CHL, the parent company of Conduit Re, a reinsurance firm headquartered in Bermuda, has released its interim results for the six months ended June 30, based on the IFRS 17 accounting standard.
“This has been a very successful half-year for Conduit, and we are delivering on the goals we set out when we founded the business in 2020,” said Trevor Carvey, CEO. “In a half year which has seen high industry losses, our focussed underwriting strategy has delivered strong underwriting results which, coupled with our low expense base, have delivered a very attractive combined ratio of 72.5% (83.1% on [an] undiscounted basis).
“With no back years prior to 2021, we continue to look forward to deploying capital effectively, taking maximum advantage of current market conditions, which we see continuing for some time.”
Executive chairman Neil Eckert said: “We are delighted to announce our maiden interim profit. The low combined ratio and highly attractive return on equity are testament to the effectiveness of our strategy. This is one of the hardest insurance markets in a generation, and we are very well placed to capitalise on that with our efficient business model.”
Key highlights of the 2023 H1 results include:
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The company reported an estimated ultimate premium of US$1.9 billion written since its launch in December 2020 until June 30, 2023, with a substantial pipeline of unearned premium (approximately US$755 million) set to flow through in subsequent years.
The current market conditions remain favourable, with property and specialty lines leading the way, Conduit said.
The company said it was well-positioned for continued growth in the hard market, with an experienced team, an efficient and scalable underwriting business model, and a legacy-free balance sheet with ample capacity. It holds an AM Best A- (Excellent) rating, demonstrating "very strong" balance sheet strength.
Conduit Re experienced growth across all segments during the first half of 2023, driven by new business, high retention, and underlying growth of renewal business. Rates showed improvement during this period, and the company's strategy resulted in increased client count and submission flow. The renewing portfolio served as a key foundation for profitability.
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