Conduit Re sees big premium growth at 1/1 renewals
Bermuda reinsurer Conduit Re has reported premiums of $262.6 million for the 2022 1/1 renewals, up 70% on the $154.4 last year.
The reinsurer, which completed its IPO in December 2020, also saw strong momentum in pricing and terms and conditions in most classes, it said, with a rate increase of 5% (net of claims inflation, exposure changes and other key terms and conditions).
The business significantly ramped up its casualty business over the year, with $85.5m in premiums bound, against $24.7m in 2021. Property accounted for $109.3m, and specialty lines the remaining $67.8m.
The quota share to excess loss split 64% to c36%, reflecting continued attractive primary market and measured improvements in excess of loss attachment and terms, it added.
Full-year results for the business will be announced on 24 February.
Neil Eckert, group executive chairman, said: “Conduit Re is benefiting from some of the most attractive market conditions seen in a generation.
“Our second successful January renewals season reflected the fact that 2021 was the fourth costliest catastrophe year in history for the reinsurance industry, and total catastrophe losses for the insurance market over the last five years now amount to over $500 billion.
“As a new market entrant with a strong capital base, an unencumbered balance sheet and a forward-looking approach to underwriting, we are well positioned to benefit from continued favourable market conditions.”
Trevor Carvey, group chief executive officer, added: “In a very late renewal season characterised by a tough standoff between brokers and underwriters, we saw continuing rate improvements and tightening of terms and conditions across our core classes.
“This has allowed us to take another big step forward in achieving our long-term goal of building a market-leading reinsurance underwriting franchise.”
Looking forward, in an investor conference on the renewals, Greg Roberts, Conduit’s head of property, also said the reinsurance market could see a degree of upheaval at pending renewal deadlines mid-year as evolving capacity forces some cedents to change strategy.
“We think there are some parts of the market coming up - Japan at end-Q1, North American windstorms mid-year - where we expect to see some changes in the way reinsurance products are bought,” he said.
