7th Nov 2024 10:41
(Correcting that the third-quarter net loss figure of USD50 million is undiscounted and net of reinsurance and reinstatement premiums.)
(Alliance News) - Conduit Holdings Ltd on Wednesday reported elevated risk event activity amid positive premium and revenue growth.
In the first nine months of the year, the Bermuda-based reinsurance business said gross premiums written grew 25% on-year to USD957.3 million from USD764.4 million.
Reinsurance revenue came in 30% higher this year at USD588.2 million, from USD451.3 million.
However, for its third-quarter, Conduit acknowledged elevated activity across natural catastrophe and risk events, estimating that its undiscounted net loss after reinsurance and reinstatement premiums for these large loss events in the third quarter was USD50 million
Due to these, Conduit explained, its combined ratio was in the mid-90s on a year-to-date basis.
Combined ratios serve as an indicator of an insurance company's profitability, with figures below 100% indicating a profit on underwriting, and therefore the lower they are the better.
The firm added that Hurricane Milton, which occurred post period-end, is expected to contribute between USD30 million and USD50 million to its undiscounted net loss figures.
Shares in Conduit were down 1.4% at 473.00 pence on Thursday morning in London.
Its investment portfolio saw a 2.8% improvement in returns to 4.9% from 2.1% the previous year, driven by a decrease in second-quarter treasury yields coupled with investment income given a generally higher yielding portfolio.
Conduit noted that market conditions remain stable across its business classes, with it remaining well positioned to deploy capacity to attractive classes at upcoming renewals.
Conduit Chief Executive Trevor Carvey 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."
By Christopher Ward, Alliance News reporter
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