Conduit Holdings, the parent of Bermuda-based reinsurer Conduit Re, reported a 92.6% undiscounted combined ratio for the six months ending in June 30, a 29.5 percentage point improvement on the year-on-year.
The London Stock Exchange-listed group also reported gross premiums written of US$789 million for the period. That figure was down 1.8% from US$803.3 million in the same period of 2025. Return on equity was 7.8%, against -1.4% in the prior year period.
The decline in gross premiums written reflects a 9.3% reduction in property and a 4.7% fall in specialty, partly offset by 21.2% growth in casualty. Reinsurance revenue rose 5.2% to US$455.9 million, with net reinsurance revenue broadly flat at US$382.6 million. The reinsurance service result swung to a positive US$86.9 million from a loss of US$15.2 million in the first half of last year.
The discounted combined ratio was 80.4%, down from 108.3% in H1 2025. The discounted net loss ratio was 68.5%, compared with 95.8% in the prior year period. Undiscounted net loss ratios were 80.7% and 109.6%, respectively.
The prior year period included the California wildfires, which generated an undiscounted net loss of US$118.3 million in H1 2025. As at June 30, the cumulative net loss estimate from that event stood at US$118.6 million. No individual event in H1 2026 produced a material impact on results. Middle East conflict losses were not material in the aggregate.
Favourable development on prior-year reserves was US$11.3 million on a discounted basis, against US$3.8 million in the same period of 2025.
Risk-adjusted rate change for the period was -6% overall, net of claims inflation. Property recorded -10%, specialty -7%, and casualty -1%. Strong industry returns and record global reinsurance capital levels have contributed to softening in property and specialty.
Retrocession costs rose to US$73.3 million from US$53.4 million in the prior year. Conduit purchased additional limits and aggregate coverage in its 2026 retrocession programme, aimed at reducing net probable maximum loss (PML) exposure for North Atlantic windstorms.
The net investment result was US$25.3 million, down from US$63.8 million in H1 2025, for a total return of 0.9% against 3.9% in the prior period. Net investment income grew 20.4% to US$46.7 million. Unrealised losses of $21.7m on rising treasury yields offset most of that gain.
The investment portfolio duration was 2.7 years with a book yield of 4.2% and AA credit quality. Rising market yields during the period are expected to support investment income for the remainder of 2026.
Total income for the period was US$80.3 million, against a loss of US$13.5 million in H1 2025. Tangible net assets per share rose to US$7.56 at June 30, up 8.4% since December 31, 2025 and 23.2% since June 30, 2025. Dividends are included in both calculations.
Share buybacks totalled US$38.9 million or 6.8 million shares during the period. The board declared an interim dividend of US$0.18 per share, payable on September 10. The Bermuda Tax Credit Act 2025 generated US$8.3 million in substance-based tax credits, recorded as a reduction in operating expenses.
Neil Eckert, chief executive of Conduit Holdings, said the company had continued to rebalance its property portfolio towards excess of loss business. He added that an enhanced retrocession programme had been put in place to reduce underwriting volatility. "While the market is softening, we feel it is right to place emphasis on margin and capital discipline as opposed to growth," Eckert said.
Excess of loss business is expected to account for approximately 40% of property gross premiums written in 2026. Total capital available to Conduit was US$1.12 billion at June 30, up from US$1.01 billion a year earlier.
