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Conduit Holdings Ltd on Wednesday reported a widened annual loss as the reinsurer lamented a year knocked sideways by extreme natural and man-made disasters, from Hurricane Ian to Russia’s attack on Ukraine. Conduit Holdings is the parent company of Conduit Re, a reinsurance business based in Bermuda. Shares were down 0.8% at 472.03 pence on Wednesday morning in London. In 2022, Conduit posted a total comprehensive loss of $89.7 million, widened from a loss of $42.0 million in 2021. Conduit made a small underwriting profit of $300,000, compared to a $7.0 million loss the year before, but its investment loss widened to $52.8 million from $3.1 million. Net revenue, meanwhile, rose sharply to $429.5 million from $190.6 million. Net insurance losses totalled $345.9 million, compared to $142.1 million the year prior. Conduit said this was due to ‘extreme’ natural catastrophe and man-made losses in the year for the industry. It added that Conduit Re’s estimate ultimate losses, net of reinsurance recoveries and reinstatement premiums, from Hurricane Ian in Florida and from the Ukraine crisis, remain in line with previous announcements. The company’s net loss ratio was 71.7% for 2022, compared with 73.2% for 2021. The accident year loss ratio for 2022, including the impact of foreign exchange revaluations, was 72.9% compared to 73.2% for 2021. The lower the loss ratio the better. It said that absent Hurricane Ian, its loss ratio would have been 62.9%. Absent the Ukraine war, it would have been 66.6% Net premiums written rose to $580.9 million from $346.2 million, while net premiums earnings more than doubled to $482.3 million from $194.2 million. Conduit said this reflected strong renewals and significant new business, as well as the continued recognition of quota share premiums from the prior year. Chief Executive Trevor Carvey said the ‘resilience’ of the company’s results in a year where the industry has experienced ‘extreme’ natural and man-made loss ‘validates’ its business model. Looking forward, Carvey said Conduit is ‘perfectly positioned’ to take advantage of the current ‘exceptional’ market conditions. Conduit declared a final dividend of $0.18, taking its full-year payout to $0.36, in-line with its dividend policy. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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