Conduit Re enjoys robust growth in hard market
Conduit Holdings, the parent of pure-play Bermuda-based reinsurance business Conduit Re, enjoyed rapid growth in the first quarter of the year as gross premiums written increased by 59.1% compared with the same period in 2022 to reach $278.0 million.
The company also said it wrote $132.6 million of estimated ultimate gross premiums during the April renewals, bringing estimated ultimate gross premiums written to $575.8 million from 1 January to 30 April 2023.
It said market conditions remain very favourable with property and specialty leading the way ahead of casualty. It said this dynamic was driven by a fundamental re-pricing of risk and growing demand for reinsurance while supply remains constrained and continuing risk-adjusted rate increases, augmented by improvements in terms and conditions.
It added that it anticipates enduring momentum into April, ahead of the mid-year renewals and that it would continue prioritising the most attractive classes of business within an exceptional, sustainable pricing environment, accelerating its trajectory towards a mid-80s combined ratio.
Trevor Carvey, CEO, said: “The imbalance between supply and demand continues in the marketplace and Conduit Re has seen a very strong first quarter both in terms of premium growth and the rating levels seen across our target classes. April business renewed through strongly and we continue to dial our book deliberately towards the property and specialty classes where the market environment is considered most favourable. The overall signs are that pricing momentum will be maintained into the important mid-year renewals, and our highly scalable and lean operating model has created a platform for strong future growth."
Neil Eckert, executive chairman, commented: “As the year progresses, the capacity constraint in the market becomes increasingly acute. We see this as an enduring pricing environment, creating the opportunity for improved margins in our business throughout 2023 and beyond. Conduit continues to deliver strong year-on-year growth. Our current ultimate premium growth is ahead of the original five year IPO plan expectations and the true value of our strong balance sheet is becoming more apparent as time passes.”
