Conduit Reinsurance, the main subsidiary of Conduit Holdings, has reported continuing rate improvements and tightening of terms and conditions across its core classes, during the January 2022 renewal season.
The new market player has posted a roughly 70% annual increase in estimated ultimate premiums bound to approximately US$262.6 million (2021: US$154.4 million), as well as a +5% overall portfolio year on year renewal net rate change, reflecting favourable improvement in both pricing and terms and conditions. The reinsurer also maintained a hit rate of approximately 20%.
There were also improvements in Conduit Re’s quota share business and excess of loss business, with the company underwriting 64% and 36%, respectively. The split of its estimated ultimate premiums written by class was: property, 41%; casualty, 33%, and specialty classes, 26%, in line with management expectations.
“Conduit Re is benefiting from some of the most attractive market conditions seen in a generation,” said Neil Eckert, group executive chairman. “Our second successful January renewals season reflected the fact that 2021 was the fourth costliest catastrophe year in history for the reinsurance industry and total catastrophe losses for the insurance market over the last five years now amount to over US$500 billion. As a new market entrant with a strong capital base, an unencumbered balance sheet and a forward-looking approach to underwriting, we are well positioned to benefit from continued favourable market conditions."