Bermuda-based reinsurer Conduit Re has reported estimated ultimate premiums written of $582.4 million at a “very strong” January 1st, 2024, reinsurance renewals for the company, driven by solid year-on-year growth in property and specialty and an overall risk-adjusted rate change of 3%, net of inflation.
When compared with the 1.1 2023 renewals season, Conduit Re’s ultimate premiums written rose 38% as the firm saw attractive underwriting opportunities in property and specialty and maintained a select approach to casualty lines.
Breaking down estimated ultimate premiums written by class of business at 1.1 2024, and property accounts for 54% at $311 million, up 58% from 1.1 2023. Casualty premiums written declined 10% year-on-year to $101.4 million, or 17% of renewed business, while Conduit Re grew its specialty book 52% year-on-year at 1.1 2024 to $170 million, which makes up 29% of total premiums written.
In terms of pricing, the reinsurer has reported an overall risk-adjusted rate change, net of inflation, of 3%. The Property segment saw the steepest increase of 5%, followed by a 2% rate change in specialty, while the casualty segment saw a -2% rate change.
This compares to an overall risk-adjusted rate change of 19% at 1.1 2023, and reflects the fact that while conditions are expected to remain favourable for reinsurers in 2024, rate momentum has decelerated from the highs of last year.
Conduit Re also purchases retrocession at the January renewals, which was secured successfully for the year ahead, with no material change in net PMLs.
“We are pleased to report a very strong 1 January 2024 renewals season with estimated ultimate premiums written up 38% year-on-year. The quality and structure of the business being written is exactly where I want it to be, and our business platform is readily supporting our continued growth. We look forward to capitalising on the high quality growth opportunities in this market with much optimism,” said Trevor Carvey, Chief Executive Officer.
Looking forward, Conduit Re says that the January 1st, 2024, reinsurance renewals period has shown its ability to continue growing in an environment of risk-adjusted rate improvements in an already hard market. The firm anticipates continued year-on-year growth in 2024.
“Our 2024 renewals season was again characterised by a high level of renewing business and positive rates in our property and specialty books. We continue to see high submission levels of attractive business and, being selective around lines, rates and structure, we continue to grow the portfolio significantly without sacrificing quality.
“We saw more attractive risk versus reward in the property and specialty segments and therefore we focused growth in these classes over casualty,” said Gregory Roberts, Chief Underwriting Officer.
