Conduit Re wrote nearly $1 billion in gross premiums in the first nine months of 2026, down 3.8 per cent from a year earlier, as the Bermuda reinsurer cut back on property business in a softening market.

Parent company Conduit Holdings said reinsurance revenue rose 1.6 per cent to $673.2 million in the nine months to September 30, as growth in casualty more than offset declines in property and specialty.

Property, Conduit’s largest segment, recorded a 10.1 per cent drop in gross premiums written to $532.9 million. Casualty premiums rose 8.9 per cent to $309.1 million as the reinsurer expanded business with preferred clients, while specialty premiums fell 3 per cent to $157.9 million.

Conduit said it was shifting its property portfolio towards higher-margin, excess-of-loss contracts, which cover claims above an agreed threshold.

Renewal rates fell 6 per cent across the portfolio after adjusting for claims inflation, changes in exposure and policy terms. Property rates fell 10 per cent, specialty 7 per cent and casualty 1 per cent.

Conduit attributed the pressure on pricing to strong industry returns and record levels of global reinsurance capital. It expects rates to soften further, particularly in property and specialty.

Neil Eckert, Conduit’s chief executive, said: “2026 has been marked by relatively benign insured losses from natural catastrophes, elevated frequency of specialty losses and volatile investment markets.”

He added that the reinsurer was growing with core clients where pricing and margins remained adequate, and buying reinsurance for its own portfolio to limit exposure to large losses.

“As market conditions soften, we expect to carry this fundamental strategy into the upcoming renewal season,” Mr Eckert said.

Insured natural catastrophe losses were relatively light, while specialty losses were more frequent. Conduit said no single event had a material impact on the company. Its estimates for losses tied to the Middle East conflict were unchanged in the third quarter.

The company recorded a negative net investment return of 0.4 per cent, compared with a positive return of 5.4 per cent a year earlier. Rising US Treasury yields drove unrealised losses that outweighed net investment income. Conduit expects higher yields to lift income as it reinvests cash.

Managed investments and cash rose about 14 per cent to $2.3 billion. The company bought back $38.9 million of its shares during the nine months and paid a $28 million interim dividend in September.

Conduit has leadership changes in the pipeline, with Mark Pickering set to join as chief financial officer on November 30, and Bermudian Christian Dunleavy to succeed Mr Eckert as CEO on March 1, 2027.