Conduit Holdings Ltd. · LSE:CRE
Conduit — H1 2024 Earnings Presentation
24 slides from Conduit's earnings presentation, Jul 31, 2024
Slide 1: Interim Results for the six months ended 30 June 2024
Interim Results for the six months ended 30 June 2024 31 July 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: 2024 interim results - comprehensive income of $98.1 million
2024 interim results - comprehensive income of $98.1 million Gross premiums written of $737.8 million, +36.1% over Total Shareholder Return of 8.3% in the first six the same period in 20231 months of 2024 Discounted combined ratio of 75.1% compared with Book Value Per Share (BVPS) of $6.69 (or £5.28
Slide 4: 36% growth in gross premiums written
36% growth in gross premiums written Gross premiums written ($m) Portfolio remains diversified and 737.8 actively managed with capacity to +36.1% 28.3% increase into attractive opportunities 147.8 542.2 Growth is led by property and specialty with both new deals and expansion to 148.2 93.2 existing
Slide 5: 43% growth in property
43% growth in property Gross premiums written, $m Undiscounted combined ratio 441.8 96.9% +43.3% 73.1% 308.4 64.7% 61.9% 186.6 129.5 H1 2021 H1 2022 H1 2023 H1 2024 H1 2021 H1 2022 H1 2023 H1 2024 Primary risk pricing ahead of Excess of loss rates 3% risk-adjusted rate change, Reinsurance service in
Slide 6: 5% growth in casualty
5% growth in casualty Gross premiums written, $m Undiscounted combined ratio +5.4% 148.2 140.6 99.8% 99.5% 99.9% 94.7% 111.6 44.1 H1 2021 H1 2022 H1 2023 H1 2024 H1 2021 H1 2022 H1 2023 H1 2024 Industry’s1 deterioration of soft- Managed growth of segment -2% risk-adjusted rate Reinsurance service ye
Slide 7: 59% growth in specialty
59% growth in specialty Gross premiums written, $m Undiscounted combined ratio 147.8 156.9% +58.6% 108.4% 93.2 95.7% 80.7% 56.3 36.7 H1 2021 H1 2022 H1 2023 H1 2024 H1 2021 H1 2022 H1 2023 H1 2024 Growth in our multi-line risk The industry continues to show 1% risk-adjusted rate change, net of Reins
Slide 8: 2024 H1 financial highlights
2024 H1 financial highlights H1 2024 H1 2023 Change % 37.1% growth in reinsurance revenue Key financials ($m) driven by year-on-year increases across Gross premiums written 737.8 542.2 36.1% property, casualty and specialty Reinsurance revenue 382.0 278.7 37.1% Net reinsurance revenue 338.2 242.8 39
Slide 9: High quality investment portfolio
High quality investment portfolio Asset type as at 30 June 2024 Asset ratings as at 30 June 2024 Capital preservation and liquidity remain of paramount importance 1.3% 7.8% 4.9% We maintain a short duration, highly- 28.9% 30.6% rated portfolio, with due consideration 17.5% 23.3% Portfolio of our lia
Slide 10: An established multi-line reinsurance platform
An established multi-line reinsurance platform Performance through 2024 validates our strategic selections and efficient business model: Strong organic growth (gross premiums written, +36.1%) and comprehensive income of $98.1 million RoE of 9.9%, low volatility underwriting, growth prospects: Key cl
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, highly - Balance sheet well long-term benefit of our stakeholders fo
Slide 14: Historic financial highlights
Historic financial highlights H1 2022 FY 2022 H1 2023 FY 2023 H1 2024 Commentary Gross premiums written growth1 +69% +67% +53% +50% +36% Strong, targeted growth Combined ratio (undiscounted)2 105.8% 109.3% 83.1% 81.9% 85.7% Low 80s emerging Investment book yield 1.4% 2.4% 3.2% 3.7% 4.1% Opportunity
Slide 15: Robust Commercial insurance pricing environment
Robust 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% -2% -2% -3% -3% -4% -4% -5% Note: Conduit Re’s underwriting business incepted in Q1 2021 © 15
Slide 16: Over $2.6bn gross premiums written since inception
Over $2.6bn gross premiums written since inception Cumulative gross premiums written1 ($m) 2,664.2 498.4 +52.8% Significant pipeline Average six monthly increase of premium continues to flow 350.6 790.9 through 257.4 642.7 Delivering on our 506.6 strategy as a multi- 164.1 line reinsurer 122.6 366.0
Slide 17: Increasing asset leverage
Increasing asset leverage 1,700 $1,581.8m 1,600 1,500 $1,438.2m 1,400 1,300 1,200 $1,134.6m 1,100 $1,075.9m 1,000 900 800 YE 2021 YE 2022 YE 2023 H1 2024 Investment leverage1 1.1 1.3 1.5 Investments & cash 1. Investment leverage calculated as investments and cash divided by closing shareholders’ equ
Slide 18: Capital to support continued growth
Capital to support continued growth Conduit year-end Peer year-end 2023 BSCR BSCR coverage ratio coverage ratio1 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 >$2.5 billion 1. Data is
Slide 19: Bermuda corporate income tax consultation
Bermuda corporate income tax consultation Bermuda Corporate Income Tax Act 2023 (Bermuda CIT) passed into law in December and will apply from January 2025 to those multi-national entities that qualify Conduit has a limited footprint, underwriting from a single location Conduit does not meet the crit
Slide 20: Discounting on losses
Discounting on losses Reminder of our discounting calculation methodology Calculation methodology Variability Discount on − New incurred claims discounted using opening − Opening discount rates are fixed for the period but discount on material events are new incurred discount rate or date of loss ra
Slide 21: Balance sheet discount
Balance sheet discount Discount roll-forward for the 6 months ended 30 June 2024 ($m) © 21
Slide 22: Reinsurance finance result vs investment return
Reinsurance finance result vs investment return Investment return and reinsurance finance return for half year and full year results ($m) 70.6 20.8 22.6 23.0 10.1 (4.7) (10.1) (32.8) (50.0) (52.8) HY 2022 FY 2022 HY 2023 FY 2023 HY 2024 Investment return Reinsurance finance result © 22 22
Slide 23: 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 events Conduit Re planned attendance at conferences 6 November: 4 September: – Q3 2024 trading update - KBW (New York) 4 October
Slide 24: Enquiries please contact
Enquiries please contact: Vikki Kosmalska / Genevieve Ryan Antonio Moretti H/Advisors Maitland Investor Relations +44 (0) 207 379 5151 +1 (441) 276 4054 conduitre@h-advisors.global Antonio.Moretti@conduitre.bm About Conduit Re Conduit Re is a Bermuda-based multi-line reinsurance business with global