Nectaris Re Ltd., the Class 3A Bermuda-based rated reinsurance platform backed by specialist insurance linked securities (ILS) and reinsurance investment manager Leadenhall Capital Partners LLP, continued to report solid underwriting results for a third consecutive year in 2025, according to a rating affirmation from AM Best.
The rating agency said that it assesses the overall operating performance of Nectaris Re as adequate, based on “solid gross and net underwriting results from 2023 through 2025, along with the historical operating results of the reinsurance portfolio of the Leadenhall-managed funds from which the Nectaris Re portfolio was formed, and the projected performance results of the retained tail risk.”
That indicates a third consecutive year of strong underwriting profits for Nectaris Re, with that performance reflective of how the subject reinsurance business backed by ILS funds under the management of Leadenhall Capital Partners will have delivered returns for investors in those strategies, we assume.
Recall that, Nectaris Re was launched with Leadenhall Capital Partners backing through a Mutual Cooperation Agreement in 2021.
Effectively, the agreement with Nectaris Re provides the Leadenhall Capital Partners ILS management business with access to a rated reinsurance underwriting balance-sheet platform, through which business can be sourced from the open market for its private ILS fund strategies.
In its most recent assessment, AM Best has again affirmed the ‘A’ (excellent) ratings of Nectaris Re Ltd., maintaining their stable outlooks and continuing to highlight the reinsurance underwriting vehicles balance-sheet strength as “strongest”.
The arrangement sees Nectaris Re retroceding all of its underwriting business on a fully-collateralized basis to the special purpose structure Horseshoe Re II Limited, a segregated accounts company, to cells that are funded by Leadenhall Capital Partners managed insurance-linked securities funds.
Notably, while Nectaris Re continues to source reinsurance opportunities from MS Amlin’s Lloyd’s Syndicate 2001 and MS Reinsurance, AM Best notes it is continuing to access new sources of reinsurance opportunities as well.
The rating agency said, “Nectaris Re also sources substantial business via its open market operations, which is projected to grow in 2026.”
That shows Nectaris Re growing its stature in the open reinsurance market, which should enable more unique opportunities to be captured, ultimately to benefit the investors backing the Leadenhall ILS funds that provide the funding and collateral to support its underwriting.
Nectaris Re continued to benefit from the higher interest rate environment in 2025, which has again served to deliver additional investment income, even though its focus remains on the underwriting profit side of the business.
Finally, the latest company filing for Nectaris Re shows a relatively flat profit after tax was generated in 2024, of just over $13 million, closely comparable to the $13.18 million of profit earned in 2023.
The Nectaris Re relationship continues to benefit Leadenhall and its investors, with the expected plans to write more open market business likely to indicate a growing reinsurance opportunity set could be in target over the coming years.
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