Global speciality insurer and reinsurer IQUW has received an A- (Excellent) financial strength rating from AM Best, marking a major step in the firm’s expansion of its Bermudian-based reinsurance platform.

The rating strengthens IQUW’s ability to write third-party property, speciality and casualty reinsurance from Bermuda, supported by group capital over $1 billion.

“This rating and Bermuda balance sheet will strengthen IQUW’s relevance in the market and support the next stage of IQUW’s growth strategy,” said Stephen Young, chief executive of IQUW Bermuda. “Over the last three years, we have built an experienced team and embedded new operational capabilities in Bermuda from the ground up.”

The AM Best rating follows IQUW Holdings Bermuda Ltd’s successful $170 million senior debt issue and enables the company to leverage its Bermuda base further. The debt issuance was backed by funds and accounts managed or advised by Hudson Structured Capital Management Ltd and investors associated with Kilter Finance. Howden Capital Markets & Advisory served as financial adviser to IQUW on the transaction.

Mr Young added: “The rating enhances our ability to write third-party business from Bermuda, which will provide IQUW with the flexibility to react to market conditions and expand in line with our risk appetite.”

Launched in 2021, IQUW Re Bermuda is a Bermuda Monetary Authority-regulated commercial reinsurer and a key part of the group’s long-term strategy to build a diverse, data-led global reinsurance platform.

Peter Bilsby, chief executive of the group, called the A- rating “a significant endorsement of IQUW’s financial strength and our capability to support clients on a global scale”.

“As a Bermuda-based company, this rating allows us to expand alongside Lloyd’s. Our Bermudian platform is complementary to our Lloyd’s presence and will enable us to continue to responsibly grow the business through both locations,” Mr Bilsby said.

He credited the firm’s success to a hybrid approach of technology and expertise. “IQUW’s strong foundation has been delivered through excellent market collaboration and our vision of intelligent underwriting,” he said. “That vision combines data and technology with human expertise to deliver insightful and fast responses to our clients and brokers.”

In 2024, IQUW Group reported record profits, with $1.6 billion in gross written premium and a combined ratio of 83.1 per cent across its Bermuda platform and Lloyd’s Syndicates 1856 and 218. The continued buildout in Bermuda is central to IQUW’s plan to grow its global franchise and deliver a service-led value proposition.