Mereo Insurance Ltd has expanded into excess casualty insurance through a renewal rights transaction with Everen Specialty Ltd.

The insurer said it will become the carrier for new and renewed business in Everen Specialty’s excess casualty energy portfolio from June 1.

Everen Specialty’s underwriting team and systems supporting the portfolio will also move to Mereo, led by Carla Greaves, the former chief underwriting officer at Everen Specialty.

Mereo said the deal would give Everen Specialty insureds continuity of cover, access to AM Best A- rated paper and the support of Mereo’s capital base.

Everen Specialty will continue to service claims.

David Croom-Johnson, president and chief executive of Mereo, said: “This transaction is a strong strategic fit for Mereo and underscores our commitment to providing durable capacity and consistent, high-quality service to the energy market.”

He added that Mereo was pleased to welcome the underwriting team and work with Everen Group on a smooth transition for brokers and clients before June 1 renewals.

Robert Foskey, president and chief executive of Everen Group, said the priority had been continuity for insureds, “a soft landing” for the underwriting team and a partner that would maintain expected service standards.

He added: “As a Bermuda-based company invested in the long-term strength of this market, we are equally pleased that the transaction keeps meaningful excess liability capacity on-island.”