Conduit’s reinsurance revenue up over 30% as GPW hits $957m in 9M’24

Bermuda-based reinsurer Conduit Re generated reinsurance revenue of $588.2 million for the first nine months of 2024, an increase of 30.3% over the same period last year, as gross premiums written (GPW) rose 25.2% amid strong growth in property and specialty.

For 9M 2024, reinsurance revenue at the multi-line reinsurer increased by almost $137 million with a strong performance in each business segment.

In property, revenue increased by 30.4% from $245.3 million in 9M 2023 to $319.9 million in 9M 2024, with even stronger growth of 48.1% in specialty, from $80.7 million to $119.5 million. Growth was less but still solid in casualty, which recorded reinsurance revenue of $148.8 million, up 18.8% on last year’s $125.3 million.

Property GWP rose 32.9% to $536 million from $403.3 million, while specialty premiums increased by 39.3% to $197.7 million from $141.9 million, and casualty premiums rose just 2% from $219.2 million to $223.6 million.

For the nine month period ended September 30th, 2024, Conduit Re’s overall risk-adjusted rate change, net of claims inflation, was 1%, and by segment was 3% for property, 1% for specialty, and -1% for casualty.

The company states that it is seeing an increasing number of opportunities to deploy its capital into the areas and products that it targets, highlighting the non-catastrophe elements of both property and specialty in particular as areas with good growth prospects.

“With two months remaining in the year, the reinsurance industry has already experienced a significant level of natural catastrophe and large loss activity. Pricing conditions remain broadly stable and benefit from several years of compounding rate increases. As a trusted partner, our underwriting team engages with clients in what is a dynamic marketplace as we continue to grow while maintaining the balance of our overall portfolio,” said Gregory Roberts, Chief Underwriting Officer.

In terms of losses, Conduit Re notes that activity across smaller and mid-size natural catastrophe and large risk events was elevated in the third quarter. In aggregate, Conduit’s estimated undiscounted net loss, after reinsurance and reinstatement premiums, for large loss events recorded in the third quarter was approximately $50 million.

On hurricane Milton, which made landfall in the fourth quarter of 2024, Conduit expects its undiscounted net loss to be in the range of $30 million to $50 million, net of reinsurance and reinstatement premiums.

Further, the reinsurer’s undiscounted ultimate loss estimates, net of ceded reinsurance and reinstatement premiums, for prior years’ reported loss events remain stable.

Following the loss events of the third quarter, Conduit reports that its undiscounted combined ratio was in the mid-90s on a year to date basis through September 30th, 2024.

Investments also performed well for Conduit in the first nine months of the year, with an investment return for 9M 2024 of 4.9%, driven primarily by a significant decrease in treasury yields during the third quarter, combined with investment income given a generally higher yielding portfolio.

Trevor Carvey, Chief Executive Officer, said: “Our increase in premiums written of 25% year-on-year reflects continued growth into our capital base, in what we view as a strong market with healthy rate adequacy. We have seen an active quarter from an event perspective, notably natural catastrophe events across the US, Canada and the Caribbean, and as a well-diversified, predominantly quota share reinsurer we pick up our fair share of these, as we expect to do so. Looking forward and into 2025, we remain committed to risk selection and growing our business in a measured and balanced manner.”

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