Conduit Holdings Ltd. · LSE:CRE
Conduit — Q1 2025 Earnings Presentation
24 slides from Conduit's earnings presentation, May 14, 2025
Slide 1: Reinsuring today, Ready for tomorrow.
Reinsuring today, Ready for tomorrow. Conduit Holdings Limited Q1 2025 Trading Update 14 May 2025 ©
Slide 2: Important notices
Important notices Important information (disclaimers) This announcement contains inside information for the purpose of the Market Abuse Regulation (EU) No 596/2014 (which forms part of UK domestic law pursuant to the European Union (Withdrawal) Act 2018, as amended). This announcement includes state
Slide 3: Q1 2025 trading update
Q1 2025 trading update Today’s speakers Neil Eckert Elaine Whelan Nick Pritchard Chief Executive Officer Chief Financial Officer Interim Chief Underwriting Officer Agenda 01 02 03 04 05 06 Leadership Q1 2025 Outwards Performance by Financial Closing remarks summary reinsurance segment highlights © 3
Slide 4: Experienced executive and underwriting leadership
Experienced executive and underwriting leadership Executive leadership Significant executive management changes Neil Eckert Elaine Whelan in recent weeks Chief Executive Officer Chief Financial Officer Conduit since 2020 Conduit since 2021 ̶ Neil Eckert appointed as permanent CEO 40+ years industry
Slide 5: Q1 2025 trading update: refocused approach to reduce volatility
Q1 2025 trading update: refocused approach to reduce volatility • Continued growth in each underwriting division, led by Casualty and Specialty Gross premiums written1 of $410.2 million, a +15.0% • Risk-adjusted rate change, net of inflation, through 31 March 2025 was -4% increase over Q1 2024 acros
Slide 6: Evolving our strategy to enhance stability and resilience
Evolving our strategy to enhance stability and resilience Adapting to a dynamic risk environment ̶ Due to the increasing frequency of secondary perils, including the January California wildfires, we have reassessed our reinsurance coverage with a focus to mitigate earnings volatility ̶ We have adjus
Slide 7: 15% increase in gross premiums written
15% increase in gross premiums written Gross premiums written1 ($m) Cumulative risk-adjusted rate change, net of inflation2 Property Casualty Specialty +$53.4m Q1 2025: -4% +15% 410.2 rate change2 356.8 88.2 121% 122% 117% 70.7 278.0 84.1 54.1 69.0 100% 174.7 104% 64.9 31.4 82.6 59.7 217.1 237.9 22.
Slide 8: 10% increase in gross premiums written in Property
10% increase in gross premiums written in Property Gross premiums written1 ($m) Gross premiums written up $20.8 million or 9.6% 606.3 ̶ Growth predominantly driven by new business opportunities Increasing demand by cedants being offset by more capacity 468.3 +$20.8m ̶ Cedants buying additional limit
Slide 9: 22% increase in gross premiums written in Casualty
22% increase in gross premiums written in Casualty Gross premiums written1 ($m) Gross premiums written up $15.1 million or 21.9% 297.6 276.7 ̶ We have considered more submissions but remain selective in the 236.7 lines we target and partners we support ̶ We have increased our line size where we see
Slide 10: 25% increase in gross premiums written in Specialty
25% increase in gross premiums written in Specialty Gross premiums written1 ($m) Gross premiums written up $17.5 million or 24.8% 258.5 ̶ Secured opportunities where rates and terms remain favourable, benefitting from compound rate changes 186.4 ̶ We continue to hold our position on event limit and
Slide 11: Financial highlights
Financial highlights Gross premiums written1 for the three months ended 31 March 2025 and 2024: Growth continued across all three segments of our diversified 2025 2024 Change Change portfolio, supported by strong relationships with clients and brokers, $m $m $m % providing additional opportunities f
Slide 12: High quality investment portfolio
High quality investment portfolio Asset allocation as at 31 March 2025 Capital preservation and liquidity to support our underwriting Corporate Bonds continues to be paramount and determines our conservative 15.0% U.S. Treasuries and U.S. Agency Debt strategic portfolio allocation 1.1% 30.8% Non-Age
Slide 13: Capital strategy
Capital strategy Conduit has been focused on capital1 deployment into strong Required capital levels market conditions since IPO The chart3 below is illustrative and demonstrates that we seek to ̶ We have written approximately $3.5 billion of gross premiums written maintain a target level of capital
Slide 14: Closing remarks
Closing remarks – There have been significant executive management changes in recent weeks; leadership team remains highly experienced with meaningful industry expertise in our selected classes – Unified focus and vision for Conduit; incentives are aligned with operating performance – Conduit’s core
Slide 15: Appendices
Appendices
Slide 16: Conduit at a glance
Conduit at a glance Our dynamic cycle management across classes of business and efficient operating model are fundamental to delivering long-term value to our stakeholders 12 months to 31/03/2025 gross premiums written Key statistics Property Casualty Specialty “CRE” listed on the $627.1 million $31
Slide 17: $3.5 billion of gross premiums written since inception
$3.5 billion of gross premiums written since inception Cumulative gross premiums written1 ($m) 3,499.0 697.3 Significant pipeline of premium continues to 609.1 flow through 1,024.4 940.3 Delivering on our 350.6 strategy as a multi-line reinsurer 642.7 164.1 1,777.3 1,539.4 366.0 933.1 66.4 129.2 464
Slide 18: Strategic cost benefit from operating structure
Strategic cost benefit from operating structure Gross premiums written per full time employee1 ($m) Conduit Peers FY 20242 17.9 15.8 11.5 9.1 7.3 6.4 6.0 5.5 4.4 3.0 3.0 2.7 1.6 1.5 0.5 2021 2022 2023 2024 Co. 1 Co. 2 Co. 3 Co. 4 Co. 5 Co. 6 Co. 7 Co. 8 Co. 9 Co. 10 Co. 11 1. Conduit Re based on act
Slide 19: Commercial insurance pricing environment
Commercial insurance pricing environment Marsh Global Insurance Market Index 25% 22% 20% 19% 20% 18% 15% 15% 14% 15% 13% 11% 11% 9% 10% 8% 6% 6% 4% 4% 5% 3% 3% 3% 2% 2% 1% 1% 1% 1% 1% 0% 0% (1)% -2% (2)% -2% -2% -3% -3% (3)% -4% -4% (5)% -5% (10)% © 19 Note: Conduit Re’s underwriting business incept
Slide 20: Compounding earnings contribution from investment portfolio
Compounding earnings contribution from investment portfolio Investments and cash Book yield Market yield Investments and cash totaling $1.8 5.2% 5.1% billion as at 31 December 2024, 4.8% representing growth of 27.9% from 31 December 2023 4.1% 3.7% 1,839.5 Investment leverage1 has increased 1.2% 2.4%
Slide 21: Bermuda corporate income tax
Bermuda corporate income tax Bermuda Corporate Income Tax Act 2023 (Bermuda CIT) passed into law in December 2023 and applied from January 2025 to multi-national entities that qualify Conduit is not a multi-national entity If the Group were to meet the Bermuda CIT criteria in the future, it is likel
Slide 22: 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 23: Investor relations calendar
Investor relations calendar Planned events are provisional and subject to change Conduit scheduled disclosures Conduit planned attendance at conferences 30 July 2025: 12 June 2025: – 2025 Interim Results – Peel Hunt FTSE 250+ Conference (London) 12 June 2025: – BMO Insurance Summit (New York) 3-4 Se
Slide 24: Enquiries please contact
Enquiries please contact: Vikki Kosmalska 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. Conduit Reinsuran