CHL, the parent company of Conduit Re, a pure-play Bermuda-based reinsurance business, reported a 50.3% increase in gross premiums written for the nine months ended 30 September 2023 of $764.4 million.
The overall portfolio risk-adjusted rate change for 9M’23, net of claims inflation, is 15%.
The investment return for the first nine months of 2023 was 2.1% driven primarily by investment income given a generally higher yielding portfolio.
In the first nine months of 2022, the portfolio returned (6.2)% due to the significant increase in treasury yields.
In an active natural catastrophe period for the industry, no event loss, individually or in the aggregate, had a material impact on Conduit Re during the first nine months of 2023, the company said.
The first nine months of 2022 were impacted by our estimated ultimate net impact, on an undiscounted basis, from Hurricane Ian of approximately $40 million and the Ukraine conflict of $24.6 million.
During the third quarter of 2023, CHL’s Board of Directors declared an interim dividend of $0.18 (£0.1415) per common share in respect of 2023, which was paid in pounds sterling on 8 September 2023 to shareholders of record on 18 August 2023, resulting in an aggregate payment of $29.7 million.
Total capital and tangible capital available was $0.92 billion as at September 30, 2023.
Trevor Carvey, Chief Executive Officer, commented: “The third quarter has been a great period for us at Conduit Re. Renewals and new business alike have contributed to the growth of our portfolio, with the non-catastrophe and specialty space continuing to receive much of our attention. The estimated ultimate premiums written of $909.3 million in the first nine months of 2023 represented an increase of 56.4% over the same period last year and our underwriting teams continue to deploy capacity efficiently in this dynamic marketplace across a broad range of both quota share and excess of loss opportunities.”
Neil Eckert, Executive Chairman, commented: “Trevor and his team have created a scalable business model and a platform that is delivering strong organic sustainable growth and we have an ample capital base that will enable us to continue to do so. We expect the duration of the current hard cycle to be extended due to structural changes in the industry, continued inflationary pressures and adverse development on the industry’s legacy casualty business.”
CHL has announced that Dr. Richard Sandor has resigned from his position as a non-executive Director, effective immediately.
Dr. Sandor’s departure marks the completion of a full three-year term as a non-executive Director of CHL, aligning with CHL’s board succession plan. This change comes shortly after the addition of Rebecca Shelley as a non-executive Director.
“Dr. Richard Sandor joined the Board of CHL at the time of the Company’s IPO in December 2020, shortly after the group’s formation. We were privileged to have Richard serving on our Board and I would like to thank him for his contribution during our formative first three years,” Eckert commented.
