Conduit Re parent sees “exceptional” start to 2023

CHL, the parent company of Bermuda’s Conduit Re, has reported 60% premium growth through new business and renewals in its latest trading update. Higher pricing and improved terms and conditions mean it is “entering 2023 from a position of strength”, according to the company.

According to the update, its estimated ultimate premiums written at the 1 January renewals total $421.4 million, up from $262.6 million the year before, due to “extremely strong” property and specialty market conditions and “selective growth” in casualty lines.

The firm reports significantly enhanced terms and conditions, reduced acquisition costs on renewed business and an “exceptional pricing environment”, with a 19% risk-adjusted rate change net of inflation across its portfolio: a 39% risk-adjusted rate change on property, 14% on specialty lines and 1% on casualty.

“This has been an exceptional renewal season,” said Trevor Carvey, chief executive officer, adding that 60% premium growth was a true indication of the underwriting conditions it experienced.

“This is manifesting itself across pricing and rates, terms and deductibles, and the strong increase in new business that we have enjoyed. From a capital perspective, we have plenty of room to execute our plan and the growth we anticipate.”

Gregory Roberts, chief underwriting officer, said it had been a “busy and rewarding start to the year”.

“A highlight was that we successfully secured our retrocession programme in line with our objectives. As a team, we are absolutely delighted in the way that we executed the renewals period and feel that we have developed a reputation as being a responsive, reliable and disciplined counterparty. We expect market conditions to continue to offer opportunities for further growth as the year develops,” he added.