Conduit Holdings Ltd. · LSE:CRE
Conduit — Q3 2021 Earnings Presentation
14 slides from Conduit's earnings presentation, Nov 3, 2021
Slide 1: Conduit Holdings Limited Q3 2021 Trading Update
Conduit Holdings Limited Q3 2021 Trading Update - 3 November 2021
Slide 2: Forward looking statements
Forward looking statements Important note: This announcement may include certain statements and indicative projections that are, or may be deemed to be, "forward-looking statements". These forward-looking statements are not based on current or historical facts and are forward looking in nature and m
Slide 3: Conduit Re Executive team
Conduit Re Executive team Neil Eckert Trevor Carvey Elaine Whelan Executive Chairman Chief Executive Officer & Chief Financial Officer Chief Underwriting Officer 3
Slide 4: Key Q3 Highlights
Key Q3 Highlights Continuing to deliver on IPO plans Underwriting plan on track – Ultimate written premiums of $387.7 million on plan – Gross premiums written of $291.2 million – Higher quota share weighting will lead to a proportion of 2021 premium being recognised in 2022 – Diversified and balan
Slide 5: Q3 Underwriting portfolio
Q3 Underwriting portfolio Diversified and balanced approach $387.7 m Headline ultimate premiums written $387.7 million (full year plan $471.5 million) QS QS of XL XL c.69%/31% split QS/XL (plan 47/53) reflecting pricing, terms and underwriting approach in current market conditions and portfolio
Slide 6: Q3 2021 Market loss events
Q3 2021 Market loss events Conduit’s exposure to Q3 catastrophe losses is relatively low Combined net incurred Q3 catastrophe losses for Conduit Re were $28.6 million, after impact of reinsurance and reinstatements (representing 2.9% of capital which is within our expectations) European Floods:
Slide 7: Pricing (update)
Pricing 1 (update) Pricing continues to improve across the board Marsh Global Insurance Pricing Change 25% 22.0% 20.0% 19.0% 20% 18.0% 15.0% 15.0% 14.0% 15% 11.0% 10% 8.0% 6.0% 5% 2.1% 3.0% 0.8% 0.9% 1.2% 1.4% 0% -5% (2.3%) (2.2%) (1.6%) (4.2%) (4.4%) (4.8%) (3.8%) (3.6%) (3.2%) (3.1%) (5.0%) -10% 7
Slide 8: Pricing: Conduit Re renewal pricing index
Pricing 2 Conduit Re renewal pricing index Q3 Year to date Index: Property +12%; Casualty +17%; Specialty +12% - Rate rises compounded by substantially improved terms and conditions Rate change (% change ytd) Q1 Q2 Q3 Property +12 +14 +12 Casualty +15 +17 +17 Specialty +12 +12 +12 Total +13 +15 +14
Slide 9: Investments
Investments Investment portfolio details Average duration c2.4 years broadly in line with expected liabilities Average AA- credit 0.2% return year to date Market yield of 0.9%, book yield of 0.9% Breakdown of asset classes 2.50 USD AA yield curve Corporate Bonds Q3 2021 2.00 Non-Agency Struc
Slide 10: Operations
Operations Build out of Conduit Re’s platform and team continues on track to deliver on our objective of building a high quality underwriting franchise SaaS implementation (phase 1) of our cloud based platform substantially delivered in H1. Started phase 2 in Q3 Conduit team now up to c.40 and o
Slide 11: ESG
ESG Rolling out our ESG strategy E Supporting Climatewise and SMI Insurance Taskforce Net Zero from day 1 – Minimising our footprint and carbon off-setting S Conduit Foundation now considering and making initial contributions – Bermuda Youth Climate Summit in November G Appointment of Michel
Slide 12: IPO Prospectus plan continues on track
IPO Prospectus plan continues on track Building value on strong foundations Underwriting plans on track (with higher quota share weighting) Pricing and terms and conditions remains strong in core classes with further momentum expected in catastrophe classes Relatively low catastrophe losses vs
Slide 13: Questions
—_—_—\ Questions
Slide 14: conduitreinsurance.com
Enquiries please contact: Haggie Partners David Haggie / Caroline Klein +44 (0) 207 562 4444 conduitre@haggie.co.uk Tristan McDonald Investor Relations +44 (0) 7976 968 940 tristan.mcdonald@conduitre.uk conduitreinsurance.com 14