Citadel Risk has revealed $1.4 million in underwriting profits as part of its Q2 2020 financial results.
The results outlined that Citadel Reinsurance Company (Citadel Re) is still well-poised for more than $3 million profit as gains on the sale of captive management entities, which it stated will be recognised in Q3.
Citadel Re’s loss ratio is running at 42 percent with a combined ratio of 68 percent.
Citadel Re’s Bermuda Solvency Capital Requirement Ratio (BSCR ratio) remains strong at 231 percent, which they based upon the latest BMA methodology.
Citadel Re entity profit for the six-month period is $1.784 million. It highlighted that the consolidated loss has been caused by a post-tax loss of $2.875 million in American Millennium Insurance Company (AMIC), one of its US subsidiaries.
It was also revealed that it has over $163 million in total assets.
In addition, the Q2 2020 results highlighted that Citadel has over $23.7 million in total equity interest attributable to shareholders.
Tony Weller, CEO of Citadel Risk, commented: “A good set of Citadel Re Bermuda numbers for the half year, sadly nullified by the exceptional losses this quarter from AMIC. We have continued to be surprised by the increased losses emanating from three MGAs, all of which have been in run-off since 2018; the core AMIC programmes are performing well and I’m confident that a turnaround can be completed by our NJ-based carrier within the next 12 to 24 months.”
“Citadel Re has added capital to AMIC from its own balance sheet and will continue to support AMIC through these tough times. In the reinsurance arena we have seen a continued vibrant pipeline and our existing programmes have performed exceptionally well,” he concluded.
In July, Davies acquired Citadel Management Bermuda Limited and Cedar Consulting (Citadel Risk).
