Bermuda-based Conduit Re has reported a 25% rise in comprehensive income to $98.1 million for the first half of 2024, as gross premiums written (GPW) swelled 36% to $737.8 million on the back of strong growth in both property and specialty.
Group-wide, H1’24 reinsurance revenue rose 37% to $382 million from $278.9 million in H1’23, with net reinsurance revenue increasing 39% year-on-year to $338.2 million.
The reinsurance service result also improved year-on-year, rising 23.5% from $80.7 million to $99.7 million, as the combined ratio moved from 72.5% in H1’23 to 75.1% in H1’24, as a rise in the net loss ratio from 57.5% to 62.4% more than offset a 1.2% decline in the operating expense ratio to 8.1%.
In terms of losses, the reinsurer confirms that despite the first half of the year being an active loss period for the industry, no loss events had a material impact on the company.
In total, net reinsurance service expenses reached $238.5 million compared with $162.1 million last year, driven by a rise in losses and loss related amounts to $214.6 million in H1’24 compared with $147.3 million in H1’23. Year-on-year, losses came in higher across property, casualty, and specialty.
Turning to premiums and growth was strong in the opening six months of 2024, with 43% growth in property to $441.8 million, 59% growth in specialty to $147.8 million, and 5.4% growth in casualty to $148.2 million.
On pricing, Conduit Re notes that pricing levels and terms and conditions generally continued to be attractive in the period, and the firm is seeing more and more opportunities to deploy its capital into the areas and products that it targets.
The reinsurer’s overall risk-adjusted rate change for the six months ended June 30th, 2024, net of claims inflation, was 1%, and by segment was 3% in property, -2% in casualty, and 1% in specialty.
“Our ability to grow our portfolio is underpinned by the continual drive of the underwriting team to work with our partners to deliver solutions in a dynamic market place. While rate increases have tempered, current rating levels benefit from several years of compounding and the robust pricing levels achieved across the lines of business in which we operate,” said Greg Roberts, Chief Underwriting Officer.
On the asset side of the balance sheet, Conduit Re has reported that the total investment return, including net investment income, net realised gains and losses, and net change in unrealised gains and losses, was a gain of $23 million for H1’24, up from $22.6 million a year earlier.
“In another active period for industry loss events we are pleased to have produced an RoE of 9.9% for the half year. Our 36.1% premium growth reflects our well-established distribution channels and our maintenance of underwriting discipline. Property and specialty, in particular the non-catastrophe exposed lines, again attracted our attention and capital deployment. In casualty, while industry underwriting margins are tighter in our view, our casualty book is continuing to support our balanced underwriting portfolio,” said Trevor Carvey, Chief Executive Officer.
Neil Eckert, Executive Chairman, added: “Our results represent the team’s continued ability to grow our underwriting business successfully. Progression across earnings, premium and assets under management has been substantial and supports the delivery of increasing shareholder value.”
