In a recent Q&A session with journalists, Gregory Roberts, Chief Underwriting Officer (CUO) at Conduit Re, discussed the significant growth seen in the specialty reinsurance sector and the promising outlook for 2024.
Roberts described the specialty landscape as dynamic, with different sub-classes experiencing fluctuations in performance. Despite this variability, there are plenty of opportunities for growth across the sector.
He notes, “We’re seeing lots of opportunity there. Some of the sub-classes such as construction and engineering are obviously related to more general economic health and activities that are occurring there. So, exposures are growing. The insurers are taking on more risk in that disciplined fashion still.”
Roberts also highlights, “The genuine respect for the insurance product is at a high level and so the propensity for one to spend premium on protecting one’s commercial interests, and or assets is at a high level, and that’s good for our industry.”
This positive trend is reflected in Conduit Re’s preliminary results for the end of 2023, revealing a substantial increase in gross premiums written compared to the previous year.
Specialty premiums alone saw an impressive 91% growth, rising from $97.7 million in 2022 to $186.4 million by the end of 2023.
Regarding Conduit Re’s strategy, Roberts underscored the importance of prioritising the development of their specialty portfolio while ensuring resources are not diverted from other critical divisions, such as the natural catastrophe space.
Furthermore, Roberts elaborated on the time-consuming nature of finalising specialty deals, noting that they can take several months. Nevertheless, he emphasised their importance for Conduit Re once completed.
