Conduit net income jumps 24.8%
Conduit Re produced a 24.8% increase in comprehensive net income in the first half of the year despite a slowdown in rate increases and a tightening of margins in casualty, the company said today.
The Bermuda-based reinsurer said it had net income foe the first six months to June 30 of $98.1 million compared to $78.6 million in 2023 while gross premiums written surged 36.1% to $737.8 million from $542.2 million a year earlier.
The company produced a reinsurance service result of $99.7 million compared to $80.7 million in 2023 while its discounted combined ratio slipped to 75.1% from 72.5% and its undiscounted combined ratio also weakened to 85.7% from 83.1%.
"In another active period for industry loss events we are pleased to have produced a return on equity of 9.9% for the half year," said Trevor Carvey, chief executive officer. "Our 36.1% premium growth reflects our well-established distribution channels and our maintenance of underwriting discipline. Property and specialty, in particular the non-catastrophe exposed lines, again attracted our attention and capital deployment. In casualty, while industry underwriting margins are tighter in our view, our casualty book is continuing to support our balanced underwriting portfolio."
Neil Eckert, executive chairman, added: “Our results represent the team’s continued ability to grow our underwriting business successfully. Progression across earnings, premium and assets under management has been substantial and supports the delivery of increasing shareholder value.”
Greg Roberts, chief underwriting officer, commented: “Our ability to grow our portfolio is underpinned by the continual drive of the underwriting team to work with our partners to deliver solutions in a dynamic market place. While rate increases have tempered, current rating levels benefit from several years of compounding and the robust pricing levels achieved across the lines of business in which we operate."
The company's loss ratio deteriorated to 62.4% from 57.5% while the company's investment return edged up to $23 million from $22.6 million.
By segment, the company reported a surge in property underwriting, with GWP jumping 43.4% to $441.8 million while specialty underwriting leapt 58.6% to %148.6 million, overtaking casualty, which edged up 5.4% to $148.2 million.
Conduit said "certain classes" in casualty lines were showing pricing pressure, but "rates generally are adequate".
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