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Conduit Holdings Ltd on Wednesday announced its maiden interim profit with increased revenue and written premiums, and said it expects continued growth. The Bermuda-based reinsurer in the half year ended June 30 swung to comprehensive income of $78.6 million, compared with a $39.4 million loss in the first half of 2022. Conduit said this represented a positive 9.1% return on equity, swinging from negative 4.0%. Gross premiums written increased 53% to $542.2 million from $354.5 million, while estimated ultimate premiums written increased 55% to $762.2 million from $492.2 million. Conduit also said net reinsurance revenue increased 63% to $242.8 million from 148.9 million, and the company swung to a total net investment return of $22.6 million from a loss of $50.0 million. Additionally, Conduit’s discounted combined ratio decreased 27% to 72.5% from 99.9%. ‘This has been a very successful half year for Conduit, and we are delivering on the goals we set out when we founded the business in 2020,’ commented Chief Executive Officer Trevor Carvey. ‘With no back years prior to 2021, we continue to look forward to deploying capital effectively, taking maximum advantage of current market conditions, which we see continuing for some time.’ Executive Chair Neil Eckert added: ‘The low combined ratio and highly attractive return on equity are testament to the effectiveness of our strategy.’ Conduit said market conditions ‘remain very favourable with property and specialty leading the way,’ and that it has ‘capacity for continued growth into a hard market.’ It said it has a ‘significant’ pipeline of approximately $755 million still to be realised, and a strong balance sheet with ‘ample capacity to support the planned growth and beyond.’ Eckert commented: ‘This is one of the hardest insurance markets in a generation and we are very well placed to capitalise on that with our efficient business model.’ Shares in Conduit Holdings were up 3.5% at 494.00 pence in London on Wednesday. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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