Conduit Re ups 1/1 renewal premium take by 70% on rate gain, surge in casualty
Bermuda-based property and casualty (P&C) and specialty reinsurer Conduit Re increased ultimate bound premiums in the January renewals by 70% from the prior year to $262.6 million on a strong surge into casualty and rate gains across segments, management said in a trading statement.
" Conduit Re is benefiting from some of the most attractive market conditions seen in a generation," Neil Eckert (pictured), group executive chairman, commented.
Eckert puts much of the success to the heavy cat loss record of recent years. "As a new market entrant with a strong capital base, an unencumbered balance sheet and a forward-looking approach to underwriting, we are well positioned to benefit from continued favourable market conditions," he said.
Conduit achieved a 5% net gain in rate which management put to "favourable improvement in both pricing and terms and conditions."
"We anticipate the momentum of the 1 January 2022 renewals to continue into the other key renewal dates throughout the year," management claimed.
Conduit claims to exit the January renewals with a portfolio to meet its internal targets.
That includes a massive 246% year on year gain for casualty premiums to double its portfolio weight to 33%. Property remains the largest segment at 41% of portfolio on a 37% year on year increase in premium. Specialty rose 36% year on year and now accounts for 26% of the portfolio.
Property took the strongest pricing gains up 8% year on year, ahead of the 4% gain in casualty and the 2% gain in specialty.
The business written at 1 January was approximately 64% quota share and approximately 36% excess of loss.
Officials concurred with the developing view to the January renewals, of "a tough stand-off between brokers and underwriters" which eventually delivered "continuing rate improvements and tightening of terms and conditions."
Conduit will publish its end-2021 financial statements on February 24.
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