Lumen Re, the main Bermuda-domiciled rated reinsurance underwriting vehicle of specialist insurance-linked securities manager LGT ILS Partners, continued to exhibit a lower loss ratio last year according to AM Best, while its latest financial report shows the gross premiums underwritten rose 23% in 2024 to approaching $207 million.
It’s now the third year in a row the LGT ILS Partners linked reinsurer has kept this status intact, which AM Best noted “reduces operational burden and costs” for Lumen Re.
That’s important as the reinsurer grows its stature in the market and sources underwriting business for the LGT ILS Partners investment strategies, as it makes direct market access in the United States easier and more efficient.
Notably, in the latest annual filings for Lumen Re, the company reported a 23% increase in gross premiums underwritten in full-year 2024, reaching almost $207 million.
In addition, net premiums written that year reached $77.1 million, well up on 2023’s $57.8 million.
Which evidences Lumen Re delivering much more in terms of reinsurance investment opportunity to the LGT ILS Partners funds, while the structure continues to deliver efficiency as an origination and underwriting platform.
Lumen Re reported total revenues of more than $110 million for 2024, again a meaningful increase from 2023’s just over $83 million.
While accident year losses were a little higher in 2024 than 2023, AM Best noted in its latest assessment that improvement has continued over time, saying that Lumen Re’s “loss ratio has decreased significantly since 2022.”
Lumen Re continues to underwrite natural catastrophe exposed reinsurance, channelling that to entities in the LGT ILS Partners business structure, to efficiently originate opportunities for certain of the managers ILS funds.
AM Best said that it continues to assess Lumen Re’s balance sheet strength as “strongest” while its operating performance also remains adequate under the affirmed ‘A’ ratings.
Investment income remains higher thanks to the higher rate environment, while AM Best also notes that Lumen Re’s leverage, as measured by the ratio of retained limits to equity, remains low comparably in the reinsurance sector.
Lumen Re continues to occupy an important position at the centre of the LGT ILS Partners investment operations, providing an efficient structure for sourcing and accessing reinsurance risk premia, through a rated balance-sheet vehicle.
The positive results reported for 2024 and the fact AM Best noted the continuation of lower loss ratios in 2025 will all have flowed to the benefit of investors in the LGT ILS funds that source opportunities from Lumen Re.
Finally, it’s worth highlighting that this year Lumen Re became a catastrophe bond sponsor for the first time, securing $175 million of protection from the Photon Re Ltd. (Series 2026-1) issuance.
Lumen Re’s CUO Klaus Sapelza told us that the cat bond is a natural evolution of the firm’s risk‑transfer strategy, and marks an important strengthening of its overall risk framework.
