Conduit Re publishes results for H1 2024

Conduit Re publishes results for H1 2024 | Insurance Business Australia

Insurance News

Conduit Re publishes results for H1 2024

Reinsurance revenue saw a huge spurt

Insurance News

By
Kenneth Araullo

CHL, the parent company of Bermuda-based Conduit Re, has released its interim financial results for the six months ending June 30.

The company reported a return on equity (RoE) of 9.9%, supported by a 36.1% growth in gross premiums written, which reached $737.8 million. Reinsurance revenue increased by 37.1% to $382 million, while net reinsurance revenue grew by 39.3% to $338.2 million.

The company’s key financials for the first half of 2024 show a reinsurance service result of $99.7 million, an increase of 23.5% from the previous year. Comprehensive income rose by 24.8% to $98.1 million.

The net investment result showed a slight increase of 1.8% to $23 million. Financial ratios reflected a net loss ratio of 62.4%, a reinsurance operating expense ratio of 8.1%, and a combined ratio (undiscounted) of 85.7%.

Per share data indicates that tangible net assets per share increased to $6.69, while diluted earnings per share rose to $0.62. Dividends per common share remained consistent at $0.18.

Looking ahead, Conduit Re said that it expects favorable market conditions, especially in property and specialty lines, which continue to offer growth opportunities. The company sees potential for re-rating in specialty lines following large market loss events like the Baltimore bridge collapse.

While some casualty lines are experiencing pricing pressure, rates remain generally adequate. Inflationary factors continue to influence both pricing and demand for coverage.

Conduit Re also maintains a balanced approach to natural catastrophe accumulations, with net exposures within tolerances. The company aims to build a resilient and diversified book of business, focusing on non-catastrophe lines for potential capital deployment. The established distribution channels are expected to sustain a healthy pipeline of new and repeat business.

Trevor Carvey (pictured above), chief executive officer, noted that the company’s performance during an active period for industry loss events was bolstered by strong distribution channels and disciplined underwriting.

“Property and specialty, in particular the non-catastrophe exposed lines, again attracted our attention and capital deployment. In casualty, while industry underwriting margins are tighter in our view, our casualty book is continuing to support our balanced underwriting portfolio,” Carvey said.

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