Conduit Re enjoys profitable January 2022 renewal interval
Conduit Reinsurance, the principal subsidiary of Conduit Holdings, has reported continued rate improvements and tightening business conditions in its core classes during the January 2022 renewal season.
The new entrant has seen an annual increase in estimated final premiums of approximately 70% to approximately $262.6 million (2021: $154.4 million) and a +5% annual net renewal rate change of the overall portfolio, which a positive improvement in both reflects prices and conditions. The reinsurer also maintained a hit rate of around 20%.
There were also improvements in Conduit Re’s quota share business and excess loss business, with the company underwriting 64% and 36% respectively. The breakdown of estimated final premiums written by class was: property, 41%; accident, 33%, and special classes, 26%, in line with management’s expectations.
“Conduit Re is benefiting from some of the most attractive market conditions in a generation,” said Neil Eckert, Group Executive Chairman. “Our second successful January renewal season reflects the fact that 2021 was the fourth costliest catastrophe year in the history of the reinsurance industry, with total catastrophe losses for the insurance market over the last five years now exceeding US$500 billion. As a new 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 favorable market conditions.”