Conduit Holdings Ltd. · LSE:CRE
Conduit — Q3 2024 Earnings Presentation
20 slides from Conduit's earnings presentation, Nov 6, 2024
Slide 1: Conduit Holdings Limited Q3 2024 Trading Update
Conduit Holdings Limited Q3 2024 Trading Update 6 November 2024
Slide 2: Important notices
Important notices Important information (disclaimers) 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", "plan
Slide 3: Q3 2024 trading update: sustained market opportunities
Q3 2024 trading update: sustained market opportunities Measured growth in gross premiums written, focused on classes with most attractive margins – Gross premiums written of $957.3 million for the nine months ended 30 September 2024, surpassing full year 2023 premium totals – Year-on-year growth of
Slide 4: 25% increase in gross premiums written
25% increase in gross premiums written Gross premiums written1, $m Cumulative risk-adjusted rate change, net of inflation2 Property Casualty Specialty +$193m 957.3 +25% Q3 2024 YTD: +1% rate change2 197.7 764.4 141.9 122% 223.6 121% 508.7 219.2 82.0 285.1 181.1 100% 51.0 536.0 104% 77.0 403.3 245.6
Slide 5: 33% increase in gross premiums written in Property
33% increase in gross premiums written in Property Gross premiums written1, $m Cumulative risk-adjusted rate change, net of inflation2 Q3 2024 YTD: +3% +$133m rate change2 536.0 +33% 143% 139% 403.3 245.6 100% 157.1 107% Q3 2021 YTD Q3 2022 YTD Q3 2023 YTD Q3 2024 YTD YE 2021 YE 2022 YE 2023 Q3 2024
Slide 6: 2% increase in gross premiums written in Casualty
2% increase in gross premiums written in Casualty Gross premiums written1, $m Cumulative risk-adjusted rate change, net of inflation2 +$4m +2% 219.2 223.6 181.1 Q3 2024 YTD: -1% rate change2 77.0 100% 101% 101% 100% Q3 2021 YTD Q3 2022 YTD Q3 2023 YTD Q3 2024 YTD YE 2021 YE 2022 YE 2023 Q3 2024 YTD
Slide 7: 39% increase in gross premiums written in Specialty
39% increase in gross premiums written in Specialty Gross premiums written1, $m Cumulative risk-adjusted rate change, net of inflation2 +$56m 197.7 +39% 141.9 Q3 2024 YTD: +1% rate change2 111% 112% 82.0 102% 100% 51.0 Q3 2021 YTD Q3 2022 YTD Q3 2023 YTD Q3 2024 YTD YE 2021 YE 2022 YE 2023 Q3 2024 Y
Slide 8: Financial highlights
Financial highlights Gross premiums written1 for the nine months ended 30 September 2024 and 2023: Measured growth in gross premiums written and reinsurance 2024 2023 Change Change revenue, driven by strong demand, growth in underlying $m $m $m % exposures, high retention and stable risk-adjusted ra
Slide 9: High quality investment portfolio
High quality investment portfolio Asset allocation as at 30 September 2024 Capital preservation and liquidity to support our underwriting teams remain of paramount importance and determines our 15.7% Corporate Bonds conservative strategic portfolio allocation 1.2% 29.8% U.S. Treasuries and U.S. Agen
Slide 10: Multi-line portfolio positioned to respond to market conditions
Multi-line portfolio positioned to respond to market conditions 25% increase in gross premiums written through nine months of 2024, focused in Property and Specialty, with growth expected to continue in 2025 Active industry period for smaller and mid-sized natural catastrophe and large risk events;
Slide 11: Any questions?
Any questions?
Slide 12: Appendices
Appendices
Slide 13: How we create value
HOW WE Our investment proposition CREATE VALUE Our key business objectives Targeted Operational Strong balance underwriting excellence sheet Building a sustainable business for the - Multi-line reinsurance treaty - Single location, efficient set - Balance sheet well long-term benefit of our stakehol
Slide 14: Historical financial highlights
Historical financial highlights FY 2022 FY 2023 H1 2023 H1 2024 9M 2023 9M 2024 Commentary Gross premiums written ($m)1 $622.5 $931.4 $542.2 $737.8 $764.4 $957.3 Achieved meaningful scale Gross premiums written growth2 +67% +50% +53% +36% +50% +25% Targeted growth, continued opportunity Combined rat
Slide 15: Commercial insurance pricing environment
Commercial insurance pricing environment Marsh Global Insurance Market Index 22% 20% 19% 18% 15% 15% 14% 13% 11% 11% 9% 8% 6% 6% 4% 4% 3% 3% 3% 2% 2% 1% 1% 1% 1% 1% 0% -2% -1% -2% -2% -3% -4% -4% -3% -5% © 15 Note: Conduit Re’s underwriting business incepted in Q1 2021
Slide 16: Over $2.8bn gross premiums written since inception
Over $2.8bn gross premiums written since inception Cumulative gross premiums written1 ($m) 2,883.7 Property Casualty Specialty 2,664.2 548.3 2,283.2 498.4 Significant pipeline of premium continues to 1,926.4 421.3 flow through 1,759.4 866.3 350.6 790.9 1,537.2 306.1 711.7 Delivering on our 1,273.0 2
Slide 17: Capital to support continued growth
Capital to support continued growth Conduit year-end Peer year-end 2023 BSCR1 BSCR1 coverage ratio coverage ratio2 574% 404% 381% 300% 200% 2021 2022 2023 Co. 1 Co. 2 Co. 3 Co. 4 Co. 5 Co. 6 Co. 7 Co. 8 Co. 9 Co. 10 Co. 11 Co. 12 Eligible capital <$2.5 billion Eligible capital >$2.5 billion 1. Bermu
Slide 18: Discounting on losses
Discounting on losses Reminder of our discounting calculation methodology Calculation methodology Variability Discount on − New incurred claims discounted using opening − Opening discount rates are fixed for the period but discount on material events are new incurred discount rate or date of loss ra
Slide 19: Investor relations calendar
Investor relations calendar Although we endeavour to adhere to the dates below, all future planned events are provisional and subject to change Conduit scheduled disclosures Conduit planned attendance at conferences 19 February 2025: 4 December 2024: – 2024 Results – Berenberg European Conference (P
Slide 20: Enquiries please contact
Enquiries please contact: Vikki Kosmalska / Genevieve Ryan Brett Shirreffs H/Advisors Maitland Investor Relations +44 (0) 207 379 5151 +1 (441) 520 4058 conduitre@h-advisors.global brett.shirreffs@conduitre.bm About Conduit Re Conduit Re is a multi-line Bermuda-based reinsurer, with a global reach.