Conduit Holdings Ltd. · LSE:CRE
Conduit — Q3 2022 Earnings Presentation
15 slides from Conduit's earnings presentation, Nov 9, 2022
Slide 1: Conduit Holdings Limited Q3 2022 Trading Update
Conduit Holdings Limited Q3 2022 Trading Update Balance sheet strength and underwriting focus put Conduit Re in an excellent position to take advantage of exceptional market conditions 9 November 2022
Slide 2: Forward looking statements
Forward looking statements Important note: This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", “goals”
Slide 3: The "perfect storm" for the January 2023 renewals
The “perfect storm” for the January 2023 renewals Impact on Reinsurance industry Conduit Re’s position Growth in exposures Substantial capital available to be deployed Macro-economic factors High single to double-digit inflation across most Increased focus on pricing assumptions Robust inflation app
Slide 4: Conduit Re is ideally built for the current market conditions
Conduit Re is ideally built for the current market conditions Pure play reinsurer with substantial capital available to be deployed Balanced and diversified approach with ample Cat capacity available within ~70/30 Non-Cat / Cat portfolio Class, geography and client agnostic - only underwriting risks
Slide 5: First nine months of 2022 highlights
First nine months of 2022 highlights Continued growth of a high-quality reinsurance franchise focused on selective underwriting, with excellent support from clients and brokers: Estimated ultimate premiums written of $600.9 million, an increase of 55.0% on the first nine months of 2021 estimated
Slide 6: Robust global pricing environment expected to harden
Robust global pricing environment expected to harden Marsh Global Insurance Pricing Change (gross of claims inflation) 22.0% 20.0% 19.0% 18.0% 15.0% 14.6% 14.0% 13.0% 11.0% 11.0% 9.0% 8.0% 6.0% 6.0% 3.0% 2.1% 1.2% 1.4% 0.8% 0.9% (2.2)% (1.6)% (2.3)% (3.1)% (3.2)% (3.6)% Hurricane Ian (3.8)% (5.0)% Q
Slide 7: Conduit Re pricing experience outpaces inflation
Conduit Re pricing experience outpaces inflation Year-to-date renewals: Cat pricing significantly increased Fundamental supply and demand imbalance already in place pre-Hurricane Ian Conduit has taken advantage of capacity constraints in the property market On a year-to-date basis (pre-Hur
Slide 8: Strong growth trajectory: $1.1bn written in 21 months
Strong growth trajectory: $1.1bn written in 21 months Cumulative Ultimate Premiums Written ($M) 1,059 955 755 459 388 333 199 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Slightly ahead of IPO plans, with the market presenting better opportunities than originally factored Strong growt
Slide 9: First nine months of 2022, financial highlights
First nine months of 2022, financial highlights $M, Year-to-date Q3 2022 Q3 2021 Est. Ultimate Premiums Written 600.9 387.7 Strong growth driven by continued positive rate Gross Premiums Written 528.1 291.2 increases and franchise momentum Est. Ultimate Premiums Q3 2022 Q3 2021 Written, Total ca
Slide 10: High quality investment portfolio
High quality investment portfolio Asset Allocation as of 30 September 2022 Credit Quality as of 30 September 2022 U.S. Agency MBS/CMBS, 9% BBB U.S. Municipal Bonds and Non U.S. Govt 12% Bonds/Agencies, 1% Corporate Bonds, 39% Non-Agency Structured Portfolio Duration: Products, 22% 2.3 years A Averag
Slide 11: We are ready to accelerate our profitable growth
We are ready to accelerate our profitable growth The (re)insurance industry will be one of the few industries to grow in a world which “may be edging toward a global recession in 2023”1) The existing capacity crunch has led to a hard pricing environment, particularly for property cat Conduit Re
Slide 12: APPENDIX
APPENDIX We CONDUIT RE 12
Slide 13: Industry large losses for the first nine months of 2022
Industry large losses for the first nine months of 2022 Global Q1-Q3 Insured losses (2022 $ billion) Losses from perils accelerated in the third quarter and Hurricane Ian is anticipated to be the costliest singular weather event for the year, and potentially one of the costliest insured loss event
Slide 14: First nine months of 2022, segment update
First nine months of 2022, segment update Gross Premiums Written Property Casualty Specialty $M $M $M 181.1 262.3 84.7 +66% +61% +135% 162.9 51.1 77.2 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Shortage of capacity in the Rates continue to move Growth driven by improving market ahead of i
Slide 15: conduitreinsurance.com
Enquiries please contact: H/Advisors Maitland Vikki Kosmalska / Alistair de Kare-Silver +44 (0) 207 379 5151 conduitre@h-advisors.global Antonio Moretti Investor Relations +44 (0) 7935 708 723 Antonio.Moretti@conduitre.bm conduitreinsurance.com 15