Conduit Re, a Class of 2021 reinsurance start-up that raised close to $1.1 billion of capital, has underwritten around 70% more business at the January 2022 renewals than it did a year earlier, with Chairman Neil Eckert citing “some of the most attractive market conditions seen in a generation.”
At the January 2022 reinsurance renewals Conduit Re bound roughly $262.6 million of premiums, up from 2021’s $154.4 million, an annual increase of approximately 70%.
Across the portfolio rates were seen to rise by an average of +5%, with property reinsurance leading the way at +8%.
On the premium growth side, Conduit Re grew its casualty reinsurance book the most, with premiums increasing +246% year-on-year, while the property book grew +37% and specialty +36%.
In terms of what was written, the quota share reinsurance focus at Conduit Re persists, with 64% of renewals written in quota share form, but growth was seen on the excess-of-loss side as well and the company saw “measured improvements in attachments and terms.”
Commenting on the renewal outcome, Neil Eckert, Group Executive Chairman, said, “Conduit Re is benefiting from some of the most attractive market conditions seen in a generation. Our second successful January renewals season reflected the fact that 2021 was the fourth costliest catastrophe year in history for the reinsurance industry and total catastrophe losses for the insurance market over the last five years now amount to over $500 billion.
“As a new market entrant with a strong capital base, an unencumbered balance sheet and a forward-looking approach to underwriting, we are well positioned to benefit from continued favourable market conditions.”
Trevor Carvey, Group Chief Executive Officer, added, “In a very late renewal season characterised by a tough stand-off between brokers and underwriters, we saw continuing rate improvements and tightening of terms and conditions across our core classes. This has allowed us to take another big step forward in achieving our long-term goal of building a market-leading reinsurance underwriting franchise.”
Conduit Re also said it placed its own outwards reinsurance program at 1/1 successfully, with further planned retro purchases expected throughout the year as its portfolio continues to build.
In addition, the company expects to keep strengthening its brand, as it deploys more capacity and becomes a larger player in reinsurance, although remaining selective as evidenced by a 20% hit rate against a strong flow of submissions.
Looking ahead, the company expects attractive reinsurance market conditions will continue.
“We anticipate the momentum of the 1 January 2022 renewals to continue into the other key renewal dates throughout the year which will further support Conduit Re in delivering on its objective of building a high quality reinsurance underwriting franchise.”
