Wildfires, severe convective storms and aviation events impacted Conduit Holdings’ first six months of the year.

The firm saw gross premiums of $803.3 million, up 8.9 per cent compared with the same period in 2024, alongside significant natural catastrophe losses.

Conduit said the period was marked by more losses than usual due to those disasters. The recent British High Court judgment regarding the 2022 Ukraine loss also led to more insured losses.

“The actions to rebalance our portfolio, together with increased losses during the second quarter and an increase in our reserves related to Ukraine, have resulted in a further reduction to our return on equity expectations to the mid-single digits for 2025,” a spokesman for the firm said.

The company added: “However, we believe Conduit has a strong foundation from which to build upon, and we are taking steps to advance the business and drive resilience to support long-term value creation across market cycles."

Rates remained at historically high levels despite some market softening, with a risk-adjusted rate change of -3 per cent net of claims inflation for premiums written during the first half of the year.

Neil Eckert, chief executive, said the firm is going through a transition as it strives for resilience.

“We have started initiatives to manage net exposures better, including enhancing our outwards reinsurance programme and refining our portfolio,” he said. “The process of rationalising our quota share exposure is under way and will lead to less premium in this area, while we have an increased appetite for excess of loss business.”

He said these adjustments were intended to save money and diversify, which Conduit Holdings believed would help drive more consistent returns.

The company also hired key people across senior roles, which brought fresh perspectives to the team.

The company grew its portfolio, reporting a net investment result of $63.8 million for a return of 3.9 per cent.

There was an interim dividend of $0.18 per common share declared.

Meanwhile, Conduit’s undiscounted combined ratio at 122.1 per cent. California wildfires accounted for 31.6 per cent of that figure.

Conduit said they continue to see adequate pricing across many of their target classes, though market dynamics are shifting due to increased capacity.