Conduit posts 115% rise in first-quarter GWP
Property and casualty reinsurer Conduit Re says it continued to show growth across all segments during the first quarter of 2022, thanks to improving rates and, primarily, to new business. Client count and submission numbers have increased in line with the group's growth strategy, it said, while rate change continues to be positive, outpacing inflation.
Gross written premium rose by almost 115% year on year, to $178 million from $83 million. Of the latest figure, property, casualty and specialty accounted, respectively, for 54%, 19% and 27%.
Conduit said it continued to build a high-quality reinsurance franchise during the quarter and that market conditions remained strong with continuing rate increases and improvements in terms and conditions. It saw diversified and balanced portfolio growth with a renewal net rate change of 4.9%.
Net ultimate incurred losses related to the Russian invasion of Ukraine are estimated at between $15 million and $30 million, with net impact for the first quarter of $25 million, after reinsurance and reinstatement premiums, predominantly driven by the classes of aviation, war on land and marine war.
Conduit reported a 49% rise in ultimate premiums written for the first-quarter of 2022 to nearly $297 million from the $199 million it reported in Q1 2021, driven by growth in all segments, it said.
"The first quarter of 2022 has seen significant year-on-year growth as we execute on our plan to selectively grow our diversified portfolio,” Trevor Carvey, Conduit’s chief executive officer, said. “We continue to enjoy the benefits of strong reinsurance market conditions and the continuing excellent support from our clients and brokers.”
Conduit’s executive chairman, Neil Eckert, added: "Our position as a pure-play reinsurer, with a strong balance sheet and no legacy, allows the team to take advantage of the best market conditions for a decade,” said. “As the discipline in primary markets continues, Trevor and his team are successfully executing the strategy put forward in the IPO plans and our earned premium recognition is building."
On the situation in Ukraine, Carvey said: “Given the typical structure of the reinsurance treaty contracts that we underwrite, with event and aggregate limitations in place, we have been able to arrive at a loss estimate for the relatively small number of contracts we write across these classes for Ukraine and Russia, and this gives us confidence in our estimate at this time.”
