Ratings agency AM Best has revised the outlook to positive from stable and affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of Bermudian-based Conduit Re.

AM Best said the ratings reflected Conduit Re’s balance sheet strength, which it assessed as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

In a statement, AM Best said: “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.

“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, while 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.”

It added: “Conduit Re’s risk management framework and internal controls have matured as the company has grown and risk management capabilities are commensurate with its risk profile.”