Business
First Quarter 2023 Trading Update
First Quarter 2023 Trading Update.
About this update from Conduit Holdings Ltd.
[{"type":"text","content":"\n\nPembroke, Bermuda - 17 May 2023\nConduit Holdings Limited\n(\"CHL\" LSE ticker: CRE)\nFirst Quarter 2023 Trading Update\n \nGross premiums written increased by 59.1%\nYear-to-date overall risk-adjusted rate change, net of claims inflation, of 19.0%\n \nCHL, the ultimate parent company of Conduit Re, a pure-play Bermuda-based reinsurance business, today presents its trading update for the first quarter of 2023.\n \nTrevor Carvey, Chief Executive Officer, commented: \"The imbalance between supply and demand continues in the marketplace and Conduit Re has seen a very strong first quarter both in terms of premium growth and the rating levels seen across our target classes. April business renewed through strongly and we continue to dial our book deliberately towards the property and specialty classes where the market environment is considered most favourable. The overall signs are that pricing momentum will be maintained into the important mid-year renewals, and our highly scalable and lean operating model has created a platform for strong future growth.\"\nTrading\n• $443.2 million of estimated ultimate premiums written for the three months ended 31 March 2023, a 50.7% increase on the three months ended 31 March 2022\n• Overall portfolio risk-adjusted rate change for the first quarter of 2023, net of claims inflation, of 19.0%\n• Gross premiums written for the three months ended 31 March 2023 of $278.0 million, a 59.1% increase from the first quarter of the prior year\n• Despite an active natural catastrophe quarter of losses for the industry, no major event loss, individually or in aggregate, had an outsized or material impact on Conduit Re\n• High quality investment portfolio:\n- Average credit quality of AA; investment return 1.8%, book yield 2.8%, market yield 5.0%\n- Unrealised gain of $12.5 million compared to unrealised loss of $32.6 million in the first quarter of 2022\n- Short portfolio duration of 2.4 years; opportunity to reinvest at higher interest rates remains\n• Final dividend of $0.18 (14.73 pence) per common share in respect of 2022 was paid on 21 April 2023\n• $132.6 million of estimated ultimate gross premiums written during the April renewals, bringing estima...