AM Best upgrades Conduit Re outlook

Conduit Re's ratings outlook has been raised to positive from stable by AM Best, which said it expected the re/insurer’s underwriting profile to expand and diversify profitably in the future. 

The agency also affirmed the Bermuda-based company’s financial strength rating of A-. 

“Conduit Re has experienced a favourable reception since its launch in December 2020, and in its fourth year of operation AM Best expects the company to write reinsurance service revenue of approximately $800 million (2023: USD 633.0 million),” AM Best said. “Continued growth has been achieved in the first nine months of 2024, with the company writing gross premiums of $957.3 million, which was broadly in line with its business plans. 

“Conduit Re’s management have demonstrated its ability to adapt to market conditions, whilst achieving key objectives. The revision of the outlooks to positive from stable reflects AM Best’s expectation that Conduit Re’s underwriting profile will continue to grow and diversify profitably, albeit at a more modest pace than in the past.”

AM Best said the re/insurer had been profitable since 2023 when it earned $205.8 million and had earned $98.1 million in the first half of 2024. 

But it added: “Results for the 2024 year are expected to be moderated by exposure to several catastrophe and large loss events in the second half of the year. 

“Prospectively, AM Best expects Conduit Re to generate solid combined ratios, supported by continued favourable market conditions and lower expense ratios as its revenue grows.”

Conduit chief executive officer Trevor Carvey said: “We are proud to be recognised by AM Best for our progress and delivery of our strategic objectives as an organisation. 

“This recognition is evidence of our significant achievements over the last four years and the favourable reception we have received in the market."

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