Financial Report Revealed by Conduit Holdings
Conduit Holdings, the parent company of Conduit Re, a multi-line Bermuda-based reinsurance business, has announced its interim results for the six months ended 30 June 2025. The period was marked by particularly severe natural catastrophes and significant risk losses for the industry, as reflected in the undiscounted combined ratio of 122.1% for this period.
Despite these challenges, Conduit Holdings has delivered 8.9% growth in gross premiums written for the six months ended 30 June 2025, reaching over $803 million. This growth was supported by double-digit growth in property and casualty lines and a strong investment portfolio, which delivered a 3.9% return and a 29.8% increase in net investment income.
However, elevated loss activity, including wildfires, severe storms, aviation claims, and significant reserve increases related to the Ukraine situation, has negatively impacted underwriting results. As a result, the comprehensive loss for the first six months of the year was $13.5 million, representing a 1.3% return on equity.
In response to these challenges, Conduit Holdings is strategically repositioning its portfolio. The company is focusing on increasing the share of excess of loss business to improve diversification and margins, enhancing portfolio resilience, and managing net exposure more effectively through broader outwards reinsurance protections, particularly against secondary perils.
This repositioning involves reducing certain quota share business and purchasing additional reinsurance, which is expected to result in lower premium growth and net reinsurance revenue in 2025. The process of rationalising quota share exposure is underway, leading to less premium in this area.
Neil Eckert, Chief Executive Officer, stated that the company is in a period of transition to position the business for more resilience. He emphasised that the strategic changes are focused on generating more stable and resilient returns for shareholders, and the company continues to target a mid-teens RoE across the cycle.
Despite experiencing a loss in the first half of 2025, Conduit has maintained its interim dividend in line with policy, signalling confidence in its financial foundation. The lower RoE outlook for 2025 is due to factors such as loss activity above normal expectations, development on reserves related to Ukraine, and the mentioned portfolio adjustments.
The company is also making targeted hires in underwriting, risk, and claims to strengthen its functional teams. Institutional investor interest, such as Third Avenue Value Fund, and the “hard market” environment provide opportunities, and Conduit is seen as well-positioned to navigate ongoing volatility.
In conclusion, Conduit Holdings is actively executing a strategic repositioning to build a more resilient and diversified portfolio while navigating a challenging claims environment, with a focus on delivering sustainable long-term returns despite near-term pressures on earnings and RoE. The company remains confident in its outlook and continues to target a mid-teens RoE across the cycle.
[1] Conduit Holdings Press Release, 2025 [2] Conduit Holdings Annual Report, 2024 [3] Conduit Holdings Q2 Earnings Call Transcript, 2025 [4] Third Avenue Value Fund Investor Presentation, 2025 [5] Reinsurance Magazine, 2025
- The interim results for Conduit Holdings, a reinsurance business, revealed a challenging claims environment, with elevated loss activity leading to a comprehensive loss of $13.5 million.
- As part of their strategic repositioning, Conduit Holdings is focusing on increasing the share of excess of loss business and purchasing additional reinsurance to improve diversification and margins, a move that is expected to result in lower premium growth and net reinsurance revenue in 2025.
- In response to the reinsurance industry's significant risk losses due to severe natural catastrophes, Conduit Holdings has maintained its interim dividend, signaling confidence in its financial foundation, despite experiencing a loss in the first half of 2025.
