Start-up Conduit Re gets A- preliminary rating from AM Best
Conduit Reinsurance Ltd, one of the large new start-ups set to enter the Bermudian reinsurance market, has been given a preliminary financial strength credit assessment of A- by AM Best.
The firm’s holding company, Conduit Holdings, has announced plans for an initial public offering of shares on the London Stock Exchange with the aim of raising $1.1 billion.
Conduit Re, a Class 4 reinsurer, will be led by industry veterans Neil Eckert and Trevor Carney.
Best said the assessment reflected Conduit Re’s “very strong” balance sheet strength, underpinned by the rating agency’s expectation that the company will maintain the strongest level of risk-adjusted capitalisation over its five-year start-up phase.
Best described Conduit’s business plans as well defined and added that the reinsurer would be operating in a competitive environment with heightened execution risk during the start-up phase.
Best added: “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.”
Last month, another of the “Class of 2020”, Vantage Risk Ltd, a new Class 4 reinsurer led by former Arch chairman Dinos Iordanou and former Axa XL CEO Greg Hendrick, also received an A- preliminary financial strength assessment from AM Best.