Conduit Re optimises portfolio mix to strengthen underwriting resilience

Conduit Holdings, the Bermuda-based reinsurer and specialty insurance group, outlined a measured approach to portfolio management and risk alignment during its Q3 2025 earnings call.

Chief Executive Officer Neil Eckert and Chief Financial Officer Elaine Whelan discussed how the business is adapting its underwriting strategy, capital position, and investment portfolio as it moves into a more mature phase of growth.

For the first, Conduit achieved growth in gross premiums written (GWP) across all segments, with the casualty book showing the strongest increase.

“Certain classes have presented more compelling opportunities to deploy our capital, and we have consciously grown in those areas, but we have also deliberately pulled back in other classes,” Eckert said.

In property reinsurance, Conduit is gradually shifting towards a higher proportion of excess of loss business while maintaining discipline on pricing and account selection.

“As we execute on these plans for 2026 we expect to move towards a more even balance between quota share and excess of loss within the property segment during the upcoming year, with further progress over the next two to three renewal seasons,” Eckert noted. The company said this rebalancing is designed to reduce volatility and improve net portfolio performance.

Casualty reinsurance remains a key source of diversification and growth, rising 20% to $269 million in GWP. “The growth we have experienced in casualty has been focused in targeted classes demonstrating improving conditions and positive rate momentum. This includes US general third party liability and US excess and surplus lines,” Eckert said. “Our casualty portfolio is built on a foundation of solid, long term quota share partnerships, and it will be difficult to materially increase the excess and loss proportion of the account in this class.”

Specialty lines were broadly stable, with modest growth reflecting competitive conditions. Eckert said Conduit continues to see opportunities in areas such as marine, aviation, and engineering, supported by recent senior hires.

“In Q3 we have strengthened our specialty underwriting team with the appointment of David Frawley. David is a seasoned underwriter with deep market experience, particularly in marine and aviation classes, which will allow us to take advantage of any meaningful firming of aviation rates in 2026 following a number of significant loss events this year.”

Whelan reported solid investment performance, with the portfolio generating a 5.4% return for the first nine months of the year and maintaining a book yield of 4.2%.

She emphasised the continued focus on quality and liquidity, noting that “duration is currently 2.8 years versus 2.7 years on our net reserves, average credit quality is AA.” The investment portfolio has grown to $2 billion, providing additional income support for shareholder returns.

Eckert also pointed to recent management appointments, including as Chief Underwriting Officer, as Chief Risk Officer, as Head of Casualty, and joining the board, as evidence of Conduit’s efforts to strengthen leadership depth. “These appointments underscore our commitment to bring the resources and talent to the organisation in order to execute on our strategy,” he said.

He concluded that Conduit’s near-term focus remains on maintaining capital strength and disciplined underwriting amid rising secondary peril losses, and through a softer market phase: “Our aim is to reduce volatility going forward from these types of events, and we are focused on the net performance of our portfolio in our 2026 business planning.”

As the company approaches the January renewals, Conduit’s message to investors was consistent, growth will moderate, but the focus on portfolio quality, capital efficiency, and underwriting alignment is intended to sustain long-term performance.