Conduit Holdings Ltd. · LSE:CRE
Conduit — H1 2021 Earnings Presentation
16 slides from Conduit's earnings presentation, Jul 29, 2021
Slide 1: Conduit Holdings Limited H1 2021 Interim Results
Conduit Holdings Limited H1 2021 Interim Results
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 Executive team
Conduit Executive team Neil Eckert Trevor Carvey Elaine Whelan Executive Chairman Chief Executive Officer & Chief Financial Officer Chief Underwriting Officer
Slide 4: Key H1 Highlights
Key H1 Highlights Delivering on IPO plans ▪ Ultimate written premiums of $333.1 million ▪ Gross written premiums of $210.3 million ▪ Investment funds deployed ▪ Operating platform and team build on track ▪ Interim Dividend of $0.18 (c.£0.13) per share
Slide 5: Key H1 Financials
Key H1 Financials Climbing the J curve Financial highlights H1 2021 Ultimate written premiums $333.1 million Gross written premiums $210.3 million Net earned premiums $47.7 million Combined ratio 127.2% Net loss ratio 70.0% (57.2% ex Winter storm Uri) Net acquisition expense ratio 28.9% Comprehensiv
Slide 6: H1 Business summary
H1 Business summary In line with plan but with higher weighting of quota share business ▪ Ultimate written premiums of $333.1 million in line with IPO plan – Higher quota share weighting to access rates and diversification – Quota share carries higher acquisition costs but currently offers lower net
Slide 7: H1 Underwriting portfolio
H1 Underwriting portfolio Diverse and balanced ▪ Headline ultimate written premiums $333.1 million QS QS of XL XL ▪ c.70/30 split QS/XL (plan 47/53) reflecting pricing, terms and underwriting approach in current market conditions and diversification ▪ Property: 47%, Casualty: 35%, Specialty: 18%, (p
Slide 8: Pricing
Pricing 1 Marsh Global Insurance Index – Q2 2021 GC Catastrophe Index – Q2 2021 Marsh Global Insurance Pricing Change GC Global Catastrophe XL Treaty Rate Index 250 25% 22.0% 20.0% 240 19.0% 20% 18.0% 230 15.0% 14.0% 15% 220 211.9 11.0% 210 10% 8.0% 199.9 6.0% 200 194.5 191.3 5% 2.1% 3.0% 0.8% 0.9%
Slide 9: Pricing: Conduit Re renewal pricing
Pricing 2 Conduit Re renewal pricing Q2 2021 YTD Index: Property +14%; Casualty +17%; Specialty +12% Rate change (% yoy) Q1 Q2 Year to date Property +12 +15 +14 Casualty +15 +21 +17 Specialty +12 (1) +15 +12 Total +13 +17 +15 Rate rises compounded by substantially improved terms and conditions (1) R
Slide 10: H1 Renewals experience
H1 Renewals experience Core markets continue to improve ▪ 1/4 renewals provided a strong starting point for Conduit in Japan although we have taken a disciplined and balanced approach ▪ 1/5 renewals, mainly casualty where we have been warmly accepted by brokers and clients alike ▪ 1/6 renewals, focu
Slide 11: H1 Market loss events
H1 Market loss events Major market losses during H1 included: ▪ Winter Storm Uri: stable estimate of $6.0 million net loss (including impact of reinstatements); subject to change depending on ultimate outcomes. Net exposure capped at $10 million through reinsurance ▪ Ever Given, X-Press Pearl: no ma
Slide 12: Investments
Investments Investment portfolio details ▪ Average duration c2.4 years in line with expected liabilities ▪ Average AA credit Breakdown of asset classes USD AA yield curve Corporate Bonds U.S. Treasuries 2.00 Cash, MMFs, and 1.50 short‐term investments Yield CLOs 1.00 U.S. Agency MBS 0.50 Non‐Agency
Slide 13: Operations
Operations Build out of Conduit Re’s platform and team continues on track ▪ SaaS implementation (phase 1) of our cloud based platform delivered. Started phase 2. ▪ Conduit team now up to c.35 and on plan for 2021 ▪ Strong “Conduit culture” developing ▪ Fully established in high quality permanent off
Slide 14: IPO Prospectus plan continues on track
IPO Prospectus plan continues on track Key start-up risks addressed ▪ Underwriting plans on track (with higher quota share weighting) ▪ Pricing remains strong in core classes ▪ Investment portfolio fully deployed ▪ Operating platform on track ▪ Team building developing strongly ▪ Interim dividend of
Slide 15: Questions
—$<——S Questions
Slide 16: 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