Conduit Holdings Ltd. · LSE:CRE

Conduit — H1 2022 Earnings Presentation

14 slides from Conduit's earnings presentation, Jul 27, 2022

  1. Slide 1: Conduit Holdings Limited H1 2022 results

    Conduit Holdings Limited H1 2022 results 27 July 2022

  2. Slide 2: Forward looking statements

    Forward looking statements Important note: This presentation and related 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", "est

  3. Slide 3: First half of 2022 highlights

    First half of 2022 highlights  Continued build of a high-quality business focused on selective underwriting, with excellent support from clients and brokers:  Estimated ultimate premiums written of $496.7 million, an increase of 49.1% on the first half of 2021 estimated ultimate premiums written o

  4. Slide 4: Other operating expense ratio reducing as business matures

    Other operating expense ratio reducing as business matures Conduit’s efficient business model 800 35%  Increasing efficiencies driven by Conduit’s business model, with all 700 30% operations based in a single location (in Operating expenses / Net Premiums Earned Cumulative Gross Premiums Written ($

  5. Slide 5: First half of 2022, segment update

    First half of 2022, segment update Gross Premiums Written Property Casualty Specialty $M 188.3 $M 111.6 $M 59.1 +45% +61% 129.5 +153% 36.7 44.1 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022  Shortage of capacity in the  Rates continue to move  Growth driven by improving market ahead of inflatio

  6. Slide 6: Conduit Re pricing experience outpaces inflation

    Conduit Re pricing experience outpaces inflation  July 2022 renewals:  Clear and measurable mismatch in supply & demand of cat capacity with price alone not sufficient to get certain deals completed, leaving potential risk management issues for incumbents  Conduit has taken advantage of capacity

  7. Slide 7: Strong global pricing environment

    Strong global pricing environment Marsh Global Insurance Pricing Change 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% 3.0% 2.1% 1.2% 1.4% 0.8% 0.9% (2.3)% (2.2)% (1.6)% (3.1)% (3.2)% (3.6)% (3.8)% (5.0)%  Global commercial insurance prices rose 9% in the second quarter

  8. Slide 8: Legacy-free balance sheet limits the impact from inflation

    Conduit has a legacy-free balance sheet, which limits the impact from inflation  Conduit was created in December 2020 with a legacy-free balance sheet  Our recent start means a small book of prior year reserves compared to other (re)insurers  Robust inflation assumptions have been built into our

  9. Slide 9: First half of 2022, financial highlights

    First half of 2022, financial highlights H1 2022 H1 2021 Change $millions Gross premiums written 359.0 210.3 148.7  Strong growth driven by continued positive rate increases, Net premiums earned 210.0 47.7 162.3 outpacing inflation Net losses and loss adjustment expenses 142.3 33.4 108.9 Net acquis

  10. Slide 10: High quality investment portfolio

    High quality investment portfolio Asset Allocation as at 30 June 2022 Credit Quality as at 30 June 2022 U.S. Agency MBS/CMBS, 9% BBB U.S. Municipal Bonds and Non U.S. Govt 13% Bonds/Agencies, 1% Corporate Bonds, 41% Portfolio Duration: Non-Agency Structured 2.4 years Products, 23% Average Credit AAA

  11. Slide 11: Conduit Re sees substantial opportunities for profitable growth

    Conduit Re sees substantial opportunities for profitable growth  We have built a quality underwriting operation which has now passed $1 billion of ultimate premiums written since the IPO  Whilst Conduit is still in a significant growth phase, our business is normalising and our combined ratio will

  12. Slide 12: Appendix

    APPENDIX We CONDUIT RE 12

  13. Slide 13: Industry large losses for the first half of 2022

    Industry large losses for the first half of 2022  The first half of 2022 saw global insured losses from natural disaster events above the 21st century average, up 18%, to $39 billion1), primarily driven by persistent Severe Convective Storm activity, mainly in the United States and Europe.  Condui

  14. Slide 14: Enquiries please contact

    Enquiries please contact: Haggie Partners David Haggie / Caroline Klein +44 (0) 207 562 4444 conduitre@haggie.co.uk Antonio Moretti Investor Relations +44 (0) 7935 708 723 Antonio.Moretti@conduitre.bm conduitreinsurance.com 14

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