IQUW, a growing player in the insurance and reinsurance sectors, announced the launch of its Bermuda reinsurance platform on March 24, 2025, backed by an impressive $1 billion in group capital. This strategic move not only signifies IQUW's commitment to expanding its third-party reinsurance business but also aims to enhance its market relevance amid increasing competition.
In conjunction with this launch, global credit rating agency AM Best assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of "a-" (Excellent) to IQUW Re Bermuda Limited. These ratings affirm the company's strong balance sheet, adequate operating performance, and its effective enterprise risk management practices. The ratings' stable outlook enhances IQUW's financial standing, enabling it to flexibly access its $1 billion capital as it grows within the reinsurance marketplace.
Stephen Young, the CEO of IQUW Bermuda, expressed his pride in the dedicated team that has contributed to reaching this significant milestone. He stated, "I am incredibly proud of the IQUW team and all the work that has led us to this milestone. Over the last three years, we have built an experienced team and embedded new operational capabilities in Bermuda from the ground up." Young emphasized that the enhanced rating will strengthen IQUW's relevance in the market, allowing the company to react swiftly to market conditions and to grow in alignment with its risk appetite.
The establishment of the Bermuda platform is not just about strategically positioning the firm for operations; it also reflects IQUW’s impressive financial background. According to the latest figures, IQUW Group reported a diversified book of $1.3 billion in gross written premiums (GWP) in 2023, with an impressive increase to $1.6 billion in 2024. Significantly, the Bermuda platform achieved a combined ratio of 83.1% from operations tied to both the Bermuda branch and Lloyd's Syndicates 1856 and 218, demonstrating the efficiency and effectiveness of their underwriting processes.
AM Best noted that IQUW's balance sheet strength is supported by an appropriate reinsurance program with reinsurers holding excellent credit quality, alongside a conservative investment strategy and solid liquidity. The company also has limited exposure to legacy business, which could jeopardize its financial health in dynamic market conditions.
Looking ahead, Peter Bilsby, Group CEO of IQUW, acknowledged the success of his company’s strategies - particularly in developing a Bermuda platform that complements its Lloyd's presence. He remarked, "Securing an A- AM Best rating is a significant endorsement of IQUW’s financial strength and our capability to support clients on a global scale. Our Bermudian platform is complementary to our Lloyd’s presence, which will enable us to continue to responsibly grow the business through both locations."
Bilsby highlighted that their vision of intelligent underwriting—which combines data and technology with human expertise—is key to providing insightful and rapid responses to their clients and brokers. This multidimensional approach to underwriting has garnered industry recognition, as evidenced by being acknowledged by Gracechurch for delivering outstanding underwriting service. He reiterated that this blueprint will guide IQUW as it continues to establish its presence in Bermuda.
The ongoing collaboration within the market, combined with IQUW's technology-led approach, positions the company favorably to take advantage of new opportunities in the global insurance and reinsurance landscape. The senior debt issue facilitating their financial strategies was supported by funds managed by Hudson Structured Capital Management Ltd. (HSCM Bermuda) and Kilter Finance, demonstrating investor confidence in IQUW’s growing capabilities.
IQUW's strategic developments highlight a commitment to creating a versatile and responsive operational framework that not only supports existing market ambitions but also paves the way for sustained growth and adaptability in an ever-changing insurance environment.
As IQUW embarks on this new chapter from its Bermuda base, the firm aims to build on its already strong foundation built through collaboration and technology, directing its focus towards intelligent underwriting and thorough market engagement. This strategy, alongside robust financial backing and unique operational capabilities, sets the stage for IQUW to thrive in the evolving landscape of reinsurance globally.
