Conduit Holdings Limited January 2022 Trading Update
Conduit Holdings Limited ("CHL" or "Conduit") (Ticker: CRE)
Pembroke, Bermuda - 19 January 2022
Trading Update regarding 1 January 2022 renewals
CHL is today providing a trading update regarding business written in the important1 January 2022 renewal season.
"Conduit Re is benefiting from some of the most attractive market conditions seen in a generation.
Neil Eckert Group Executive Chairman
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."
Key highlights:
The highlights of the1 January 2022 renewal season for Conduit's main operating subsidiary Conduit Reinsurance Limited ("Conduit Re") are as
follows:
- Estimated ultimate premiums bound of approximately$262.6 million (2021: $154.4 million), an annual increase of approximately 70%.
- Overall portfolio year on year renewal net rate change of +5%; reflecting favourable improvement in both pricing and terms & conditions, in
line with management expectations. Positive momentum expected to continue in 2022. - Maintaining a hit rate of approximately 20% reflecting our strong submission flow and our disciplined and selective approach.
- Continued focus on attractive primary market business via Quota Share business (64%) with an increase also seen in Excess of Loss business
(36%) with measured improvements in attachments and terms. - Balanced portfolio diversified across Property (41%), Casualty (33%) and Specialty classes (26%) in line with management expectations.
- Conduit Re's 1 January outwards reinsurance programme successfully placed in line with management expectations, with some further
planned purchases expected to be made during the year as our exposures build. - Strengthening the Conduit Re brand in the reinsurance market, building further on established trading relationships with all leading reinsurance broking intermediaries and demonstrating strong client renewals and acceptance on new business.
"In a very late renewal season characterised by a tough stand-off between brokers and underwriters, we saw continuing rate improvements and tightening of terms and conditions across our core classes.
Trevor Carvey Group Chief Executive Officer
This has allowed us to take another big step forward in achieving our long-term goal of building a market-leading reinsurance underwriting franchise."