AM Best Affirms Conduit Re's A- Financial Strength Rating and Stable Outlook

AM Best affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" (Excellent) of Conduit Reinsurance Limited, with a stable outlook, the agency said in a Business Wire release on November 11, 2026. Conduit Re is a Bermuda pure play reinsurer that began writing business in 2021.

Why AM Best Kept Conduit Re at A-

The ratings reflect balance sheet strength that AM Best assesses as very strong, along with adequate operating performance, a limited business profile and appropriate enterprise risk management. Risk-adjusted capitalisation is projected to remain at the strongest level under Best's Capital Adequacy Ratio, supported by high quality capital without financial leverage, a conservative investment strategy focused on fixed maturity securities and a reinsurance programme of excellent credit quality.

AM Best attributed the adequate operating performance assessment to robust underwriting profitability, with a discounted combined ratio (net-net) of 88.4% in 2025 against 84.9% in 2024. The agency said the higher 2025 ratio reflected the company's outsized net exposure to California wildfires, after which Conduit Re broadened its retrocession cover to give greater protection against future volatility, including by reducing net exposure to secondary perils. Conduit Holdings Limited, the ultimate parent, reported a profit of $80.3 million for the first six months of 2026, compared with a loss of $13.5 million in the same period of 2025. Yahoo reported that Conduit's first-half 2026 revenue fell to $394.6 million from $402.8 million while net income swung to an $80.3 million profit, lifting net margin to 20.3%.

AM Best's Insurance Rating Business

AM Best is a privately held credit rating agency and data analytics provider serving the insurance industry in more than 100 countries, according to akta.pro company records. The agency was founded in 1899 and is headquartered in Oldwick, USA. Its revenue is estimated at $100 million to $250 million, with a valuation estimate of $500 million to $1 billion.

Earlier AM Best Rating Actions

On November 11, 2026, AM Best also affirmed the Financial Strength Rating of A and Long-Term Issuer Credit Rating of "a" for The American Road Insurance Company, with a stable outlook, according to FinancialContent Business Page. The same day, the agency affirmed the B+ financial strength and bbb- issuer credit ratings of Compagnie Centrale de Réassurance with a stable outlook, citing a 15.3% average return on equity and a 64% share of Algeria's reinsurance market. AM Best also affirmed the A- financial strength and a- issuer credit ratings of StarStone Insurance SE with a stable outlook, reflecting a strong balance sheet and support from parent Enstar Group.

What Comes Next for Conduit Re

AM Best expects Conduit Re to write reinsurance revenue of approximately $920 million in 2026. The agency noted a number of changes within senior management since March 2025 and said the newly appointed executives bring appropriate experience and expertise.