Conduit Re absorbed a $119.1 million hit from the California wildfires last year — the largest loss in its history — yet the Bermudian-based reinsurer still delivered an 11.1 per cent return on equity for 2025.

Conduit Holdings, its parent company, reported gross premiums written of $1.24 billion, up 6.9 per cent on 2024, while comprehensive income totalled $116.8 million.

The January 2025 wildfires in the Los Angeles area added 15.3 percentage points to the company’s undiscounted loss ratio, pushing its undiscounted combined ratio to 101.5 per cent for the year. On a discounted basis, the combined ratio was 89.1 per cent.

Neil Eckert, chief executive, said the result was supported by strong investment performance and more benign claims activity in the second half of the year.

He commented: “After a difficult start to 2025, we are pleased to have delivered an 11.1 per cent ROE for the year. The result reflects our loss exposure to the California wildfires, the largest absorbed loss in Conduit’s history, and our post‑event retrocession purchases.”

Investment returns played a key role in offsetting catastrophe volatility. Conduit reported a 6.7 per cent total net investment return, with net investment income rising 24.2 per cent year-on-year to $80.7 million as higher yields continued to benefit its conservative, highly rated portfolio.

The company also recognised $6.9 million in tax credits under Bermuda’s Tax Credit Act 2025, which introduced credits linked to on-island payroll, local spending and community donations. The credits helped to reduce Conduit Re’s operating expenses.

Growth was driven primarily by a 23 per cent increase in casualty premiums, while property growth slowed amid softening market conditions. Overall risk-adjusted rate change for the year was negative 3 per cent, net of claims inflation.

Looking ahead, Conduit said it renewed and enhanced its retrocession programme for 2026, reducing net retention on peak and secondary perils.

The group ended the year with tangible net assets per share of $7.14 and an estimated Bermuda Solvency Capital Requirement ratio of 252 per cent, while maintaining its full-year dividend at 36 cents per share.