Conduit Holdings Ltd. · LSE:CRE
Conduit — Q3 2023 Earnings Presentation
21 slides from Conduit's earnings presentation, Nov 8, 2023
Slide 1: Q3 2023 Trading Update
Holdings Limited Q3 2023 Trading Update 8 November 2023
Slide 2: Market among the best in decades
Market among the best in decades We see a number of factors combining to maintain the current hard market environment: The market environment continues to be the most 01 02 03 04 05 favourable1 it has been in a Inflationary New traditional Insurance US primary Industry generation with reinsurer pres
Slide 3: Excellent premium growth continues in Q3 2023
Excellent premium growth continues in Q3 2023 Robust year on year growth - disciplined underwriting, solid market conditions – Estimated ultimate premiums written1 of $909.3m, +56.4% compared to the nine months ended 30 Sept 2022 – Gross premiums written for the nine months ended 30 Sept 2023 of $76
Slide 4: Premium momentum set to continue
Premium momentum set to continue Conduit Re has capital in place to support planned growth and RoE delivery – Planned growth supported by capital level and future expectations of retained earnings – Focus is fully on growing the business scale - diversification strength and ‘best margin’ approach –
Slide 5: Over $1.7 Bn gross premiums written since inception
Over $1.7 Bn gross premiums written since inception Cumulative gross premiums written1 ($m) 1,759.4 +35.9% 868.1 Average quarterly increase 773.2 Property 623.8 Casualty Specialty 464.8 422.5 585.2 363.5 506.6 260.5 430.9 366.0 176.9 310.2 241.0 157.1 188.9 129.0 129.2 306.1 218.3 257.4 44.0 77.0 12
Slide 6: Perspective on market conditions
Perspective on market conditions Estimated ultimate premiums written1 ($m) Property – E&S2 primary market continuing to show strong pricing dynamics – Cat capacity currently trading with disciplined hurdle metrics – Smaller and mid-size carriers presenting a broad range of non-cat and cat opportunit
Slide 7: Rate environment
Rate environment Risk-adjusted rate change, net of inflation1 30% Enduring pricing environment creating the opportunity for Property improved margins in 2023 and beyond Casualty Specialty 15% Weighted Positive rate change Average across all divisions before adjusting for inflation 9% 7% 4% 2% 1% 0%
Slide 8: Financial highlights
Financial highlights Estimated ultimate premiums written1 for the nine months ended 30 September 2023: Significant growth, driven by continued positive rate increases (outpacing inflation), strong demand and 2023 2022 Change Change high retention $m $m $m % Property 440.5 276.1 164.4 59.5% Casualty
Slide 9: High quality investment portfolio
High quality investment portfolio Asset allocation as at 30 September 2023 Capital preservation and liquidity to support our 1.4% Non-Agency Structured Products underwriting teams remain of paramount importance 9.0% 32.8% U.S. Treasuries and U.S. Agency Debt and determines our low-risk strategic por
Slide 10: Business optimised for future growth
Business optimised for future growth 01. Inflation is 02. High quality 03. Diversified 04. Efficient and 05. Established driving industry capital base business mix scalable business portfolio, foundation discipline: supporting growth: established: model: for future growth: Insurance carriers Legacy-
Slide 11: Any questions?
Any questions?
Slide 12: Appendices
Appendices
Slide 13: Our investment proposition
Our investment proposition Targeted underwriting Operational excellence Strong balance sheet Pure-play reinsurance treaty focus Single location, highly efficient set-up Legacy-free balance sheet. with open and collaborative culture Well capitalised for future growth Balanced and diversified portfoli
Slide 14: Bermuda corporate income tax consultation
Bermuda corporate income tax consultation Bermuda is currently in the second phase of its consultation regarding implementation of a corporate income tax in the context of OECD expectations regarding a global minimum tax Given the current lack of clarity, it is too early to conclusively determine an
Slide 15: Evolution of Conduit employee base
Evolution of Conduit employee base Total Employees As at 30 September 2023 49:51 51 54 57 Female to Male ratio 2022 Q3 2022 FY 2023 Q3 71% Of the Bermuda-based employees do not require work permits © 15
Slide 16: Robust Commercial insurance pricing environment
Robust Commercial insurance pricing environment Marsh Global Insurance Market Index 22% 20% The Marsh Global Insurance 19% 18% Market Index was up 3% 15% 15% overall in the third quarter, 14% 13% in line with the last quarter 11% 11% as property rates increased 8% 9% 7%, down from 10% last 6% 6% qua
Slide 17: Discounting on losses
Discounting on losses Movement of discount on net liabilities ($m) – HY 2023 Discounting on incurred losses and loss reserves impacts the Reinsurance service result and the Reinsurance financial result - Discounting on incurred claims is driven by opening discount rates and date of loss rates for ma
Slide 18: Discounting on losses
Discounting on losses Calculation methodology Variability Discount on new - New incurred claims discounted using opening - Opening discount rates are fixed for the period but discount on material events incurred discount rate or date of loss rate for material events are subject to prevailing market
Slide 19: Investor relations calendar - 2024
Investor relations calendar - 2024 Although we endeavour to adhere to the dates below, all future planned events are provisional and subject to change Conduit Re scheduled disclosures Conduit Re planned roadshows & conferences 21 February 2024: 10 January 2024: – 2023 Preliminary Results – BOFA SMID
Slide 20: 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 21: Enquiries please contact
Enquiries please contact: Vikki Kosmalska / Alistair de Kare-Silver Antonio Moretti H/Advisors Maitland Investor Relations +44 (0) 207 379 5151 +44 (0) 7935 708 723 conduitre@h-advisors.global Antonio.Moretti@conduitre.bm About Conduit Re Conduit Re is a a pure-play Bermuda-based reinsurer, with a g