Business
Conduit Holdings Limited 2022 Interim Results
Conduit Holdings Limited 2022 Interim Results.
About this update from Conduit Holdings Ltd.
[{"type":"text","content":"\n \n \n \n \n \n Conduit Holdings Limited 2022 Interim Results Announcement\n \n \n \n \n \n Conduit Holdings Limited (\"CHL\" or the \"Group\") (Ticker:CRE)\n \n \n Pembroke, Bermuda - 27 July 2022\n \n \n \n \n \n CHL is today announcing its interim results for the six months ended 30 June 2022.\n \n \n \n \n \n Trevor Carvey, Group Chief Executive Officer, commented:\n \n \n \"We are seeing strong demand for our offering and we continue to take a highly selective approach to our underwriting in a market which is exhibiting increasingly strong fundamentals. The business is normalising, our combined ratio will be trending towards our target of mid-80s steady state and the business is in an excellent position to continue to capitalise in our chosen markets.\"\n \n \n Underwriting - Strategically Well Balanced Portfolio\n \n \n • Approximately 70% of the portfolio is non cat business - a key benefit of Conduit's focused and highly diversified approach\n \n \n • Conduit's robust risk selection and contract structuring process means it has experienced relatively low levels of catastrophe losses in H1 despite higher than average levels of insured catastrophe losses in the market\n \n \n • Weighting towards quota share business allows Conduit to participate in the significant price rises and improved terms and conditions experienced in the primary markets at this point in the cycle, whilst reducing volatility.\n \n \n Financials - Headlines\n \n \n • Estimated ultimate premiums written increased by 49% on H1 2021 to $496.7 million\n \n \n • H1 comprehensive loss of $61.4 million after the impact of:\n \n \n • $24.6 million estimated loss in relation to Ukraine (net of reinsurance and reinstatement premiums) including an estimate of the impact of potential aviation claims\n \n \n • Net unrealised loss on investments of $54.3 million reflecting the mark to market adjustment driven by expectations of rising interest rates\n \n \n • Potential to unwind over time: portfolio c. 92% fixed maturity with an average duration of 2.4 years and average credit quality of AA\n \n \n • Opportunity for enhanced investment income going forward in a higher interest rate environment\n \n \n • Interim dividend of $0.18 (approximately 15 pence) per common share declared\n \n \n Momentum - Very Well Positioned for Growth\n \n \n • ...