Conduit Holdings, the ultimate parent company of Conduit Re, a multi-line Bermuda-based reinsurance business, today presents its trading update for the nine months ended 30 September 2025. Here are the details FYI;
Neil Eckert, Chief Executive Officer, commented: “We continue to move our business forward as we look to reposition certain parts of the portfolio to drive more consistent returns. Building on the improvements made during 2025, we plan to maintain focus on our net position going forward with more effective retrocession coverage for peak and secondary perils to reduce volatility. As part of this transition, we have made several key employee appointments and promotions within our underwriting and claims teams in recent months, and we are delighted that Stephen Postlewhite will join Conduit as Chief Underwriting Officer.
Our investment portfolio has grown to $2 billion and performed well with a 5.4% return through the first nine months of 2025. Gross premiums written growth has continued at a steady pace, with all segments reporting increases. While we note that the loss environment was more benign during the third quarter, we are reaffirming our mid single digit RoE guidance for 2025, recognising that there is still potential for late season hurricane activity and other loss events before the end of the year. We are also resuming the previously announced share buyback programme after taking a cautious approach through the peak of Atlantic hurricane season.
Lastly, I would like to welcome Nicholas Shott as an Independent Non-Executive Director on Conduit’s Board. Nicholas brings a wealth of experience in financial services that will be a valuable resource for Conduit as we continue to advance our strategic priorities.”
Key highlights
• Gross premiums written for the nine months ended 30 September 2025 of $1,039.1 million, an 8.5% increase over the nine months ended 30 September 2024, with growth achieved across all three segments
• Reinsurance revenue for the nine months ended 30 September 2025 of $662.4 million, a 12.6% increase over the nine months ended 30 September 2024
• Overall portfolio risk-adjusted rate change remains steady at (3)%, net of claims inflation, for premium written during the nine months ended 30 September 2025
• Following a highly active period for natural catastrophe and additional risk losses during the first half of 2025, the third quarter was a relatively benign loss period; additionally, our undiscounted ultimate loss estimates, net of ceded reinsurance and reinstatement premiums, for previously reported loss events remain stable
• High quality investment portfolio produced a return of 5.4% for the nine months ended 30 September 2025, driven by strong net investment income and a reduction in treasury yields
Outlook
• Market conditions remain adequate, although some rate softening has occurred and is expected to continue; we anticipate growth rates will moderate as we reposition certain parts of the portfolio towards a greater share of excess of loss reinsurance, particularly in our Property segment
• We have further strengthened the team and processes, and are pleased to welcome Stephen Postlewhite as Chief Underwriting Officer
• Continued growth in high quality and short duration investment portfolio supporting net investment income, subject to interest rate movements
• We are resuming the previously announced share buyback programme after taking a cautious approach through the peak of Atlantic hurricane season, with approval for up to $50 million in place until May 2026
Underwriting update
Premiums
Gross premiums written for the nine months ended 30 September:
During the nine months ended 30 September 2025, all three of our segments delivered growth in gross premiums written, driven by Casualty and Property. The growth rate in Specialty has slowed compared to recent periods as competition has increased and we have reduced in lines experiencing more pressure on pricing and terms.
Reinsurance revenue
Reinsurance revenue for the nine months ended 30 September:
Pricing
Despite some moderation, pricing levels and terms and conditions continued to be attractive in the nine months ended 30 September 2025, benefiting from multiple years of compounding rate increases. Certain Casualty lines continued to benefit from market correction driven by reserve deterioration and loss emergence, primarily from pre-2020 years. Market conditions across Property and Specialty segments reflected some increased competition following significant pricing increases over the past several years.
Conduit Re’s overall risk-adjusted rate change for the nine months ended 30 September 2025, net of claims inflation, was (3)% and by segment was:
Net reinsurance losses and loss related amounts
Following the highly active first six months of 2025 with natural catastrophe and risk losses for the industry, no event loss during the third quarter, individually or in the aggregate, had a material impact on Conduit Re. For the 2024 third quarter, undiscounted net losses related to natural catastrophe and large risk events were approximately $50 million. Our undiscounted ultimate loss estimates, net of ceded reinsurance and reinstatement premiums, for previously reported loss events remain stable.
Our loss and reserve estimates have been derived from a combination of reports and statements from brokers and cedants, modelled loss projections, pricing loss ratio expectations and reporting patterns, all supplemented with market data and assumptions. We continue to review these estimates as additional information becomes available.
Investments
In line with our stated strategy, we continue to maintain our relatively conservative approach to managing our invested assets with a strong emphasis on preserving capital and liquidity. Our strategy remains maintaining a short duration, highly-rated portfolio, with due consideration of the duration of our liabilities. Our investment portfolio does not hold any derivatives, equities or alternatives.
The investment return for the first nine months of 2025 was 5.4% driven by strong net investment income, in addition to net unrealised gains due to the reduction in treasury yields in the period. In the first nine months of 2024 the portfolio returned 4.9% with contributions from net investment income and a reduction in treasury yields impacting net unrealised gains.
The breakdown of the managed investment portfolio was as follows:
Key investment portfolio statistics for our fixed maturities and managed cash were:
Capital & dividends
During May 2025 the Conduit Board of Directors approved a share buyback programme of up to $50.0 million. Shares purchased under this programme amounted to $2.5 million for the nine months ended 30 September 2025.
During the third quarter of 2025, Conduit’s Board of Directors declared an interim dividend of $0.18 (£0.13273) per Common Share which was paid in pounds sterling on 11 September 2025 to shareholders of record on 15 August 2025, resulting in an aggregate payment of $29.7 million.
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