Third Quarter 2022 Trading Update

Conduit Holdings Limited Q3 2021 Trading Update

Conduit Holdings Limited ("CHL" or "Conduit Re") (Ticker:CRE)

Hamilton, Bermuda - 3 November 2021

Trading Statement - Q3 2021

CHL is today presenting its trading statement for the nine months ended 30 September 2021.

"We continue to build our business as we set out in our initial plans and remain on track to deliver on these. This quarter saw two major catastrophe loss events and our relatively limited exposures to these demonstrates the quality of the portfolio that Trevor and the team have been carefully building. This justifies the Conduit Re approach of building a focussed, diversified and balanced business model."

Neil Eckert Group Executive Chairman

Key highlights:

• Underwriting plan on track;
• Estimated ultimate premiums written of $387.7 million; on plan for the year;
• Gross premiums written of $291.2 million;
• Diversified and balanced portfolio;
• Market conditions remain strong with continuing rate increases and improvements in terms and conditions;
• Net incurred losses in the third quarter in relation to Hurricane Ida and the European Floods of $28.6 million, including the impact of outward reinsurance and reinstatement premiums (representing 2.9% of tangible net assets);
• Conservative approach to invested assets maintained;
• Continued development of a high quality underwriting franchise with the build out of our teams and operating platform;
• First interim dividend of 18c (approximately 13p) per common share (in respect of H1 2021) declared and paid in the third quarter of 2021.

"We passed our first test as a global reinsurer during the quarter with the experiences of the European Floods and Hurricane Ida. Both of these events serve as a poignant reminder of the potential severity and frequency of natural events in the reinsurance marketplace.

Whilst Ida in particular is a major event for the Industry, it sits well within our retrocession programme and has therefore only had a limited impact on our financial performance. Our reinsurance programme remains strong for the rest of the year.

We anticipate that these events, together with the continuing pressure of claims inflation and concerns about the increased frequency of catastrophe events, will support continued upward pressure on pricing. We are well positioned ahead of the key 1 January renewals."

Trevor Carvey Group Chief Executive Officer

Business update

During the third quarter of 2021, Conduit Re bound contracts with total estimated ultimate premiums written of $54.6 million. Our estimated ultimate premiums written for the year to date are now $387.7 million. We remain on track to achieve the underwriting plan we set out in our IPO Prospectus, with the only significant deviation being our weighting towards quota share contracts rather than excess of loss business. We consider quota share business to have provided the best balance between price and risk as we build out our underwriting portfolio. As there is a greater lag in the accounting recognition of gross premiums written and earned in comparison to excess of loss reinsurance, as previously stated this will result in slower recognition of gross premiums written and earned in 2021, a proportion of which will be recognised in the 2022 financial year.

Underwriting activities

Our estimated ultimate and gross premiums written for the nine months ended 30 September 2021 were as follows:

Segment	Estimated ultimate premiums written $m	Percentage of total	Gross premiums written $m	Percentage of total
Property	193.5	49.9%	162.9	55.9%
Casualty	126.8	32.7%	77.2	26.5%
Specialty	67.4	17.4%	51.1	17.6%
Total	387.7	100.0%	291.2	100.0%

The split of our estimated gross premiums written between quota share and excess of loss for the nine months ended 30 September 2021 was:

Type of business	Property $m	Casualty $m	Specialty $m	Total $m
Quota share	74.2	70.0	38.2	182.4
Excess of loss	31.0	7.2	8.7	46.9
Quota share of excess of loss	57.7	-	4.2	61.9
Total	162.9	77.2	51.1	291.2

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