Conduit Re Reports 2026 Q3 Trading Update
Conduit Holdings, the ultimate parent company of Conduit Re, a Bermuda-based multi-line reinsurance business, presented its trading update for the nine months ended 30 September 2026.”
Neil Eckert, Chief Executive Officer, commented: “Throughout 2026, we have executed our underwriting strategy as planned, with continued progress in rebalancing the portfolio towards excess of loss, growing with core clients where pricing and margins remain adequate, and maintaining a robust retrocessional programme to manage underwriting volatility and reduce PMLs. As market conditions soften, we expect to carry this fundamental strategy into the upcoming renewal season.
“2026 has been marked by relatively benign insured losses from natural catastrophes, elevated frequency of Specialty losses and volatile investment markets. Our investment performance has been impacted by rising treasury yields and unrealised losses during the year, but our asset portfolio remains high quality and our investment income will benefit from higher reinvestment rates over time.
“We are pleased to have secured our leadership succession plans with the arrival of Mark Pickering as CFO on 30 November and Christian Dunleavy as CEO on 1 March 2027. These appointments, along with other executive hires over the last 18 months, position Conduit with a strong leadership team to build on our progress and take the business forward with confidence.”
The company said, “Key highlights
- “Gross premiums written have declined modestly as we continued to execute our underwriting strategy to rebalance the Property portfolio towards higher margin excess of loss business in a softening market, while Casualty premiums have increased 8.9% due to growth with preferred clients.
- “Reinsurance revenue of $673.2 million increased 1.6% over the first nine months of 2025.
- “Market conditions have softened as expected but pricing remains broadly adequate on the business we are targeting; overall portfolio risk-adjusted rate change of [6]% for the nine months ended 30 September 2026, net of claims inflation, reflects stable conditions in Casualty, balanced with softening prices in Property and Specialty.
- “The first nine months of 2026 was a relatively benign period for insured natural catastrophes but experienced elevated frequency of Specialty losses; additionally, our undiscounted ultimate loss estimates, net of ceded reinsurance and reinstatement premiums, for previously reported loss events remain stable.
- “Total managed investments and cash of $2.3 billion increased approximately 14% or $280 million compared to 30 September 2025, despite unrealised losses related to a significant increase in treasury yields during 2026.
- “As a result of unrealised losses, Conduit generated a net investment return of [0.4]% for the nine months ended 30 September 2026, while net investment income continued to grow and book yield on the portfolio increased to 4.3% at 30 September 2026.
Outlook
- “Record global reinsurance capital levels and strong recent returns have led to softening rates, particularly in Property and Specialty lines, which is expected to continue.
- “We will continue to manage our underwriting appetite and capital deployment carefully as market conditions continue to soften, focusing on preferred clients and classes with more stable conditions.
- “Rising market yields and reinvestment rates during the nine months ended 30 September 2026 are expected to support increasing investment income as cashflow is invested.
- “In keeping with a commitment to active capital management, the Board intends to continue to distribute excess capital to shareholders, in line with the company’s capital management strategy and applicable legal and regulatory requirements.”
