Lumen Re, LGT's reinsurance arm, maintains low loss ratio and renews reciprocal jurisdiction status for 2024

Lumen Re, the primary Bermuda-based, rated reinsurance platform for LGT ILS Partners, has renewed its reciprocal jurisdiction reinsurer status in 37 U.S. states for 2025. The reinsurer also maintained a lower loss ratio through 2024, according to AM Best’s latest ratings update.

In reaffirming Lumen Re’s ‘A’ rating, AM Best emphasized that the extension of its reciprocal jurisdiction designation—originally secured in 2024—will help streamline operations and cut costs as the company continues to support LGT ILS Partners’ investment strategies.

The rating reflects Lumen Re’s robust balance sheet, which AM Best continues to classify as the "strongest." The reinsurer’s performance remains stable, bolstered by an ongoing re-underwriting and risk reduction initiative started in 2022. These efforts have led to a notable drop in loss ratios and, aided by rising interest rates, a boost in investment income since 2023.

AM Best stated that Lumen Re is expected to continue performing well under current market conditions. As a central component of LGT ILS Partners’ platform, the company enables efficient access to reinsurance risk premiums via its rated structure.

The renewal of its jurisdictional status enhances Lumen Re’s role as a cost-effective underwriting and risk origination vehicle for the asset manager.

Financially, the company has shown solid growth, with net premiums written increasing from $51 million in 2022 to nearly $57.8 million in 2023. Revenues climbed from $57.8 million to $83.3 million, while net income surged from roughly $2 million to over $65 million year-on-year—benefiting LGT ILS fund investors who receive returns tied to Lumen Re’s performance.

Additionally, in 2022, U.S.-based The Kresge Foundation became an external equity investor in Lumen Re.