Conduit Re premiums fall 3.8% as property rates decline 10%
Bermuda-based Conduit Re has reported a 3.8% decline in gross written premiums to $999.9 million for the first nine months of 2026, as softer property and specialty market conditions prompted a continued shift towards higher-margin excess of loss business.
Property GWP declined 10.1% to $532.9 million from $592.5 million, reflecting the company’s strategy of reducing exposure to less attractive business as market conditions soften. Specialty premiums also fell 3% to $157.9 million, while casualty GWP increased 8.9% to $309.1 million as Conduit expanded relationships with preferred clients.
The decline from combined GWP of just over $1 billion a year earlier came as the reinsurer recorded an overall risk-adjusted rate reduction of 6%, including a 10% fall in property pricing, reflecting mounting competitive pressure across the reinsurance market.
Despite lower written premiums, reinsurance revenue increased 1.6% to $673.2 million from $662.4 million, supported by growth in casualty business.
The divergence between business lines was also reflected in pricing, with risk-adjusted rates declining 7% in specialty and just 1% in casualty.
Conduit said record global reinsurance capital levels and strong recent industry returns had contributed to increased competition, particularly in property and specialty, with further rate reductions expected.
The company also continued returning capital to shareholders, repurchasing $38.9 million of shares during the nine-month period, compared with $2.5 million a year earlier, alongside a $28 million interim dividend payment in September.
Neil Eckert, outgoing CEO, said: “Throughout 2026, we have executed our underwriting strategy as planned, with continued progress in rebalancing the portfolio towards excess of loss, growing with core clients where pricing and margins remain adequate, and maintaining a robust retrocessional programme to manage underwriting volatility and reduce PMLs. As market conditions soften, we expect to carry this fundamental strategy into the upcoming renewal season.
“2026 has been marked by relatively benign insured losses from natural catastrophes, elevated frequency of specialty losses and volatile investment markets. Our investment performance has been impacted by rising treasury yields and unrealised losses during the year, but our asset portfolio remains high quality and our investment income will benefit from higher reinvestment rates over time.”
The update also comes ahead of a leadership transition, with Mark Pickering due to become chief financial officer on 30 November and Christian Dunleavy succeeding Eckert as chief executive on 1 March 2027.
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