Bermuda-based Conduit Re has reported gross premiums written of $410.2 million for Q1 2025, marking a 15% increase over Q1 2024, with growth achieved across all three of its segments.
Of the total Q1 2025 premium, the Property segment contributed $237.9 million, while Casualty and Specialty contributed $84.1 million and $88.2 million, respectively.
“This performance was supported by our strong relationships with clients and brokers that have provided additional opportunities for renewal and new business,” Conduit Re said.
Meanwhile, the firm’s Q1 2025 reinsurance revenue was $213 million, up 17.6% from Q1 2024.
Revenue in Q1 2025 was, of course, led by the firm’s Property segment, which contributed $111.7 million to the total figure. Casualty contributed $53 million to the total, and Specialty $48.3 million, up 42.1% from Q1 2024.
Commenting on catastrophes, Conduit Re said Q1 2025 was a highly active period for insured events for the industry, including the California wildfires, severe convective storms and other risks.
“The California wildfires were the most notable loss event during the first quarter of 2025, causing widespread damage in the Los Angeles area. As previously reported, our estimated undiscounted net loss estimate across all segments remains between $100 million and $140 million, net of reinsurance and reinstatement premiums,” the firm added.
Conduit Re continued, “Our loss and reserve estimates have been derived from a combination of reports and statements from brokers and cedants, modelled loss projections, pricing loss ratio expectations and reporting patterns, all supplemented with market data and assumptions.
“We continue to review these estimates as additional information becomes available and the financial impact will be reported in more detail in the interim results for the six months ended 30 June 2025. Our undiscounted ultimate loss estimates, net of ceded reinsurance and reinstatement premiums, for prior years’ reported loss events remain stable.”
The firm also shed some light on the pricing environment, stating that despite some moderation, pricing levels and terms and conditions continued to be attractive in Q1 2025, benefitting from multiple years of compounding rate increases.
“Certain Casualty lines continue to benefit from market correction driven by reserve deterioration and loss emergence, primarily from pre-2020 years. Market conditions across Property and Specialty segments reflect some increased competition following significant pricing increases over the past several years,” Conduit Re explained.
“The firm’s overall risk-adjusted rate change for Q1 2025, net of claims inflation, was -4%, with changes by segment of -6% in Property, -1% in Casualty, and -3% in Specialty.
Neil Eckert, Conduit Re’s newly appointed Chief Executive Officer, commented, “I am honoured to accept the role of CEO and look forward to continuing to work with the talented team at Conduit to deliver on our objectives.
“During the quarter we have continued to see attractively priced underwriting opportunities and as a result have driven growth across all our divisions, delivering a 15% increase in gross premiums written. Our growing, high quality investment portfolio has also performed well with a 2.1% return for the quarter.
“The experienced team at Conduit have effectively navigated one of the most challenging quarters for insured catastrophe losses in history, taking decisive action following the devastating California wildfires to enhance our resilience and reduce earnings volatility for the rest of 2025. Looking ahead, we continue to have confidence in our ability to deliver a target return on equity in the mid-teens across the insurance cycle.
“The Board’s decision to approve a share buyback programme further demonstrates its confidence in the value of Conduit’s franchise and our commitment to deliver shareholder value.”
