Conduit Re says its Q3 2022 results show strong premium income growth, with balance sheet strength and underwriting focus putting it in ‘an excellent position’ in ‘exceptional’ market conditions.
The firm said in a statement that it had seen $600.9m of estimated ultimate gross premiums written for the nine months ended 30 September 2022, which it said was a 55% increase on the nine months ending 30 September 2021. It also reported that gross written premiums in the first nine months of 2022 were $528.1m, up 81.4% from the $291.2m in the first three quarters of 2021.
Broken down by segment, the firm said it had seen increases in gross written premiums of 49.7% for property, 34.3% for casualty, and 16% for specialty over the same period.
Trevor Carvey, chief executive officer of Conduit Re, said: “The creation and development of Conduit Re has been perfectly timed. In the past two years, we have built a lean and efficient reinsurance business, with an excellent underwriting team that is ideally positioned to take full advantage of current market conditions.”
He added: “The growth we have shown in our premium income, together with the high-quality book of business we have assembled, which will continue to earn through to our income statement in future periods, gives us great confidence for the rest of this year and beyond.”
Looking to the wider market, the firm said it expected to see an ultimate loss, net of reinsurance recoveries and reinstatement premiums, for Hurricane Ian of approximately $40m. But while reserves have been recorded for this recent event, it said there was still significant uncertainty in relation to the ultimate losses.
It added: “As regards the ongoing crisis in Ukraine resulting from the Russian invasion on 24 February 2022, Conduit Re has potential exposure across its property and specialty reinsurance books, via classes such as aviation, war on land and marine war. There is significant uncertainty in estimating losses emanating from the conflict, not least as it is an ongoing event. Based on current information, Conduit Re’s estimated ultimate losses, net of reinsurance recoveries and reinstatement premiums, in relation to the conflict are unchanged at $24.6m.”
It was back in July that Conduit Re reaffirmed its $24.6m figure for losses arising from Russia’s invasion of Ukraine.
