AM Best Assigns Credit Ratings to IQUW Re Bermuda Limited

AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to IQUW Re Bermuda Limited (IQUW Re) (Bermuda). IQUW Re is a wholly owned subsidiary of IQUW Holdings Bermuda Limited (IQUW), the ultimate holding company of the IQUW group. In addition, AM Best has assigned a Long-Term Issue Credit Rating of “bbb-” (Good) on $170 million senior unsecured notes, due 2035, issued by IQUW. The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect IQUW’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings of IQUW Re also reflect its strategic importance to IQUW.

IQUW Re is the group’s Bermuda-domiciled reinsurer. The company writes a substantial whole account quota share of the group’s Lloyd’s corporate member and is expected to underwrite a modest volume of third-party reinsurance business over time.

The IQUW group is a specialty (re)insurer that has successfully managed the early years of its build out phase, operating through established Lloyd’s syndicates. The group has an emerging presence and distribution network in the competitive London market. IQUW has an experienced management team, and its underwriters have a credible record within targeted lines of business. The group reported a diversified book of USD 1.3 billion gross written premiums in 2023, and in 2024 is expected to have grown by more than 20%.

IQUW’s balance sheet strength assessment is underpinned by risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which is expected to remain at the strongest level. The group’s risk-adjusted capitalisation benefits from a recent debt raise, and over time, is expected to be supported by the retention of earnings as the organisation grows. The balance sheet strength assessment incorporates modest leverage and good expected interest coverage. IQUW’s balance sheet strength is supported by an appropriate reinsurance programme placed with reinsurers of excellent credit quality, a conservative investment strategy, good liquidity and limited exposure to legacy business.

IQUW’s adequate operating performance assessment considers the group’s well-defined five-year business plan, along with its good underwriting performance in financial years 2023 and 2024. While there is heightened execution risk during the group’s growth phase, AM Best considers its risk management capabilities to be relatively sophisticated and key in controlling and mitigating risks presented during the early years of operations.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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