Conduit Holdings, the parent of Bermuda-based multi-line reinsurer Conduit Re, has posted first quarter 2026 results showing premium growth against a softening reinsurance market, with gross premiums written rising even as risk-adjusted rates declined.
Gross premiums written reached $430.3 million in the three months ended March 31, 2026, a 4.9% increase from the same period in 2025, with the casualty segment driving the expansion. Reinsurance revenue rose 12.8% year-on-year to $240.3 million.
The overall portfolio recorded a risk-adjusted rate change of (5)% for the quarter, net of claims inflation. Conduit said pricing remains at adequate levels following the rate and terms improvements seen in recent years.
That (5)% decline sits at the milder end of a broader market pullback. Guy Carpenter characterized the January 1, 2026 renewals as showing "accelerated softening," with its Global Property Catastrophe Rate-On-Line Index falling 12% globally and 15% in Europe.
The quarterly update follows a full-year 2025 in which Conduit Re posted a return on equity of 11.1%, trailing the broader Bermuda market's expected 17%.
The California wildfires contributed 15.3 percentage points to its combined ratio for the year, pushing the undiscounted figure to 101.5%, while peers such as RenaissanceRe posted ROE of 25.9% over the same period.
Chief executive Neil Eckert has previously described the wildfire hit as the largest loss absorbed in Conduit's history, and the firm has accelerated a shift away from quota share toward excess of loss treaties to reduce attritional losses.
The reinsurer ended 2025 with an estimated BSCR ratio of 252%, leaving room to deploy or return capital, while casualty premiums grew 23% over the year, a trend now extending into the first quarter.
Conduit's investment portfolio delivered a return of 0.3% for the quarter, with yield offset by rising treasury yields and widening credit spreads. Managed investments grew to $2.3 billion, supported by roughly $400 million of cash flow increases over the past year.
Conduit said it logged an initial estimate tied to exposure from the Middle East conflict, but no event loss had a material impact on the company during the period, either individually or in aggregate.
"We have made a solid start to 2026, continuing to execute on the priorities we set out last year to stabilise the business and strengthen the Board, leadership and our underwriting team," Eckert said.
He added that while market conditions are softening, the company identified select growth opportunities, enhanced its retrocession program with broader peak and secondary peril coverage, and substantially completed its previously announced share buyback program.
Subject to shareholder approval at the annual general meeting, the Board has approved another buyback of up to $50 million. On governance, Conduit appointed Nicholas Shott as chair during the quarter and added Richard Lightowler, Peter Mullen and Penny Shaw as independent non-executive directors.
