Huge premium growth for Conduit Re
Bermudian-based Conduit Re is off to a flying start in 2022.
The company, a Class of 2021 start-up, has reported estimated January 1 renewal season ultimate premiums bound of approximately $262.6 million, an increase of approximately 70 per cent over last year.
The company reported $154.4 million in ultimate premiums bound a year ago.
Conduit Re, the main operating subsidiary of Conduit Holdings Limited, reported an overall portfolio year-on-year renewal net rate change of 5 per cent, which it said reflected favourable improvement in both pricing and terms and conditions, in line with management expectations.
It added that positive momentum is expected to continue in 2022.
Neil Eckert, group executive chairman, said: “Conduit Re is benefiting from some of the most attractive market conditions seen in a generation.
“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."
Trevor Carvey, group chief executive officer, added: "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.
“This has allowed us to take another big step forward in achieving our long-term goal of building a market-leading reinsurance underwriting franchise."
The company said it maintained a hit rate of approximately 20 per cent, reflecting Conduit’s strong submission flow and disciplined and selective approach.
Conduit continued to focus on attractive primary market business via quota share business (64 per cent) with an increase also seen in excess of loss business (36 per cent) with measured improvements in attachments and terms.
The organisation’s balanced portfolio is diversified across property (41 per cent), casualty (33 per cent) and specialty classes (26 per cent) in line with management expectations.
Conduit Re's January 1 outwards reinsurance programme successfully placed in line with management expectations, with some further planned purchases expected to be made during the year as its exposures build, the company said.
The company said it has strengthened 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.
The split of estimated ultimate premiums written by class of business was: property, $109.3 million, up 37 per cent year on year; casualty, $85.5 million, up 246 per cent year on year; and specialty, $67.8 million, up 36 per cent year on year.
Conduit's overall year-on-year renewal net rate changes for business written at January 1 were estimated to be: property, up 8 per cent; casualty, up 4 per cent; and specialty, up 2 per cent.
The company said it expects to announce its 2021 year-end financial results on February 24.