Conduit Re, the newly-launched property and casualty reinsurer, has reported a successful initial quarter of trading with estimated ultimate premiums written of $199.1 million.
At almost $200 million, Conduit Re’s total expected ultimate premiums written came in ahead of the $160 million announced in its January trading statement.
At the same time, gross premiums written (GPW) amounted to $82.6 million for the period. The company notes that given its startup nature and the higher proportion of quota share business, it has reported both estimated ultimate and gross premiums written.
Although Conduit Re did write more than plan during the first quarter of the year, it also wrote a greater volume of quota share business than expected and as a result there will be a lag in the accounting recognition of gross written and earned premiums.
Within the Property division, Conduit Re has reported estimated ultimate premiums written of $85.7 million and GPW of $44.2 million, which accounts for 43% and 54%, respectively, of the total.
In Casualty, estimated ultimate premiums written reached $60.6 million and GPW $15.9 million, accounting for 30% and 19% of the total, respectively.
In the firm’s Specialty division, estimated ultimate premiums written were $52.8 million for Q1 2021 and GPW hit $22.5 million, which accounts for 27% and 27%, respectively, of the total.
“There appears to be rating discipline in primary markets that is not necessarily born out of capital constraints, but from the results the market has experienced over the last few years and the perceived need for fundamental improvement in pricing. We expect to see this trend continuing. We are well positioned, with our legacy-free balance sheet, to take advantage of these attractive market conditions,” said Neil Eckert, Group Executive Chairman.
During the first quarter of 2021, Conduit Re saw further momentum in both pricing and terms and conditions in the majority of its markets, notably at the primary level.
The company intends to publish quarterly, renewal year-on-year price change measures. For Q1 2021, these price increases were +12% at Property, +14% at Casualty, and +8% at Specialty.
In the reinsurer’s first quarter of trading, the claims experience was benign with Conduit Re announcing a net aggregate loss in relation to winter storm Uri in the U.S., including reinstatement premiums, of $6 million.
“We continue to make good progress and remain on track across all operational areas of the Group. Our underwriting teams moved straight on from 1 January business and have continued to enjoy outstanding support and approval from both brokers and customers alike. The dual forces of rate and market sentiment are still pushing strongly in our classes, which further strengthens our opinion – expressed at the time of the IPO – that the rising tide would be lifting many boats across the industry,” said Trevor Carvey, Group Chief Executive Officer (CEO).
