Recently launched property and casualty reinsurer Conduit Re has announced gross written premiums of $291.2 million for the first nine months of 2021, with the property segment making up 55.9% of that figure.
This result marks considerable progress from the $82.6 million GWP announced during this year’s first quarter.
Meanwhile, estimated ultimate premiums written stands at $387.7 million, a jump from the $199.1 million figure announced back in May.
The firm’s ultimate loss estimate, net of reinsurance and reinstatement premiums, for natural catastrophe events stands at $28.6 million, representing 2.9% of tangible net assets.
Of that total loss figure, $15.8 million was driven by Hurricane Ida and $12.8 million from European Floods.
Conduit’s official statement notes how its reserve estimates have been derived from a combination of market data and assumptions, modelled loss projections and reports from brokers and cedants.
In terms of pricing, the company saw both property and specialty rise by 12%, while casualty rose 17%.
The company says it remains on track to achieve the underwriting plan set out in its IPO Prospectus, with the only significant deviation being a preference of quota share contracts over excess of loss business.
Conduit Re considers quota share business to have provided the best balance between price and risk as it builds out its underwriting portfolio.
“We continue to build our business as we set out in our initial plans and remain on track to deliver on these,” said Neil Eckert, Group Executive Chairman.
“This quarter saw two major catastrophe loss events and our relatively limited exposures to these demonstrates the quality of the portfolio that Trevor and the team have been carefully building. This justifies the Conduit Re approach of building a focussed, diversified and balanced business model.”
“We passed our first test as a global reinsurer during the quarter with the experiences of the European Floods and Hurricane Ida,” added Trevor Carvey, Group Chief Executive Officer.
“Both of these events serve as a poignant reminder of the potential severity and frequency of natural events in the reinsurance marketplace. Whilst Ida in particular is a major event for the Industry, it sits well within our retrocession programme and has therefore only had a limited impact on our financial performance.
“Our reinsurance programme remains strong for the rest of the year. We anticipate that these events, together with the continuing pressure of claims inflation and concerns about the increased frequency of catastrophe events, will support continued upward pressure on pricing. We are well positioned ahead of the key 1 January renewals.”