Fast-growing Conduit Re’s rating affirmed by AM Best
AM Best has affirmed the financial strength rating of A- (Excellent) of Conduit Reinsurance (Bermuda). The outlook of the rating is stable.
The ratings reflect Conduit Re’s balance sheet strength, which AM Best said it assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
Conduit Re was hit by several catastrophe and larges loss events during its first two years of operations, with marginal underwriting results reported in 2021, and expected by AM Best for 2022. Over the coming years, the company expects to achieve combined ratios below 90%, supported by favourable market conditions and lower expense ratios as its operations reach appropriate scale.
Conduit Re wrote gross written premium (GWP) of $379 million in 2021, its first full year of operation. Significant growth was achieved in 2022, with GWP reaching $528 million for the first nine months of the year. Management has demonstrated its ability to adapt to market conditions, shaping its portfolio to optimise performance and exposure, writing a greater share of proportional business than originally planned.
