Bermuda-based reinsurer Conduit Re recorded 4.9% year-on-year growth in gross premiums written (GPW) to $430.3 million for the first quarter of 2026, as strong growth in casualty and marginal growth in property more than offset a decrease in specialty premiums in the quarter.
During the opening three months of the year, Conduit Re identified select growth opportunities, primarily driven by further targeted growth in casualty classes.
The casualty segment delivered GPW growth of 23.1%, or $20.6 million to $109.7 million. In property, GPW rose by 1%, or $2.5 million year-on-year to $248.8 million, while Conduit Re opted to reduce specialty GPW by 4%, or $3 million to $71.8 million amid softening market conditions.
For the three months ended March 31st, 2026, Conduit Re’s overall risk-adjusted rate change, net of claims inflation, was -5%, driven by -9% in property, -1% in casualty, and -7% in specialty. Despite the softening trend, the reinsurer says that pricing generally remains adequate after improvements in rates and terms and conditions in recent years.
Group-wide, reinsurance revenue increased 12.8%, or by $27.3 million to $240.3 million in Q1’26, compared with $213 million a year earlier. Revenue growth in casualty was strong at 20.8% to $68.6 million, while property revenue increased by 13.4% to $133.4 million, partially offset by a decrease of 0.8% to revenue of $38.3 million in the specialty segment.
In terms of net reinsurance losses and loss related amounts during Q1’26, no loss event had a material impact on Conduit Re. The company has recorded an initial estimate, based on the latest information, related to its exposure to the ongoing conflict in the Middle East, but notes that there is high uncertainty in estimating associated losses as the war persists.
Conduit Re’s Q1’26 performance was supported by its “high-quality” investment portfolio, which delivered a return of 0.3% on the period with portfolio yield offset by the negative impact of rising treasury yields and widening credit spreads.
Chief Executive Officer, Neil Eckert, commented: “We have made a solid start to 2026, continuing to execute on the priorities we set out last year to stabilise the business and strengthen the Board, leadership and our underwriting team. Although market conditions are softening, we identified select growth opportunities, successfully enhanced our retrocession programme with more comprehensive peak and secondary peril coverage, and substantially completed our previously announced share buyback programme. On top of this, strong cash flow has increased our managed investments by approximately $400 million over the past year. In the current environment we remain focused on selectively deploying our capacity into attractive underwriting opportunities and returning excess capital to shareholders in line with Conduit’s capital management strategy.
“We are pleased with how our underwriting portfolio and invested assets have performed during recent geopolitical developments in the Middle East. This reinforces our confidence in the resilience of the business and strength of our balance sheet. Against this backdrop, subject to shareholder approval at the AGM today, the Board has approved another buyback programme of up to $50 million, which we intend to execute according to our capital management strategy.
“I am pleased that we have continued to advance the business and we remain confident in the execution of our strategy. While market conditions are more competitive, we will continue to adjust in response to changing conditions and emerging opportunities as they develop.
“During the quarter, we continued with Board succession planning, appointing Nicholas Shott as Chair, and welcoming Richard Lightowler, Peter Mullen and Penny Shaw as Independent Non-Executive Directors, each of whom brings extensive financial services expertise to the Board.
“In closing, I would like to thank Elizabeth Murphy who has retired from the Board. Elizabeth was a founding director and has provided valuable guidance and insight as audit committee chair during her tenure. I wish to also formally acknowledge the profound sense of loss from the untimely passing of Stephen Redmond. Stephen was a highly dedicated and respected Non-Executive Director, and his significant contributions and exemplary character are sincerely missed.”
