Everest Re Group has established a new Bermuda domiciled special purpose reinsurer, Mt. Logan Re, to provide collateralized capacity to the worldwide property catastrophe reinsurance market.

With an initial funding of $50m, the company will provide Mt. Logan Re with additional funding secured from third party investors to reach a target capacity of $250m.

Everest Re chairman and chief executive officer Joseph Taranto said Rick Pagnani has been appointed as the chief executive officer of this new venture.

"For Everest, this vehicle adds yet another tool to our underwriting arsenal that allows us to meet the dynamic demands of the reinsurance marketplace and enhance the returns of our investors," Taranto added.

Providing reinsurance to property and casualty insurers in both the US and international markets, Everest Re operated through its subsidiaries in Bermuda, the UK, Ireland and Canada.