14th May 2025 12:20
(Alliance News) - Conduit Holdings Ltd traded higher on Wednesday after it announced plans for an up to USD50 million buyback, and said both gross premiums written and reinsurance revenue increased in its first quarter.
Shares in Conduit were up 7.6% at 375.00 pence each early on Wednesday afternoon in London.
The Bermuda-based parent of reinsurance provider Conduit Re also announced the appointment of Neil Eckert as chief executive officer, effective immediately.
Eckert had been serving as interim CEO since late March, after previous CEO Trevor Carvey announced his resignation due to "a change in personal circumstances requiring his return to the UK".
Conduit also said that Rebecca Shelley has been appointed as interim non-executive chair, being succeeded in her prior role as senior independent director by Ken Randall.
At the same time, Conduit said its board has approved a share buyback programme of up to USD50 million. CEO Eckert said this decision "further demonstrates its confidence in the value of Conduit's franchise and our commitment to deliver shareholder value".
Finally on Wednesday, Conduit released a trading update for the first three months of 2025.
It said gross premiums written totalled USD410.2 million, up 15% from USD356.8 million in the first quarter of 2024 "with growth achieved across all three segments". Reinsurance revenue meanwhile increased 18% to USD213.0 million from USD181.1 million.
The company added that its overall portfolio risk-adjusted rate change for the quarter was negative 4% net of claims inflation, but remained at attractive levels. Moreover, it said its investment portfolio produced a positive 2.1% return for the period, due to reduced treasury yields and a higher-yielding portfolio. Finally, Conduit reported no change from its previously reported undiscounted ultimate net loss, of between USD100.0 million and USD140.0 million, related to the California wildfires.
Looking ahead, for 2025 Conduit expects a return on equity between high single and low double digits. It said this reflected the impact of the California wildfires, alongside recent additional reinsurance purchases (for "both US and global secondary perils") and portfolio adjustments.
"Our deal flow remains robust and strong relationships with clients and brokers support our ability to target desired classes in a more competitive environment," Conduit added.
The company also said it remains confident that it will be able to achieve its cross-cycle target of an RoE in the mid teens.
By Emma Curzon, Alliance News reporter
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