AM Best: Vantage nears underwriting profit
AM Best expects Vantage Group to near breakeven in underwriting income in 2024.
The Bermuda-based re/insurer, founded four years ago, recovered from a challenging first two years of operation when it was “impacted adversely by elevated catastrophe results”, AM Best said.
“As Vantage Group has continued to grow to scale in 2023 and 2024 and moved property catastrophe business off its balance sheet through its insurance-linked securities vehicle, AdVantage Retro I, its underwriting results have improved,” the report said.
“Vantage Group’s strategy is expected to provide the group with accretive income while continuing to reduce volatility in its operating results in future years.
“Over the past two years, the group has achieved operating profitability though the group has yet to achieve a full-year combined ratio below 100. AM Best expects full-year combined ratios for 2024 to continue to benefit from these changes and track close to breakeven.”
AM Best, which affirmed the A- financial strength ratings of subsidiaries Vantage Risk Bermuda and Delaware-based Vantage Risk Specialty Insurance Company and Vantage Risk Assurance Company, said the company continues to expand its primary insurance operations, after a slow start in 2021, due to various operational challenges.
“As the group continues to execute its business plans, the reinsurance portfolio has become relatively smaller than the primary portfolio; and thus, has less of an impact to its bottom line,” it added.
“While Vantage Group’s diversification and capabilities have expanded significantly since launch, some level of operational risks remains as new business seasons. AM Best will continue to monitor the group’s progression as it enters its fifth year of operation. AM Best anticipates that Vantage Group’s operating performance will continue to improve as its business plan is executed.”
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