The parent company of the new reinsurer Conduit Re, Conduit Holdings Limited (CHL) has today released its trading statement for Q1 2021, ended 31 March 2021.
Among the key results issued by the group, it revealed that this quarter saw Conduit Re bind contracts with total expected ultimate premiums written of $199.1 million, marginally ahead of the business plan presented in its IPO prospectus. It was noted that Conduit Re also wrote a higher proportion of quota share business than plan, creating a lag in the accounting recognition of gross written and earned premiums.
The group saw gross written premiums (GWP) of $82.6 million, 54% of which is attributable to property, 19% to casualty and 27% to specialty.
The estimated loss from Winter Storm Uri was minimal with a net incurred loss of $6.0 million, including the impact of reinstatement premiums.
In pricing, Q1 2021 saw further momentum in both pricing and terms and conditions in most markets the group is targeting, particularly at the primary level. The company has initiated its own renewal year on year pricing change measures which it intends to publish on a quarterly basis. For Q1 2021 these were: Property +12%; Casualty +14%; Specialty +8%.
Commenting on the results, group executive chairman, Neil Eckert said: “There appears to be rating discipline in primary markets that is not necessarily born out of capital constraints, but from the results the market has experienced over the last few years and the perceived need for fundamental improvement in pricing. We expect to see this trend continuing. We are well-positioned, with our legacy-free balance sheet, to take advantage of these attractive market conditions."
Meanwhile, group CEO Trevor Carvey said the business continues to make good progress and remain on track across all operational areas of the group. He highlighted that the group’s underwriting teams have continued to enjoy outstanding support and approval from both brokers and customers alike.
“The dual forces of rate and market sentiment are still pushing strongly in our classes,” he said, “which further strengthens our opinion - expressed at the time of the IPO - that the rising tide would be lifting many boats across the industry."