc.

Mr Croom-Johnson said: “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.”

Mereo said the common equity was led by Susquehanna Private Equity Investments, LLP, a member of the Susquehanna International Group of Companies, and The Andover Companies, with preferred equity provided by Ares Management Alternative Credit funds.

The company said: “This first close will allow the platform to offer flexible, scalable and timely solutions to the reinsurance market immediately.”

Scott Rosen, partner at Ares Management, said: “We are pleased to be able to work with an experienced team in a new venture like Mereo.

“Through our flexible capital solution, we look forward to supporting their growth and strategic ambitions as a trusted reinsurance counterparty.”

Charles J. DiGrande, president and chief executive of The Andover Companies, said: “Andover is proud to partner with the talented Mereo team who have a strong track record of success.

“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 said it was assisted in the overall detailed process by a selection of advisers 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.