CHL, the parent firm of Bermuda-based reinsurer Conduit Re, has issued its trading update for the first quarter of 2025, a period marked by several significant insured catastrophe events across the industry.
Notably, the California wildfires resulted in widespread damage throughout the Los Angeles region. The company’s estimated ultimate net loss for the event remains between US$100 million and US$140 million, net of reinsurance and reinstatement premiums.
For the three months ending March 31, CHL reported gross premiums written of US$410.2 million, reflecting a 15.0% year-over-year increase. Growth was recorded across all three business segments. Reinsurance revenue rose to US$213.0 million, up 17.6% from the same period in 2024.
The company reported a portfolio risk-adjusted rate change of (4)%, net of claims inflation. CHL noted that rates remain at attractive levels, citing improvements in pricing, terms, and conditions in prior periods.
CHL’s investment portfolio delivered a 2.1% return for the quarter, supported by higher yields and falling treasury rates.
The company also reported additional reinsurance coverage secured for both US and global secondary perils, as well as increased aggregate protection, which is intended to strengthen earnings stability. As part of its capital management strategy, CHL’s board has approved a share buyback program of up to US$50 million.
Looking ahead, CHL expects its 2025 return on equity (RoE) to fall within the high single-digit to low double-digit range, factoring in losses from the California wildfires and the impact of additional reinsurance purchases and portfolio changes. The company reiterated its goal of achieving a mid-teens RoE across the cycle.
In 2024, the company reported growth in gross premiums written and net reinsurance revenue but experienced a decline in its reinsurance service result and comprehensive income.
Gross premiums written increased by 24.8% to US$1.16 billion, up from US$931.4 million in 2023. Reinsurance revenue rose 28.5% to US$813.7 million, while net reinsurance revenue climbed 29.4% to US$720 million.
Separately, CHL announced the appointment of Neil Eckert (pictured above) as chief executive officer, effective immediately.
Eckert had been serving as interim CEO since late March following the retirement of Trevor Carvey. The appointment remains subject to immigration approval in Bermuda.
Rebecca Shelley, currently senior independent director, has also been named interim non-executive chair while the board initiates the search for a permanent chair, with Sainty Hird providing assistance in the process. Ken Randall has taken on the role of senior independent director.
In a statement, Eckert said he looks forward to continuing his work with the Conduit team to meet the company’s objectives.
“The experienced team at Conduit have effectively navigated one of the most challenging quarters for insured catastrophe losses in history, taking decisive action following the devastating California wildfires to enhance our resilience and reduce earnings volatility for the rest of 2025. Looking ahead, we continue to have confidence in our ability to deliver a target return on equity in the mid-teens across the insurance cycle,” he said.
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