Lumen Re, the main Bermuda-domiciled rated reinsurance underwriting vehicle of specialist insurance-linked securities manager LGT ILS Partners, has renewed its status as a reciprocal jurisdiction reinsurer in 37 US states for 2025, while also seeing its loss ratio remaining lower in 2024, according to its latest rating affirmation by AM Best.AM Best noted in affirming the ‘A’ ratings of Class 3B Bermuda based reinsurance company Lumen Re that the renewal of the reciprocal jurisdiction status for 2025, which was , will “reduce operational burden and costs” for the reinsurer as it continues to source business for the LGT ILS Partners investment strategies.AM Best said that its ratings for Lumen Re reflect the reinsurance entities balance sheet strength, which the rating agency continues to assess as “strongest”.Lumen Re’s operating performance also remains adequate under the ratings and AM Best also cites continued benefits from a process of re-underwriting and de-risking which began since 2022.

As a result of this process, Lumen Re’s loss ratio has decreased significantly since 2022, while at the same time its investment income has also been buoyed since 2023 thanks to higher interest rates.“Lumen Re’s operating performance is expected to remain favorable given current market conditions,” AM Best explained.Lumen Re sits at the heart of the LGT ILS Partners investment operations, providing an efficient way to source and access reinsurance risk premia, through a rated balance-sheet vehicle.

The addition of the jurisdictional recognition and its renewal again for 2025, makes the reinsurance company an even more efficient origination and underwriting structure for the investment manager.Net premiums written by Lumen Re rose from $51 million in 2022 to almost $57.8 million in 2023, the most recent public filings for the company.Revenues reported by Lumen Re were up meaningfully, from $57.8 million in 2022 to $83.3 million for 2023.

But most impressively, Lumen Re reported over $65 million of net income for 2023, far better than 2022’s around $2 million.Those results will have flowed positively to investors in the LGT ILS funds that derive reinsurance linked returns from Lumen Re.Recall that Lumen Re took onboard an external equity investor in 2022, with ..

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