Business
Third Quarter 2022 Trading Update
Third Quarter 2022 Trading Update.
About this update from Conduit Holdings Ltd.
[{"type":"text","content":"\n \n \n \n \n Pembroke, Bermuda - 9 November 2022\n \n \n \n Conduit Holdings Limited\n \n \n (\"Conduit Re\")\n \n \n Third Quarter 2022 Trading Update\n \n \n Strong premium income growth; positive future earnings benefits from embedded Quota Share premium pipeline; balance sheet strength and underwriting focus put Conduit Re in an excellent position to take advantage of exceptional market conditions\n \n \n \n Conduit Re, a pure-play global reinsurance business based in Bermuda, is today presenting its trading update for the nine months ended 30 September 2022.\n \n Key highlights:\n \n • Successful build out of market-leading reinsurance platform\n • $600.9 million of estimated ultimate gross premiums written for the nine months ended 30 September 2022, a 55% increase on the nine months ended 30 September 2021\n • Underlying business trending towards a mid-80's combined ratio in the medium term\n • Strong, legacy-free balance sheet; AM Best A- (Excellent) rating; well placed to write additional business into highly attractive market conditions\n • High quality book of business with embedded pipeline of premium income and strengthening renewal experience\n • $1.1 billion of estimated ultimate premiums written since launch in December 2020\n • Year-to-date overall renewal price change of 4%, net of estimated claims inflation\n • High-quality quota share business contracted since December 2020 provides an embedded pipeline of premium which is flowing through to income\n • Exceptionally attractive market conditions exhibiting accelerating improvement in risk-adjusted rate and terms and conditions\n • Shortage of reinsurance capacity and increasing demand for reinsurance protection combine to make this a very exciting market for reinsurers\n • Underlying inflation dynamic is generating increasing demand for reinsurance as asset values increase whilst the supply of reinsurance has been constrained by withdrawal of capital and capital depletion across the industry\n • The 1 January renewal season remains a primary indication point for pricing in the reinsurance market and all signals currently point to a significant acceleration in risk-adjusted rate improvements in an already hardening market\n • Conduit Re's strategy, the team's market reputation and Conduit Re's strong and legacy-free balance sheet put it in a...