Bermudian-based Conduit Holdings Ltd, the parent company of new class 4 reinsurer Conduit Re, has reported gross premiums written of $82.6 million in the first quarter.

The company, part of the Class of 2020 start-ups on the island, reported estimated ultimate premiums written of $199.1 million in the quarter versus approximately $160 million announced in its January trading statement.

The company said: “Given the start-up nature of the business and the higher proportion of quota share business in our book, we are presenting both estimated ultimate and gross premiums written.

“In Q1, Conduit Re bound contracts with total expected ultimate premiums written of $199.1 million, marginally ahead of the business plan presented in our IPO prospectus.

“While we wrote more than plan, we also wrote a higher proportion of quota share business than plan and therefore there will be a lag in the accounting recognition of gross written and earned premiums.”

Conduit said its estimated loss from Winter Storm Uri is minimal with a net incurred loss of $6 million, including the impact of reinstatement premiums.

It said industry-leading investment managers have been appointed to manage its invested assets, and the company said it expects full deployment of its funds by June 30.

Conduit said it continued its buildout of underwriting portfolio and development of teams and technology in the quarter.

The company said the first quarter saw further momentum in both pricing and terms and conditions in most markets it is targeting, particularly at the primary level.

Conduit said it has initiated its own renewal year-on-year pricing change measures, which it intends to publish on a quarterly basis. For the first quarter, they were: property, up 12 per cent; casualty, up 14 per cent; specialty, up 8 per cent.

Neil Eckert, group executive chairman, said: “There appears to be rating discipline in primary markets that is not necessarily born out of capital constraints, but from the results the market has experienced over the last few years and the perceived need for fundamental improvement in pricing.

“We expect to see this trend continuing. We are well positioned, with our legacy-free balance sheet, to take advantage of these attractive market conditions.”

Trevor Carvey, group chief executive officer, said: “We continue to make good progress and remain on track across all operational areas of the Group. Our underwriting teams moved straight on from 1 January business and have continued to enjoy outstanding support and approval from both brokers and customers alike.

“The dual forces of rate and market sentiment are still pushing strongly in our classes, which further strengthens our opinion – expressed at the time of the IPO – that the rising tide would be lifting many boats across the industry.”