Conduit Re on 1.1 retro: We simply buy what providers want to sell

Bermuda-based reinsurer  Conduit Re managed to secure retrocession backing at the 1.1 renewals, taking increased limit from an expanded panel, but admits to an open-minded opportunistic approach that put bargain shopping ahead of targeted purchases.

While Conduit had announced pre-session that it had "successfully secured our retrocession programme in line with our objectives," CEO Trevor Carney told an afternoon analyst call that what retro providers offer is what Conduit could be ready to buy.

“Our style on that is to sit down with the participants we have, find out what is driving their needs … and essentially put together a programme around what they want to sell,” Carney said. “No point in trying to force coverage.”

Conduit Re bought increased limits from its expanded retrocession panel, “important as we are growing the account.”

Retrocession costs were up, but not outside of the range set down in the group’s initial five-year plan, CEO Carney insists.

“In the main, we are pretty much within that range; we are at the upper end this year,” he told the call. “We are comfortable where we are – within our budgetary range, which is a good place to be.”

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