AM Best Assigns Credit Ratings to Conduit Reinsurance Limited

AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” to Conduit Reinsurance Limited (Conduit Re) (Bermuda). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Conduit Re’s balance sheet strength, which AM Best categorises as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The very strong balance sheet assessment is underpinned by AM Best’s expectation that Conduit Re will maintain the strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), over its five-year start-up phase, taking into account AM Best’s additional capital requirements for new company formations. Funding of USD 1.1 billion was raised successfully through an initial public offering of its holding company, Conduit Holdings Limited, and has been downstreamed into Conduit Re as capital.

Conduit Re’s adequate operating performance assessment is based on its well-defined business plans, and takes into account its competitive environment and heightened execution risk during the start-up phase.

AM Best views Conduit Re’s business profile as limited, given its lack of competitive position and established distribution network in a competitive reinsurance marketplace. However, the experience of senior management and underwriters in the targeted classes of business increases the likelihood of market acceptance and successful execution of the company’s business plans. Conduit Re has a clearly defined ERM framework in advance of writing business, which includes plans to control key risks.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.